MNC vs Globalization
Posted by bcooney on September 28, 2006
What is the relationship between multinational corporation’s and globalization. Are Starbucks and McDonalds simply companies or a piece of the greater globalization puzzle. Without checking my facts I believe there was coffee before Starbucks, and I will further assume that most countries with Starbucks restaurants had coffee and other cafe’s before Starbucks. Sooo what is special about Starbucks? On the other hand McDonalds is an extremely American enterprise in terms of its ideas, food, etc. Starbucks is different. What about Starbucks is globalization and not simply just a global enterprise.
Living in London which had roughly 3 Starbucks per capita I can honestly say I don’t think it changed English culture at all. I think the seminar’s participants are incorrectly or for lack of information making an incorrect inference about MNC vs. Globalization or companies that had fueled or benefited from globalization. While Starbucks is a symbol of urban life and civilization in general. I may be out on a limb here but I will say it; Starbucks IS NOT globalization. Examining the collective definition of globalization I have decided that Starbucks is not in the globalization driver seat, but simply on the bus.
My other friend McDonalds is in the driver seat. I think there are clear distinctions between a MNC and globalization. While we frequently cite Starbucks it is just a product of globalization not an innovator. McDonalds is completely different. While it may not be globalization it is defining globalization and reshaping it through its business strategy and its effects on society. In the Wall Street Journal last week McDonalds showed up with an article about its operations China. Beef is a status symbol in China and McDonald’s is using its burgers to affect society and culture. Even more controversial but more related to globalization is the use of sexually provocative advertising. McDonalds is changing the world and introducing European and American ideas into a foreign environment. This is globalization in a way that I don’t see a tall cafe latte.
I think it is important to recognize the distinct characteristics between companies the process of globalization.
Is Starbucks globalization? « Where Are We Going? said
[...] For the sake of argument I’ve decided to make a post in response to Brian’s post on how Starbucks is not globalization. First of all I agree with many of the points made by Brian so this is not taking the completely opposite view but maybe more of a middle ground. [...]
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