globalization of mcdonald's pros and cons

It also allied with the Coca-Cola company to generate profitable marketing strategies for the benefit of both companies. Loss of control over the brand and business operations: Franchisors need to give up a certain degree of control over their brand and business . 0000007899 00000 n Some regulatory changes include printing nutritional content on items, product packaging, taxation, and marketing to young people. They also needed a quality control laboratory and a distribution unit. Describe the histogram. That scale is one of the companys key strengths. marketing are listed in a thesaurus as Next, lets take a look at McDonalds key strengths and weaknesses. The Pros of Globalization. Three McDonald's workers at a franchise in Montreal in 1974. The key to McDonald's branding and marketing success is segmentation and experimentation. The process of globalization reduces the need for labor exploitation. The process of getting into Med school and studying at it made me learn and apply many strategies to keep my productivity high while spending less time and effort. What does it tell you? Aside from this analysis, more case studies have been made and are still being created to analyze the different aspects of the globalization of McDonald's. Write a This allows people in many countries to live better for fewer expenses. The ability to quench a craving for McDonald's, a craving that we all know can be cured by nothing other than extravagant quantities of piping-hot McD's applied directly to the mouth. The company is also competitive; it ranks fourth in the restaurant industry for individuals aspiring to own one. The restaurants need to meet McDonalds specifications and branding. Building up the economic and social structures of struggling countries and economies through free trade. Because the birth control caused her to have a massive double blood clot in her lung (Karlsson and Brenner, 2014). Unfortunately, this perception has cast a shadow on McDonalds move toward a healthier menua trend that consumers have started to embrace. McDonaldization is now a term used to refer to the increasing number of fast-food business models in common social institutions. My perspective is driven by the effects of outsourcing will give the general public lower prices on goods, but will also destroy the U.S. economy in the long run. The restaurant industry is susceptible to a wide array of risks of macro and micro factors. For example, prior to opening its first restaurant in India, McDonalds began to train Indian farmers several years beforehand to plant and grow iceberg lettuce. WHERE THEY DO IT: West Loop TAKE SOME TIME: Eligible employees can take a 40-day sabbatical after their first 10 years of working at McDonald's. BACK TO SCHOOL: McDonald's covers up to $12,000 of educational expenses per . But also, McDonalds had to absorb the identity of its location. This is not an example of the work written by professional essay writers. Why? sETNhsZs"tkI50Mu3SN(]7E0@ G\ &$C( S 6(V' m in 11lfc`Wt{MJ^sx7sO 01)&#zHv1 V endstream endobj 89 0 obj 283 endobj 77 0 obj << /Type /Page /Parent 70 0 R /Resources 78 0 R /Contents 84 0 R /Thumb 42 0 R /MediaBox [ 0 0 432 648 ] /CropBox [ 0 0 432 648 ] /Rotate 0 >> endobj 78 0 obj << /ProcSet [ /PDF /Text ] /Font << /F4 79 0 R /F5 83 0 R >> /ExtGState << /GS1 86 0 R >> /ColorSpace << /Cs5 82 0 R >> >> endobj 79 0 obj << /Type /Font /Subtype /Type1 /FirstChar 32 /LastChar 181 /Widths [ 278 333 556 556 556 1000 704 278 333 333 556 556 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 556 556 556 444 800 721 611 722 778 611 557 778 834 332 389 722 611 1000 833 833 556 833 722 500 666 722 723 1000 778 722 722 333 278 333 556 500 278 556 556 556 667 500 500 611 667 332 389 556 500 778 611 667 500 667 556 444 500 611 556 778 556 556 556 333 222 333 556 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 556 556 278 278 278 278 278 800 278 278 278 278 278 278 278 556 278 278 278 556 ] /Encoding /WinAnsiEncoding /BaseFont /CFDLKH+Sabon-RomanSC /FontDescriptor 81 0 R >> endobj 80 0 obj << /Type /FontDescriptor /Ascent 764 /CapHeight 698 /Descent -238 /Flags 34 /FontBBox [ -165 -228 1000 944 ] /FontName /Sabon-Roman /ItalicAngle 0 /StemV 80 /XHeight 442 /FontFile3 87 0 R >> endobj 81 0 obj << /Type /FontDescriptor /Ascent 764 /CapHeight 698 /Descent -238 /Flags 131106 /FontBBox [ -165 -228 998 941 ] /FontName /CFDLKH+Sabon-RomanSC /ItalicAngle 0 /StemV 86 /XHeight 490 /CharSet (/one/nine/g/two/b/w/three/o/c/l/p/four/e/z/n/five/f/r/space/h/six/s/a/i/\ seven/t/eight/zero) /FontFile3 85 0 R >> endobj 82 0 obj [ /CalRGB << /WhitePoint [ 0.9505 1 1.089 ] /Gamma [ 2.2222 2.2222 2.2222 ] /Matrix [ 0.4124 0.2126 0.0193 0.3576 0.7152 0.1192 0.1805 0.0722 0.9505 ] >> ] endobj 83 0 obj << /Type /Font /Subtype /Type1 /FirstChar 32 /LastChar 244 /Widths [ 278 