How Mc.Donalds runtheir business in China?Business Writing: Week 7s1180035 Shota Furuya
Mc.Donalds Growing in China● China is the most growing market of McDonalds. ○ There are over 960 restaurants and over 60,000 employees (in 2008). ○ This is the largest market in the world except U.S. that is the home market.● The advantage is China has 1.3 billion population. U.S. has 300 million population, that is less than China.
Mc.Donalds in Other Countries● Not only in China, McDonalds is developing in other countries in Asia.● However, compared with China, that is not quite successful.● Chinas market represents 1/3 expenditure in other countries in Asia Pacific, Middle East and Africa.
Developing History of McDonalds● In 1978, McDonalds changed their policy after seeing KFCs great success.● In 1990, the first 500 stores are opened in Shenzhen, China.● By the first quarter of 2002, there were 460 stores around China.
Developing History of McDonalds● In 2004, there were 600 stores.● In 2008, there were more than 1000 stores.● Even now this number of shops is growing up.● In 2005, first drive-through store is opened in China. ○ This was quite successful because the number of car owners in China has been increasing.
KFC and McDonalds● KFC (Kentucky Fried Chicken Corporation) is often referred as the rival of McDonalds.● When McDonalds decided to deploy their stores in China, there is already big market of KFC. ○ There are more than 2,200 stores of KFC in Chinas 465 cities.
Finance of McDonalds in China● In 2008, McDonalds reported 8% increase in their business in July global same-store sales.● Moreover, in Asia Pacific, Middle East, and Africa region, they said there is 7.2% growth in their business.● Even now the number of their outlets is aggressively increasing.
Marketing of McDonalds in China● McDonalds is very developed because they are convenient, cheap and tasty.● Moreover, McDonalds is especially taking care of their safety of foods. ○ For example, they have hand washing stations in the store. ○ This is big advantage from other restaurants in China.
Conclusion● China is the most developed market for McDonalds.● They have history of developing with KFC.● The number of finance is increasing.● The advantages are convenience, low price, taste, and safety.
References● McDonalds growing in China (CHINA DAILY) http://www.chinadaily.com. cn/business/2008-09/08/content_7007412. htm● McDonalds has a big appetite for China (CNBC TV) http://www.msnbc.msn. com/id/26226387/ns/business-cnb_tv/#. UL94J4PZZ8H