GLOBALISAITION AND INTERNATIONAL BUSINESS
In this part of the assignment, my experience and discovery through this assignment would be discussed which is the reflection of my understanding about globalisation and international business.
As a part of my module ‘Globalisation and international business’, our group task focused on the different aspects of globalisation in terms of different activities and decisions of McDonald’s for its entrance in Nepal. This particular task helped me to gain knowledge on a multinational company’s profile with its product range and market share, its competitors and how does it achieve competitive advantage over the competitors, what is the global strategic mover of the company and its environmental framework in the global business environment.
While I go through the group task, I realize that, McDonalds has the immense potential to launch their business in Nepal which is one of the most attractive tourist destinations in South Asia and which fosters its own traditional Nepalese culture. Based on this study, it is obvious to me that, McDonald’s has a global strategic potential and they can implement this potential to other prospective destinations. Therefore from my learning of this study, I have found another two countries Bangladesh and where McDonald’s can implement practice their global strategy.
Bangladesh is one of the prospective countries to conduct ‘restaurant’ and ‘fastfood’ business. The density of population is 1,033.5/km2 with the total population of 150 million (March, 2013 estimation). This highly dense population is the opportunity for any restaurant business (Islam et al, 2014). The country’s GDP is $2.083 in 2013 which show the increase disposable income of the people (Golder et al, 2014). Moreover, Bangladesh is famous for its tourist attraction with the largest Sea Beach in the world name Cox’s Bazar and largest Mangrove forest named Sundarbans. The country is also historically and traditionally developed with its long historical essence and traditional culture. People of this countries are food lover and therefore though they are rich in their traditional food however they accept different tastes from other trend which is visible in the growing trend of fast food and recent presence of many multinational chain fast food shop and restaurant such as KFC, Pizza Hut and Pizza Inn (Rahman, 2014).
However, the non-traditional food trend is mostly famous in the urban areas rather than the ruler one. Moreover, the country’s main religion is Islam and most of the people belongs to this religions who are restricted to the concept of ‘Halal’ food. Therefore McDonald’s like other multinational fast food chain has to adopt this concept and can produce and sells foods with this concept and concern people with the announcement in the display ‘All Halal’ or ‘Halal’. However, the advantage of this destination is that, McDonald’s key source of their food items chicken and fish are traditionally occupy the leading place in their regular food list. Another threat of the country is its recent political instability which impact on any foreign investment. However, the recent development of business growth even in this instability shows that the country has a huge potential to grow when this political instability is reduced or eliminated.
The best entry mode for McDonald’s in Bangladesh is its franchise since many giant investors of Bangladesh have their immense interest to grab the opportunity of getting license of such prominent superior multinational company which is reflected through the ownership of KFC in Bangladesh.
Vietman is another highly potential spot for the entrance and expanding business of McDonalds. The country’s population is 89 million where the GDP is $4,001.28 which is favourably higher for any developing countries. Since 2000, Vietnam's economic growth rate has been among the highest