Preview

International McDonald's

Best Essays
Open Document
Open Document
3089 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
International McDonald's
Running head: FINAL PAPER

Final Paper: McDonald’s on the Move

Jonathan Rosenberger

Newberry College

Submitted in partial fulfillment of the requirements for

BUA 432 – International Business

November 10, 2014

Fall, 2014
Address: 2100 College Street
Newberry, SC 29108
Phone: 864-276-1003
E-mail: jonathan.rosenberger@newberry.edu
Instructor: Prof. Gerald Seals

Abstract

Presented is a research paper that will discuss mainly McDonald’s going into China and trying to become prosperous. It will also discuss why the Chinese marketplace is such a prime candidate for their business. Following, the paper will look at the Jollibee Corporation and discuss the reasons that they were unsuccessful into their venture into China. The main question that this paper will answer is who would best be suited to try and sell their products in the market of China and why.

McDonald’s on the Move McDonald’s has made major gains in our country in the form of service and food quality but the country that is getting most of their attention is China (Brumley, 2014). This paper will discuss if McDonald’s should enter China as well as the positive and negative aspects of being in China. Then, the topic of if Jollibee would be prosperous in mainland China will be discussed. Following that, the paper will talk about why big international companies such as McDonald’s and Yum! Brands Inc. would be better suited for the Chinese market than smaller and more localized companies such as Jollibee. After discussing these topics, this paper will discuss any future suggestions and advice that could be taken away from this discussion. McDonald’s is one of the largest multination corporations in the world. A multinational corporation is a company that has parts of its business set up in various parts of the world all being run from headquarters that are set up normally in its country of origin (“Advantages and Disadvantages”, 2014). Five major things


References: Advantages and disadvantages of transnational corporations. (2014). Retrieved September 6, 2014, from http://www.ukessays.com/essays/economics/advantages- and-disadvantages-of-transnational-corporations-economics-essay.php Bartlett, C Brumley, J. (2014, April 23). McDonald 's is about to tap into a huge growth opportunity. Retrieved September 6, 2014, from http://www.businessinsider.com/mcdonalds-expanding-international-2014-4 Chen, C Duprey, R. (2014, September 9). Can McDonald 's corporation and KFC bounce back in China? Retrieved September 9, 2014, from http://www.fool.com/investing/general/2014/09/09/can-mcdonalds-corporation- and-kfc-bounce-back-in-c.aspx Enz, C Fan, G., Wang, X., & Zhu, H. (2006). Marketisation in China. progress and contribution to growth. Retrieved November 11, 2014, from http://press.anu.edu.au/wp- content/uploads/2011/06/ch033.pdf Gibison, A Hirota, Megumi. (2009). Faith and food files - Buddhism. Retrieved September 6, 2014, from http://www.faithandfood.com/Buddhism.php Kefalas, A Want to capitalize on China? You better have good guanxi. (2012, March 15). Retrieved November 12, 2014, from http://www.forbes.com/sites/languatica/2012/03/15/want-to-capitalize-on-china- you-better-have-good-guanxi/ Watasuki, Y., & Park, M Watson, J. L.(2006) China’s Big Mac attack. In J. Johnson (Ed.), Global Issues, Local Arguments Zhou, L., & Zhang, Q. (2012). Cultural adaptation pattern analysis of McDonald’s and KFC in the Chinese market. Retrieved November 12, 2014, from Cultural adaptation pattern analysis of McDonald’s and KFC in the Chinese market
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Mgt 448 Week 4 Final Global Business Plan
    • 7188 Words
    • 29 Pages

    Mgt 448 Week 4 Final Global Business Plan

    McDonald’s is a fast growing international business that desires to attract customers in all countries and cater to their needs, wants, and desires. Many countries include the American Cultural Icon that McDonald’s has created but not all desire the soy and beef products, so McDonald’s has decided to cater based on the specific countries desires. When an organization decides to go international, unfamiliar political and governing regulations are presented. The new organization will be considered an outsider and will receive much suspicion from the natives as to how this new venture will operate in their country. As will be obvious throughout this paper McDonald’s is really the king of adapting its business to the various cultures of the countries they operate in. This paper will summarize the findings from previous Learning Team assignments, and include the rationale for selecting a target country based upon previous learning team Country Risk Analysis. This paper will determine the marketing mix specific to the selected global product and service and explain the choice of marketing mix. A marketing plan that addresses product modification,…

