Sardarsunny
Companies with transnational strategies operate their businesses in multiple locations globally. These companies often have offices in the countries where they do business that coordinate with a central office in order to operate more efficiently.
Multidomestic: McDonald’s
In 1955, McDonald's opened its first restaurant in Des Plaines, Illinois. Today, 2008, it operates over 31,000 restaurants worldwide, in 119 countries, on six continents, employing more than 1.5 million people all over the world.
I consider McDonald’s a multidomestic company because they adjust to the cultures of their host countries. This is most seen in their branch in India. Cows are held sacred in the Indian religion of Hinduism which is why McDonald’s India doesn’t serve beef. Can you imagine? A McDonald’s restaurant without beef? Indian McDonald’s burgers are purely vegetarian and they serve several other products that are 100% beef free like several kinds of wraps and pans. We see this aspect of McDonald’s even here in the Philippines where they serve rice burgers.
Multi domestic Strategy and the Value Chain : Firms applying a multi domestic strategy design a value chain that gives each country's operations the discretion to respond to its local cultural, legal-political, and economic environments. Companies applying a multi domestic strategy customize their products, marketing and service program to local conditions. These decisions require the multi domestic company to decentralize decision making from head quarters to subsidiary operations so local executives have the authority to manage their responsibilities.
Basically, managers in a multi domestic company hold a polycentric point of view that people who are close to the market (philosophically, culturally, and physically) ought to run the business. Thus, for example, the managers of a backpack factory in Singapore have the right to decide what sort of backpack they want to make-even if the size, shape, and style differ
Multidomestic: McDonald’s
In 1955, McDonald's opened its first restaurant in Des Plaines, Illinois. Today, 2008, it operates over 31,000 restaurants worldwide, in 119 countries, on six continents, employing more than 1.5 million people all over the world.
I consider McDonald’s a multidomestic company because they adjust to the cultures of their host countries. This is most seen in their branch in India. Cows are held sacred in the Indian religion of Hinduism which is why McDonald’s India doesn’t serve beef. Can you imagine? A McDonald’s restaurant without beef? Indian McDonald’s burgers are purely vegetarian and they serve several other products that are 100% beef free like several kinds of wraps and pans. We see this aspect of McDonald’s even here in the Philippines where they serve rice burgers.
Multi domestic Strategy and the Value Chain : Firms applying a multi domestic strategy design a value chain that gives each country's operations the discretion to respond to its local cultural, legal-political, and economic environments. Companies applying a multi domestic strategy customize their products, marketing and service program to local conditions. These decisions require the multi domestic company to decentralize decision making from head quarters to subsidiary operations so local executives have the authority to manage their responsibilities.
Basically, managers in a multi domestic company hold a polycentric point of view that people who are close to the market (philosophically, culturally, and physically) ought to run the business. Thus, for example, the managers of a backpack factory in Singapore have the right to decide what sort of backpack they want to make-even if the size, shape, and style differ