Cross Culture

content

1.0 Introduction (2)

2.0 the challenges of Emerging markets in the globalization (2)

2.1 what is globalization (2)

2.2. Positive factors of globalization for emerging markets (3)

2.3 Negative factor of globalization for emerging markets (5)

3.0 McDonald's and American culture and Russian culture (6)

3.1 The concept of cultural metaphor and meaning (7)

3.2 Identify the cultural metaphor of McDonald's (7)

3.3 McDonald's basic cultural features (8)

4.0 McDonald's in Russia (12)

5.0 Recommendation for Russia emerging market (14)

6.0 Conclusion (15)

Reference (16)

1.0 Introduction

This report introduces what is globalization firstly，then introduces under the trend of economic globalization is introduced, emerging markets will face which challenges and the author list the positive factors and negative factor of globalization for emerging markets. Furthermore, this report discusses the relationship between McDonald's and the American culture and characteristics and Russian culture characteristics according to Trompenaars's parameters,Moreover, the author shows the state of the McDonald's in Russia and discusses the problem when McDonald's enter into Russia, as well as how to solve these problems with a successful development. At the end of the article, the author puts forward some suggestions for Russian emerging markets.

2.0 the challenges of Emerging markets in the globalization 2.1 what is globalization

The world economic globalization is the world's requirements and results of Productivity development in the world, which is difficult to be change by human factors. Its outstanding performance in international trade, international investment, international finance and the development of multinational companies. International Monetary Fund (IMF)reported that Economic globalization refers to the international trade in goods and services and capital flow increase in size and form, As well as the technology widely spread and take shape interdependence of the world economy. While Organization for Economic Co-operation and Development (OECD) considers

that Economic globalization can be regarded as a kind of process, Economic, market, technology and forms of communication are more and more global characteristics, national character and endemicity are reducing in the process. Therefore, to understand the economic globalization from three aspects. Firstly, The strengthening of the world economic ties and mutual dependence degree is increasing day by day. Secondly, National economic rules constantly tend to be more consistent. Thirdly, The strengthening of international economic coordination mechanism. All kinds of multilateral or regional organization for the coordination of the world economy and constraint function is increasingly strong. In general, Economic globalization is on the basis of market economy, and use advanced technology and productivity for method, To maximize the profits and economic benefit as the goal, Through the division of labor, trade, investment, multinational companies and flow elements to complete implementing national market division of labor and cooperation.

2.2. Positive factors of globalization for emerging markets

a. Global resource can be the most effective and reasonable configuration. The world effective collaboration can produce new huge productivity. The production factors of Multinational companies get optimal configuration to develop the most advanced products to gain the most competitive. Moreover, Globalization provides a world stage for the development of talent. Through the choice and practice worldwide, people's talents can be fully self-realization. Furthermore, Consumer get maximum satisfaction. People have access to the most advanced, the cheapest, the most appropriate consumption in the world.

b. Emerging markets through participation in globalization won the capital, technology, management experience, market, resources, et

c. and speed up the economic development to improved people's living standar

d. According to World Bank Group (WBG) statistics, Annual GDP growth to 7.3% from 3.3% between 2000 and 2006 in emerging market countries. In recent years, increasing foreign funding for emerging markets and World Bank Group (2007) report that Foreign Direct Investment of Emerging markets increased to $324.7 billion from $170 billion between 1998 and 2006. Emerging markets using the multinational companies to improve own technology. For example, South Korea's economy is relatively backward in the 1960s, However, Participate in the globalization make South Korea accelerates the economic development. At present, the south Korean already in developed countries.

c. Since the second world war, History shows that conveying Cheap and high quality to the world economy is an important way which can make Asian economies tend to prosperity. Today, Russia, China and India etc. Large scale of emerging economies are along the method to development. Have a greater role in promoting for the global economy.

From what has been discussed above, The first ,Economic globalization provides opportunities for the emerging markets. It is favourable to absorb foreign capital and make up for the inadequacy of domestic construction funds. The second, Globalization can help to learn the advanced management experience and cultivate high-quality management personnel. Globalization can help play a comparative advantage and develop the international market. However, It cannot be ignored that

Globalization also brings risk and adverse effects at the same time when it brings benefit.

