Showing posts with label strategic management. Show all posts
Showing posts with label strategic management. Show all posts

Localization- More Than Translation

What are the main reasons you leave a website? It doesn’t hold your attention, doesn’t have much to offer, you can’t understand it or it’s offensive in some way? These are all perfect reasons international customers would want to leave your website too. When it comes to getting your information translated not just accurate but localized, it’s a good idea to get it done right.

Most human needs are universal, but it’s the details of people’s cultures, beliefs and views that matter just as much. Marketing a product or service to outside countries takes more than glossy reprints of the same hotel to persuade every one in every country that this would be the place to stay. A more common example where localization is imperative is for products that were made in the U.S. to be used in another country. Products are not just made and then distributed all over without changes being made first. Can you imagine getting a video game made in Japan that was only in Japanese and you couldn’t even attempt to play it? The games created in Japan and played in the U.S. have been localized for the states.

Your company can’t afford not to localize your product or service. And just as importantly, not to over compensate and create the opposite affect. For example advertising your high tech computer software in Japan with a Sumo wrestler and a ninja on the packaging would cause offense to many people in Japan, even though Sumo wrestlers and ninjas are a small part of their culture, you can’t be assuming your audience isn’t forward thinking people, to be so naïve would be the same as shooting yourself and your company in the foot. Localizing your product so that the product spotlight’s the Japanese people as some of the brightest, hard working and progressive people on the planet, will bring your company more results. People are going to buy products for what the products can do for them and of course they are going to respond better to a product that makes them feel secure in their identity too. It’s also so important to remember that unlike American advertising that is saturated in loud black and white phrases, slogans and brutally honest and blatant remarks, in Japan, certain symbols whether it be of nature or animals speak just as loud as our American exclamations. In saying that, where does a company turn to in order to get their product localized right? Trust in the professionals. Several professional translation companies are available to help. You can trust in the big guys and remember, it’s not just your name on the product, it’s theirs too.

Author: 10x Marketing

PESTLE Mcdonald's

PESTLE Analysis

POLITICAL
The operations of McDonalds are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. McDonalds should also protect its workers by ensuring all the hiring, compensation, training or repatriation is according to Malaysian Labor Law as stipulated.


ECONOMICS
As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. Dealing with international sourcing for its material McDonalds should be aware on the global supply and currencies exchange. Remember, McDonalds import most of its raw material such as beef and potatoes due to local market cannot supply in abundant to meet the demand of its product. Any upside of currencies especially dollar will be impacting its cost of purchase.

Working on the local country, McDonalds must face government regulations on tax of profit where it gains from the operation and other tax such as entertainment and restaurant service tax. Each country may have different scale or types of tax available and McDonalds should follow the regulation if it wants to continue the operation. As a franchise, McDonalds should also pay certain percentage of the revenue to the parent company in United States.
The economic condition and growth of the country also is an important indicator to the demand of products that McDonalds offered. As the food priced slightly above normal foods, not many people will have the income range to consume the products. Moreover if the economy is bad and income percapita is affected, the demand of McDonalds product will certainly going down. On the other hand the good economy also means disposable income is more and people can spend more on more expensive food at fast food restaurant.


SOCIAL / CULTURAL
The changing lifestyles of Malaysia due to development of Malaysian economy should be also taking into consideration. While more people are able financially to eat at more expensive outlet such as fast food restaurant, they have higher expectation. They want to have quality in services and more conveniences that can differentiate one restaurant from another. Young urban consumers want technology in their life and facilities such as credit card payment, wireless internet, cozy and relaxing ambient place, and other attraction for their hangout and eating. All these needs should also be taken into consideration. There is not much difference between cultural and the purchase of products in a single country but for different countries cultural sensitivity should be upheld. For example in India people (Hindu) do not take beef, Muslim countries do not take pork, German like beers, Finnish like fish type of food menu, Chinese like to associate food with something good (for example prosperity), Asian like rice and Americans eat in big-sized menu. So far McDonalds has shown good efforts in localization of its menu to suit local taste but it should constantly survey and learn about local culture to better understand and design the best product for them.

TECHNOLOGY
For a fast food restaurant, technology does not give a very high impact on the company and it is not a significant macro environment variables. However McDonalds should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation. For example in inventory system, supply chain management system to manage its supply, easy payment and ordering systems for its customers and wireless internet technology. Implementation of technology can make the management more effective and cost saving in the long term. This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time.


LEGAL
As a certified fast food operator, there are many regulations and procedures that McDonalds should follow. For example is the Halal certification that becomes a concern to Muslim consumers. McDonalds should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed.
Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours, business registration, tax requirement, labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous.

ENVIRONMENT
As one of world largest consumer of beef, potatoes and chicken, McDonalds always had been critics for world environmentalist. This is because high consumption of beef causing the green house effect by methane gasses coming from the cow’s ranch. Large scale plantation has effect the environment and lost of green forest opening for plantation activities. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. In Japan, once McDonalds want to introduce whale burger causing uproar because whales are endangered species. Before using paper packaging, once McDonalds also had been criticized for being insensitive to pollution because using polystyrene based packaging for its foods. Imagine millions of people purchase from fast food operator and how is the impact to world environment by throwing away those hard to recycle packaging. Our world is getting concern on environment issue and business operating here should not just care for profit, but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better.