About McDonald’s
Discuss about the Cross Cultural Etiquette and Communication.
The “advent of globalization and the recent developments in the fields of technology as well as the innovations has drastically modified the way the various business organizations and the companies in the present times transact their business”(Greco, Baldissin and Nonino 2013). A pertinent example of this changing trend is the expansion of the majority of the business organizations “in the other nations of the world” (Greco, Baldissin and Nonino 2013). It is “significant to note that the various business organizations expand into the other nations of the world” not only to enhance the net revenue earned by them through increasing the customer base in a significant manner but also to “bring about the overall growth as well as the development of their business organization” (Abdullah, Hanafiah and Hashim 2013). However, in this “particular context it is seen that the various business organizations expanding into the other nations need to take into effective consideration the cultural as well as the social factors” of that particular nation (Abdullah, Hanafiah and Hashim 2013). Many scholars are of the opinion that the primary factors which affects the business process of the business organizations expanding into the other nations of the world is the cultural factor (Abdullah, Hanafiah and Hashim 2013). The culture of a particular nation not only determines the way the people of that particular are likely to behavior but also they are likely to conduct or transact their business (Selmier and Oh 2012). Furthermore, the culture of a particular nation also determines the style of negotiation which the various managers of the business organizations trying to expand into that particular nation need to take into effective consideration for the process of their business (Greco, Baldissin and Nonino 2013). This report will discuss about the differences in the negotiation as well as “decision making styles” of the American and the Middle East business organizations through the lens of the company McDonald’s.
The company McDonald’s, founded by “Richard and Maurice McDonald” in 1940 “is one of the largest fast food organizations of the world” (Mcdonalds.com. 2018). The business organization under discussion here is an “American fast food company” and the first outlet of the organization was opened at “San Bernardino, California, United States” (Mcdonalds.com. 2018). However, the real transformation of the business organization under discussion here began with the taking over the reins of the organization by Ray Kroc in 1955 (Mcdonalds.com. 2018). Many people are of the opinion that the recent success which the organization under discussion has been able to gain is the result of the innovative strategies adopted by Ray Kroc (Radu and Florea 2014). It is a “reflection of this particular fact that the business organization under discussion here is the largest fast food company of the world in terms of the net revenue generated by it on yearly basis” (Radu and Florea 2014). The organization under discussion here has a customer base of more 69 millions from the different nations of the world and as per a 2016 statistics has more than 36,900 outlets in the different nations of the world (Mcdonalds.com. 2018). It is significant to note that the organization is the 2nd largest private recruiter of the world and currently has a workforce of more than “1.5 million” in different parts of the world (Mcdonalds.com. 2018). The organization under discussion here offers a wide range of products to the customers from the different parts of the world like “hamburgers, various types of chicken, chicken sandwiches, French fries, soft drinks, breakfast items, and desserts” (Mcdonalds.com. 2018). In addition to these, the organization under discussion here offers vegetarian and other kinds of food items to the customers from the different nations of the world as per their eating habits (Radu and Florea 2014).
The Process of Negotiation in the Business World
The business organization under discussion here operates under different names in the different nations of the world (Radu and Florea 2014). For example, it uses the name of McArabia for the conduct of business in the Middle East countries, whereas it uses the name of “McOriental in Spain, France and Holland, the McTurco in Turkey, Greek Mac in Greece and Cyprus and as the McKebab in Israel” (McArabia 2018). The McArabia branch of the organization was started in the year 2001 and the organization offers a wide range of food products to the customers which are in synchronization with the tastes as well as the eating habits of the customers (McArabia 2018). It is a reflection of this particular fact that various kinds of Chicken kebabs and kebab sandwiches are the most popular food items offered by the organization in these nations (McArabia 2018). Therefore, in a way it can be said that the food products offered by the business organization under discussion here are totally in synchronization with the cultural as well as the religious background of the people of these nations (Radu and Florea 2014).
The process of negotiation has “emerged as one of the most important ones in the present day business world and it is a reflection of this particular fact that the various business organizations take the help of this particular method” to resolve the differences which arise among them during the course of their business dealings (Zikmund et al. 2013). Many scholars are of the opinion that the process of negotiation “is aimed to resolve points of difference, to gain advantage for an individual or collective, or to craft outcomes to satisfy various interests” (Zikmund et al. 2013). In the “contemporary business world” it is often seen that the process of negotiation is conducted by first putting forward an intended solution or a position and then making concessions or modifying the original proposal placed as per the consent of every present at the negotiation (Greco, Baldissin and Nonino 2013). Furthermore, in the “present day business world it is generally seen that the degree to which the negotiating parties trust each other to implement the negotiated solution is a major factor in determining whether negotiations are successful” (Greco, Baldissin and Nonino 2013). The major “cause of the various conflicts or misunderstandings which have become a part of the various business organizations in the present times” is the difference in the culture of the different individuals who form the workforce of the organization (Greco, Baldissin and Nonino 2013).
