Success of McDonalds Research Paper Example | Topics and Well Written Essays - 1250 words - 2

Success of McDonalds - Research Paper Example Impact of globalization and technology changes Globalization has a critical impact on McDonald’s activities and expansion all over the world. The company has affected the eating lifestyle of people all around the world. With the advent of globalization, the company became able to expand its market, thus, increasing its revenues and sales. The corporate model of the company and its expansion symbolizes globalization in a true manner. There is variation in menus that the company offers all over the world while keeping core values and brand of the company intact and constant (Watson, 2006). However, any change in the local and the global economy leads to changes in the financial performance of the company. The company has the aggressive international expansion, and with this, it is also very sensitive towards the economic slowdown in other nations. Due to its global presence, McDonald’s has to focus on individual problems of every nation’s economy in which it has it s business. For instance, in the US and Europe, the major markets of the company are facing economic slowdown due to which overall operations of the company are affected. Technological changes have a vital impact on the operations of the corporation worldwide. In order to enhance the experience of the customers and drive increased transactions, the company adheres to implementing advanced technologies for the efficiency of the labor: self-order kiosks, updating the point of sale system, and installing of hand-held order devices. All these technologies were not available in old franchises of the company of the earlier times. Technological changes are related to bringing in innovation in processes as well as products. For instance, with the advancement of the technology of touch screen and use of swipe cards for making payments, the company also announced in 2011 to make use of touchscreen technology and swipe card system at their restaurants in order to increase operations efficiency and gain knowledge about the food ordering habits of its customers (Gilbert, 2008). I/O model and resource-based model Industrial organization model studies the external perspective for developing a strategy of the company and earns above-average returns. The first step in the model is to study the industrial environment. The fast-food industry is a highly fragmented industry, and new markets in developing countries support the growth of the industry. Today, there is an increasing awareness towards health, and the healthy and organic food is driving attention of food lovers around the globe. McDonald’s emphasizes on three key areas: restaurant reimaging, service enhancements, and menu innovation. Thus, the organic and healthy food industry can be the attractive industry which has the potential for above-average returns.