Week 5 Short Paper Business Strategies free essay sample

Abstract This short paper will examine multidomestic and transnational business strategies using McDonalds, Coca Cola, and Disney to demonstrate both strategies. The paper will conclude with determining which strategy is best for the company Trader Joe’s; the company used for Global Business Management’s final project. Week 5 Short Paper: Business Strategies This short paper will examine multidomestic and transnational business strategies using McDonalds, Coca Cola, and Disney to demonstrate both strategies. As large product manufacturing organizations continue to expand and grow internationally, their global reach will bring their products to consumers in those locations. Moving into these countries comes with a shift in business strategy in an effort to implement a successful selling campaign. Two examples of these strategies are multidomestic and transnational corporations. Companies that follows a multidomestic strategy fits its products to each country in which they conduct business. Moreover, the organization establishes a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market (Ireland, Hoskisson, Hitt, 2008, p. We will write a custom essay sample on Week 5 Short Paper: Business Strategies or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 169). The nation’s most popular burger chain, McDonalds is a perfect example of the multidomestic strategy. McDonald’s has a global presence that spreads across 119 countries all inhabited continents. McDonalds’ has turned the home of Le Cordon Bleu cooking academies and Michelin Guide of world-renown restaurants into its second most profitable market in the world. The chain has more than 1200 restaurants in France. Each of the locations in France are locally owned. McDonald’s growth rate is 30 restaurants per year (Fancourt, Lewis, Majka, 2012). McDonald’s researches each country’s local customs and foods before deciding on the direction for their menu and opening of stores. For example, the restaurant locations in India do not sell sandwiches made with beef. This is due to India’s culture where cows are viewed as sacred. Another example of this strategy is used by a well-known theme park that has successfully expanded into Tokyo and France among other countries. This well-known theme park is none other than Disney Magic Kingdom. The move into France required an analysis of France’s culture. The park caters to France’s local customs. The theme park rides are tailored to the tastes of the European community. When the theme park initially opened, business suffered due to the unfamiliar culture. Additional research was conducted to ensure a better understanding of the culture and to secure success. Disney Hong Kong leveraged the following analysis to determine the implications to configuring and coordinating value chains. Marketing and sales was one area analyzed. Advertisement was delivered through the newspapers and word of mouth of its customers. Special events for festivals and occasions such as Chinese New Year and joint promotion with local attractions. Imports from Tokyo Disneyland coupled with using Hong Kong designer Vivienne Tam to design the Chinese costume for the characters. From a human resource perspective, Asian employees were recruited. This helped the unemployment issues in Asia. Disney University was used to orient and train staff (Thinking Made Easy, 2010). Moreover, Disney learn from mistakes, focus on the local communities, and therefore reduce their loss, profit, and increase attendance yearly. Transnational strategy is used by companies that sell products in multiple countries across the world. This strategy differs in the method the product is marketed in each country. The product maintains continuity no matter which country it is being sold. The product integrity remains intact and is not modified according to local customs or preference. Coca Cola, a well-known soft drink company is a great example of a transnational product. Coca Cola’s beverage secret recipe has not changed in many years. Their products are sold in over 200 countries worldwide and maintains the same beverage formulation in each country. The bottle label reflects each countries local language; however, the log and contents maintains continuity (Hartman Media, n. d. ). Trader Joe’s is the company used in the course’s final project. The strategy used for marketing the company in Canada is that of multidomestic. The company will benefit from this strategy as it is a specialty store whose success is built on serving the community with products that offers some international appeal in their product offerings. The limitations will come by the research and relationships that will be required for success. Trader Joe’s unique business model is built on their strategy of buying directly from both local and international small vendors. In conclusion, a company like Trader Joe’s, who has maintain success with smart, well-planned business strategies in relation to expansion, will be advised in my final paper to expand into Canada using the multidomestic business strategy. Building relationships with local vendors to purchase products will be imperative to their success.