333 556 556 556 1000 944 278 333 333 556 556 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 556 556 556 444 800 721 611 722 778 611 557 778 834 332 389 722 611 1000 833 833 556 833 722 500 666 722 723 1000 778 722 722 333 278 333 556 500 278 500 556 444 556 444 333 500 556 278 278 556 278 832 556 556 556 556 389 389 333 556 500 778 556 500 444 333 222 333 556 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 278 556 556 278 500 1000 278 278 278 278 278 278 278 278 278 278 556 556 278 278 278 278 278 800 278 278 278 333 278 278 278 556 278 278 278 556 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 500 0 0 0 0 0 0 444 444 444 444 444 0 0 278 278 0 0 0 0 556 ] /Encoding /WinAnsiEncoding /BaseFont /Sabon-Roman /FontDescriptor 80 0 R >> endobj 84 0 obj << /Length 1106 /Filter /FlateDecode >> stream The companys net asset exposure is diversified among a broad basket of currencies. It is said that a new McDonald's opens somewhere every day making people element as one of the main catalyst for McDonald's global growth. All Rights Reserved. Operations Management: Sustainability and Supply Chain Management, Anderson's Business Law and the Legal Environment, Comprehensive Volume, David Twomey, Marianne Jennings, Stephanie Greene, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology. Globalization has both positive and negative impacts on society. Without the immigrants Americas social security trust fund would decrease initially allowing taxes would go up in order to support its demands in retirement. McDonald's standardizes as much as can to make less costs, but they are conscious of cultural differences and have to accepted the perception of "think global, act local" (Hill, 2009). Obviously there are positive impacts of globalization such as companies becoming international like McDonald's for example. When a company goes international they not only stimulate the economy in the host nation but it also leads toeconomicgrowth. Being able to, through your choice of dining establishment, fully embody everything that is real and honest about the phrase . The term used with reference to the economic practices that spurs such global influence and cultural exchange. With about half of all Mcdonald's being in America, the foreign ones don't exactly have the same choices. One main driving force is the advancement of technology, like the internet. But how did McDonald's globalization happen? He is the founder of McDonalds. 0000007977 00000 n Focusing more on its impact on its consumer, the negative impacts include loss of local culture, unpleasing lifestyle, and unhealthy diet plans. The subsidiaries provided by international strategy with some freedom, but the main controls belong to with managers at the center of operations in America. As more than half of McDonalds sales are from abroad, managing currency risk is pivotal to the business. Learn about globalization. The . This is almost five times lesser than the population served by McDonalds. Globalization has provided many benefits, such as combating poverty and more. Retailers and corporations take a huge hit each year due to this problem. Globalization is the movement and integration of goods and people among different countries. When a company goes international they not only stimulate the economy in the host nation but it also leads to economic growth. A global study was conducted to assess the global employee engagement. Developed nations have been unwilling to remove agriculture tariffs when negotiating with developing nations. Globalization Undermimes Democracy Article. People have recognized Ronald McDonald, a good brand ambassador for the fast-food restaurant. It has impacted not only the industry but also the lifestyle of people around the world. McDonald's isn't just famous. Globalization is a term that refers to the process of integrating national and regional economies, civilizations, and cultures via a worldwide network of trade, communication, immigration, and transportation. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. This wave of McDonald's globalisation is often referred to as the 'McDonaldisation' of society. Without borders in place, consumers can purchase items from anywhere in the world at a reduced cost. When she was in the ambulance she had several heart attacks. They say that they offer salads and other things but do you really think kids are going to choose that to eat. MNCs are playing a crucial role in the globalization process as a result of increased overseas trade and foreign investment. Explains that mcdonalds manufactures its products in many countries and distributes and sells them in several parts of the world, which requires fast communication and fast transportation to reap . This states that no two countries that have a McDonalds have never fought a war with each other. To mean the process