McDonald's in China


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR305 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization Business
Case Length : 20 Pages
Period : 1998-2008
Pub Date : 2009
Teaching Note : Available
Organization : McDonald's
Industry : Food and Beverage
Countries : China

Abstract:

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.

The case also discusses the different localization strategies adopted by McDonald's and concludes by identifying the challenges faced by McDonald's in China.

Issues:


» Evaluate McDonald's globalization strategies.

» Study and analyze the entry and expansion strategies of McDonald's in China.

» Examine some of McDonald's efforts to localize its offerings in China.

» Examine the challenges faced by McDonald's in China.

» Explore future strategies that McDonald's can adopt.

Contents:

  Page No.
Introduction 1
Background Note 2
Global Strategy 3
Mcdonald's Enters China 5
Expansion Strategies 6
Mcdonald's Operational Strategy 9
Localization Strategy 11
Challenges 12
Outlook 13
Exhibits 14

Keywords:

Globalization, Entry, Expansion, Localization, Quality, Service, Cleanliness, and Value (QSC&V), Fast food chain, McDonald's, Yum Brands, Kentucky Fried Chicken (KFC), China

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