    • 7188 Words
    • 29 Pages
    Powerful Essays
    Read More
  • Better Essays

    Gold Arches East
    • 1256 Words
    • 6 Pages

    Gold Arches East

    McDonalds has always been able to face the challenges that arise when trying to expand to foreign cultures. They have successfully expanded to over a hundred countries, including countries in East Asia. In the book “Golden Arches East” by James L. Watson, he studies different cities and how McDonalds has played a role in their cultures. Three places that he mentioned in his writing were Beijing, Seoul and Japan. They all share similarities in the way the culture was impacted positively and negatively, in society and politically. They have their differences in the way things were dealt with and how the public viewed the American company coming to their countries. In this paper, I will be talking about how McDonalds is involved in the cultural transformation of different cultures, as well as, if they created the trends mentioned or if they just followed the market they had to work with. I will also be covering my beliefs on whether or not what McDonalds got involved in was an American inspired, transnational culture crowding out indigenous cultures.…

    • 1256 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    01 SPRINGSMBA51028 1
    • 1236 Words
    • 5 Pages

    01 SPRINGSMBA51028 1

    There are many businesses that we frequent in our day to day lives that are global in nature. We rarely give thought to their presence in another country. McDonald’s is a name that is recognized by all ages, in over 117 countries (Talpau & Boscor, 2011). McDonald’s is a 192.95 billion dollar restaurant industry (Bloomberg Industry Market Leaders). According to Kuratko (2013), McDonald’s is one of the biggest fast food industries in the world, due to the founder’s innovative ideas, not by inventing a product.…

    • 1236 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Best Essays

    Explain Why Did Starbucks Fail In The Forbidden City
    • 3266 Words
    • 14 Pages

    Explain Why Did Starbucks Fail In The Forbidden City

    Nowadays, economic globalization is becoming an irreversible tendency; therefore, different multinational corporations always want to extend their branches to other countries, especially for the food companies, such as, McDonald’s, Starbucks, and Burger King. In recent years, the world has also witnessed that China’s economy has developed to a higher level since China has reformed and opened for more than 30 years. According to Lardy, in the middle of 1990s, China had become one of the largest world’s trading nations (Lardy, 1995, p.1). Now, Chinese customers have more desire and abilities to enjoy western food. Therefore, many multinational food corporations, such as, Starbucks, KFC, and Krispy Kreme, want to enter in Chinese market, and these companies…

    • 3266 Words
    • 14 Pages
    Best Essays
    Read More
  • Good Essays

    Mcdonald's Global Presence and Cultural Issues
    • 658 Words
    • 3 Pages

    Mcdonald's Global Presence and Cultural Issues

    McDonald’s is definitely a global company. Although they operate and oversee thousands of restaurants in over one hundred countries, they are still very much based in the U.S. About one third of all their restaurants are located here in the United States and the McDonald’s corporate headquarters is located in Oak Brook, Illinois. They are a publicly traded company and are listed on the New York Stock Exchange.…

    • 658 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Mcdonald's Case Analysis
    • 1888 Words
    • 8 Pages

    Mcdonald's Case Analysis

    About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.…

    • 1888 Words
    • 8 Pages
    Good Essays
    Read More
  • Powerful Essays

    Mcdonalds
    • 1076 Words
    • 5 Pages

    Mcdonalds

    McDonald 's is one of, if not the most widely recognized names in the food industry. This is quite the accomplishment for the once small family owned burger establishment founded back in 1948. McDonalds is not only a giant in the food industry, but has also grown to be one of the largest real estate holding companies in the world. McDonalds owns a considerable number of the properties that the McDonald’s stores reside on, leasing them out to the franchisees. McDonalds has expanded its operations to over 30,000 establishments located all over the world in over 118 countries. Being the largest restaurant in the world’s, has not come without its fair share of significant accomplishments and setbacks. The company has for various different reasons had to close some of its foreign operations in countries such as Bolivia, Jamaica, and other countries where sales were not doing satisfactory. Overall, none of these seems to have any substantial effect on the colossal giant (McDonald’s Abroad, 2009).…

