International business assessment and analytical skills demonstration

McDonald's the largest fast-food chain across the globe. This is through spanning of approximately 30,000 restaurants across the globe with the aim of maximizing its revenues and profits at the end of the financial year. McDonald's Organization aims at being the customers' favourite place and way to eat and drink as its mission to meet the needs and preferences of its consumers. The pattern of internationalisation of McDonald's Company proves to be similar in the countries of operation because of the tendency of the organization to establish contracts of areas of development with local businesspersons.

How does international business achieve its internationalisation objectives in the contemporary context?

Brief overview of the organisation and its mission/objectives related to international business

McDonalds Company is one of the most effective and explosive business entities across the 21st century (Company Spotlight, 2005). The organization focuses on the provision of quality products and services to the consumers in the context of fast food restaurants. McDonald's the largest fast-food chain across the globe. This is through spanning of approximately 30,000 restaurants across the globe with the aim of maximizing its revenues and profits at the end of the financial year. The organization focuses on the provision of products through its menu and diverse restaurants such as Chicken, Big Macs, McNuggets, Quarter Pounders, and Filet-O-Fish. In the United States, the organization has approximately 13,700 restaurants out of which 2,100 are under the operation and management of the concept of corporations. The remaining entities or outlets are operated as franchises (McDonald's Corporation, 2008).

McDonald's Organization aims at being the customers' favourite place and way to eat and drink as its mission to meet the needs and preferences of its consumers. The international operations of the business entity depend on the 'plan to win' strategy thus essential in the maximization of the goals and objectives of the organization within the financial year. 'Plan to Win' strategy focuses on five critical factors: exceptional customers (people), products, promotion, price, and place. The main objective of the organization in the global market is to continue with the improvement of the operations and enhancement of the consumers' experience.

McDonald's focuses on the integration and incorporation of various values with the aim of improving its services and products to the consumers (McDonald's Corporation Case Study, 2012). One of the essential values in the operation of the organization is placement of the consumer at the core of all its activities. It is the duty of the organization to note that consumers are the reasons for their existence within the market and industry. This makes it vital for McDonald's to demonstrate appreciation to the consumers through the provision of high quality and superior products in relation to clean, welcoming environment, and efficiency in the service delivery. The second value for the organization is the commitment to the people. This is through provision of opportunities, development of talents, leaders, and motivation of the achievement. The organization is committed to the development and implementation of a team of diverse experiences and background for the achievement of the goals and objectives within the market and industry of operation.

McDonald's Company also promotes the belief in the systems of the organization with reference to the business model. The business model of the organization focuses on the promotion of an effective and efficient balance in relation to suppliers, employees, and operators. In order to maximize its operations, McDonalds also focuses on the execution of its business interactions in an ethical means thus reflection of honesty, loyalty, and transparent interactions with stakeholders and shareholders. The organization is also committed to giving back to the community thus the development of image and reputation. This is through working with the consumers in the development of better communities. Other values include growth of the business profitably and consistent strive towards improvement of the services and systems of the organization (McDonald's Corporation SWOT Analysis, 2012).

Analysis of the internationalisation process of the organisation and its impacts on the international context

Analysis of the internationalisation process of an organization is vital in the understanding key academic theories in relation to international business entities. It is also vital in the illustration of the roles and actions of the players in the international market towards the development of the entire society.

What did the organisation do to internationalise itself?

In 1970, following the assumed peak of McDonald's entities in the context of the United States and Canada, the organization saw the need to embark on a critical internationalisation process. The organization had attained about 1,800 units in the United States and Canada during that moment. Despite this development, the chain of the organization in relation to markets in North America, was illustrating substantial growth in the 1970s with approximately development of 60 units per annum. The organization had critical reasons behind the development of the concept of internationalisation in the 1970s. One of the essential reasons for the organization to internationalise was to address the issues of the slower pace of growth in relation to the internal market (Yamada, 2010). Another possible reason for internationalisation by McDonald's Company was the need to address the swelling force of competition in the internal market (Yamada, 2010). Slow growth and stiff competition in the internal market were affecting and cutting into the profit margins of the organization thus the need to seek growth in a wider perspective (McIntyre & Huszagh, 1995).

Close examination of the internationalisation process of McDonald's Company indicates that the organization has two main criteria points in the selection of the areas sufficient for the international expansion. These two criteria include similar culture to the one explicit in the United States and essence of geographical proximity. By 1970s, the organization had international outlets in the context of Germany, Holland, Japan, Sweden, Panama, and Virgin Islands. There was an increase in the rate of internationalization with reference to the case of McDonalds in 1980s (McDonald's: Europe drives growth, 2010). This was essential in the increase in the position of the organization in Europe and vital penetration into countries of the former Soviet Union, North Africa, and Middle East. An examination of 1997 indicates that the organization had its outlets in approximately 103 countries through development of 13,000 units.