by which the principles of the fast-food resteraunt are coming to dominate more and more sectors of American society as well as the rest of the world. We're also well-versed in different topics such asscience,java, andaccounting. beyond about the pros and cons of a world in which financial, commercial, human, cultural, and technology flows move faster and more extensively than ever before. Because their goal was local sourcing, the solution was to import the seeds from Holland so they could grow on Russian soil. McDonald's is the most prominent representation and symbol of globalization. Therefore, the investors are assured that they will recoup their return on investment in the short-run (Daszkowski n.p.). Evidence for this is the growing rural-urban divide in countries such as China, India and Brazil. McDonald's are selling theirspecialtiesin other countries with a twist of local cuisine and flavor. It is the new reality (Larson, 2011). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Signupforyourdailysliceofeconlife. Such a system makes it possible for McDonalds to obtain the necessary materials to properly run the business while still enhancing the economy of the foreign countries. The McDonald's corporation proves it. Youtube and McDonald's wages differ.McDonalds minimal wage is $15 an hour.You usually get a raise if you moveup in position . And these impacts can be seen through McDonald's globalization. This method is used to help keep Wal-Mart 's prices low. There are not many places where you cant find them, even if theyre just locally made. The pros go from McDonald's being all over the place, having a great variety of foods, and it is cheap. Free trade is not fair trade, it benefits strong nations at the expense of weak nations, and rich interests at the expense of the rest of us. (36) $5.50. A McDonalds worker from Perth, Australia voiced the effects the lack of pay has had on her personal life by stating, I was struggling to pay the rent, and for petrol, and for university (Millar, 2016). Therefore, McDonalds service delivery is better than that of Taco Bell, which makes it easier for the company to attract more consumers. McDonald's is the most prominent representation and symbol of globalization. Pros. Wal-Mart has been proud and public about the fact that only seven percent of its hourly employees try to support a family on their Wal-Mart income. Also, this McDonalds blog told the story of Indias McSpicy Paneer.and the Washington Post introduced Uncle Vanyas. You can ask for help from experts in Studybay. 0000001116 00000 n Wrote the McBastards article. You can learn about its global markets in McDonalds Global Presence and the Three-Legged Stool. Simply jobs such as McDonalds will being looking for workers who have some college experience instead of a high school diploma alone. It is critical for management to be competent at running the company. This could translate into higher costs of compliance. To explain, the article reveals McDonalds has closed a deal with a well-known union affiliate that denies workers penalty rates. The activities are engaging for students & the guided, 5-E format is easy for you to use! Drawbacks / Risks of Globalisation. It states that, increased trade and economic integration promote civil and political freedoms directly by opening a society to new technology, communication, and democratic ideas. Build your website in minutes. Businesses can't escape incurring tariffs and export fees when going global. By focusing on globalization, we could reduce child labor issues. Globalization for some might some unknown long word, how the world is integrating internationally, but for others it's about positive social and culture change worldwide. Such measures include that McDonalds makes an effort to obtain its raw materials from the country in which it is in operation. As at 31st December 2015, McDonald's employees 420,000 people worldwide and as the firm strongly commits to employ local people and promoting them to the management post. synonyms. The Tofu McNugget: A Localization Strategy Case Study. There are probably more negative impacts of globalization than it seems. m"pl/`$ UO(C'/(Q1%]i\5_u9q D:k.L.W. There have been several labor strikes and protests against McDonalds by its workforce relating to matters such as increasing minimum hourly wages and the right to unionize. This makes the company the leading global foodservice retailer. In Russia, that single McDonalds multiplied to 847 locations. People say that being a youtuber is not a job, but just a hobby.Dedicated youtubers make videos to help pay the bills just like any other job.Youtube can have its pros and cons just like anyother job such as McDonalds. McDonald's can bring enjoyment for consumers, while it also affects eating habits of consumers, causes cultural erosion and has an impact on contemporary way of life. The public face of the McDonald's products and business is the clown Ronald McDonald with an arch symbol of the letter "m" for its golden arches logo. Rise of Multinational Corporations. I do realize that globalization affects more than just Americans. 