Entry of Mcdonald's Corporation Into Communist Controlled Soviet Union and China in 1990~the Cultural Aspect
Introduction
The leitmotif of the modern theory of International Business is that globalization is not simply a trend or a fad but is, rather, an international system. It is the system that has now replaced the old Cold War system, and, like that Cold War system, globalization is directly or indirectly influencing and reshaping the culture of virtually every country in the world. McDonald's is a powerful emblem of this emerging "global" culture, which is often referred to as the "McDonaldization" of society. Globalization through its espousal of economic integration, digital integration, its ever-widening connectivity of individuals and nations, and spreading of capitalist values is the very anti-thesis of the Soviet culture that was prevalent in the heydays of the Cold War. Prior to its collapse, the Soviet Union had the largest centrally directed economy in the world. The government established its economic priorities through central planning, and administrative decisions rather than the market determined resource allocation and prices. Likewise, Soviet culture was dominated by the government-imposed style of Socialist Realism', which repressed popular choices and the urge for self-expression. Judged against this backdrop, when McDonald's opened shop in Pushkin Square, Moscow, on 31st. December 1989, it justifiably became an object of wonder.
McDonald's entry into the heartlands of communist China was no less wondrous. However the Chinese were more pragmatic in their approach and saw mutual benefit in McDonald's entry. McDonald's entry into China coincided with and contributed to a growing synergy between the Chinese cultural value system rooted in Confucianism and Taoism, and Western ideologies
Golden Arches Over Red Square ~ The Soviet Experience Adjusting to the different elements of local culture is of paramount importance to the success of a company intending to enter a foreign country. Realizing this, McDonald' s employed the following strategy
The leitmotif of the modern theory of International Business is that globalization is not simply a trend or a fad but is, rather, an international system. It is the system that has now replaced the old Cold War system, and, like that Cold War system, globalization is directly or indirectly influencing and reshaping the culture of virtually every country in the world. McDonald's is a powerful emblem of this emerging "global" culture, which is often referred to as the "McDonaldization" of society. Globalization through its espousal of economic integration, digital integration, its ever-widening connectivity of individuals and nations, and spreading of capitalist values is the very anti-thesis of the Soviet culture that was prevalent in the heydays of the Cold War. Prior to its collapse, the Soviet Union had the largest centrally directed economy in the world. The government established its economic priorities through central planning, and administrative decisions rather than the market determined resource allocation and prices. Likewise, Soviet culture was dominated by the government-imposed style of Socialist Realism', which repressed popular choices and the urge for self-expression. Judged against this backdrop, when McDonald's opened shop in Pushkin Square, Moscow, on 31st. December 1989, it justifiably became an object of wonder.
McDonald's entry into the heartlands of communist China was no less wondrous. However the Chinese were more pragmatic in their approach and saw mutual benefit in McDonald's entry. McDonald's entry into China coincided with and contributed to a growing synergy between the Chinese cultural value system rooted in Confucianism and Taoism, and Western ideologies
Golden Arches Over Red Square ~ The Soviet Experience Adjusting to the different elements of local culture is of paramount importance to the success of a company intending to enter a foreign country. Realizing this, McDonald' s employed the following strategy