1. Introduction
In a world of economic downturns and financial crisis, multinational corporations seek to optimize their investments and expansion. As a result, these corporations constantly examine locations and opportunities that they can expand their operations in, while having a high return over. Macdonald is a multinational corporation and the largest fast-food chain restaurant. This corporation is known for its successful endeavors in areas of investments and expansions. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. As a result, a thorough inquiry about the potential countries that might be a good investment for McDonalds shows that the African country …show more content…
Tourists who visit Zambia prefer to eat at international restaurants chains rather than local restaurants because of the poverty and significant percentage of diseases. On other hand, the cost of operations in Zambia is relatively very low when compared to US and other countries in Europe. Zambia has cheap labor and low operational costs related to rent, electricity etc. Labor is primarily divided between rural and urban workforces. In urban areas, jobs obtained are related to an individual's educational levels. Actually McDonalds can help create jobs opportunities especially for people who were not to achieve high education level, knowing that there is high unemployment in the cities. The better-paying jobs are found in government work, and large businesses. However, McDonalds can provide very good wages as compared to those provided in the United States. It can provide generous wages yet still be operating at a low cost. When the low cost of operation of McDonalds in Zambia is combined with the business model of McDonalds in the US, the results favors the expansion of McDonalds to include Zambia in Africa. McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be …show more content…
The country has surpassed its focus on the production of copper and focused on other areas of the economy such as agriculture, trade and tourism. Its economy is developing and GDP growing. With the low cost of operations that are offered by Zambia’s low labor cost, then McDonalds has a good chance to open new franchise in Zambia and gain profits. Moreover, the government regulations are facilitated to encourage foreign direct investment not to mention that the level of corruption is not significantly high. A franchise of McDonalds in Zambia can be a major preference for people who visit Zambia for businesses or tourism and prefer international food chains to local food. However, McDonalds need to make minor change regarding its menu in order to match the preferences of its consumer. Also it needs to train its staff properly to maintain the customer service that it has all over the world. Also the choice of location for the operation of the business should be highly investigated due to the fact that electricity its cut down in rural areas and the number of people who attend Zambia for business and trade are heavily concentrated in cities rather rural areas. The location will most likely act as a dilemma for McDonalds’ franchise, since it targets tourists who visit natural and rural areas, whereas the heavy concentration of people is also found in cities. Unlike the United States, Zambia is not highly
In a world of economic downturns and financial crisis, multinational corporations seek to optimize their investments and expansion. As a result, these corporations constantly examine locations and opportunities that they can expand their operations in, while having a high return over. Macdonald is a multinational corporation and the largest fast-food chain restaurant. This corporation is known for its successful endeavors in areas of investments and expansions. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. As a result, a thorough inquiry about the potential countries that might be a good investment for McDonalds shows that the African country …show more content…
Tourists who visit Zambia prefer to eat at international restaurants chains rather than local restaurants because of the poverty and significant percentage of diseases. On other hand, the cost of operations in Zambia is relatively very low when compared to US and other countries in Europe. Zambia has cheap labor and low operational costs related to rent, electricity etc. Labor is primarily divided between rural and urban workforces. In urban areas, jobs obtained are related to an individual's educational levels. Actually McDonalds can help create jobs opportunities especially for people who were not to achieve high education level, knowing that there is high unemployment in the cities. The better-paying jobs are found in government work, and large businesses. However, McDonalds can provide very good wages as compared to those provided in the United States. It can provide generous wages yet still be operating at a low cost. When the low cost of operation of McDonalds in Zambia is combined with the business model of McDonalds in the US, the results favors the expansion of McDonalds to include Zambia in Africa. McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be …show more content…
The country has surpassed its focus on the production of copper and focused on other areas of the economy such as agriculture, trade and tourism. Its economy is developing and GDP growing. With the low cost of operations that are offered by Zambia’s low labor cost, then McDonalds has a good chance to open new franchise in Zambia and gain profits. Moreover, the government regulations are facilitated to encourage foreign direct investment not to mention that the level of corruption is not significantly high. A franchise of McDonalds in Zambia can be a major preference for people who visit Zambia for businesses or tourism and prefer international food chains to local food. However, McDonalds need to make minor change regarding its menu in order to match the preferences of its consumer. Also it needs to train its staff properly to maintain the customer service that it has all over the world. Also the choice of location for the operation of the business should be highly investigated due to the fact that electricity its cut down in rural areas and the number of people who attend Zambia for business and trade are heavily concentrated in cities rather rural areas. The location will most likely act as a dilemma for McDonalds’ franchise, since it targets tourists who visit natural and rural areas, whereas the heavy concentration of people is also found in cities. Unlike the United States, Zambia is not highly