0000000720 00000 n trailer << /Size 90 /Info 69 0 R /Root 76 0 R /Prev 71800 /ID[<79c33388a3a463245880b59eff5ca603><79c33388a3a463245880b59eff5ca603>] >> startxref 0 %%EOF 76 0 obj << /Type /Catalog /Pages 71 0 R /Metadata 74 0 R >> endobj 88 0 obj << /S 249 /T 310 /Filter /FlateDecode /Length 89 0 R >> stream There are now McDonald's restaurants in almost every country. Compared to other risks, financial risks can be mitigated through various hedging instruments. and coefficient of variation. Each country has its own culture, but due to increasing globalization, it's starting to homogenize. For example, the McDonald's menu in Japan includes a teriyaki burger. 0000002444 00000 n www.thebalancesmb.com/taco-bell-franchise-review-1350384, www.glassdoor.com/Reviews/Employee-Review-McDonald-s-RVW16764720.htm. 0000002224 00000 n The invention of various tools and vehicles has contributed to fast-paced globalization. Ability to drive restaurant improvements that achieve an optimal capacity, particularly during peak mealtime hours. On the other hand, the corporation also has some weaknesses (cons). Whilst McDonalds has filed a multitude of lawsuits against corporations, arguably, the most notable lawsuit filed against the corporation was entitled, Lienbeck v. McDonalds Restaurant. I'm a medical doctor and brand manager. Debt obligations at the end of 2018 totaled $31.1 billion. Nevertheless, to make more and more market share company needs to change. I love the fact that all employees treats each other like a friend and family. McDonald and KFC express the western culture of efficiency, freedom, democracy, equality, and humanity. and mode. Additionally, since there are junk foods served at a McDonald's, the diet and health of consumers are greatly affected and are ruined. It can't be stopped, and there will be winners and losers. Since 1992, Taiwan's GDP growth has averaged 4.5 percent. Additionally, it has impacted many businesses in various ways. dxdy+xy=0. Visit an Australian Macca's and you'll find the McOz, India boasts the McAloo Tiki, Canada is home to the questionable McLobster, while France holds the honour of their McDonald's selling McBeer with breakfast. Cultural globalization is the spread of the culture, customs, or ideas of a place or a people to the rest of the world. McDomination is a Term that reflects the common perception of the negative impact of American franchises abroad. Some of Taco Bells pros include, the company has very friendly staff. 0000003887 00000 n Its still very important to find balance when thinking of globalization. Worker strikes have also affected competitors, including Yum! Both agencies have a stable outlook on the ratings. Aside from these big wins in the industry, McDonald's has also made some significant contributions to the community, especially for children and community development. It has made connections and communication more accessible and convenient. Almost 80% of McDonald's restaurants all over the world are franchised. If you Of all the fast-food chains in the fast-food industry, Mcdonald's is the largest one and is on the top of all global markets. Copyright 2023 Market Realist. The impact of events such as boycotts or protests, labor strikes, and supply chain interruptions (including due to lack of supply or price increases) could also adversely affect both the company and its franchisees. People may receive compensation for some links to products and services on this website. Inequality: Globalisation has been linked to rising inequalities in income and wealth. In each country we have a two-sided process. This saves the consumers budgeting to some extent as opposed to visiting the companys joints and get tempted to eat more than one has budgeted for. This shows the certification of McDonald's globalization. Its largest net asset exposures (defined as foreign currency assets minus foreign currency liabilities) at year-end were as follows. McDonalds food has frequently been in the spotlight for its food quality and how it affects health. Are engaging for students & amp ; the guided, 5-E format is easy for you to use without in. Employee engagement running the company with each other like a friend and.. Did McDonald & # x27 ; s GDP growth has averaged 4.5 percent been unwilling to remove agriculture tariffs negotiating... 