Multinational Companies

Multinational Companies

        It takes a lot of work to make organizations successful. There are a lot of rules and regulations to follow. They have to think about what type of business are they and what strategies are they going to use to obtain their goal. They have to consider their employees, make budgets, create financial reports, and fit into the community around them. All these things are important and become even more complicated when that organization is a multinational organization. Running a multinational organization is a lot more complicated than running an organization that is solely based in their home country. These organizations have to consider the cultural differences in the countries they want to do business with. Every country’s government, values, and norms of behavior are different. To even begin to succeed in another country the organization is going to have to know how to adapt and respect these cultural differences. Organizations will also have to deal with transfer prices and how different countries have different legal issues. Another obstacle that multinational organizations face is exchange rates. Every country doesn’t use the same type of currency. To operate in another country they need to know how much their money is worth in that country’s currency. These are just three management control problems that multinational organizations face. However, if they can handle these issues correctly they can receive great success for their company.

        McDonald’s is a very popular fast food franchise. You can find one in almost any city. You can also find them in a lot of other countries. McDonald’s has seen great success in these foreign countries. The biggest reason is that they adapt their menu to the culture of the country they are in. Food is a major source of cultural difference between countries. Some countries don’t eat specific things due to religious purpose. They have a specific style of cuisine that they eat. To gain entry into different countries McDonald’s and any other business that deals with food, have to cater to those countries preference in food. A majority of what’s on the menu at McDonald’s in America would not be accepted by the population of India. In India they do not eat pork or beef due to their religion. Beef is a big part of McDonald’s menu since there are various types of hamburger that they make. To be able to cater to the preferred tastes of the native in India McDonald’s has committed to a menu that contains no beef or pork. They created the Mahraja Mac, which is a chicken burger, to replace their normal Big Mac. They also have an item on their menu called the McCurry Pan which is a mix of curried vegetables. In Japan they have shrimp burgers and a teriyaki burger. One of the reasons that McDonald’s is such a successful franchise is that they take into considerations of cultural differences and that they try to respect those differences.