2.3 Negative factor of globalization for emerging markets

a. Emerging markets face huge financial risks. Emerging market development is not mature and Macroeconomic regulation and control mechanism is not perfect. Emerging markets economic strength is weak and vulnerable. Moreover, Emerging market legislation is not perfect which is easy to free riding. In brief, Emerging markets lack of mature and effective rules to plan and manage the development of financial industry. If financial markets open in such conditions, Emerging markets will face huge financial risks, but Emerging markets want to realize industrialization and modernization, it must be open.

b. Economic globalization have serious impact on local companies in emerging markets. Emerging market economy is relatively weak and have outdated technology which added the pressure and impact for national economy. On the one hand, National enterprise can get a bigger development space in the globalization. On the other hand, Economic globalization makes national enterprise into a broader competitive environment which have more powerful competitors. It is difficult for national enterprises to compete with powerful multinational corporations on Scale, efficiency, technology level and research ability. Multinational company's brand and product filled with emerging markets which lead Companies in the developed countries get more benefits. However, trade of local companies in emerging markets become worse and only get a small amount of benefit and even been gobbled up.

c. Economic globalization makes the growing income gap between developed markets and emerging markets. Developed markets lead the process of economic globalization with Capital, technology and management style. Latin America, eastern Europe etc. market share the declining benefit. The gap between rich and poor continues to expand, the number of underdeveloped countries increased to 48 from 25 between 1970s and 1990s. This phenomenon intensified social contradictions and cause more instability.

d. Economic globalization make the talent outflow in emerging markets, Especially skilled personnel and senior technical personnel. Powerful multinational company use high salary to attract and employ Ready-made talent which lead to emerging markets suffer loss , namely Talent and education cost.

In brief, Economic globalization is a process of practice, every markets must grasp the opportunity. At the same time, It is a process full of contradictions. Emerging markets need to pay the price, such as Sacrifice benefit and the change of national culture. Economic globalization is not average to Share the wealth, But to provide more opportunities and challenges

3.0 McDonald's and American culture and Russian culture Since the 1960 s， Fast food is very popular in restaurant industry and known as the American food. Fast food has changed the American way of life and America has become fast food society and Fast Food Nation. American fast food culture reflect and metaphor for the American lifestyle, customs and values.

3.1 The concept of cultural metaphor and meaning

The cultural metaphor is a pioneering method of cultural studies by Martin Gan-non. Cultural metaphor refers to all the social members agreed on emotional or cognitive cultural phenomenon, activity, or custom. For example, Italian opera, American football, French wine, etc.

Gannon（2004）states that the unique customs of each culture and behavior use its vitality as the core to shape cultural concept and mode of thinking. Although the phenomenon of national characteristic, activities and customs can reflect a country or a nation Shared values. But these things are often in a state of collective unconscious, which is the ideal thinking mode of culture.

Cultural metaphor for intercultural communication, international business negotiation, multinational management has a positive role and has real effect to Cross-cultural management personnel.

3.2 Identify the cultural metaphor of McDo nald's

Since the 1960 s, the feminist movement has happened in the United States, American household income structure has changed, the American way of life is also changing. Especially , Hamburg win the favor of the American through Low price, nice taste and convenient purchase tec. Soon, these features help fast food be marked the "American" brand which rise to national staple food in the United States. Hamburg become the American life-style and symbol. Americans eat hamburger, just like the Chinese eat rice. Schlossor (2001) detailed analysis of the fast food brings social problems in Fast Food Nation. Such as public health, animal protection, the impact of advertising on children. Furthermore, Considering that from the perspective of

linguistics, the word-activity also reflect the effects of fast food to people. For example, Fast food has even been used as a verb : "Lunch was a problem, like do I sit down or continue to fast food it. "

In brief, McDonald's is the epitome of American culture and highlights the characteristics, embodies the spirit and the flesh of American culture. Fast food culture is the typical cultural phenomenon represented by McDonald's , which can Reflect and explain the characteristic of American culture. McDonald's phenomenon reveals the core idea and the way of thinking of the Americans, reflect the soul of American cultural values.

