The organization that you work for is interested in expanding their business overseas. You have been asked to gather some preliminary information to help management decide on whether to pursue this idea further.
Search the Cybrary or other online resource and find an article describing an experience of either: (1) a US company or division that conducts business in a foreign country; or (2) a company or division based in another country which has started doing business in the United States. Perform searches on "joint venture," "licensing," or "strategic alliance." Based on your research submit a three page document to the managers of the organization which answers the following set of questions:
Was the company's experience positive, negative, or mixed? Justify your answer.
What legal or political barriers did the company have to overcome? What technological obstacles did the company encounter? What cultural or business differences did the company encounter? What problems did these differences create for the company? What did the company do to overcome the obstacles? Did the company handle cultural and business differences effectively? Why or why not?
MCDONALD'S IS DOING BUSINESS IN CHINA, YOU MAY CALL FRANCHISING A FORM OF LICENSING
McDonald's, TNT to begin franchising in China - report
McDonald's Inc. announced yesterday that it plans to begin franchising operations in China, hoping to develop about 10 franchises in the country by the middle of 2006, the Shanghai Daily reported.
"Franchised stores will play a big role in the next five to eight years," James Kramer, vice president of international franchising, was quoted as saying in the newspaper.
The US-based restaurant chain currently operates 600 restaurants in China and hopes to add 100 restaurants annually starting next year, he said.
Opening a McDonald's franchise will require at least 2.5 to 3.2 mln yuan and strong restaurant management experience, the newspaper reported.
Meanwhile, TNT, a Netherlands-based express delivery and logistics company, said it will also begin franchising operations in China.
The newspaper reported that it will open its first franchise as early as next spring, allowing local companies to join its logistics network and offer services using the TNT logo.
For more information and to contact AFX: www.afxnews.com and
December 27, 2004
COMPANY'S EXPERIENCE NOT POSITIVE
McDonald's China Web Site Hacked
Posted by John Yunker
McDonald's China Web site was hacked, apparently by a person (or people) protesting the company's reference to Taiwan as a separate country. The Taiwan/China issue is bound to produce headaches for multinationals who want to offer local Web sites for each market.
COMPANY'S POSITIVE EXPERIENCE
It seems that nowadays nothing is more American than fast food; however, the "grand-opening" of a fast food joint, such as McDonald's, is a regular occurrence despite which part of the world you live in. THE CULTURAL COMPETITION THAT McDonald's FACES For example, Chinese cuisine, known for the essence of fine eating, has yielded to the rising popularity of fast food ...
Here is just a sample of what you'll find in this solution:
"In fact, residents of China are more likely to be seen munching on French fries or a Big Mac than Americans and Australians. According to a survey..."