McDonald’s Sociocultural Environment

Question 1 

McDonald's domestic business environment is in the United States. The United States is categorised under the Anglo culture clusters. The Anglo culture cluster includes countries such as Australia, New Zealand, Great Britain, Canada, South Africa and Ireland apart from the United States (Cooke & Lazzeretti, 2008). The main characteristics of the Anglo culture cluster are an emphasis on personal goal over collective bonds whereby one is recognised from individual merit. The United States is higher in Individualism, Doing Orientation and Power Distance among the Anglo cultures. The global business environment, for McDonald's, on the other hand, is China where McDonald's has found a considerable opportunity for growth. Chinese culture is in the Confucian Asian cluster category which includes other nations such as Singapore, Japan, Thailand, Hong Kong, South Korea and Taiwan (Cooke & Lazzeretti, 2008). The culture places emphasis on collective bonds and places a higher regard for family oriented and collective goals other than individual merit and achievements. China scores highest for being Future Oriented. 

Question 2 

The sociocultural parts of America about their attitudes towards McDonald's company are best explained through Hofstede's cultural dimensions. America may be categorised as a highly individualistic and high in power distance index. According to Hoftede, individuals from communities that bear high individualism tend to focus on their person and their immediate family members (Asamoah & Chovancová, 2016). The focus on self-effects marketing and consumer perceptions since the consumer would purchase a product based on the advantages that it would result in their person. Individualistic cultures are low context communication cultures with explicit verbal communication. Therefore, McDonald's sales and marketing may be based solely on what they offer the individual regarding price, quality and promotions. Also, the American culture may be defined as high in power distance index (PDI). According to Hofstede, societies with a high PDI tend to have individuals of high PDI working to ensure that they depict their status. The focus and recognition of individual state affect perceptions on McDonald's and the manner in which it markets. Essentially, McDonald's have to identify with its target market by appealing to their social status. 

On the other hand, the socio-cultural part of the global business environment in China affects McDonald's marketing and growth. China can be categorised as a collectivist community based on their cultural cluster that defines them as collectivist oriented and future-oriented as well. According to Hofstede, the collectivist societies such as China, consumers have the habit of seeking advice from other consumers before making a purchase (Asamoah & Chovancová, 2016). The implication is that companies have to be able to appeal to the collective cultural perceptions to achieve sales from the consumers. McDonald does, therefore, have to build trust with the consumers to gain their mutual recognition and acceptance. Hofstede also explains consumer behaviour regarding their perceptions of power distance. Power distance index in Chinese culture outplays in the form of social hierarchies that are accepted by the society. In China where there is a high power distance index, the entity in power has to display it to be accorded the proper respect. In such a hierarchical society it compels global brands such as McDonald's to understand their rightful place in the community to be able to appeal to the right target market. However, research also shows that societies with a high power distance index tend to be slow to adopt new products. It may thus explain the slow initial growth of McDonald's which launched in China in the 1970's. 

Question 3 

The American sociocultural environment is one that focuses on individual time efficiency which fueled the rise of fast foods. Contrary to the Chinese, fast foods were quickly accepted and spread throughout the country due to the convenience associated with the use of fast foods especially for individuals working without much time for a break. Consequently, companies such as McDonald's have been concentrated in areas of low income in the United States (Azetsop & Joy, 2013). However, the concerns for individual health and social status are universal to China and United States. Similar to China, the American individual would want their purchase to depict the social status to which they identify. However, for China food is inherent to aspects of culture deemed more critical, such as religion and family values (Yu & Zhang, 2009). Different from the American culture the place of fast food is similar to that of other foods and should be inherent to culture. While there is an acceptance of Western culture, the Chinese consumer will also want to identify with their local tastes. 

Question 4 

The sociocultural environments affect McDonald's business in several ways. In the domestic business environment in America, the necessity of fast foods has led to the emergence of several fast food chains in the country. In fact, fast foods have become a convenient snack that sells most during social occasions such as sports events. Most of the working class also purchase more fast foods due to the time and effort convenience that it entails (Azetsop & Joy, 2013). However, middle and upper-class consumers are do not purchase much of the fast foods due to health concerns. Furthermore, McDonald's outlets are more concentrated in low-income neighbourhoods where individuals take long shifts at work, contrary to high-end neighbourhoods where the individuals tend to have time to prepare actual meals. The Chinese culture, on the other hand, has seen a gradual change over time and the introduction of McDonald's and other global brands have evolved the perception of American culture and its place in the Chinese society (Yu & Zhang, 2009). As more youngsters are adopting Western eating habits, the influences of local traditions towards food continue to prevail. Therefore McDonald's has to adapt to some of the domestic eating habits through the introduction of different menus consisting of locally accepted diets such as the Chinese pancakes. Nonetheless, there is a need for McDonald's to capture the interests of the adults as well as the young Chinese consumers. 

References 

Cooke, P., & Lazzeretti, L. (2008). Creative cities, cultural clusters and local economic development . Cheltenham, Glos, UK: Edward Elgar. 

Azétsop, J., & Joy, T. R. (2013). Access to nutritious food, socioeconomic individualism and public health ethics in the USA: a common good approach. Philosophy, Ethics, and Humanities in Medicine , 8 (1), 16. 

Yu, C., & Zhang, T. (2009). American Fast Food in Chinese Market: A Cross-Culture Perspective: The Case of KFC and McDonald's. 

Asamoah, E. S., & Chovancová, M. (2016). The Effect of Cultural Orientation on the Purchasing Decisions of Consumers: a Cross Cultural Comparative Study. International Journal of Contemporary Management , 2016 (Numer 15 (1)), 7-32.