3.3 McDonald's basic cultural features

a. Personal effort and cooperation in competition

Equality of opportunity, independence and self-reliance and pioneering spirit are throughout the history of the United States national ideals and values. These values are almost never changed, they used to be, now is still the American standards of behaviour. McDonald's culture is very similar to attitude towards life of American society. Personal performance, fair competition, to win, are the picture of the reality life atmosphere. McDonald's provide development opportunities for each person, but everything depends on individual performance.

Americans advocate materialism and think people should be a rich and have a good life. Even The priest told parishioners "You have no right to be poor". Americans

believe that people have to spend time to earn money, in order to draw money power, time is money, money is power.

While Russians have collectivism spirit, which required personal idea，volition and behavior to obey the collective and society. Individual freedom and personal value is not respected.

b. Use the minimum input for maximum gain

Since Columbus discovered the new world, Everyone came to America with dream, who have very persistent and specific beliefs. Get the most satisfy at a minimum cost is the best way to achieve dream. Over time, this belief has become Americans basic patterns of behavior. China has an old proverb: "A 1000 kilometres' journey is started by the first step." McDonald's verify this principle. McDonald's do the deed from small start and start from the details. McDonald's is often built near parking lot, highway, gas stations to provide convenient service for consumers. Convenience is the magic weapon of the successful McDonald's.

Americans has its unique perception of time. People always feel time pressure, Time pressure become a mark of success and even form a king of stress envy. （Tomkins,1999 ）So, Americans chose the fast food and chose McDonald's. Americans can exchange for a good meal at cheap price and the most important thing is that to solve the problem in 10 minutes.

While Russian admire spiritual culture and despised material. Despise riches and thrift are the pursuit of Russian culture. It will get social respect for Russian to pursuit of spirit and give up material.

c. Pursuit of perfection and the strong cultural expansion

McDonald's pursue the NO.1 from Food quality to service attitude. At present, McDonald's is the world's largest fast food chain and the most valuable brands catering industry and the world top 500 enterprises. McDonald's restaurants spread 118 countries on six continents all over the world and has a total of 32000 stores. McDonald's is the most fashionable in American exports, the most popular products. The sign of McDonald's and McDonald's uncle spread all over the world. Thus, From what has been discussed above, The authors completed a model according to the Trompenaars's parameters.

Universalism Particularism

American Russian

According to the national character, It can be found that Russian workers are more likely to assist members of own group than American workers.

Individualism Communitarianism

This section relate to how the workers think and work. American workers are more individualistic. Russian workers are more team players or need to be approve by group.

Neutral Affective

American Russian

In this part, American workers only can get a lower score, America is a country of high emotional culture and maybe American workers need to learn how to Control their emotions.

Specific Diffuse

American Russian

In this section, American and Russian are close in this class. American or Russian are often invited into personal open space and there is a strong interval between work and privacy of an individual.

4.0 McDonald's in Russia

It is easy to find McDonald's in these countries with stable political and economic. Hamburgers, chips, and fried chicken etc. typical American style fast food have been accepted through the speediness, cleaning and nutrition. Russia is not an exception, At present, there are 245 McDonald's distributed in Russia. There was an average of 850000 customers in each store yearly and much higher than that in The United States. However, Russia is a tremendous importer of agricultural products and Most of the meat products rely on imports. When the first McDonald's set up in Russia, 80% of McDonald's food raw materials rely on imports, Even local enterprises are not willing to provide the raw material to the restaurant, After 20 years of unremitting efforts. Finally, McDonald's improve the development of the Russian food raw materials when McDonald's meet with success in Russia, and improve the development of private economy. Because McDonald's purchase food raw material to complete the business from the local. McDonald's move into Russia make many private enterprises develop rapidly. These private enterprise can survive, develop and expand, if they relate to Food raw material and McDonald's. According to the statistics, 80% of McDonald's food raw materials was provided by private enterprise now.

In the 1990s, A farm responsible for providing vegetable to the first McDonald's in Moscow. Later, The farm has become a vegetable Foundation in Moscow, through continuously providing fresh lettuce for all McDonald's. Not only McDonald's did not Monopolize food raw materials market of Russia, but also cultivate many food raw materials businesses.

Even more noteworthy is that McDonald's obtain favorable verdict in a Moscow court in 2011, which make McDonald's identified as the supermarket rather than restaurant. According to Russian law, Restaurants need to pay 18% tax, but supermarket just need to pay 10% tax which will save a lot of taxes for McDonald's.

