Essay
Unit 39 D1
- Institution
- Pearson (PEARSON)
Essay of 4 pages for the course Unit 39 - International Business at PEARSON (Unit 39 D1)
[Show more]
2 reviews
By: samkf18 • 3 year ago
By: xavier3450 • 6 year ago
Content preview
IntroductionIn this task I am going to evaluate the potential problems faced by businesses that trade
internationally when entering new markets.
There are many problems that a business could face when trading internationally into a new
market that includes culture, religion, competition and Law.
McDonald’s have impressively transformed their empire from a few branches in the United
States to a global super brand, which is known by millions where they have stores in many
different markets. McDonald’s is known for great food, services and reasonable price.
McDonald’s branding system is phenomenal as it brings in a lot of customer due to their
branding power, it already bring in millions of customers, however there are problems faced
when entering new markets and I’ll be explaining before and illustrate how McDonald’s
overcome the problems faced.
Culture
Culture has its own uniqueness in every part of the country across the world. Culture comes
with different values and tradition and this has a huge impact of where people live in and it
must be respected. Businesses always want to go to different markets to establish their brand
and presence to increase their value and revenue, however there are some problems faced
when entering a new market and one example is culture. Culture is something which is highly
important to the people in different societies. Culture is not the same in range of different
countries, every country have their own unique culture with different sets of values, people,
tradition and food. Businesses will have to do their research and marketing skills to
understand the culture of a certain country and apply their business operation to that country.
There are more than 193 countries across the world, and each country has their own culture
or more than one. A business like McDonald’s cannot go blindly into a new market and
operate their products and services without doing their homework about the culture,
demographic, location, population and the people. The problem for McDonald’s can be a
massive backlash due to not doing the research of the country this can lead to a miserable
failure in setting up. Culture is a big factor which needs to be considered as people live for
the culture, and people are the biggest stakeholders or you could say assets to the business as
they’re using their money to purchase your products and services.
I’ll be explaining an example of how McDonald’s faced a problem and overcome it.
McDonald’s is known for their beef and chicken burgers, by the names of Big Mac and
Chicken o Fillet. This was a cultural/religion problem for McDonald’s when they’ve entered
the Indian market because Hinduism makes up 79.8% of the Indian population, while Islam,
Christianity and Sikhism makes up the rest of the population. In Hinduism, beef or pork is
forbidden in the religion because they find the cow sacred in their religion. That is around
800 million Indians who are restricted from eating any animal related food and this will have
a great impact on McDonald’s due to the great number of vegetarians. In general, majority of
the Indian diets are consisting of vegetarian foods. However McDonald’s faced this problem
and overcome it by offering a vegetarian themed menu for the Indian market. Instead of
ground beef and pork patties, the McDonald’s Menu in India features Indian burgers that are
100 percent vegetarian. The examples of the vegetarian products which McDonald’s offer in
India are Mcveggie, McAloo tika, VegMcCurry pan and many other vegetarian foods. Due to
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Businesslevel3provisions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.48. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now