McDonalds: Brazil and China
McDonalds:
Brazil and China
Introduction
In 1940, Dick and Mac McDonald open a Bar-B-Q drive in restaurant in San Bernardino, California. In1948, they close down to change what they sold. They now sold 9 items: 15¢ hamburgers, cheeseburgers, potato chips, coffee, milk, soft drinks, and a slice of pie. In 1949, their world famous fries replace potato chips. As stated on McDonald’s website in 1954, Ray Kroc sells the brothers multi-mixers, becomes their franchising agent, and in 1955 creates the McDonalds Corporation. They quickly grew through out the United States and then into other countries. Two of those countries are China and Brazil, which is where our focus will be. We will discuss political and economic issues and resolutions, cultural issues and their resolutions, human resource issues and resolutions, and give recommendations on how they can improve competitiveness.
McDonald’s became part of China in 1990 with the first 500-seat store in the town of Guangdong province. As the Chinese came to love McDonald’s products, such as the food and the bright lively décor of the yellow and red and even the clown, it grew to a staggering 460 locations by the end of year of 2002 (Jie, 2008). At the end of 2004, McDonald’s grew to 600 locations throughout China. Nine years later, McDonald’s has 2,000 locations being presented in China with plans of spanning into even more provinces in China. McDonald’s theory on expanding is that they will establish and hold one spot until that location has been successful and running smoothly before opening another. McDonald’s doesn’t believe in opening up mass amounts of restaurants without having a successful establishment first. KFC, whom is McDonald’s biggest competitor doesn’t believe in this theory. KFC motto is that you open up as many stores as possible and then fix problems as they arise (Woke, 2011). KFC came to China in 1987 and opened 1,200 stores by the end of 2004. That was double the number of
Brazil and China
Introduction
In 1940, Dick and Mac McDonald open a Bar-B-Q drive in restaurant in San Bernardino, California. In1948, they close down to change what they sold. They now sold 9 items: 15¢ hamburgers, cheeseburgers, potato chips, coffee, milk, soft drinks, and a slice of pie. In 1949, their world famous fries replace potato chips. As stated on McDonald’s website in 1954, Ray Kroc sells the brothers multi-mixers, becomes their franchising agent, and in 1955 creates the McDonalds Corporation. They quickly grew through out the United States and then into other countries. Two of those countries are China and Brazil, which is where our focus will be. We will discuss political and economic issues and resolutions, cultural issues and their resolutions, human resource issues and resolutions, and give recommendations on how they can improve competitiveness.
McDonald’s became part of China in 1990 with the first 500-seat store in the town of Guangdong province. As the Chinese came to love McDonald’s products, such as the food and the bright lively décor of the yellow and red and even the clown, it grew to a staggering 460 locations by the end of year of 2002 (Jie, 2008). At the end of 2004, McDonald’s grew to 600 locations throughout China. Nine years later, McDonald’s has 2,000 locations being presented in China with plans of spanning into even more provinces in China. McDonald’s theory on expanding is that they will establish and hold one spot until that location has been successful and running smoothly before opening another. McDonald’s doesn’t believe in opening up mass amounts of restaurants without having a successful establishment first. KFC, whom is McDonald’s biggest competitor doesn’t believe in this theory. KFC motto is that you open up as many stores as possible and then fix problems as they arise (Woke, 2011). KFC came to China in 1987 and opened 1,200 stores by the end of 2004. That was double the number of
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