Christopher Wayne developed Papa John's from 2007, which has already opened 25 stores. Although Papa John's faced with some strong opponents in Russia. But by contrast, American fast food market is saturated. Wayne said there are too many opportunities and he can succeed just need to sleep. American fast food entrepreneurs find that Russians spending power is higher than Americans, According to the survey, customer spend $8.92 each list in Russia, which is higher than that in US with $6.5. Not only McDonald's and Papa John's found business opportunities in the fast food market in Russia. In the past two years, Burger king opened 22 stores in Russia. Although, Wendy's has only two stores in Russia now, but Wendy's plan to open 200 stores before 2020. Subway has opened 200 stores in Russia, While Yum!, the parent company of the KFC and pizza hut, which has opened about 350 joint venture, such as Rostik, s-KFC and IlPatio with local companies.

For American fast food chain enterprises, China and India has become high-growth markets overseas for years, and Russia is the next station. According to the New York times reported, In recent years, the fast food industry is more and more popular in Russia, because there are many modern infrastructure in Russia's cities, which Pave the way for the fast food industry. Including shopping mall with the dining area, the highway rest area and The professional supplier of frozen food and packaging. Furthermore, Russia has growing middle class group and most people have no

mortgage problems with the lower personal income tax. Therefore, the Russian market has a high purchasing power.

5.0 Recommendation for Russia emerging market

When economic globalization brings opportunities and challenges，Emerging markets need according to their own conditions and to develop step by step, need to improve the ability to prevent and withstand risks. Economic globalization makes countries economic interdependence and mutual influence. Any country cannot oppose or withdraw, and adapt to the globalization and actively participate in globalization are the only way. It is the most significant problems for emerging markets to understand how to deal with various problems and challenges in globalization. The author gives some Suggestions.

1. To strengthen the government's macroeconomic regulation and control

Russia emerging markets need to improve the financial risk prevention capabilities. Russia needs to keep its own financial health and prevent the bubble economy. The foreign investment need to be properly.

2. Support and protection of national enterprises

Through the terms of WTO to protect infant industries and industrial structure adjustment to accelerate the economic development.

3. To actively increase foreign trade and comparative advantage

Russia emerging markets need to make full use of natural resources and labor to develop foreign trade to Enhance the comprehensive competitiveness.

4. Russia emerging markets can develop science and technology, education, and talents strategy. In the 21st century, Global competition is science and technology, education, talent competition. On the other hand, Russia can increase the social security system which can contribute to the long-term development.

6.0 Conclusion

It cannot be doubt is that through 12 years to unremitting efforts, McDonald's enter into Russia successfully . even McDonald's improve the development of the national enterprise and Change Russia's culture and the status of agricultural raw materials. It is clear that this type globalization is positive and mutual benefit. McDonald's only do fast food and others all be outsourced. McDonald's is very clear that fast food is the core as the fast food restaurants and only do the fast food perfectly, then they will get competitiveness. Enlarged product lines will scatter strength to weaken the competitiveness. Thus, McDonald's has been successful, Through the McDonald's culture and spirit.

Reference

China business news (2010) McDonald's promoting the development of private economy in Russia, China business news publishing.

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Martin J. Gannon and Pino Audia (2004), "The Cultural Metaphor: A Grounded Method For Understanding National Cultural Differences," in Christopher P. Earley and Harbir Singh(editors), Innovations in International and Cross-Cultural Management. Thousand Oaks, CA: Stage Publications

Peter K Cornelius, Klaus Schwab (2003) World Economic Forum . 2002-2003 The global competitiveness report. Mechanical engineering publishing, Peking.

Peng Jang (2000) Investigate the origin of globalization, meaning and research status , Pacific journal, page 59-66.

Schlossor (2001) Fast Food Nation , Houghton Mifflin Company published

The ministry of commerce(2004) China's foreign investment report. https://www.360docs.net/doc/7d12870713.html,.

World Bank Group (2007) Annual World development Report 2007 , World Bank Group publishing

International Monetary Fund (2007) World Economic Outlook October 2007: Globalization and Inequality, International Monetary Fund publishing.