Questions 1. “Globalization is the process by which geographic constraints on


“Globalization is when geographic constraints on economic and cultural arrangements disappear, increasing our global interdependence.” (Branson 2007).

Examine critically two aspects related to globalization, namely (a) Homogenization and (b). Heterogenization with respect to food consumption

Examine the important factors that you should consider when starting a food-related business.


Two aspects of globalization that have also had an impact on the food sector are heterogenization or homogenization.

Numerous researchers agree that the main problem with increasing homogenization has been the loss of cultural diversity.

Homogenization can be described in simple terms as the selection of consumers from different parts of the world for products that may or may not match their cultural traditions and preferences (Heimen & Lowengart 2014).

An example of this can be illustrated with the help a case scenario.

McDonalds has enjoyed a thriving food industry since 1955 when it opened its first location in Des Plaines, Illinois (near Chicago).

The company’s menu was designed to appeal to both the American fast-food culture and local food preferences.

The quality and taste of McDonalds’ food products was appreciated by many people, not just those of Western descent, but all people around the globe.

McDonalds’ food products became popular with the east countries (Misra 2014 and Surico 2014.

This shows that, despite their differences in food choices and cultural traditions in how they prepare their food; McDonald’s was able to establish stores in Eastern countries.

It was a dominant brand in fast food culture across many countries like India, China and many other places where people were open to new tastes.

Global homogeneity is the basis for McDonalds’ dominance. It means that while local cultures may exist, McDonalds has a dominant culture of food worldwide, which provides consumers with international products.

The concept of cultural heterogeneity has been created by globalization.

It is usually based on the importance of local culture, as well as the dependence on religion, tradition food and the role of family.

Because the cost of food from the global organization is affordable, it has been shown that elite classes have the ability to afford such products.

People who live in certain cultural societies will choose their local food because they are less able to afford the international market.

While a certain food brand may be the most popular in the world, it is not the case that restaurants selling staple food products will gain more attention locally or regionally.

A mix of international and local cuisine is a good choice.

This can lead to cultural heterozenization when a restaurant integrates a particular global culture into their local or regional culture. (Yue Zhao, Kuzma, 2015).

Let’s take an example.

Indians love spicy food and different sweet, sour or hot sauces. This is why McDonalds Indians introduces products like Mc aloo tikki. They also use pudina sauce to make their burgers.

To attract Indians to their area, western restaurants often use Indian spices in their cuisine.

This can lead to cultural heterozenisation.

When starting a food business, there are important things you should keep in mind.

First, you need to create strategies to effectively compete with your competition and emerge victorious with the right amount profitability.

Each new entrant must have unique selling features that make them stand out from their competitors. There are many types of restaurants in each country.

Second, products must be tested before being released to large-scale production.

Each new entrant should first sell the product on a small scale in the local community. This is before making large investments like buying large equipment or signing leases.

The first customers would be primarily used as test markets, which will mainly serve to prove that the product is compatible during business planning (Heinz 2013,).

They must make sure they comply with all regulations when they start a food center.

First, they need to know what regulations apply to them. Then they must take the proper measurements.

This is essential to ensure that there are no obligations that could damage the company’s image before it starts seeing the face light of profit.

It is essential to create a realistic cash flow forecast for the food business.

It is difficult to make a profit in the food business. This is due to the fact that it takes more time to generate revenue. Therefore, a person entering the business must have sufficient funds.

Collis and Hussey (2013) state that every person should have a set budget in place before setting up the flow.

It is a good idea to seek the guidance of a veteran in the industry before you start your journey.

In order to avoid making costly mistakes and losing money, valuable information is essential during the startup and operation of a business.

Even if investors decide not to join a mentoring program they can still seek the advice of advisors (Grimm Hoffster, Sarkis 2014).

These could include professionals from the same field or people who are also in the same industry.

A new entrant could also get involved in networking events that help to meet other people in the area.

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