Please compare and contrast the benefits and challenges of Macdonalds working in several different economic environment.

Explain how Nike reacts when operating in USA, CHINA, and Russia

use the key words below to explain the benefits and challenges.

The economic environments should be identified. There needs to be a comprehensive assessment of the benefits and challenges posed to the organisation.

Key words that must be used:

Benefits and challenges of operating in different economic environments

• benefits: may include the ability to complete effective market analysis; adapt to cyclical changes; expand business operations; communicate effectively (within the domestic business environment); access and purchase high quality materials and labour; benefit from economies of scale;
• challenges: may include the inability to communicate effectively with the international business environment; diseconomies of scale; the increase in regulations and international legislations; difficulty in adapting and meeting the needs of different cultures; language barriers 

 

Benefits

• With over 170 countries with McDonalds, working in this different economic environments has allowed the restaurant to diverse and expand its business operations. Travelling around the world you can never miss a McDonald restaurant, the reason its so popular both domestically and internationally.
• With greater coverage leads to less economy of scales. having the restaurant in different economic environment allows it to benefit from the economies of scale.

Challenges

• Having the restaurants in so many places around the world, comes with the problem of language barrier. Very often you find it hard to communicate effectively as you move to a new country.
• Every country has its own preference and cultures, to meet this expectation McDonald is tasked to adapt and meet the needs of the different people in diffferent countries

Having the benefits and challenges in the different economic environments, the McDonald company looks at what outweighs the other. When the benefits are higher, there is need to venture in the new country.

Step-by-step explanation

The Nike company is an American multinational corporation that was founded in the United state and its headquarters is also in the United state. Nike is popularly known around the world but majorly in countries like the United state and most Asia countries like China, Indonesia, Taiwan and and Philippines. Having the majority of its markets in these countries, the marketing is well accepted and the business is good. Nike has a small shop market in Russia with only less than 100 employees. The revenue earned from China and United states is higher compared to that of Russia. The language barrier can be a problem but the business is always welcomed in these countries., with the different economic environments the Nike company is getting popular around the world.