Hofstede Case Study Mcdonalds

Cultural distance is known to be an issue, which influences organisations having broad horizons and considering investment in international markets. It is known that the new investments in international markets require organisations to maintain higher levels of finance and this is the reason for which larger organisations consider such two-faced strategy. It is said so because a foreign market can be considered as profitable as risky relying on the fact that organisations consider the cultural factors (Holden, et al., 2015). As per House (2004), the strategy makers of different organisations are mostly attracted by international markets due to which they underestimate the financial risks through which organisations are going through. For this

Hofstede could have considered about organisational culture. McDonalds is the representative example of organisation with an aim of maintaining similar level of quality, consumer service, value, food taste, and cleanliness. The main strengths of McDonalds rely on the fast services along with the taste of the food. These aspects have demonstrated the profitable elements in the western market. Asians, on the other hand, were not used to have lunch or dinner in certain minutes due to which McDonalds was required to consider its strategy for attracting consumers and for generating its profit levels (Saunders, et al., 2010). Considering the classification of power distance of Hofstede for countries across the globe, Japan has been identified as one of the countries having lowest score, which further means that the country is not much inclined to accept higher levels of organisational culture such as of McDonalds. However, being the fast food chain on international levels, McDonalds managed to implement certain strategies through which it survived in Nippon market. The most essential issue it faced in Japanese market is the use of rice as the main course and this led the organisation to introduce new products comprised of rice such as Chinese fried rice and curried rice with fried egg burger and chicken. The launching of such products enabled the organisation to manage the operations in Japanese market. Similar to Japan, Italy and Spain have certain common features that were not included within the products of McDonalds. The organisation had to understand the cultural issue due to which it started furnishing its restaurants with the tables and chairs as per the customs and traditions. Another issue arose when people of Japan referred the hamburger as the snack instead of a whole meal. The organisation implemented a strategy considering this misleading