Verified Document

Business The Most Significant Contributor Term Paper

McDonald's has had a large amount of success in its global expansion. The reasons for this comprise a number of factors, one of which is the perceived value to the purchaser. In all countries where McDonald's is sold, the customer perceives the value of food purchased for a certain price as economically viable. The food is of the same quality and portion size globally. This kind of stability is valued by the customer. Possible short-term problems for McDonald's relate to the daily changes in foreign exchange rates. It is hardly practicable to change prices on a daily basis. Customers have come to expect stability from the company, especially in terms of price, which makes maintaining PPP a challenge. This problem is overcome by relying on customer perception of value rather than only exact PPP values. For continued success, it is important that customers continue to perceive the commodity as valuable in terms of both low and stable pricing.

9. Common currencies such as the Euro and pegged currencies such as Chile's considerably simplify foreign trading practices. A common currency eliminates the problem of PPP, while a pegged one simplifies it. Globalization, as mentioned above, is rapidly rising, without showing any trends to the contrary. The world is becoming increasingly cooperative in terms of cultural practices and trade restrictions. The globe no longer operates as a number of separate nations, each functioning in its own autonomous way.

In the spirit of this collaboration and increasing tolerance, I believe there certainly is much potential for more collective regional currencies. This is however as controversial a topic as globalization itself. Certainly some would point out the evils of such a practice. It is however also possible to apply the principles of change management here. Communication is essential, and people should be given the opportunity of choice whether to use the regional or the local currency. Some for example feel that a unique local currency is highly integrated with culture, and that a common currency would detract from the very uniqueness that makes each particular nation what it is. Perceptions like these will need to be assessed before making the decision to integrate regional currencies. The element of choice could relate to specific trade events, such as imports and exports,...

This will provide some sense of stability and consistency not only for traders themselves, but also for consumers in terms of PPP.
10. The greatest challenge in collaborating with a foreign company is culture. Culture is a multi-faceted concept. The most important in terms of international business collaboration is corporate culture. A company's mission statement, vision and goals directly affect the corporate culture within that company. Some companies are less formal in their culture, while others can highly prize formality in their business dealings. When entering into a collaboration, thorough research is needed in terms of corporate culture compatibility.

Further complicating the issue is the social culture within which the collaborating companies operate. One might be operating in a highly free-thinking, democratic environment, while the other may be more restrictive in its practices. Social values, such as family and spouse roles, also need to be taken into account.

Misunderstandings can easily occur to the detriment of proposed collaborations. As in change management, communication and an open mind are essential to successfully navigate these challenges. Each employee from the different companies for example need to be willing to learn about and from employees in other companies. It should also be kept in mind that no particular culture is better than another, but that there are indeed practices by which collaborations will be simplified and others by which they will be complicated. With proper communication, collaboration can be highly profitable.

Sources

Antweiler, Werner (2006). Purchasing Power Parity. University of British Columbia. http://fx.sauder.ubc.ca/PPP.html

Chapman, Alan (2005-2006). Change management. http://www.businessballs.com/changemanagement.htm

Mrak, Mojimir. (2000). Globalization: Trends, Challenges and Opportunities for Countries in Transition. Vienna: United Nations Industrial Development Organization. http://www.unido.org/userfiles/PuffK/mrak.pdf

Nishimura, Yoshiaki. (2001, March) Economic Policy for Transition to Market Economy - Overview. Economic and Social Research Institute. http://www.esri.go.jp/en/tie/russia/russia1-e.pdf

Sources used in this document:
Sources

Antweiler, Werner (2006). Purchasing Power Parity. University of British Columbia. http://fx.sauder.ubc.ca/PPP.html

Chapman, Alan (2005-2006). Change management. http://www.businessballs.com/changemanagement.htm

Mrak, Mojimir. (2000). Globalization: Trends, Challenges and Opportunities for Countries in Transition. Vienna: United Nations Industrial Development Organization. http://www.unido.org/userfiles/PuffK/mrak.pdf

Nishimura, Yoshiaki. (2001, March) Economic Policy for Transition to Market Economy - Overview. Economic and Social Research Institute. http://www.esri.go.jp/en/tie/russia/russia1-e.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Proposal the Current Need
Words: 940 Length: 3 Document Type: Business Proposal

Directly approach wealthy individuals in Kansas City and solicit direct gifts or memorial gifts. In addition, there are some well-known Kansas City philanthropists, as well as new members of the Fortune 1000, who will be identified by PKC Associates and invited to help establish the endowment. The benefits of becoming a founder of or significant contributor to the Friends of Shuttlecocks' endowment will be explained to the potential donors. These include: Naming opportunities.

Business Report As Happened With Many Service
Words: 3232 Length: 11 Document Type: Essay

Business Report As happened with many service businesses during a recession, Jazz Event Productions experienced a drop in revenues in 2010. For a company that has grown steadily throughout its 15-year history, it was an unwelcome first. The decrease in sales occurred primarily because companies faced with tough economic choices because of the recession either cut back or eliminated entirely their budgets for special events. Whereas many of our loyal customers

Business Organizational Behavior Theory and
Words: 2417 Length: 9 Document Type: Term Paper

In this context, the learning curves followed by the collective of entrepreneurs place that collective of entrepreneurs within the still larger setting of the global marketplace. Taylor and Asheim refer to an economic geography that is more than merely a map of where economic activities take place (Taylor & Asheim, 2001, p. 315). A modern learning organization integrates itself on virtually every conceivable level. Much as its individual members make

Business Relationships Hospitality Management Business
Words: 2330 Length: 8 Document Type: Term Paper

Considering the results of this study, a detailed look into the current condition of our atmosphere must be done thoroughly. What may appear clean to one may be utterly inconceivable to another. This can be determined by inviting customers to fill out satisfaction cards. The comments and feedback that comes form this type of questionnaire and response is usually a very accurate way to establish customer rapport since they can

Business Case Analysis The Southwest Airlines
Words: 1565 Length: 5 Document Type: Case Analysis

The Southwest Airlines The Southwest AirlinesBrief BackgroundThe U.S department of transport 1995 classified its passenger airlines into three categories based on the annual revenue generated. These are a \\\"major carrier\\\" airline that could generate up to $1 billion annually, a \\\"national carrier\\\" that could range between $ 100 million and $1 billion annually, and a \\\"regional and commuter airline\\\" that could generate less than $100 million annually (Pg, 480). Before

Business Level Corporate Level Strategies Business-Level Corporate-Level...
Words: 2225 Length: 7 Document Type: Essay

Business Level Corporate Level Strategies Business-Level Corporate-Level Strategies Analyze the business-level strategies Analyze the corporate-level strategies Analyze the competitive environment Difference in slow-cycle and fast-cycle markets The corporate strategy of a business is based on the vision and mission of the entity. It also lays a foundation stone for business and functional strategies. The industry sector specific to the business is also influential factor in developing strategies for a specific corporation. Diversification in related and unrelated

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now