The pattern of internationalisation of McDonald's Company proves to be similar in the countries of operation because of the tendency of the organization to establish contracts of areas of development with local businesspersons. This indicates that local businesspersons have the right to spread McDonald's brands into their countries or regions. This process also indicates that the businessperson has the obligation of undertaking investment risks and responsible for the franchise's growth plan in the region or country of development. There is a limitation towards licensing or franchising the brand further by the businesspersons in the area of development as stipulated in the contracts (Zorska, 2010).

The organization divides accumulated profits equally with the area leader. In case of franchised units, it is essential to note that no percentage over profits goes to the area leader. This indicates that there is a split of the profits between the franchisee and the organization. The organization focuses on the improvement of its internationalisation process through enhancing the performance of the leaders. This is through provision of brand know-how and technical development, logistic, and marketing support essential in the realization of the goals and objectives in the area of development. The organization does not permit the area leader to expand the chain without seeking the approval of McDonald's Company. This is an indication that the organization holds the franchising right thus limitation of opening of new franchise units by the area leader in the process of internationalisation. McDonald's Company has the obligation in relation to the determination of the needs of the technical know-how, changes, or improvements to the franchises under contracts. Area leaders own physical property in the area of development despite adhering to the demands and regulations of the mother corporation as the final decider in the context of further expansion. The mother corporation starts to negotiate with the area leader on the acquisition of the facility in the area following sufficient dominance within the market. The organization focuses on the examination of the policies of each nation in relation to the overall aims of McDonald's Corporation before embarking on the aspect of internationalisation.

McDonald's Corporation adopts and implements Uppsala school approach or model in the concept of internationalisation. This is through illustration of sequential pattern of entry in the foreign markets or regions thus progressive deepening of commitment in relation to each market. The organization tends to develop substantial interest thus increase in the level of commitment in the foreign markets due to development of experience in the execution of business duties in the new markets. McDonald's Corporation focuses on the acquisition of the market knowledge prior to the venturing. This is through application of the area leaders in the promotion of the brands of the organization (Khan, 2005).

What was the impact of these actions on the organisation?

Internationalisation concept and patterns in relation to McDonald's Corporation have various effects or implications towards the development of the goals and objectives of the entity. One of the substantial implications of internationalisation is the increase in the level of profits and revenues within the financial year. Increase in the volume of franchises is an indication of increment in the volume of revenues as all outlets contribute to the overall revenues of the organization. Venturing into global market provides an opportunity for the organization to increase its target base thus the increase in the level of profitability and revenues (Gerhardt et al., 2011).

Internationalisation is also vital in the development of an effective and efficient image and reputation. The organization gets to meet numerous consumers willing and able to work with the corporation towards the achievement of the goals and objectives in the internal and international markets. Reputation or image of the organization is vital in venturing into other markets thus the opportunity for maximization of the competitive advantage within the international market (Schaeffer, 2009). Another essential implication is the adoption and implementation of new ideas and strategies from new employees in the context of the international markets or regions. This increase in the level of diversity is vital towards the realization of the goals and objectives of the corporation. It is also an opportunity for the organization to focus on saving financial resources through operation on large-scale. For instance, in the case of McDonald's, the area leader takes the investment risks and development of the physical facilities for promotion of the brands thus enabling the organization to reduce its cost of operation (Gerhardt et al., 2011).

Internationalisation is also essential in the formation of alliances or collaborations with other entities with the aim of maximizing available market opportunities and increases the level of products outlets. This relates to the development of an effective and efficient image or reputation at the international level thus the opportunity to meet and interact with various stakeholders. Internationalisation also increases the volume of operations of the organization in various nations or regions. This is a reflection of the concept of expansion in accordance with the global interests and strategies thus an indication of increase in the volume of profits, consumers base, and revenues. This is essential in the initiation of development in other regions (Schaeffer, 2009).

What was the impact of these actions on the broader community?

Internationalisation also has various implications on the broader community. One of the essential implications of the concept on the broader community is increase in the level of employment opportunities across the globe. It is the duty of the organization to commit into giving back to the society. This is achievable through provision of employment opportunities to the area leaders and various stakeholders participating in the achievement of the goals in the new markets. Another essential implication to the broader community is the increase in the opportunity for the utilization of the quality products and services by McDonald's Corporation (Gerhardt et al., 2011). New markets, regions, and various consumers experience the opportunity for the utilization of the products otherwise produced in certain regions in the previous encounter. This is vital for increase in the interaction between the consumers and the organization towards the achievement of the goals and objectives business entity.

Internationalisation is also vital towards the development of the regions and countries of operation. This is through increase in the level of taxes of the countries or regions by McDonald's Corporation through its investments with reference to the area leaders. These taxes are vital in the enhancement of the living conditions through integration in various sectors of development. This is a reflection of quality gain to the entire community thus improvement in the living condition through realization of growth and development of the new regions and countries. Internationalisation is also effective in the development of an accurate and adequate collaboration between massive entities thus the provision of quality products. The organizations in globalisation have the opportunity to offer products and services at lower costs. This is vital for the community through reduction in the cost of the products and services because of the influence of competition.