Preview

Case Study McDonalds In China

Better Essays
Open Document
Open Document
1296 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study McDonalds In China
Brandon Taylor
MGT 301-701
Remo Picchietti
McDonalds in China
1. Assume a Big Mac is $3 in the U.S. How much would the Big Mac cost in China?
At the time of the article, “McDonalds to Double China Restaurants by 2013,” 1 Yuan is 8 to 15 cents. So, a Big Mac at the time of the article would cost 20 to 37.5 Yuan. However, at the current time, according to The Money converter.com, a Big Mac, costing $3, would be 19.10 Yuan Renminbi (USD to CNY).

2. Conduct some research. Identify at least one difference between the typical menu offering in the U.S. and the menu offering in China. Be sure to provide a citation.
Doing some research, I have found that there are many different culinary choices on the Chinese McDonald’s menu that many Americans might find strange. A tradition for many Chinese people is afternoon tea. To accommodate this, McDonalds offers their version of tea, the McBrew. Where American McDonalds offer apple slices to try to make people think that there is actually healthy food at the fast food chain, Chinese McDonalds offer a cup of corn (What’s on the Menu). They also offer a few pork dishes, such as the Ham N’ Cheese Burger and the Double Pork Burger. One item that is heavily Chinese-influenced is the taro pie, which basically substitutes the American apple pie. Taro is a root vegetable that is often used in Asian cuisine (What’s on the Menu). And probably the most popular items on the Chinese McDonald’s menu that is different from the American menu is chicken. Not just chicken sandwiches, but also chicken legs, wings, and thighs. While viewing Chinese commercials for the following question, the people were enjoying chicken in the majority of the commercials. Apparently, Chinese people love their chicken.

3. Conduct some research. Identify a major fast-food competitor that McDonalds faces in China. Be sure to provide a citation.
According to the article, “McDonalds to Double China Restaurants by 2013,” Yum Brands Inc already had roughly 3,700



Cited: “McDonalds to Double China Restaurants by 2013.” Reuters.com. Reuters. 15 Dec. 2010. Web. 14 Jan. 2011. “What’s on the Manu: McDonald’s Hong Kong.” Brand Eating. brandeating.com. 23 May 2010. Web. 24 June 2012. Mellor, William. “McDonald’s No Match for KFC in China as Colonel Rules Fast Food.” Bloomberg. bloomberg.com. 26 January 2011. Web. 24 June 2012. “USD to CNY.” The Money converter.com. themoneyconverter.com. Web. 24 June 2012.

You May Also Find These Documents Helpful

  • Powerful Essays

    YUM! Brands, Inc. is based in Louisville, Ky., and is the world’s largest restaurant company in terms of system units with more than 39,000 restaurants in more than 125…

    • 1513 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Gold Arches East

    • 1256 Words
    • 6 Pages

    Bibliography: Watson, James L. Golden Arches East: McDonald 's in East Asia. 2nd ed. Stanford, CA: Stanford University Press, 2006. Print.…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Unit 1 P6

    • 501 Words
    • 3 Pages

    The people in china eat fairly different types of foods compared to the people who are from the United Kingdom. If McDonalds sold the exact same food that they sell in the UK, this wouldn’t have the same affect and the McDonalds in China’s sales would decrease dramatically. McDonalds will need to research what foods and flavours Chinese people like, and then use this information to incorporate them into their foods and drinks when producing the menu’s for the Chinese public. McDonalds also need to make sure that their prices are affordable to make sure that they don’t miss out on the large amount of working class people in china’s very large population.…

    • 501 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    McDonalds: Brazil and China

    • 4560 Words
    • 14 Pages

    Yan, F., & Jones, T. (2010, December 15). McDonald 's to double China restaurants by 2013. Retrieved February 17, 2014, from Reuters: http://www.reuters.com/article/2010/12/15/us-mcdonalds-china-idUSTRE6BE0VJ20101215…

    • 4560 Words
    • 14 Pages
    Best Essays
  • Good Essays

    F 2014 McDonalds 2

    • 1497 Words
    • 5 Pages

    3. Beyond just your own impression, what FACTS are cited in the article about the competitive position of McDonald's? Which of these facts does McDonald's most need to focus on?…

