How Mc.Donalds run theirbusiness in China?S1180036 Taisuke Honda
Outline● Mc.Donalds in China● History of Mc.Donalds● Mc.Donalds and KFC in China● Strategy of Mc.Donalds● Summary● Reference
Mc.Donalds in China● There are more 960 Mc.Donalds restaurants inChina and more 60,000 employees.● Mc.Donalds chain stores in China will increasemore and more, because U.S. population is 300million and there are 13,000 restaurants, incontrast, China population is 1.3 billion.● At present, China is the No 1 growth market forMc.Donalds.
History of Mc.Donalds(1/2)● In 1978,China embraced domestic reformand foreign openness program.● In 1990, Mc.Donalds first opened toShenzhen special economic zone in China.● In 1992, Mc.Donalds opened the store toBeijing, the capital of China.● In 2003, the first franchise enterprise inChina Mc.Donalds was started in Tianjin.
History of Mc.Donalds(2/2)● In 2005, Mc.Donalds opened the the first drive-through outlet.● In 2006, Mc.Donalds agreed with the Chinesestate oil company, Sinopec. It stipulatedopening Mc.Donalds stores at any of Sinopec’snew and existing gas stations.● In 2007, there are 240 stores that Mc.Donaldsare 24 hour services in China.
Mc.Donalds and KFCin China● Mc.Donalds was not the first fast-food chainon the mainland. In 1987, KFC launched itsfirst China outlet in Qianmen of Beijing.● By the end of 2004, there were 600 Mc.Donalds around China. At the same time, itsarch rival in China KFC expanded itsnetwork to 1,200.● Both Mc.Donalds and KFC are convenientand cheap.
Strategy of Mc.Donalds(1/2)(1) Mc.Donalds open many stores.● Mc.Donalds aim to increase their storesfrom 1,300 to 2,000 by 2013.● Mc.Donalds franchised outlets in China mayaccount for as much as 20 percent of thetotal within six years.● Mc.Donalds think the menu that people wholive in the area want to eat.
Strategy of Mc.Donalds(2/2)（２）Mc.Donalds are convenient.● Mc.Donalds are 24 hour services in China.● Mc.Donalds opened the the first drive-through outlet.(3)Mc.Donalds are cheap.● Mc.Donalds opened up a Dollar Menuknown as the Value menu that offeredsandwiches and other items at a lower price.
Summary● Mc.Donalds is a fast food chain to expand aglobal scale.● At present, China is the No 1 growth marketfor Mc.Donalds.● By acquisition of trust from customers, Mc.Donalds can increase their stores from nowon.
Reference● CNBC TVhttp://www.nbcnews.com/id/26226387/ns/business-cnbc_tv/t/mcdonalds-has-big-appetite-china/● CHINA DAILYhttp://www.chinadaily.com.cn/business/2008-09/08/content_7007412.htm● Bloomberghttp://www.bloomberg.com/news/2011-07-29/mcdonald-s-franchises-to-account-for-up-to-20-of-china-business.html