27 May 2022

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McDonalds Global Environment

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Academic level: College

Paper type: Research Paper

Words: 576

Pages: 2

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McDonald is a UK based company that employs over 97,000 people across the globe. The company has grown in bouts and limbs around the world and currently has its branches in every continent. It boasts of over 1,200 fully operational chapters across the globe, all offering quality products ( Osman, Johns and Lugosi, 2014) . In its desire to spread its brand popularity, it has continued to diverge into the opening of many more branches across the continents and employing an equally high number of people to keep in line with its operations. 

Global Environment for McDonald's 

With the realization of the very actual existence of fast food business that is sweeping across the globe, currently, many nations, favors a 24-hour economy, and McDonald is not left in this business. McDonald's had been able to fully explore such existing opportunities in many countries to continue its business endeavors. The very existence of the fast foods business and active consumers, even in upcoming nations, such as in Africa, is a clear indication that it has been able to meet much of its requirements ( McDonald and Thorpe, 2016) . 

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The company expanded into more extensive parts of Africa, Kenya to be precise has been met with some challenges. Unlike in the Home country, UK, the Kenyan economy is of third class standards. This means that the state has not fully embraced the 124-hour economy as is the case in the UK. Such an environment is, therefore, a huge challenge that the company has had to redesign its operations to meet such requirements. For instance, apart from the Kenyan capital city, Nairobi, this has bits of round the clock working for populations; other towns such as Kisumu and Mombasa are yet to roll out the 24-clock hour economy fully. 

Characteristics of Kenyan Environment that best suit the company for success 

Kenya has a rapid economic growth progress. Such an environment best suits the McDonalds for better success in its expansionary approach. The same need for the company to introduce a menu component that accommodates some of the elementary delicacies that are readily embraced by the local communities is necessary. The fast-growing economies are ready consumers for most products as such economies are yet to reach the point of producers. Save for fellow international competitors such as KFC; there is little competition from local fast foods companies. Such an environment with low business competition offers fodder for the growth of most businesses, as opposed to an environment that is thrust is cutthroat competition for the same set of clients ( Osman, Johns and Lugosi, 2014) . 

Barriers Exist in the New Global Country 

Kenya, as discussed is a growing economy. As such; there is an excellent love for indigenous and traditional meals at the expense of fast foods that are offered by McDonald's. Such a barrier into acceptance of the fast foods may, therefore, limit the extent to which the company can maximize its profits. 

Equally, the government may highly tax McDonald's, since it’s a new company coming to run its operation in a new country. Such massive taxes may be a discouragement to the company into expanding its investments in Kenya. 

Such barriers, however, can be overcome by the company embracing itself for the introduction of the local delicacies into is a menu. At the same time, McDonald's can employ local staffs to manage the clients and do a bit of explanation of its list to new clients and drive a bit of promotion. 

The company should be able to comply with the tax policies issued by the government. Tax violations have led to the expunging of multinational firms from foreign countries as it raises a question of exploitation of the host country. O this regard, it is only prudent for McDonald's to comply and pay its taxes thoroughly, though, high, it shall find a way to recovery in future operations. 

References 

McDonald, F., & Thorpe, R. (Eds.). (2016). Organizational strategy and technological adaptation to global change . Springer. 

Osman, H., Johns, N., & Lugosi, P. (2014). Commercial hospitality in destination experiences: McDonald's and tourists' consumption of space. Tourism Management , 42 , 238-247. 

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StudyBounty. (2023, September 15). McDonalds Global Environment.
https://studybounty.com/mcdonalds-global-environment-research-paper

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