The Culture and Conflict in Middle Eastern Countries
In the contemporary business world it is seen that various organizations use diverse kinds of methods for the process of negotiation with the other entities who are involved in the process (Abdullah, Hanafiah and Hashim 2013). Some business organization follows the simple method of having a face to face meeting with the individuals who are involved in the conflict whereas there are other organizations which follows a complex process for the resolution of the conflicts (Abdullah, Hanafiah and Hashim 2013). However, it is generally seen that the majority of the business organizations take the help of these commonly used steps for the process of negotiation, namely, “preparation, discussion, clarification of goals, negotiate towards a win-win outcome, agreement and implementation of a course of action” (Zikmund et al. 2013). The business organization under consideration here also takes the help of these stages for the process of negotiation with the other business organizations operational in the other nations of the world (Greco, Baldissin and Nonino 2013).
The organization McDonald’s, for instance, had to face a considerable amount of backlash in the various countries of the Middle East (Ribbink and Grimm 2014). One of the most common among them is the method which the suppliers related to McDonald’s used to kill the chickens, which were to used to prepare the food that would be served to the customers (ArabianBusiness.com. 2018). Another major issue which the organization under discussion here faced in the nations of Middle East was its over dependence on its American menu or more appropriately on the various sandwiches and the hamburgers which had made it famous among the customers (ArabianBusiness.com. 2018). Many experts are of the opinion that these conflicts are a result of the difference in the culture of the nation of USA whose culture the organization McDonald’s mainly follows for the conduct of its business in the different nations of the world and the cultures of the countries belonging to the Middle East (Ribbink and Grimm 2014).
An analysis of the “culture of the nation of the United States of America and the cultures of the countries belonging to the Middle East” would reveal the following facts-
Geert Hofstede is of the opinion that “culture is defined as the collective mental programming of the human mind which distinguishes one group of people from another” (Hofstede Insights. 2018). Thus, in the present times it is seen that with the emergence of the concept of globalization and with the “expansion of the business of the various business organizations in the other nations of the world” the factor of culture has come to play a very significant role within the framework of their business world. The country, the “United States of America (USA)”, has a very liberal as well as multicultural society and this particular factor wields a considerable amount of influence on the contemporary business market of the nation as well. As “analysis of the nation of Hofstede’s model of culture” would reveal the following facts-
Culture of United States of America
The above “figure clearly indicates that the people of the nation of USA are very individualistic and they do not like to indulge in group activities or collective work” (Hofstede Insights. 2018). Furthermore, the high masculinity index of the nation indicates that “the people of the nation will be highly motivated by the concepts of success, achievement and competition” (Hofstede Insights. 2018). The “low score of the power distance” index indicates that the people of the nation do not believe in the concept of inequality and that power is distributed equally in the society (Hofstede Insights. 2018). The “average score on the uncertainty avoidance index indicates that the people of the nation are not willing to try out new ideas as well as innovations” (Hofstede Insights. 2018). However, this does not mean that they do not like the take the help of the recent innovations and technology (Hofstede Insights. 2018). Furthermore, the low score of the “long term orientation” section indicates that the people of the nation like to maintain a very minimum amount of contact with their past (Hofstede Insights. 2018). It is a reflection of this particular fact that the “American businesses measure their performance on a short-term basis, with profit and loss statements being issued on a quarterly basis” (Heavin and Keet 2013). The high score on the indulgence section is an indicative of the fact that the people of the nation generally like to control their impulses as well as desires during the course of their business dealings (Hofstede Insights. 2018).
