Question

the impact of corporate decisions on a local versus a global perspective. Give two actual example like McDonalds, volkswagen and choose possible areas of thought which are Environment, Finance, Employment, Infrastructure, Taxation

Answer 1

The impact of corporate decisions on a local versus a global perspective can be seen as localization in global markets is important as the strategies which are successful in home markets cannot ensure success in foreign markets too. The reasons can be due to differences in cultures, the available infrastructure, the financial markets, the employment sources and taxation reasons.

McDonald's has its product strategy different for India markets as it does not sells beefs and pork products in India and takes into consideration the culture of vegetarian food by innovating its menu. Similarly in China it serves the burger with local flavors. In South African market it follows the operational strategy by opening more drive thru and having stores in places of shopping and activity as there are more chances of sales. It has to adapt to the local market as per the customer preferences and available resources for business expansion. They offer employment to local population and train them as per the strategy and product range for local markets. The employment policies need to be as per the local government rules and policies.

Another example is of Walmart which has not been able to successfully replicate its model and product mix in Asian markets like India and China through retail channels. In China, it faces problem of supply chain infrastructure outside the main cities and business hubs. Lots of investment and efforts is required for expansion in the country to achieve the required scale of business as expected considering the market size of the country. The local customer preferences for products needs to be considered as customized products are preferred. The financial framework of the country also poses a challenge in the expansion. Considering its vast scale and size of business, it is difficult to make so many changes which are required to achieve the profitability in the markets and to deal with competition for long term success similar to home markets.