1. How Mc.Donalds run their business in China?
Identify some of their strategies for doing business
in East Asia?
s1190130
Yuki Tanaka
2. Introduction
'Mc.Donalds open restaurants in China
'McDonald's have a problem in China.
'Food safety is important problem.
'History of Mc.donald's in China.
'How Mc.donalds spread business in China
'McDonald's entry and expansion strategies in
the Chinese market
3. Mc.Donalds open restaurants in China
The world's largest burger chain also
plans to remodel 80 percent of its
stores in China in by 2013 and offer
new health-conscious menu items
this year.
China has been a strong region for
the company, which is based in Oak
Brook, Ill. Third-quarter revenue in its
restaurants there that have been
open at least one year rose 12.7
percent. That compares to 5.3
percent growth in the U.S.
McDonald's Corp. operates 32,000
restaurants in about 100 countries,
4. McDonald's have a problem in China.
McDonald's and French retailer Carrefour of selling expired
chicken products in separate incidents amid public anxiety
in China over food safety.
McDonald's restaurant in Beijing sold chicken wings 90
minutes after they were cooked while the company's rules
set a 30-minute limit. The McDonald's store in question was
shuttered temporarily, Reuters reports. It said employees at
a Carrefour store in the central city of Zhengzhou changed
expiration dates on some chicken and sold regular
chickens as more expensive free-range birds.
5. Food safety is important problem.
McDonald's restaurant in Beijing sold chicken wings 90
minutes after they were cooked while the company's rules
set a 30-minute limit. The McDonald's store in question was
shuttered temporarily, Reuters reports. It said employees at
a Carrefour store in the central city of Zhengzhou changed
expiration dates on some chicken and sold regular
chickens as more expensive free-range birds.
Food safety is a sensitive issue in China, which has been
rocked by scandals ranging from deadly infant formula to
chemical-laced pork and recycled restaurant oil.
6. History of Mc.donald's in China.
Mc.donalds started business in China in 1992.
Built on the southern end of Wangfujing Street near
Tiananmen Square the center of all public politics in the
People's Republic of China this restaurant had become an
important landmark in Beijing by the summer of 1994, and
the image of the Golden Arches appeared frequently on
national television programs. It also became an attraction
for domestic tourists, as a place where ordinary people
could literally taste a bit of American culture. New
McDonald's restaurants appeared in Beijing one after
another.
7. How Mc.donalds spread business in China
There is a new tendency to absorb foreign
cultural influences and transform them into
local institutions, a trend that the Chinese
political system resisted during the Maoist era.
In the case reviewed here, both the McDonald's
management and staff on the one hand and the
Beijing customers on the other have been
active participants in the localization process.
To analyze this process, I first examine the
image of McDonald's in the minds of ordinary
Chinese people.
8. McDonald's entry and expansion strategies in the Chinese
market
The case focuses on the US- based fast food chain
McDonald's entry and expansion strategies in the Chinese
market. McDonald's entered China in 1990 with its first
restaurant in Shenzhen. Since then McDonald's in China
has been expanding steadily by providing outstanding
quality, service, and value to its customers. For McDonald's
other than its home market - the United States, China was
the largest growth market with 960 restaurants and over
60,000 employees as of 2008. McDonald's strategic plan in
China was to focus on core menu extensions, convenience
and value. The case details the operational strategies of
McDonald's in China.
9. The Chinese people like the traditional culture of food
Chinese customers were loyal to Chinese cuisine and felt
that the fast food chains did not offer much variety to suit
their palate. The Chinese preferred the traditional culture of
food and drink complete with color, fragrance, flavor, and
variety.
So Mc.donald's make foos likes that is liked by Chinese
people.
