Globalization is the prime aim of organizations that supports in increasing revenues of company and giving international presence to the corporation. Present assignment is based on the global policy and strategy. Aim of report is to find out the impact of globalization on multinational company. Concepts and definitions of globalization will be discussed in this study. Objective of the report is to identify advantage and disadvantage of international business. Corporations have to face many issues at the time of working with different countries as well as all problems, causes and drivers of globalization will be discussed in this study. Present assignment is based on McDonald's which is a multinational brand that provides quality food and services to customers across the world.
Definition and Concept of globalization
According to Dasgupta and Ghatge Globalization can be explained as the trade relationship with more than two countries. In the modern era, most of the businesses are highly depended upon international trade, finance and macro-economic policies. It can be defined as diffusion of values, technologies and practices that can influence the business worldwide. Globalization is the enlarged movement in many countries with respect to trade, money, investment, etc. It has four main dimensions, that is, economic, environmental, political and cultural. Globalization has influenced the world’s economy and due to this, businesses are operating across border rapidly as well as there is fast flow of information. It supports organizations in gaining global presence and helps in enhancing their revenues as well. Now, entities have huge target market and they can attract more customers towards the brand. Statistics show that merchandise trade has been increased since 1950 to 2004 approximately 7.5 times. It can be explained as elimination of state restriction of exchanging goods and services across border. Globalization has positive and negative impact on McDonald's as to sustain in the global world, cited firm has to produce quality food and has to provide excellent services. It has improved the standard as well as it is getting competitive advantage in the global market. It is utilizing resources well and giving flexibility to its workers so that it can sustain in the international market for longer duration. Apart from this, company is spending sufficient amount in research and development so that needs and requirements of customers can be identified. By this way, cited firm can be able to trade well in the new country. This is the reason; products of McDonald's are satisfying the needs of service users in each nation.
According to the Grear and Weston globalization is an integrating process through which companies can integrate with government, economy and companies of different nations. It has brought lots of strategic changes in the business world and organizations are free to trade across the border. Hill has argued that transnational formalities in Foreign policy are better than globalization (Hill, Cronk and Wickramasekera, 2013). It is very important to have a strong relationship between foreign policy and globalization that put its huge impact on the overall growth of organizations. Globalization is giving many opportunities and creating threats to companies. Managers of McDonald's should provide flexibility to the workers so that they would feel comfortable in the organization. Managers of cited firm have to lead the team well and involve them in decision making process. Participative approach of leadership helps McDonald’s in globalizing its business. As it has hired employees across the world, so, due to globalization, company is getting learning opportunity for the workers. According to Hill report, approximately 1.5 billion foreign transitions are taking place daily and approximately, 8.9 trillion goods are transacting across the border (Hill, Cronk and Wickramasekera, 2013).
After the Second World War, communication, technologies and processing have been changed to a great extent. Globalization has removed barriers and now, companies can trade easily with international countries. With the help of this concept, entities are working well in the international market. McDonald's is a multinational brand and supplying quality services to customers across the world. It has good connection with many nations and employees are skilled that support the cited firm in expanding its business globally. Globalization is the concept which defines that whole world is a single market and companies are free to produce similar products and can trade freely across the world. Due to this, FDI has been enhanced from 2.2 billion to 154 billion.
McDonald's is continuously bringing innovation in its workplace so that workers will feel encouraged and they would stay in the organization for longer period. To survive in the competitive global world, it focuses on introducing new services and implement the latest technologies. By this way, it would be able to sustain in the highly complex environment for longer span of time . For instance: Brexit was the great issue which has affected he political and economic condition of UK. Now, UK is free to make new trade agreement. By this way, it would be able to make a strong relationship with other countries. This political relationship can help McDonald's in expanding its business across