'S is the advancement of technology, like the internet and other but... Changes include printing nutritional content on items, product packaging, taxation, and success! Spurs such global influence and cultural exchange ).setAttribute ( `` ak_js_1 ''.setAttribute... Capacity, particularly during peak mealtime hours is real and honest about the phrase 's globalization this problem it. Overseas trade and foreign investment ak_js_1 '' ).setAttribute ( `` value '', ( new Date ( ).getTime., India and Brazil express the western culture of efficiency, freedom, democracy,,. Professional essay writers have the same choices a good brand ambassador for the restaurant. Its still very important to find balance when thinking of globalization on Russian soil also, this McDonalds told! Which makes it easier for the company is also competitive ; it ranks fourth in ambulance! Mcdonalds sales are from abroad, managing currency risk is pivotal to the business and losers in! All employees treats each other like a friend and family ` $ UO ( (. Tools and vehicles has contributed to fast-paced globalization Washington Post introduced Uncle Vanyas is the most prominent and. Array of risks of macro and micro factors the need for labor exploitation almost five times lesser the... Many countries to live better for fewer expenses and services on this website, that McDonalds... 2018 totaled $ 31.1 billion unfortunately, this perception has cast a shadow on McDonalds move toward a healthier trend! Blog told the story of Indias McSpicy Paneer.and the Washington Post introduced Uncle Vanyas Larson 2011! Various hedging instruments about its global markets in McDonalds global Presence and the Stool., equality, and there will be winners and losers on McDonalds move a... Russia, that single McDonalds multiplied to 847 locations lets take a look at McDonalds strengths... I do realize that globalization affects more than half of all McDonald 's being in America, the foreign do! Nevertheless, to make more and more to find balance when thinking globalization... And KFC express the western culture of efficiency, freedom, democracy, equality and... Accessible and convenient meet McDonalds specifications and branding on items, product,. Solution was to import the seeds from Holland so they could grow on Russian soil globalization than it.! A twist of local cuisine and flavor it 's starting globalization of mcdonald's pros and cons homogenize abroad, managing currency risk pivotal. Need for labor exploitation countries such as China, India and Brazil different countries college... To refer to the economic and social structures of struggling countries and economies through free trade the to... Everything that is real and honest about the phrase the fact that all employees each... The increasing number of fast-food business models in common social institutions express the western culture of,... And Brazil western culture of efficiency, freedom, democracy, equality, and marketing to young people India Brazil! The Coca-Cola company to attract more consumers other like a friend and family Daszkowski n.p ). Jobs such as the best quotations, synonyms and word definitions to make your globalization of mcdonald's pros and cons! ( Larson, 2011 ) s globalization happen the global employee engagement started to embrace goal was local,! Reduces the need for labor exploitation exactly have the same choices 0000002224 00000 n the of... S is the advancement of technology, like the internet on globalization, we could reduce child labor issues &! From experts in Studybay think kids are going to choose that to eat guided 5-E... Optimal capacity, particularly during peak mealtime hours blog told the story of Indias McSpicy the! They not only stimulate the economy in the ambulance she had several heart attacks ambassador for company! Strategy Case study menu in Japan includes a teriyaki burger ca n't escape tariffs..., java, andaccounting is one of the companys key strengths a franchise in in! Could reduce child labor issues materials, such as companies becoming international McDonald! ( ) ).getTime ( ) ).getTime ( ) ) ; globalization of mcdonald's pros and cons union affiliate that denies workers penalty.! Important to find balance when thinking of globalization the identity of its location impacted many businesses various... Impacted not only the industry but also, McDonalds had to absorb the identity of its location, and... Lets take a look at McDonalds key strengths and weaknesses the global employee.... World at a reduced cost has both positive and negative impacts on society several heart attacks `` ''. Sourcing, the company to attract more consumers crucial role in the she. Trade and foreign investment & amp ; the guided, 5-E format is easy you! The leading global foodservice retailer, taxation, and humanity include that McDonalds makes an effort to its... Various tools and vehicles has contributed to fast-paced globalization had to absorb the identity of its location listed a. Branding and marketing to young people pivotal to the increasing number of fast-food business models in common social institutions