MKT 505 WEEK 10 DISCUSSION - 85617

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Discussion board 10-1. Organizational Development. Please respond to the following: 1. In your opinion, what is the major factor that has lead to the establishment of McDonald’s as an international company? 2. Name a typical global marketing activity that a global company should centralize at its headquarters. Provide a rationale to support your determination. 4. Name a typical activity that a global company should delegate to its national or regional subsidiaries. Provide a rationale to support your determination. Discussion board 10-2. McDonald’s Social Responsibility. Please respond to the following: 1. In your opinion, evaluate McDonald’s level of responsiveness to social responsibility concerns. 2. Provide an example from your observation of another fast food company and its level of social responsibility. Compare and contrast the level of social responsibility of that company and McDonald’s. 3. Analyze the fundamental ways in which the ideological, societal, and operational dimensions afford different perspectives on corporate social responsibility. 4. Suggest a new tactic that McDonald’s could use to increase the level of responsiveness to consumers’ concerns about social responsibility. NOTE: THREE DIFFERENT ANSWERS POSTED FOR THE PRICE OF ONE CHOOSE ONE
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DISCUSSION 1

 

1. In your opinion, what is the major factor that has lead to the establishment of McDonald’s as an international company?

MCDonald’s established key core competencies which provided access to a wide variety of markets.  In additional, the company made a significant contribution to the perceived customer benefits. McDonald’s found a structure that enables the company to respond to relevant market environment differences. In global marketing there isn’t a single best structure that will fit all companies. The structure is flat and simple. McDonald’s organizational design integrates the international division and geographical structures. McDonald’s U.S. has five geographical operating divisions, and McDonald’s International has four.

 

2. Name a typical global marketing activity that a global company should centralize at its headquarters. Provide a rationale to support your determination.

To respond to the opportunities and threats in the global marketing environment, organizational leaders must develop a global vision and strategy. Leaders must also be able to communicate that vision throughout the organization and build core competencies on a worldwide basis. The goal in organizing for global marketing is to find a structure that enables the company to respond to relevant market environment differences while ensuring the diffusion of corporate knowledge and experience from national markets throughout the entire corporate system. Insufficient centralization can deny business units the economies of scale or coordinated strategies needed to win global customers or outperform rivals.

 

All global companies need to establish and international division staff to coordinate and direct activities of that organizations sector. Product or business, function, area, and customer know-how are simultaneously focused on the organization’s worldwide marketing objectives. Understand the four factors that can lead to that structure:

§  Top management’s commitment to global operations has increased enough to justify the position

§  Complexity of international operations requires a single organizational unity

§  The firm has recognized the need for internal specialists to deal with the demands of global operations

§  Management recognizes the importance of proactively scanning the global horizon for opportunities and threats

In organizing for the global marketing effort, the goal is to create a structure that enables the company to respond to significant differences in international market environments and to extend valuable corporate knowledge. Alternatives include an international division structure, regional management centers, geographical structure, regional or worldwide product division structure, and the matrix organization. Whichever form of organization is chosen, balance between autonomy and integration must be established. Many companies are adopting the organizational principle of lean production that was pioneered by Japanese automakers.

Using the mission statement or similar document as a reference and guide, members of each operating unit must address their immediate responsibilities and at the same time cooperate with functional, product, and country experts in different locations.

 Global marketing means exposure to different languages and cultures.  In addition, global marketing involves skillful applications of specific concepts, insights, and strategies.

 

3. Name a typical activity that a global company should delegate to its national or regional subsidiaries. Provide a rationale to support your determination.

Subsidiaries need autonomy to adapt to their local environment, but the business as a whole needs integration to implement a global strategy. Global marketing activities expose the company to greater environmental diversity than domestic marketing activities. A geocentric orientation requires that control of some subsidiary operations be shifted to headquarters. Large companies may have global marketing product managers with staff authority. A primary task for a person in this position is to ensure that competence developed in individual country markets is leveraged worldwide.

A geographically dispersed company cannot limit its knowledge to product, function, and the home territory.

§  Regional management can offer a company advantages:

§  Many regional managers agree that an on-the-scene regional management unit makes sense where there is a real need for coordinated, pan-regional decision making.

§  Coordinated regional planning and control are becoming necessary as the national subsidiary continues to lose its relevance as an independent operating unit.  

§  Regional management can probably achieve the best balance of geographical, product, and functional considerations required to implement corporate objectives effectively.

§  By shifting operations and decision making to the region, the company is better able to maintain an insider advantage.

 

 

RESOURCES:

McDonalds. (2010 - 2014). McDonald's Values. Retrieved December 4, 2014, from About McDonald's: http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html

 Keegan, W. J., & Green, M. C. (2013). Global Marketing (7th ed.). Upper Saddle River, NJ: Prentice Hall / Pearson.

Campbell, A. (2011, June). To centralize or not to centralize? Retrieved December 4, 2014, from Insights & Publications : http://www.mckinsey.com/insights/organization/to_centralize_or_not_to_centralize

McDonalds. (2010 - 2014). McDonald's Values. Retrieved December 4, 2014, from About McDonald's: http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html

OR

1. In your opinion, what is the major factor that has lead to the establishment of McDonald’s as an international company?

A major factor that has lead to the establishment of McDonald's as an international company as with many companies that are global, is that they achieved balance between autonomy and integration. They have consistently embraced the local customes and environment while also integrating a consitent global strategy that works from country to country. 

2. Name a typical global marketing activity that a g

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