    • 1497 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The main topic for both articles is food. Wong reports on the flourishing of fast food in Hong Kong, showing how Chinese fast food companies have made inroads into the Hong Kong market. For example, as Wong points out, “Hong Kong’s fast food industry… is dominated by Chinese companies such as Café de Coral, Fairwood and Maxim.” (123)…

    • 1249 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Mcdonalds in India

    • 331 Words
    • 2 Pages

    1. What are some of your initial reactions about the differences you notice between home country and host country operations of a multinational fast food chain such as the McDonalds?…

    • 331 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    1) Set out the main criticisms that have been leveled at Mc Donald’s in Europe. To what extent are these criticisms likely to be replicated in Asia? What differences can be predicted?…

    • 908 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mcdonalds Case Study

    • 329 Words
    • 2 Pages

    For at least 30 years McDonald’s had the lead consumer base in the fast food market. They seemed to have the market monopolized, however in time it’s consumer base drifted away. It would appear that Mcdonalds had become comfortable in the position it was in and put little to no emphases on product variety or quality and simply focused on the speed and convinience as the customer draw. Mcdonalds was suffering from low growth and market base as well as decreasing profits. The factors which affected this low growth and lack of profit was not only its competitors but also public opinion of the quality and variety of the food not being up to the same standards of the competition such as Wendy’s or Burger king. Public opinion on Mcdonalds was that the food it sold was of poor quality with little to no variety and people would sacrifice the convinience and speed of their order for taste and variety. To solve this problem Mcdonalds needs to bring back the once reliable customers that it lost to the competition. This can be done a few different ways.…

    • 329 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    McDonald opened its first restaurants in china in 1990 but it’s been facing stiff competition from KFC. The Chinese restaurants industry comprises of indigenous firm and Multi nationals firms such as KFC and McDonald but KFC possess the largest Market share with 1600 store across the country.…

    • 2159 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Case Study

    • 413 Words
    • 2 Pages

    What actions should the management of KFC and McDonald’s be taking for their respective companies’ future in Shanghai? In particular, what strategies should be adopted in relation to older consumers and expanding the demand for breakfast?…

    • 413 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Chose a different way from their competitor, KFC, McDonald’s prefers the large cities to grow instead of opens outlets in second and third cities. Although McDonald’s is one of the biggest fast food brands in the Western word, but in China, they still way behind Yum! Brands, especially KFC. Yum! had a first move was the first fast-food restaurant enter China in 1987. Chinese people prefer chicken than beef also helped Yum!’s successful business in China.…

    • 256 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mc Donald

    • 251 Words
    • 2 Pages

    1. What opportunities and threats did McDonald’s face? How did it handle them? What alternatives could it have chosen?…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Student

    • 559 Words
    • 3 Pages

    3. The opportunities for expanding the market are great when one realizes that 99 percent of the world population is not yet McDonald's customers. For example, in China, with a population of 1.2 billion people, there are only 62 McDonald's restaurants in1995. McDonald's vision is to be the major player in food services around the world.…

    • 559 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    burger king

    • 276 Words
    • 1 Page

    In 1990, McDonald's opened in Shenzhen of the first store. McDonald's has grown to 2012 stores cover 25 provinces and municipalities in 2008 and plan to open 500 new locations in next three years. (Yan and Li, 2009). McDonalds' in China can charge a premium price through providing high quality products to achieve their ownership advantage. In China, the labour input is less costly and natural resources can be easily get to produce the product for their location advantage. McDonald's China emphasis on Quality, Service, Cleanliness and Value. Therefore, McDonald's is perceived as scientifically clean environment by Chinese customers. And the food is also considered safer than traditional road side food. In China, Modifications in the menu is other key strategy in business practices and the approach in which McDonald's management overseeing the operations in China advertises. For instance, adding the teriyaki burger to meet the demand of consumers. Many customers will not realize McDonald's is and American Corporation for it accustomed to the Chinese culture. At first, McDonald's through having 50% local ownership and purchasing local product to present itself as a Chinese corporation. McDonald's invest in local schools, give scholarships and awards competitions. Now McDonald's director is trying to remake McDonalds being a foreign. McDonald's in several cities run 24 hours every day .McDonalds' has absorption the Chinese cultural and showing understanding, respect and assimilation.…

    • 276 Words
    • 1 Page
    Satisfactory Essays

Related Topics