Ele ex07 2
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McDonald's strategies for business in China include opening a new restaurant per day to reach 2000 total locations by 2013. Currently only 6 of McDonald's 1300 China locations are franchised, but the company plans to increase franchising to as much as 20% of locations to accelerate growth. McDonald's has successfully localized for the Chinese market by representing American modernization and efficiency while also influencing social behaviors and manners through its representation of Western food culture.
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MBA - EMBA - BMS - GDM - MIS - MIB
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www.casestudies.co.in
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- 1. How Mc.Donalds run their business in China? Identify some of their strategies for doing business in East Asia? s1190124 Mitsunari Ishii
- 2. McDonald's to open a Restaurant a Day in China in Four Years
- 3. McDonald's Corp., the worlds largest restaurant chain, should open an outlet a day in China as it challenges Yum! Brands for dominance in Asias largest economy as rising salaries boost spending on fast food.
- 4. McDonalds franchised outlets in China may account for as much as 20 percent of the total within six years, Rodwell said, as the hamburger chain aims to increase its stores from 1,300 to 2,000 by 2013. While its website says more than 75 percent of restaurants worldwide are operated by franchisees, only six McDonalds shops in the world s most-populous nation are franchised.
- 5. Sales at all of Chinas fast-food chains rose 12 percent last year to 60 billion yuan ($9.3 billion), according to Euromonitor International. Franchising can be a very effective way to grow in China.
- 6. McDonald's in Beijing: The Localization of Americana
- 7. On April 23, 1992, the largest McDonald's restaurant in the world opened in Beijing. With 700 seats and 29 cash registers, the Beijing McDonald's served 40,000 customers on its first day of business.
- 8. In the eyes of Beijing residents, McDonald's represents Americana and the promise of modernization. McDonald's highly efficient service and management, its spotless dining environment, and its fresh ingredients have been featured repeatedly by the Chinese media as exemplars of modernity.
- 9. The representation of McDonald's as a symbol of American culture not only has drawn Beijing customers to new forms of dining but also has led them to accept new patterns of behavior. The symbolic meanings of the new food, along with customers' willingness to accept the exotic culture associated with fast food, has affected people's table manners in particular and social behavior in general.
- 10. References McDonald's to Open a Restaurant a Day in China in Four Years http://www.bloomberg.com/news/2011-07- 29/mcdonald-s-franchises-to-account-for-up-to-20- of-china-business.html McDonald's in Beijing: The Localization of Americana http://www.nytimes.com/books/first/w/watson- arches.html