Case
MNB3701 ASSIGNMENT , REPORT 3
- Course
- Institution
- Book
MNB3701 ASSIGNMENT , REPORT 3
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
MNB3701 ASSIGNMENT 1 SEMESTER 2 2024 A corporate language refers to ________. a. foreign language used informally by tourists b. language people use for informal chats with the colleagues c. nati...
-
MNB3702 Assessment 06 2024 INTRODUCTION AND COMPANY BACKGROUND INTERNATIONAL EXPANSION OPERATIONAL PLANNING
-
MNB3702 Assessment 5 mnb3702 SEMESTER 1 2024 Primary stakeholders of a company are: Which one of the following things should you not do when experiencing culture shock related stress The management...
Seller
Follow
BMZAcademy
Reviews received
Content preview
MNB3701Principles of Global
Business Management
REPORT 3
(UNIQUE NUMBER: XXXXX)
by
XXXXXX
(XXXXXXXXX)
DEPARTMENT BUSINESS
MANAGEMENT
i|Page
,DECLARATION
Note that the portfolio or any part thereof will not be marked if this
declaration has not been completed.
Declaration of own work
I hereby declare that the material which I now submit for this assessment is
entirely my own work and has not been taken from the work of others. Work that
was constructed from other sources has been duly referenced.
Full name and surname: XXXXX
Student number: XXXXXXX
Signature:
ii | P a g e
, BMZ Academy
Table of Contents
Executive summary ................................................................................................................................. 1
Background ............................................................................................................................................. 3
Literature search ..................................................................................................................................... 5
Institution-based view ............................................................................................................................ 5
Formal institutional framework .............................................................................................................. 5
Informal institutional frameworks .......................................................................................................... 8
Resource-based view ........................................................................................................................ 11
Resources in McDonald’s South Africa .......................................................................................... 11
Evaluation of McDonalds’ resources using VRIO ......................................................................... 13
Challenges trading internationally.................................................................................................... 15
Implication for management ............................................................................................................. 18
Foreign Direct Investment (FDI) evaluation ................................................................................... 19
Exchange rates ...................................................................................................................................... 22
Fluctuations in exchange rates and currency risk exposures ............................................................... 23
Strategies to manage exchange rate fluctuations ................................................................................. 23
Global, regional and bilateral economic integration ............................................................................. 25
Socially responsible business ................................................................................................................. 26
Conclusions ........................................................................................................................................... 29
References............................................................................................................................................. 31
3 | P a g e BMZ Academy 0612621185/0717513144/0680538213
, BMZ Academy
Executive summary
Over the past years, enormous expansion has been evidenced in business
environment with many business trading and operating beyond the borders of their
home countries, leading to increased international trade flows. This resulted in
formation multinational entities such as McDonald’s which is the focus of this report.
McDonalds is one of the food giants in South African fast food industry. The company
originates from America, and has operations in many countries globally. The company
entered the South African market in 1995. Since then, the company has managed to
defend and sustain its existence in the country. McDonald’s has successfully grown
and to date has more than 300 outlets in all 9 provinces of South Africa. Over these
years of success, the company has encountered various threats and opportunities
from the political, economic, cultural and social environment in South Africa. With
bundle of its resources, the company managed to seize various opportunities, and
overcome a number of challenges, although it had some weaknesses in certain areas
with increased the severity of challenges and sometimes failed to grab the
opportunities.
This report revealed that growth and success of international business is strongly
dependent on external and internal forces. These forces are viewed from two
perspectives namely institution-based perspective and resource-based perspective.
With a specific focus on the case of McDonalds, the implication of organisational
resources and various forces within the institutional framework such as legal systems,
socio-economic forces, politics, and various elements of culture were appraised. The
four identified resources of McDonalds are human resources, physical assets,
reputation and capabilities in marketing and production. While McDonalds has
continued to strive in the turbulent economy of South Africa, its resources have proved
to give a mild advantage to the firm over its competitors. However, the company has
suffered various blows from institution perception. In the early years after
independence, McDonalds has benefited from the country’s opens policy which saw
many foreign investment companies including McDonalds coming to South Africa.
However, later on there was change in economic focus of South Africa from foreign
investment to local investment and the country also shifted its trade flows in various
business sectors towards BRICS community. Regardless of these challenges,
1 | P a g e BMZ Academy 0612621185/0717513144/0680538213
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMZAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.29. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77988 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now