EFFECTS OF DIVERSIFICATION
Introduction
McDonald created the McVegan burger due to the high demand for vegan meals from McDonald’s vegan customers. However, it is considered healthier since it does not contain fat and, therefore, helps individuals’ well-being and prevents chronic diseases such as heart diseases. Therefore, vegan foods and snacks positively affect our health and should be highly recommended to youths to make them strong. Being a vegetarian helps the economy’s growth since it has been gradually growing and has been largely accepted in society by its consumers.
Cultural Significance
Cultural significance simply means how a particular culture is received and adapted in a foreign market. A company’s culture must know to deal with the market’s culture, be it religion, laws, beliefs, or even language; therefore, one must research cultural differences before moving to emerge markets. Most Swedish companies are considered the main concerns on cultural differences first due to communication since language is a barrier. However, this suggests that for any business relationship to succeed, there should be fewer misunderstandings.
Moreover, apart from the common cultural differences, there are also work culture differences for instance; Sweden does not have a work hierarchy this means that you can find the likes of the CEO interacting with other staff employees in a communal area while in the USA, it’s difficult for the top management to be socializing with his/her juniors. Therefore, it’s difficult for a Swede to adapt to such a work setting, especially in an emerging market, although they are still very respectful to their superiors yet so informal.
Unlike the USA cultural values, the Swedish community is unbiased when it comes to gender equality. (Kaur, 2018) They believe that women can assume power and are treated no differently from men in any business setting. On the other hand, India focuses more on masculinity in that certain roles are specifically meant for men and women who were forbidden from participating. Such differences cause a backlash in the cultural world.
Market plan analysis
Since the plant-based meals are healthy, targeting the consumers will not be difficult because everyone worries about living long. The most appropriate way of marketing for new products includes advertising the products. For this reason, the company discerns the customers’ needs and how well the company satisfies them. McDonald’s is considered the largest food eatery globally, an audit promoted by assessing the techniques used in advertising and investigating contrasting viewpoints.
However, a competitive analysis has helped in cost leadership; McDonald buys goods I bulk to cut costs. Consequently, the brand name Ronald McDonald is known, and he can lease property because his reputation has not to be comprehended. Also, differentiation of what products each customer requires considering their demographic or cultural practices.
Finally, the use of swot analysis for the company is crucial because it can focus on its strengths while working on their weaknesses. (Dudovskiy, 2016) For example, McDonald’s’ realized that they were not selling healthy meals and decided to start selling healthy breakfast. They then realized that even when selling vegetarian meals, their profit increased and settled on introducing vegan on the menu. As a result of the excellent planning concept, the profits achieved are higher, and therefore the economy is improved.
Conclusion
In summary, we can conclude that McDonald’s has helped both the economy and has encouraged multicultural differences. The world needs to embrace and appreciate the different cultural practices available. However, consumer buying behavior may get rejected by other countries, and in some cultures, they may differ and cause a fall in market share. Conversely, the McVegan has its benefits of helping the youths stay healthy as they avoid fat.
Ultimately, this essay suggests that citizens living in an already developed country should have no difficulty with diversification and sharing of cultural differences. By expanding to emerging markets, helps explore new ideas that would have the potential to increase profits. In addition to gaining more profits, a company may boost its brand image and minimize competition from other companies.
References
Bryant, S. (2018, May 20). 10 cultural differences between China and the US. Retrieved July 30, 2018, from countrynavigator.com: https://countrynavigator.com/blog/expert-view/cultural-differences-us-vs-china/
Dudovskiy, J. (2016). McDonald’s Swot Analysis. Business Research Methodology. https://research-methodology.net/mcdonalds-swot-analysis/
Kaur, H. (2018). Fostering Perspectives on Swedish and Indian Culture. https://www.researchgate.net/publication/342500140_Fostering_Perspectives_on_Swedish_and_Indian_Culture
Lewis, R. When Cultures Collide. Nicholas Brealey International.
Thompson, A. (2017). McDonald’s’ Organizational Culture Analysis. Business Management.