Outsource or Perish: Outsourcing in mainstream America

Essay by cavepilotUniversity, Bachelor'sA+, October 2004

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Outsource or Perish

The mainstream idea in today's business world is to "outsource" production. The idea is simple: use cheaper labor for production and broaden avenues for sales. Many companies are going global, for example, Wal-Mart, Coca-Cola, McDonald's, Ford Motor Company and a host of other companies. These companies were created by American entrepreneurism and have based their success on the American culture. These companies are also successful in the global market because of their willingness and ability to research other business and life cultures of the foreign industry and incorporate this research into their own business practices. This is a must for a business that wishes to successfully outsource and manage in the global environment.

A perfect example of this is McDonald's which was born in the American culture of the 1950's, has expanded to over 14 thousand restaurants in 72 countries. These 72 other countries did not have the same background or culture as America.

So what makes the fast food business successful in these other countries? McDonald's is committed to a change in management to satisfy each of the country's unique culture. It does this with having its "Hamburger University" located in different regions around the world allowing for specialized training for the host of different cultures.

Other companies such as Wal-Mart are also successful in the global environment. Wal-Mart has opened stores in international markets such as Mexico, Great Britain, Japan, Germany and China. Wal-Mart has remained successful because of its research of local communities and regions as well as making available to those markets cultural items found in those cultures.

Researching a culture's likes and dislikes will help a business be profitable in a region, but researching a cultures business practices will help a business become successful. In his article "Managing Cultural...