Mac Donald's: Intercultural management

Résumé du document

MacDonald's is a multinational company that embraces more than 30,000 fast-food franchises under the brand name, in over 120 countries. It was founded in the United States of America after the crisis of 1929. In the 50s, Ray Kroc took over the company and began to develop it nationally. The corporation initiated global expansion in the 70s, and the brand spread to all the main Western countries. Nowadays, McDonald's is the most well known brand over the world (even more than Coca Cola), according to the Financial Times (1996).

This firm is a good example of the success of globalization, and in spite of a few cyclical crises, its expansion continues. The international nature of McDonald's is obvious. More than half its turnover is realized abroad and there are four times more restaurants that open in foreign countries than in USA each year.

The McDonald's brand took advantage of the globalization of American culture, of which it became one of the main symbols. Its performance added to its success. The standard model of this company (the American way) is easily exportable and implantable everywhere, in spite of cultural differences.

Nevertheless, it would be illusive to think that the McDonald's model could be absolutely universal. Its development in regions far from the American culture compels the firm to take into consideration some cultural specificity.

Extraits

[...] As the independent entrepreneur comes from the country in which he works, he can manage occurred conflicts easier. McDonald's culture can be classified as a masculine one according to Hofstede's criteria. Personal success and enterprising spirit are highlighted in the management. By wanting to associate franchisees in making corporate decisions, McDonald's shows that power distance is low but counterbalanced by high uncertainty avoidance. It is important to highlight that McDonald's can implant restaurants so easily because there is no contradiction between its catering culture and the pre-existent one in each country. [...]

[...] McDonald's organization : global and local a. McDonald's firm presentation In 2005, McDonald's turnover came up to $37 billion in which $20 billion are directly linked to restaurant sales. There are more than 30,000 restaurants on the 5 continents. Each geographical area has a specific hierarchical organization (North America, Europe, Asia, South America, etc.) Then, each area has national management. McDonald's France counts 1035 restaurants and had a billion turnover in 2004. The firm is implanted in many different countries that have diverse cultures and cooking habits. [...]

[...] This company adopts an individualistic management mode. Each employee has to increase efforts at work in order to become the “employee of the month” and gain a In collectivistic cultures (in Asia, for example), an employee can be frowned upon by the other employees for being employee of the month”. It is seen negatively to be better than others are. Conclusion McDonald's has an efficient way of adapting its restaurants to regional differences. Its organizational and management model take an important place in this success that favor local initiative. [...]

[...] McDonald's substitutes to these cultures but does not create new ones. It is a neutral system of implantation. At last, in many countries, clients that eat in McDonald's go there to find a little of the American culture. In China, India or South America (countries where American Dream is very popular), people do not go only to a fast-food restaurant; they mainly want to feel the American way of life. That is why McDonald's does not have to readapt itself entirely in each country. [...]

[...] Conflict management is not a real part of the McDonald's human resources management. Nevertheless, the company questioned itself in order to work on this sticking point. It is important to rehabilitate firm's image that has to value the employee mission. McDonald's company stays a firm model that is able to be present on all the five continents and to maintain a standardization principle at the same time. That enables this firm to have such a success and to become a symbol, adulated by ones and discredited by others. [...]