McDonald's in China
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Case Details:
Case Code : BSTR305
Case Length : 20 Pages
Period : 1998-2008
Pub Date : 2009
Teaching Note : Available
Organization : McDonald's Corporation
Industry : Fast Food Industry
Countries : 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.
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"China is certainly a significant market for McDonald's,
and they're focused on seizing that."1
- John Owens, Analyst, Morningstar Inc2 in 2007.
"You have to remember that in places like Australia and
Spain it took us 10 to 15 years to make money. China is in its 15th year and
it's making very good money; it just could do better."3
- Matthew Paull4, McDonald's Chief Financial Officer, in
2005.
Introduction
McDonald's Corporation (McDonald's), one of the world's
largest fast food chains, disclosed in its Annual Report, 2007, that it served
one billion additional customers globally in the year 2007 than in 2006 because
of its reasonably priced menus such as Ein Mal Eins5 in Germany, the Dollar Menu6
in the US, and the Value Menu7 in China.
These menus typically included eight to
ten items including entrees, side dishes, desserts, and drinks which could be
assorted by customers to create a meal or a quick snack.
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McDonald's in China
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