The impact of Globalisation

Globalization is a term to show the way people interact with one another economically, politically, and culturally, which leads a great impact to countries, companies, and individuals. Obviously, globalisation bring lots of benefits to many areas such as culture, foreign trade and investment, international market, etc, but also drawbacks to the world such as unemployment and pollution that people cannot ignore it.

First of all, globalisation contributes the world in different areas. Culture is a big area that was positively affected by globlisation, people can find out better way to develop their society and can learn from the culture of other country. For example, people can learn others languages, food, traditional event and religion. Also, globalisation influence movie and music style.

Moreover, traditional goods not only sell in its local area, but also in different cities or countries as Weston goods can be found in China or Japan, which means companies can expand their operations into international market to sell their product and services, such as McDonalds and Nike that I mentioned in the last two posts, they expands their operations as franchising and exporting products to other countries. People can get whatever they want from any country. The benefit of globalisation offer many opportunities for foreign investor to take advantage from this global market.

Furthermore, technology such as phone and internet can make people closer even if each other is living in different countries, which is increased communication. Efficiency of communication leads frequent business activities, which means decision making of the company will faster than before. Also, people can easily get information over the world.

Consequently, globalisation is good for the world whatever they are developing countries or developed countries. For developing countries, they can have a better education, improved industry and growing market. For developed countries, they are facing lots of opportunities to invest or do business outside their country, which will increase the competition in the market. It also leads to an increased quality of the product.

However, there are some negative effects to doing globalisation. The biggest concern is jobs insecurity. For instance, companies are willing to move their manufactory to developing countries from developed countries, which is aim to reduce their operating and productivity cost. Developed countries local employment opportunities are decreasing because of the movement of industry.

Moreover, globalisation may influence people behavior as a negative side from other countries culture such eating habits, language and behavior. For example, Hong Kong has been affected by the western culture that more teenagers go to club and bar aim to have fun.

Also, improved transport may influence environment at all that the demand of energy has been increasing year by year. For instance, fuel and oil is used by airplane, ship and car. Some accident from the transport will lead a huge damage to the environment, species and living things may die because of the pollution.

To sum up, globalisation truly gives a better force and opportunities for people to communicate and do business, and benefit lots of area such as technology, education, foreign trade and culture. At the same time, people should deeply discuss the negative effect such as pollution, and tackle the problems.

SWOT Analysis of Nike

What comes to your mind when you hear about a brand name of sport? My answer is Nike. Although I am a lazy person, the only sport that I know how to play is badminton. The interest thing is, even if I answer Nike is the first brand name come out my mind, I actually do not to buy Nike product. In my opinion, compared with others brand, Nikes products are too expensive. I can buy a similar product with cheaper price in other brand. The only thing I can remember is Nikes advertisement, "just do it". By the way, I will main discuss the SWOT analysis on Nike. SWOT analysis is stand by strength, weakness, opportunities and threats.

Although I do not like Nike, I cannot deny strengths of Nike are generally based on its brand name and reputation. Moreover, Nike offer high quality product and innovation that lot of people agree with this. Also, Nike is using great marketing strategies, they always being sponsor on different competition such as Olympic Games and world championship tennis. Nike products have done a really good performance on the world market.

There are still some concerns that Nike should worry about. Since 1996, a news or magazine published a story about Nike was hiring child labour as they worker that work in manufactory in different country. As people in the world pursue and develop the right of human, Nikes image would be damage, if it did not solve the child labour problem.        

As we know, Nike is really good on sports product with a strong brand and customer loyalty. It provides a chance to let Nike participate into new market and products. Nowadays, technology becomes a really important area in the world. Cooperation with Technology Company will help Nike open a new market or chance for its product. As I remember, Nike already has cooperated with Apple in few years ago. Apples early product, IPod, it is a device that can play games, listen music, running step calculator and voice recorder. The running step calculator actually is the function adds by Nike after Apple and Nike cooperation.

Threats of Nike, there are lots of competitors that are faced by Nike. Especial the brand that its product very similar as Nike such Adidas, Yonex, Mizuno and Puma. Some company like Adidas, had signed contract with NBA and NFI, which means it is become stronger than before. 

To sum up, due to Nike is survivng in a competitive market, Nike should try putting their effort into the new market and increasing their influence on sport product. 

PESTEL analysis of McDonalds

McDonald is the largest fast food company in the world. There are more than 30,000 restaurants in over 120 countries worldwide. In reality, there is nearly 49 million customers daily buy food from McDonald. The reasons of success for McDonalds are not only about delicious fast food, but also the theory, strategy that it used. In this post, I will mainly focus on the analysis of macro environment for McDonalds, which is using the tool called PESTEL analysis

Political Factors

Generally, McDonalds are affected by government policy on the regulations of Fast Food Company such as health and hygiene policy. Government realized health problem have been a big concern for everyone, people are having diseases such as cardiovascular and cholesterol because they are eating too much fast food. Furthermore, hygiene policy also is a big concern for a fast food company. Good relationship with government will bring McDonald on a better position to service in this industry

A Map Of Every McDonald's In The U.S.

Economic Factors

McDonalds have to consider the effect of economic. Organisational performance is usually affected economic factors such as tax rate, exchange rate and unemployment rate. Running a Business in local market, a company must be facing government regulation on tax or profit. Especially McDonald is an international company, and its business is successfully running over the world. Every country also has its own regulation on tax or other else that affect the business. Moreover, McDonald needs to import food and drink in local market, which mean the exchange rate and people living standard also affect the cost of running a business and productivity.

Socio-Cultural Factors

The changing lifestyle will affect the sales performance of McDonalds. Nowadays, people are willing to eat more expensively. They want to have quality services and food more than fast food. Moreover, different country has different eating behaviour. In western country such as USA, people are willing to eat potato and hamburger. But in China, people prefer rice more than hamburger and potato. Few years ago, McDonald promoted rice burger, and now is promoting rice for dinner. For my point of view, it is really strange and hardly to say it is delicious.

Technological Factor

In Fast food industry, technology seems not affect so much to the company. However, high technology will help organisation improve its management and performance of productivity. Technology is used in so many ways, for instance, advertising on internet, providing easy payment for the sales service, providing Wifi and internet devices to satisfy the needs of customers.

Environment Factor

Recently, people start concern environmental problems such as air pollution and too much waste of row material. Take McDonald as example, it faced a lot of criticize of the waste production. Before the pager packaging was produced, McDonalds were using polystyrene for packaging for foods. As I mentioned at the beginning, there are around 49 million customers daily buy the food from McDonald. Can you imagine how much food waste and the waste of polystyrene package are produced? There are some pressure groups against McDonald as the largest waste fast food company and it is a company that killing animals. McDonald should base on environment factors to change its strategy. 

Legal Factors

Regulation always is the biggest concern to a company. As a company in fast industry, there are many legal requirements that McDonald should achieve in different countries, such as the labour and employment law, company law and tax requirement.

In conclusion, McDonald is still facing different threat from the macro environment. McDonald will be affected by each of the factors.