Apart from outsourcing services that were once provided by community businesses, non-local large companies may displace more entrepreneurial small firms. Illustrations of the large companies that non-locally owned include the extensive retail chain stores. It is rather evident that the big business owners as well as those of the wealthy classes by themselves play tremendous roles in developing the local economies based on the adjacent topologies. However, even with the subjective matters, it is considered that their practices coupled with tactics in getting such great amounts of power are mostly unfair and unjust. Through demeaning others, the companies continue prevailing. While they live at home in large houses, the poor population and the immigrants to be precise are subjected to poor unsanitary conditions living among diseases as well as hunger. However, they are lucky to even secure a position with them. If they are able to afford to at the very least live in a place with wages which big businessmen pay them says a lot about their determination and social drive (Ritzer 32). It also seems as in the event that the American dream continues revolving around money at the time, the manner in which wealthy classes came into being is rather horrific. As they created legacies lasting across decades, they achieved this through respect and honesty.
Introduction:
Usually, we do not care about Globalization but we have to think about positive and negative aspects of McDonaldization. Nowadays, everything has changed from what it was before for instance a lot of people eat fast food because conditions of life are not like before and men and women both have jobs and they work approximately most of the day. Obviously, they do not have time to cook and they eat fast food. One of the biggest fast food companies is McDonalds and it has many branches throughout the whole world.Large companies contribute in economy by hiring many people especially in U.S.A and also throughout the whole world (Ritzer 65). Large companies sometime hurt small business when they exist in the same area. On the other hand, the companies are seen to make due use of the small towns’ resources depleting further refuge of the business economies across the world while not paying them enough money for products manufactured within.
How Large Corporations Affect Economy Towards Small Businesses, Cities and Towns.
Contribution to Economy
Large companies affect local economy and small business. They contribute in economy by hiring many people especially in U.S.A and also throughout the whole world. Large companies (Wal-Mart, Publix and sweatbay) sometime hurt small business when they exist in the same area. Though large companies have their scopes of operation reaching as far as the world’s remote retailer as well as consumer centers, they share a principle impact of boosting the local economies. However, this also comes with a detail of negative impacts across the small business economies. Indeed, this comes as a way of offering incentives such as partnerships to suppliers while still sharing numerous profits with various staff and assuring friendly customer care services to the day to day low prices (Randy 92). The other element affecting small town business companies has much to do with low wages labors that are attached to extra facilities. The fact that business companies in small towns are not equipped with ample capacity and potential of earning maximum profits based on minimal production costs as well as minimum losses (Thurston 92). The workers are mostly not interested in working in such companies as there is neither charm nor attraction of their working environments. In addition, the relationship which is enjoyed across such working environment of the firms is not provided to workers of small town businesses.
Together with the increment in standard-of-livings inherent to the raising levels of local employment, there is a presence of diverse business types which impact on the overall standard-of-living. This further provides a wider scope of services as well as amenities within the local area. For example, adding the large company to a small town also adds on the entertainment options for the local residents through bringing in more money into the inlaying communities. Businesses that develop strong ties to the local community also lend a considerable hand within the political actions that are community-focused (Randy 29). The businesses will also help in the funding and organizing of campaigns towards lobbying, letter-writing as well as other political activities aimed at influencing legislators onto issues affecting local communities. The local businesses within come in handy in helping to fully convince the candidates holding campaign speeches within the town through by fronting sizable campaign contributions. The businesses typically provide locally produced goods as compared to the large chain stores. Due to this, the individuals within the local economy will be in a position of selling their goods and services at a local level of business hence benefiting all the people in that area.
First of all, large companies contribute in economy by hiring many people especially in U.S.A and also throughout the whole world. McDonalds has 30000 locations in 118 countries. This has majorly come in handy in developing and increasing its efficiency which it refers to as its approach to accomplishing tasks. Through this context, the company bears a specific meaning to efficiency. In this regard, the McDonald's customers consider this to be one of the fastest ways of getting from a state of hunger to that of fullness. Efficiency within McDonaldization results from every aspects of the entire organization which are geared towards time minimization. The wide spread location also impacts on its calculability (Frankel 92). This is considered to be the need of having the objective more quantifiable (such as sales) other than being simply subjective (such as through taste). This further allows the people to be in a position of quantifying the extent to which they are getting against how much they will be paying. The organizations seek consumers to develop a belief that they will be getting large amounts of the product offering for less money. Workers within these organizations will be judged on the basis of how fast they are other than on the basis of work quality.
McDonalds gets 50% of beef from European farmers. The key highlights of the primary McDonaldization in farming components include predictability such as that of standardized as well as uniform services (Leo 102). The aspect of predictability necessarily means that irrespective of the location that a person settles on, they will be in a position of receiving similar services as well as similar products each time they interact with the overall McDonaldized organization. This also applies to the workers in those organizations. The farmers’ tasks for that reason become highly routine, highly repetitive, as well as predictable. Control among beef farming included the standardization of raw materials and replacement of human labor with non-human technologies. In strong economies, nearly all major businesses exhibit greater prosperity (Frankel 56). The levels of disposable income are high as the unemployment levels go even lower. The considerations of consumer confidence prompt the people into pumping more money into the economy based on the purchases of critical and noncritical goods and services. The overall impact of the strong economies to the business becomes two-fold whereas the business increases, the need for businesses to keep at par with the demand levels also increases and is evident through the hiring of additional employees. This is also depicted through the expansion of retail space and adding even new product lines.
