¶ … global strategy ought to be to manage the extensive dissimilarities that come about at the borders of markets. Considering this, Professor Pankaj Ghemawat offers a new strategic framework for taking into account the challenges of globalization. The AAA global framework consists of three effective strategic approaches, which include adaptation, aggregation and arbitrage (IESE, 2007). Adaptation is the approach employed by firms when they try to increase proceeds and market share by taking full advantage of local significance. Aggregation defines the endeavor to convey economies of scale by generating regional or at times international operations. Lastly, arbitrage is when corporations make the most of differences between nationwide or local markets, every so often by finding dissimilar fragments of the supply chain in different places (IESE, 2007). The purpose of this paper is to discuss how McDonald's Corporation have made use of this theory in their quest of their business in India, a country where one out every five individuals are vegetarians and cow is revered as a sacred animal.
Adaptation
Adaptation encompasses generating international value by altering one or more components of a corporation's offer to meet local preferences and wants. More so, this is most likely the most extensively employed global strategy (Ghemawat, 2007). adaptation is vital, at times even inevitable for practically all products in all regions of the world (de Kluyver, 2010)....
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