The culture of the Middle East countries, on the other hand, is drastically different from the nation of USA (Abdullah, Hanafiah and Hashim 2013). Many scholars are of the opinion that the conservative culture of the Middle East countries is a reflection of the conservative norms of the religion which they practice (Abdullah, Hanafiah and Hashim 2013). The below given figure will give an overview of the cultural characteristics of the Middle East countries on the Hofstede’s Cultural Model-
The above “figure clearly indicates that the people of these nations score very low on the individualism index which means that the people of these like to indulge in group as well as collective work” rather than doing a particular job on their job (Hofstede Insights. 2018). Furthermore, “the high score on the masculinity index” indicates that the people belonging to these nations will be highly motivated by the concept of achievement, success and competition (Hofstede Insights. 2018). The very high score on the power distance section, on the other hand, can be seen as a reflection of the fact that the societies of these nations are unequally divided in terms of power division and some people of the nation command more power in comparison to others (Hofstede Insights. 2018). The high score on the uncertainty avoidance quotient is an indicative of the fact that the people of these nations have a high tendency to avoid uncertainty (Hofstede Insights. 2018). It is a reflection of this particular fact that the people of these nations do not generally like to take the help of the “recent innovations as well as technology” with the inherent objective to avoid uncertainty (Abdullah, Hanafiah and Hashim 2013). The low score on the “long term orientation” index indicates that the people of the nation are very attached to their past and the success or the failure of a particular business venture depends not on their recent performances in the past one or years but on their entire business career (Abdullah, Hanafiah and Hashim 2013). Finally, the average score on the indulgence section is an indicative of the fact that the people of these nations do not feel the need to control their desires or impulses during the course of the conduct of business (Hofstede Insights. 2018).
Conclusion
Decision making is “another process which has gained a considerable amount of significance in the recent times and it is a reflection of this particular fact that the various business organizations of the present times” take the help of this particular process to take into effective consideration the different choices which are available to them and to select the course of action which is likely to benefit the organization in a significant manner (Zikmund et al. 2013). The business organization under consideration here, namely, McDonald’s also takes the help of this particular for the process of selecting the best course of action from the numerous options available to them (Zikmund et al. 2013). It is significant to note that the organization under consideration here in the recent times has evolved its own unique style of decision making through which it selects the course of action which is best suited to their business (Namani and Qehaja 2012). The decision making process used by the organization consists of seven different stages, namely, identification of the decision, the gathering of relevant information, identification of the alternatives, comparing the evidences, selecting the best alternative, action and finally review (Zikmund et al. 2013).
The negotiation as well as the “decision making process” which the business organization “McDonald’s” uses for the operation of its business in the various nations belonging to the Middle East are completely based on the cultural differences between the nation USA and the nations belonging to the Middle East (Adam and Shirako 2013). The above given analyses of the nation of USA and the countries belonging to the Middle East clearly indicates that the cultures of these nations are drastically different from each and thus the method of transacting their business would also be very different (Abdullah, Hanafiah and Hashim 2013). As already mentioned that culture wields a significant influence on the business of a particular business organization and this difference in the cultural environment of the nations in which McDonald’s is operational is likely to wield a significant impact not only on the business process of the concerned business organization but also on the way the organization needs to amend its negotiation, “decision making process” and other important aspects related to the organization in a significant manner (Abdullah, Hanafiah and Hashim 2013). It is a reflection of this particular fact that the mode or the style which the organization McDonald’s has taken for its operation in the various countries belonging to the Middle East is drastically different from the style or the method which “it is following in the nation of the United States of America” (Namani and Qehaja 2012). Therefore, the various business organizations as well as the managers related to them need to take these factors into effective consideration not only for the process of their business operations but also for the “decision making process” and also the negotiation process (Namani and Qehaja 2012).
Conclusion
To conclude, negotiation as well as “decision making process has emerged as one of the most important process related to the business world and therefore the various business organizations as well as the companies” of the present times need to take these particular factor into effective consideration for the process of their business. It is significant to note that there are various factors which affect the negotiation as well as the “decision making process” which a particular business organization while operating its business in the other nations of the world. However, the most significant factor which affects the negotiation as well as the “decision making process” adopted by a particular business organization operating in foreign country is the factor of culture. It is “significant to note that the cultural factor plays a significant role in the international business world and it is a reflection of this particular the various business organizations need to take this particular factor” effective consideration for the conduct of their international business. Therefore, it can be said that the negotiation as well as the “decision making process” of the business organization “McDonald’s” in the countries belonging to the region of Middle East is influenced by the cultural differences between the country of USA to which the organization originally belongs and the nations of the Middle East in which it has expanded following the path of globalization. It is significant too note that apart from the cultural factor the method of negotiation process as well as the “decision making process” is also affected by the by the means for which it is being used and also the scenario in which it is being used. Therefore, it can be said that the method of negotiation as well as “decision making process” used by McDonald’s would have been ineffective had this particular method been used in any other nation.
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