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TNC's - Case Study McDonalds

Updated on January 4, 2013

Official McDonald's Logo

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Globalisation

Globalisation is defined as the process by which people their cultures, money, goods and information is increasingly transferred between countries with few or no barriers.

McDonald's is a company which is at the forefront of globalisation.
McDonald's started in 1940 in San Bernardino, California, it now operates in 119 countries across the world with 33,500 plus stores.

McDonald's Beer

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Social Impacts

One of the most obvious impacts McDonald's has on the countries it expands into is the sharing of Western Culture. McDonald's started in America and has now expanded to 6 continents worldwide, bringing with it new diets not previously seen in these countries.

The introduction of another culture can result in the loss of some traditions. In this example, the introduction of fast food made lead to loss of traditional foods. However McDonald's does vary its Menu from country to country to take into account national tastes called Glocalisation. Such as beer available in Germany.

One possible effect of McDonald's expansion could be an increase in the obesity rate of these countries, The united states is the country with the highest obesity rate and is the country McDonald's originated from, this is not solely McDonald's however but the overall 'fast food' culture.

Another social impact is the lifestyles of the workers in 2000 accusations were made against McDonald's that sweat shop labour was being used in factories creating happy meal toys in Shenzhen. Although McDonald's denied that they new anything about the illegal labour the accusation damaged their reputation.

However McDonald's has also tried to create a positive image the idea of corporate responsibility such as the Ronald McDonald house charities that offer help and support to families with sick children through independent charities supported by McDonald's. Through the money donated they have made 400 rooms for families every night of the year.

McDonald's also offer some employees that chance to acquire qualifications while working there.

Economic Impacts:

McDonald's employs more then 1.7 million people, and train their employees in the U.K they offer employees the chance to gains qualifications from apprenticeships up to foundation degrees.

"A job with us offers a culture of flexibility, opportunity, equality and development. Our employees come from all walks of life, but share a common approach: positivity."

http://www.mcdonalds.co.uk/ukhome/People/Join-the-team.html

In 2011 McDonald's net income was 5,503,100.

Environmental Impacts:

One environmental impacts that sticks in peoples brains is the allegation that McDonald's fuels that deforestation of the Amazon. In 2006 Greenpeace published a report called "Eating Up the Amazon" this traced soya beans grown in illegally deforested areas to McDonald's used as chicken feed and then served up as Chicken McNuggets. Again McDonald's denied these claims.

McDonald's tries to reduce there environmental impacts in the U.K with the following policies:

Bins provided outside each store and little patrols at least twice a day outside each restaurant to pick up any litter. However this litter is not recycled it is often sent to landfill.

75% of company owned McDonald's restaurant recycle all their cardboard. This figure is planned to increase to 100% in the following year.

Used cooking oil is collected and reused as bio-diesel to power the McDonald's Delivery fleet.

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    • profile image

      tim 

      6 months ago

      boo Daniel

    • loquacious-mare profile imageAUTHOR

      Phoebe 

      4 years ago from Isle of Wight

      McDonalds started in America, if that is what your looking for!

    • profile image

      famiz 

      4 years ago

      this didn't help me with what country the tnc started for mcdonalds sorry :(

    • profile image

      India 

      5 years ago

      This was an extremely helpful article. Thank you very much.

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