McDonalds has expanded aggressively in China since opening its first restaurant in 1990. It has opened many more locations, including drive-thrus and in rural areas. By 2008, McDonalds had 960 stores in China and over 60,000 employees. However, maintaining quality and sanitation standards in China's developing business environment has been a challenge. McDonalds focuses on strict control and monitoring of suppliers, transportation, factories and restaurants to ensure standards are met. An issue like detecting harmful substances in chicken nuggets in 2010 shows the importance of preventative measures and crisis response for future food safety problems in China.

1. How McDonaldsrun
theirbusiness inChina?
s1190223
Kentaro Takakura

2. Abstract
The improvement of living standards of
theChinese people are seen by the
rapideconomic development in modern times.
During such, foreign companies that willbring a
new market in China has beenincreasing
yearly.This time I will focus on the McDonalds
init.

3. McDonalds in China
● In 1990, Opened first restaurant in Shezhen.
● In 2005, Opened first drive-thru store, and to
outlet.
● In 2006, Signed a contract with Sinopec of
Chinese state-owned oil company.
● In 2006, Opened to run-down neighborhood
outside Beijing.
● In 2008, Opened 960 stores, recorded the
number of employees in more than 60000
people.

4. Management Philosophy in China
McDonalds was listed on the policy, suchas not
to lose out in the competition tolower prices,
enhance the repertoire ofhamburger,
convenience in China, which has a vast
landarea for Yum! Brands Inc.9 is biggest rival.

5. Biggest Rival
McDonalds VS Yum! BrandsCulture outside do
not get quite accepted inany country. Strong
tendency in China have been prefer chicken
than beef. However, better than in other
assessments, such as liquidity, won the
deployment.

6. Quality and Sanitation Management
China is a developing country is still farbelow
the world standard in terms of qualityand
hygiene.To expand the business in an
environmentthat is very risky. But this is also
anopportunity. McDonalds head office istrying
to seize the opportunity by doing athorough
quality and sanitationmanagement to the
employees of the storeand factory.

7. Mac Nugget IncidentIn
July 2010, the U.S. McDonalds weredetected
PDMS and TBHQ adversely affectthe human
body from the "Mac nugget" thatwas in the
shop buy McDonalds China.For quality and
sanitation issues can not beprevented from
perfect, how to respond is aproblem in the
future.

8. Problem-Solving
● Soil testing of contract farmers
● Quality control during transport
● Factory sanitation control
● Reaffirmation of the shop manual for each
● Regular monitoring by Head Office

9. Conclusion
● There is a need to adapt to the food culture of
the country.
● To clarify the superiority of their own, to sell
the point.
● Always in accordance with the world
standards.

10. Reference
● http://www.msnbc.msn.
com/id/26226387/ns/business-
cnbc_tv/t/mcdonalds-has-big- appetite-china/#.
ULjCSeTZbO0
● http://www.icmrindia.
org/casestudies/catalogue/Busine ss%
20Strategy/BSTR305.htm