Question

With the consideration of "global strategy and organization," analyze the type of global strategy and organization followed by McDonald’s. What are the costs of this types of strategy and the benefits of this type of organization?

Answer 1

McDonald's employs a global strategy through McDonaldization, emphasizing efficiency, predictability, calculability, and control, leading to increased availability of goods but reduced variety. The benefits include worldwide brand recognition and improved profits; the costs are the loss of individuality and homogenization of products.

Step-by-step explanation:

McDonald’s follows a global strategy characterized by the standardization of products and services through a formalized system of bureaucracies. This strategy ensures efficiency, predictability, calculability, and control, which are foundational characteristics of the McDonaldization of society. The costs of this strategy include a reduction in product variety and the homogenization of consumer experiences, making them uniform and generic.

However, the benefits involve increased availability of the brand’s offerings worldwide and improved profits for the corporation. The McDonaldization concept has also influenced various sectors beyond fast food, leading to a push toward more individualized services, such as farmers markets and microbreweries, in reaction to the perceived downsides of widespread standardization.