Question: The CAGE distance framework is defined in this week reading, ( Rothaermel 2 0 2 4 ) , as a decision framework based on the
The CAGE distance framework is defined in this week reading, Rothaermel as a decision framework based on the relative distance between home and a foreign target country along four dimensions: cultural distance, administrative and political distance, geographical distance, and economic distance. Several conditions that direct management to look to expand globally include, gaining access to a larger market, gain access to lowcost input factors and develop new competencies.
Using the example of McDonalds, and if we take the condition of gaining access to a larger market, because the domestic market is already saturated, we will look at the four dimensions of the cage model: cultural distance, administrative and political distance, geographic distance, and economic distance.
In the United States, McDonalds main staple is burgers and fries. When they decided to expand to the global market, cultural differences had to be considered when developing a new menu. Using India as the country of expansion, McDonalds needed to determine the cultural distance, to develop the menu. McDonalds replaced the beef burgers, with a range of veggie burger. The Butter Paneer Grilled Burger is a top seller, Lazzarus this veggie burger is known for its flavorful and creamy taste. It's a unique offering that caters to the Indian palate and is enjoyed by many customers in India. Clients must keep in mind that menu items may vary by location, and McDonald's may introduce new offerings over time.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
