Strategic Management Mcdonald's in China

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

In all sectors, Yum!’s biggest competitor is fast-food industry giant McDonald’s Corporation. Similar to Yum!, McDonald's units include company-owned restaurants, franchise royalties, and licensing agreements. Like YUM!, McDonald’s offers a uniform value-priced menu with some geographic variations, making it YUM!’s most significant direct competitor. Although McDonald’s only operates one brand name, it currently operates 32,500 locations in 117 countries. Industry peers include and Burger King Corporation, Darden Restaurants, Wendy’s-Arby’s Group, Domino’s Pizza, Papa John’s, Jack in the Box, and PF Chang’s.

McDonald is a fast food franchise based in the United States and has various food outlets in other countries like India, United Kingdom, China, Japan, Canada and Australia. McDonald has been termed as the ‘World`s Local Restaurant’ because of its affordable take-out and sit down meals. The economic recession in the US in 2010 greatly affected businesses especially fast food restaurants whereby most small restaurants had to temporarily close their businesses. However, McDonalds remained afloat amidst tough economic times in the American market because of specific strategies which will be discussed.

During the start of the McDonald’s company, the McDonald’s Brothers had revolutionized the restaurant business through the idea of self-service. “Imagine — No Carhops — No Waitresses — No Dishwashers — No Bus Boys…,” they’d say (Schlosser 20). As a result of the new Speedee Service System, McDonald’s had never been in better shape. Ray Kroc, amazed by this, expanded the model all across the United States, increasing McDonald’s popularity. Apart from that, the creation of institutions like Hamburger University also solidify the service standards each restaurant should maintain. Hamburger University trained thousands of workers yearly, passing along “a common McDonald’s language” and “a common McDonald’s culture (Schlosser 31).” Through this, Ray Kroc created a single standard in which their service should be executed. This could make up for the lack of employee involvement in the new self-service model. McDonald’s was slowly becoming a beloved family name. The service prompted many families to stop by frequently, which boosted the idea of selling the brand to kids, perfecting McDonald’s marketing tool, and raising overall sales. Ray Kroc was closer to achieving his perfect business

I, Tayneata M. Starr, decided to discuss McDonald’s for this strategy report. McDonald’s began in the 1940’s as a “mom & pop” bar-b-que diner in San Bernardino, California by Dick and Mac McDonald (“McDonald’s History,” n.d.). In December of 1948, McDonald’s was rebranded as a self-serve drive-in restaurant (“McDonald’s History,” n.d.). The original menu was comprised of nine items, with the staple product being the “15-cent hamburger” (“McDonald’s History,” n.d.). Today, McDonald’s is a publicly traded organization that operates in the United States, Europe, Asia, Africa, Canada, and Latin America (“MCD Profile,” n.d.). As of December 2015, McDonald’s has 36, 525 restaurants in operation, offering products such as soft drinks, hamburgers,

Here are examples of McDonald’s competitors in Asian country such as China includes KFC, Yum, Taco Bell, Pizza Hut, Yonghe King, Sun Ya Da Bao and Kung fu. The companies mentioned above are competing with McDonalds because they are offering similar services; fast foods, their target market is similar; those between the ages of 16 and 32, while at the same time, they offer competitive prices so as to attract customers and eventually, increase their market share.

McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.

In the United States and in China, McDonald 's remains the company 's main competitor. Its strengths include its vast brand recognition worldwide, its huge advertising spend and its locally adapted food menu (Jurevicius, 2013). This is contrasted by its weaknesses that include products that are not differentiated and its general unhealthy food menu (Jurevicius, 2013).

It opened its first outlet in 1990 in Shenzhen, and other major cities elsewhere in the country. Moreover, McDonald’d choose the family with children as their target customers at first, and later it aimed on youths from 4 to 30 years old. With its key word “young, fashionable and lively”, it hopes to provide light and happy dining experience for young people. While as for the foods, McDonald’s claimed that they would not change the menu in China at the very beginning of entry, and always stick to their American style. However, facing the challenge from KFC, it’s no longer easy for McDonald’s to stay “outside”. Fried egg, a new hot drink with honey and ginger which it’s widely believed in China that ginger decoction can help keep coldness away and Chinese pancake appeared on the breakfast menu. The strong market segmentation make KFC super-boom in China, whereas McDonald’s caught up from behind after it changed their strategy instantly. However, both of them successfully survive in Chinese market although they applied different

McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.

Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis