How Mc.Donalds run their business in China?Kenji Yamada s1170041
Outline• McDonald’s is..?• McDonald’s History• History of McDonald’s in China• McDonalds and KFC• Strategy of McDonald‘s• Safety of McDonalds• Summary• Reference
McDonald’s is..?• Type : public• Traded : NYSE: MCD Dow Jones Industrial Average Component• Industry : Restaurants• Founded : May 15, 1940 in San Bernardino, California;McDonalds Corporation, April 15, 1955 in Des Plaines, Illinois• Founder(s) : Richard and Maurice McDonald McDonalds restaurant concept; Ray Kroc, McDonalds Corporation founder.• Headquarters : Oak Brook, Illinois, U.S.• Number of locations : 34,000+ worldwide• Area served : Worldwide• Key people : Andrew J. McKenna• Products : Fast food
McDonald’s History• McDonald’s starts as a hamburger stand in 1954• Ray Kroc opens the first McDonald’s franchise in 1955• McDonald’s comes to Wall Street in 1965• McDonald’s introduces the ”Big Mac” in 1968• “Makadonaldo” first opened in 1971(Japan)• The Egg McMuffin is introduced to the public in 1973• The first Ronald McDonald House is created in 1974• The Happy Meal is created in 1979• McDonalds hits the web in 1998
History of McDonald’s in China • The first McDonalds in China in Shenzhen in 1990 • Its first 500-seat store in the developing market in Oct 1990 • For 2008, China represents one third of all capital expenditures
McDonalds and KFC • When McDonald’s open store in 1990, but KFC had opened 3years ago • McDonalds and KFC are easy and cheap• KFC has around 2,200 stores and McDonalds plans to have 1,000 stores in China
Strategy of McDonald‘s• McDonalds strategic plan in China was concentrate on core menu extensions, convenience and value.• Drive-thru is a brand new concept and the first trial of MacDonalds in China.• It opened up a Dollar Menu‘ known as the Value menu‘ that offered sandwiches and other items at a lower price.
Safety of McDonalds• Food safety is the strength of McDonald’s in China.• All Chinese McDonald’s stores have hand washing stations and hand sanitizers in the main restaurant.• McDonald’s conducts quality control inspections without notice.
Summary• McDonald’s in china, the points are taste, convenience and price.• McDonald’s spread out steadily by providing out sanding quality, service, and value to customers.• By gaining trust from customers, McDonald’s can broaden out their stores.
Reference• McDonalds – http://www.aboutmcdonalds.com/mcd – http://en.wikipedia.org/wiki/McDonald%27s• CNBC TV – http://www.msnbc.msn.com/id/26226387/ns/business- cnbc_tv/t/mcdonalds-has-big-appetite-china/#.TtSiZ1HfRpg• McDonalds in China – http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/ BSTR305.htm – http://www.oppapers.com/essays/Mcdonalds-In-ChIna/52847 – http://www.chinadaily.com.cn/business/2008- 09/08/content_7007412.htm