Hurts Small Businesses
Second, Large companies sometime heart small business when they exist in the same area. Small business cannot increase price like big corporations like Wal-Mart. One of the examples is that of a local store not having similar prices to those Wal-Mart offers. Clearly, Wal-Mart store openings cause a drastic strain on the local jobs for while creating a reduction of the retail employment by in every local town they enter. The entry of Wal-Mart into new markets is not a case of increment of overall employment opportunities or retail activity. Research shows that retail employment is not always increasing in a Wal-Mart’s zip code. Such an entry into markets has strongly negative impacts on the existing retailers (Ritzer 73). Discount variety stores and supermarkets become some of the most adversely impacted sectors as they suffer sales declines close to 10% in the event that Wal-Mart comes in. Stores at the vicinity of new Wal-Mart stores face increased risks of running out of operations. The large businesses are always focusing to expand and in most cases they open up more branches within the same town. This means that they displace other occupants for their gain. The large corporations, like Nike and Jerry’s and Ben, kicked off as relatively small businesses and over the time growing into being critical players within the national as well as international marketplaces (Thurston 49). Most of the computer-industry leaders started as small firms who worked on various hand-assembled machines at their initial garages. Further, Microsoft is the other prime example of the manner in which small business ideas could actually impact the world (Vignali 19). This means that businesses which grow into the large businesses remain within the community for which these businesses were first established. Having large corporations headquartered within a community further helps in providing employment and stimulating the local economy.
Some small businesses close their stores when large corporations open in the same area. For example, when coffee shop owners closed their store and after that they worked in Starbucks. The policies of Starbucks ranging from the control of their suppliers all the way to the management of working environments as well as low wages strategies together with the policies of providing products which are related to all fields of life in one roof at cheaper rates pose unfair competition to other traders in the shopping centers. This affects the overall local market to a great extent (Thurston 73). Basically, Starbucks is a large coffee company that focuses on the developing and expanding beverage products while upholding the standard of products as well as presenting healthy shopping environments. This can result into mass business failures and layoffs.
Effects on Towns and Cities
The large businesses also contribute to the local economies through introducing growth and innovation into the new community for which there is a business establishment. The large businesses also stimulate the town’s economic growth through the provision of employment opportunities to the residents who are not employable by the smaller corporations (Randy 78). The businesses have a tendency of attracting talent that proceeds to invent new products and implementing new solutions to solve existing ideas.
For example, when big company exists in town, many people work in this company and town becomes city. Though some of these companies are big multinational corporations running large chains of the shopping centers constantly fight for the basic labor's right (Leo 90). This is due to the immense effect on the local economies and small business coupled with the domestically established small business companies. Outside the working mechanism of the working environment of such corporation, there is a depiction of a very healthy as well as family-like environment. However, they face massive shortcomings internally with regards to rights of workers as well as labors in question. For example, the workers will be an integral component in developing and sustaining ideal working environments for the workers around (Frankel 67). A major advantage of such businesses into a local economy is the fact that they offer typical employment to a whole range of supporting services which need be obtained locally. For instance, if the business has to add more facilities, it considers hiring local contractors. The businesses will also solicit the services of tax preparers, cleaning services and other local businesses hence increasing the level of work to all people within the economy.
Conclusion:
In conclusion, McDonaldization has advantages and disadvantages towards economy either small businesses or cities and towns.Even though this could be perceived to be a positive measure, one of the downsides for it is the fact that in the event that the economy begins faltering, most of the small businesses will be overextended. Many countries could get more benefits from McDonalds as globalization for example different culture, new technology and new jobs. For the purposes of keeping track of these policies, the companies also have to continue working with minimal production costs. Unfortunately, the number of local business companies does not embrace large amounts for the profits which are based on the minimal production costs in comparison to the major shopping centers which are part of the world's largest shopping chain centers. On the other hands, they can avoid disadvantages that affect small businesses by putting somecriteria that maintain rights for other businesses to encourage fair competition.McDonaldization continues to develop on the basis of the notion for which the quantifiable elements of quality as well as that of large amounts of product that are delivered to customer within short time durations like those of high quality products.Larger businesses often continue benefiting from the other businesses in one local community due to the fact that many large corporations are dependent on the society for the completion for diverse business functions on the grounds of outsourcing.On the other hand, the economics and politics at the time became immensely impactful on the systems involved in the devolution and consideration of the most essential components of history in effecting the economic triggers.
Works Cited
Frankel , Jeffery. Globization of the economy: NBER Working Paper Series. . Retrieved on 5th November 2013 from http://www.nber.org/papers/w7858
Leo S., Impact of Globalization on Small Businesses: Business Dictionary. 2007. Retrieved on 5th November 2013 from http://www.businessdictionary.com/article/583/impact-of-globalization-on-small-businesses/
Randy J., A Brief History of McDonald's Abroad: Time World. 2009. Retrieved on 5th November 2013 from http://content.time.com/time/world/article/0,8599,1932839,00.html#ixzz2jwrzeJWH
Ritzer,G., McDonaldizationof Society, Revised New Century Edition, reprinted with permission of Sage Publications, Inc. 2004. Print
ThurstonS., Publix fights back against Walmart's price-comparison campaign: TimesBay Times. 2013. Retrieved on 5th November 2013 from http://www.tampabay.com/news/business/retail/publix-fights-back-against-walmarts-price-comparison-campaign/2110684
Vignali, Claudio. Mcdolnald’s: “think global, act local” -the marketing mix. . Retrieved on 5th November 2013 from http://www.emerald-library.com/ft