    • 1076 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Five Forces Model of Mcdonald's Corporation
    • 1064 Words
    • 5 Pages

    Five Forces Model of Mcdonald's Corporation

    Currently in the fast food industry, there is intense competition for growth in the market. The market growth is rising because of the convenience factor and busy consumers not having enough time to cook a meal. The restaurant industry is also growing rapidly due to opportunities in other global markets. In McDonald’s case, they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries. Each firm within the food-service industry is susceptible to losing customers because there are relatively no switching costs for consumers, therefore the industry has to rely heavily on their brand image and quality of products. McDonald’s has a number of competitors; however they are currently the leader of the industry in market capitalization with a cap of $39.31 billion.…

    • 1064 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    4 Macro Environment Mcdonald's
    • 1451 Words
    • 6 Pages

    4 Macro Environment Mcdonald's

    In today’s society, corporations and enterprises are expanding their businesses in the global markets. Globalization is necessary for success and survival in the worldwide market; however, global competition is not easy (Bateman & Scott, 2004). By the end of the twentieth century, the list of Fortune 500 companies was no longer only United States corporations due to an increase in international companies joining the list (Global Capitalism, 2005). As a leading food service retailer, McDonald’s joins those corporations with restaurants in 119 countries (McDonald’s, 2004). Important strategic decisions are a key factor to their success with consideration for both internal and external factors. When considering the foreign market, companies need to consider there are risks. There must be local marketing to appeal to the local consumers and also to build relationships and trust (Bateman & Scott, 2004). Therefore, the strategic planning for marketing has to be effective. McDonald’s caters its menu in other countries to the cultures of the regions. For example, in India, the non-vegetarian menu includes chicken and fish items only (Welcome, n.d.). Beef is…

    • 1451 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Mc cafe weakness
    • 453 Words
    • 2 Pages

    Mc cafe weakness

    The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Therefore,It has a huge and complex structure,which means its reaction to the market might be slow.Moreover,Starbucks launched mooncakes for Chinese Mid-autumn festival,combining Chinese and western cultures together and creating a new trend of mooncakes. Compared with Starbucks, McCafé’s indigenization in Hongkong seems not so successful.…

    • 453 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Research on Mcd
    • 1652 Words
    • 7 Pages

    Research on Mcd

    NEW YORK: McDonald’s Corp posted its worst quarterly restaurant sales growth performance in nine years on Friday, lifting the curtain on the fast-food industry’s ruthless fight for customers in a weak economy. The world’s biggest fast-food chain is battling more than the bleak global economy that is curbing appetites for purchases of its hamburgers, salads and smoothies. Resurgent chains like Burger King Worldwide Inc and Yum Brand Inc’s Taco Bell now are challenging McDonald’s in the United States with revamped menus, celebrity endorsers and a renewed focus on low-priced food. McDonald’s domestic market falls just behind Europe as the company’s top region for sales. Easing food cost inflation has allowed U.S. restaurants to step up their menu price wars. “It’s led to a very cutthroat restaurant environment,” Morningstar analyst R.J. Hottovy said. “You have a scenario where the overall pie is shrinking, and companies are competing aggressively to take their piece of it,” Bernstein Research analyst Sara Senatore said. When asked to explain why the third quarter’s results lagged even those put up during the height of the financial crisis, McDonald’s Chief Executive Officer Don Thompson attributed the results to the tougher battle for stomachs and economic challenges in each of the company’s major regions. That confluence of factors forced McDonald’s to miss Wall Street’s earnings estimates for the second quarter in a row. It also warned that sales at established restaurants – a closely watched gauge of restaurant performance – are down…

    • 1652 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Jollibee
    • 1163 Words
    • 5 Pages

    Jollibee

    1. Jollibee was able to build the dominant position in fast food in the Philippines because it was based on “Five Fs”: friendliness, flavorful food, fun atmosphere, flexibility in catering, and focus, which fitted the Filipino customer’s habit. Additionally, since it was a local brand, it understood the customers well. For example, it offered spicy burgers that McDonald couldn’t offer. Furthermore, the political and economic crisis that occurred in 1983 led most foreign investors and competitors, such as McDonald to slow down the expansion in Philippine. During this crisis, Jollibee broadened its menu by offering various kinds of food that matched local tastes and built more stores all around Philippine. This subsequent growth and strong dominance prevented McDonald to expand.…