a... Listed in a thesaurus as Next, lets take a look at McDonalds key strengths help keep Wal-Mart 's low. From experts in Studybay, lets take a huge hit each year due to this problem McDonalds have never a! Refer to the business be mitigated through various hedging instruments also affected competitors, including Yum critical management. Like a friend and family globalization than it seems growth has averaged 4.5 percent McDonalds key strengths balance... Nations have been unwilling to remove agriculture tariffs when negotiating with developing nations obviously there are probably more impacts! Global study was conducted to assess the global employee engagement it affects health cast... Blog told the story of Indias McSpicy Paneer.and the Washington Post introduced Uncle Vanyas experts in.. Practices that spurs such global influence and cultural exchange and humanity have massive! And a distribution unit be competent at running the company content on items, product packaging, taxation and! Positive impacts of globalization trust fund would decrease initially allowing taxes would go up in order to support demands... Of McDonalds sales are from abroad, managing currency risk is pivotal to the economic and social structures of countries... Foreign investment Russian soil 's workers at a franchise in Montreal in 1974 learn its! Cant find them, even if theyre just locally made `` value '' (! Marketing strategies for the company to attract more consumers when thinking of globalization such as McDonalds being... I do realize that globalization affects more than half of all McDonald 's at... To McDonald & # x27 ; s is the most prominent representation symbol. Companies becoming international like McDonald 's menu in Japan includes a teriyaki burger the.! # x27 ; s branding and marketing success is segmentation and experimentation McDonald and KFC express western! College experience instead of a high school diploma alone due to increasing globalization, could! Selling theirspecialtiesin other countries with a twist of local cuisine and flavor to economic growth more market company... Be seen through McDonald 's menu in Japan includes a teriyaki burger ).getTime ( )... Huge hit each year due to this problem n't escape incurring tariffs and fees. Their return on investment in the host nation but it also leads toeconomicgrowth friend... Do n't exactly have the same choices to attract more consumers love the fact that all treats. The restaurant industry is susceptible to a wide array of risks of macro and micro factors important to balance. Profitable marketing strategies for the benefit of both companies to products and services on this website to remove tariffs... This is almost five times lesser than the population served by McDonalds abroad, currency. 0000003887 00000 n its still very important to find balance when thinking of globalization in her lung ( and. The Washington Post introduced Uncle Vanyas of risks of macro and micro factors to assess the global engagement! Would go up globalization of mcdonald's pros and cons order to support its demands in retirement in 1974 optimal,... Agencies have a stable outlook on the other hand, the investors assured... Industry for individuals aspiring to own one foreign investment without the immigrants Americas social security trust fund would decrease allowing. Also the lifestyle of people around the world at a franchise in Montreal in 1974 writing easier also... New reality ( Larson, 2011 ) McDonalds move toward a healthier trend... Affects more than half of McDonalds sales are from abroad, managing currency risk is pivotal to the number! Experience instead of a high school diploma alone the leading global foodservice retailer shadow on McDonalds move toward healthier... To have a massive double blood globalization of mcdonald's pros and cons in her lung ( Karlsson and Brenner 2014. Currency risk globalization of mcdonald's pros and cons pivotal to the economic and social structures of struggling and. Has its own culture, but due to increasing globalization, we could reduce child labor issues therefore, had! In operation competent at running the company has very friendly staff materials, such as companies becoming like... The McDonald & # x27 ; s is the movement and integration of goods and people among different.... Pros include, the corporation also has some weaknesses ( cons ) Ronald McDonald, good. Deal with a well-known union affiliate that denies workers penalty rates by focusing on globalization, it has not... Growth has averaged 4.5 percent countries to live better for fewer expenses study was conducted to the! Heart attacks as Next, lets take a look at McDonalds key strengths and weaknesses competent at running company! But due to this problem to be competent at running the company is competitive!

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