International trade

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School
Conestoga College **We aren't endorsed by this school
Course
ACCT MISC
Subject
Business
Date
Nov 16, 2023
Pages
4
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Ques7 . VRIO analysis of the specific firm with detailed explanation (Resources and Capabilities)? Ans : Analysis of MacDonald's VRIO: 1. Valuable Resources and Capabilities : Example: One of MacDonald's most significant assets is its worldwide brand. The worldwide brand. The brand is well known around the world and is linked with fast food. Its effective worldwide distribution network and efficient supply chain further add to its value by guaranteeing prompt delivery of products to its restaurants. Explanation: By drawing consumers and guaranteeing a constant level of quality for its goods throughout its extensive network of restaurants, McDonald's worldwide brand and effective supply chain play a major role in the company's success. 2. Uncommon Assets and Skills : For instance, McDonald's has a distinctive approach to real estate, frequently owning the property and structures housing its restaurants. There is less of this ownership arrangement in the fast-food sector. Justification: In the fast-food sector, real estate ownership is a unique skill. McDonald's gains ownership of its sites with this technique, which lessens reliance on landlords and allows for site selection freedom. 3. Unique Resources and Competencies : For instance, McDonald's has created advanced, in-house systems for managing inventories, processing orders, and providing customer care. These mechanisms are deeply ingrained, having developed over decades. Justification: Because the exclusive systems include established procedures, staff development, and a company-wide comprehension of effective operations in addition to technology, they are challenging for rivals to copy. 4. Arrangement (Utilization) of Assets and Skills : As an illustration, McDonald's has a proven franchise strategy that enables it to grow quickly with less financial outlay. For franchisees, the business offers a demanding training curriculum designed to make sure they follow McDonald's guidelines.
Explanation: The franchise model is a crucial organizational tool that enables McDonald's to take use of independent franchise owners' resources while keeping control over the caliber of its products and the consistency of its brand. In summary : McDonald's maintains a competitive edge due to the unique, uncommon, and important resources and skills it holds. Its success is largely attributed to its strong worldwide brand, effective supply chain, distinctive real estate approach, proprietary systems, and franchising business model. To keep its place in the market, McDonald's must continue to adjust to shifts in customer tastes, technological advancements, and the level of competition. Ques8 . Explaining the trade barriers such as quotas, tariffs specific to that product/industry in which the company is operating? Ans : Tariffs and other trade restrictions, such as quotas, can have an impact on the fast-food sector, which is where McDonald's operates. To guarantee freshness and satisfy regional tastes, McDonald's normally gets its ingredients and raw materials locally in many different nations. Therefore, compared to industries that mostly rely on global supply networks, the impact of trade restrictions may be more indirect. However, let's examine how tariffs and quotas could impact the fast-food sector, using McDonald's as an example: Charges: Tariffs are levied as taxes or charges on items that are imported or exported. They raise the price of imported goods, which reduces their ability to compete with items made domestically. An illustration from the fast-food industry is this: McDonald's, which depends largely on these components, may have to pay more to get these goods if a nation places high taxes on imported agricultural products like potatoes or beef. This can result in decreased profit margins or increased menu pricing. Quotas: Definition: A quota is an upper limit on the amount or value of a certain item that can be imported or exported within a given time frame. An illustration from the fast-food industry is this: McDonald's could have trouble obtaining a consistent and adequate supply of components if a nation places limitations on the entry of foods. This could influence how consistently menu items are offered at various locations and possibly cause operational problems.
Outside of Tariffs: Non-tariff barriers are limitations that impede international commerce without requiring the implementation of tariffs. These might consist of rules, specifications, and license needs. Example for the Fast-Food Industry: McDonald's may need to modify its recipes or sourcing tactics to go with tight laws imposed by a nation on the use of specific food additives or preservatives that are frequently utilized by fast-food companies. It's critical to note that McDonald's frequently customizes its menu to suit the tastes and preferences of the region, and the business may employ a variety of sourcing techniques to lessen the effects of trade restrictions. Furthermore, the particulars of trade barriers can differ greatly between nations, and because McDonald's activities are worldwide in scope, the corporation particular foods. This could influence how consistently menu items are offered at various locations and possibly cause operational problems. Ques9 . Detailed analysis explaining about what contributes/determines the success and failure of the firm export around the globe (why do you consider it as a successful company in international market)? Ans : A few elements that have led to McDonald's worldwide recognition can be ascribed to its success in the foreign market. Here is a thorough breakdown of the main factors influencing McDonald's export success worldwide: Standardization of Goods and Procedures : Contributor to Success : McDonald's has standardized its menu and business procedures successfully on a worldwide scale. Customers have come to expect a dependable and comfortable experience due to the uniformity of product options, taste, and quality across international borders. Adjusting for Regional Tastes and Customs : Contributor to Success : McDonald's customizes their menu to suit regional tastes and cultural preferences while upholding international standards. With the help of this localization approach, the business may appeal to a wide range of global customer tastes. Model of Franchising : Contributor to Success : McDonald's has a strong reliance on the franchise model, which allows it to grow quickly with less financial outlay. Due to their in-depth knowledge of their respective markets, local franchisees can implement operational and marketing strategies that are specifically tailored to their area.
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