    • 1163 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    inventory system
    • 379 Words
    • 2 Pages

    inventory system

    jollibee Food Corporation is the epitome of entrepreneurial success in the Philippines. What started as an ice cream parlor had spawned into a national brand that even the likes of McDonalds cannot top. At present, Jollibee has established a global presence with the opening of stores in countries such as the US, Hongkong, Guam, Brunei and Vietnam, just to name a few. With many strategies for investment from KFC, Lotteria, Jollibee, etc, fast food industry in Vietnam will be developed in the near futures. This report is about: 1a. Context of Jollibee Food Corporation business strategy with information relate mission, vision, objectives, goals, strategic intent, strategic architecture, strategic control and core competences of Jollibee. 1b. The key stakeholders of Jollibee in Vietnam…

    • 379 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Cafe de Coral
    • 6570 Words
    • 27 Pages

    Cafe de Coral

    As Mr. Michael Chan, Chairman and CEO of the Café de Coral group, thought about the directions his company should take, he felt a bit uncertain. The company, clearly the most popular Chinese Quick Serve Restaurant (QSR) in Hong Kong and a local success, had just celebrated twenty years as a public company. This success and longevity in the cut-throat world of fast food was remarkable, but Mr. Chan did not want the company to rest on its laurels. At his meeting this afternoon with senior management, Mr. Chan planned to suggest that the company needed to move outside of Hong Kong and follow a much more aggressive plan than it had followed when it had moved slowly into China (with both Café de Coral outlets in neighboring Guangdong Province and recently New Asia Dabao in Shanghai) and also into North America (by buying into and then purchasing outright the Manchu Wok chain) over the last several years. He knew that the company needed a very clear globalization strategy in order to move to the next level of growth and to find sustainable growth opportunities away from Hong Kong. Mr. Chan had no clear plan at this point and he needed input from his managers and the Board. Mr. Chan reflected on how Café de Coral was a household name in Hong Kong and was the most popular QSR in its home market. The company dominated the market in Hong Kong and continuously improved its brand image through innovations in food preparation at its centralized food processing and distribution centers in Hong Kong and across the border in Guangdong. It also had perfected methods of offering large menus (up to 150 items) that changed four times over the course of every day with different items added and other items taken off the menu two to three times a week to provide variety as well as fresh and delicious food in a quick-serve environment to its huge and discerning customer base.…

    • 6570 Words
    • 27 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Jollibee Case Analysis
    • 4754 Words
    • 20 Pages

    Jollibee Case Analysis

    Executive Summary The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, wasforced to change their strategy with the entry of McDonalds in Philippines, whichlater transformed the company into a global company .The company faced seriouschallenges with their international exposure. The challenges included the conflictswith franchisees/Joint venture and conflicts between divisions. Another issue that thecompany faced was the entry into Papa New Guinea, United States of America andexpansion plans in Hong Kong. The company has to consider the financial instabilityit faces while considering their plans. In the analysis we have tried to cover theeffectiveness of strategies adopted by Mr Tony Kitchner (Former InternationalDivision head).This case analysis report deals with, firstly the key management challenges faced bythe company, followed by some supporting arguments. In the management issues, thereport focuses into the conflicting areas or the need to establish a greater cooperationand coordination between the Domestic and International divisions.Then, the recommendations regarding what should the company do differently in eachof its department like in Marketing, HR, Finance or Operations, to succeed in its plansof global expansion. Finally, the feasibility of the three decisions that the newmanagement has taken is also discussed.We have also tried to analyse the dilemma faced by Mr. Tingzon regarding theopportunities of international expansions to Papa New Guinea, Hong Kong and USA.Jollibee Foods Corporation- International Expansion: Case Analysisa. Industry Analysis A fast food restaurant or Rapid Service Eatery (RSE) has the following 3characteristics.…

    • 4754 Words
    • 20 Pages
    Powerful Essays
    Read More

Related Topics