Summary
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.
The cases focus on the strategy of MacDonald in trying to improve and increase the market share in China. The strategy employed by MacDonald is Drive Through, which they believe will change the eating culture of the Chinese consumers. MacDonald in order to get larger marketing share have gone into a deal with China 's largest gas retailer "Sinopec Group" to build drive through in the filling stations across the country. Moreover Mc Donald is hoping to increase its market share by building more restaurants providing internet connections, play areas for children and special seating arrangements for their mothers. With KFC gaining more markets MacDonald hope to equip more of its future restaurants with Drive Troughs - in addition to regular dining rooms and free parking.
CHALLENGES OF MCDONALD: MICRO AND MACRO ECONOMICS PERSPECTIVE&ANALYSIS
Micro economics Perspective and analysis
"Micro economics is the branch of economics that analyze the decisions that individual consumers and producers make as they operate in a market economy"(Farnham,2007).
(A)The Chinese eating culture challenges
(B) Competitor firm brands Inc.’s KFC
Macroeconomics Perspective and analysis
"Macroeconomics examines economy 's wide spread phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels." (INVESTOPEDIA, 2013). (A)Growth in general economy: China’s sprawling cities (B) Changes in lifestyle/income which influences general price level. (C) Increase in Automobile car usage in China.
THREE KEY ISSUES FOR
References: 1. Robert, F. and John, F.(1999), Business Marketing, Connecting Strategy ,Relationships and Learning ,New York: Mc Graw-Hill. 2. Pearce, J. and Robinson ,B. (2003),Strategic Management ,Formulation,Implementation ,and control, NEW YORK:Mc Graw –Hill. 3. Helen, D. (2011), International Management ,Managing Across Borders And Cultures Text And Cases ,New Jersey :Pearson. 4. Harvey, D. (1982), Business Policy and Strategic Management, London: Bell and Howell Company. 5. Fred,R. (2007),Strategic Management Concepts and Cases ,New Jersey: Pearson 6 7. Donald, N. Principles of managerial economics (2012),New York ,Flat world Knowledge . 8. Baye,M. and Prince,J.(2013),Managerial Economics and Business Strategy,Mc Graw-Hill 9 10. Friedman ,T.(2005),The world is flat a brief history of the twenty-first century, New York: Farrrar ,Strau and Giroux 11 12. Mansfield,E. and Gay,Y.(2003), Micro economics :Theory and application,New York, w.w Norton and company