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Mcdonald'S China: Presented By: Team Xi

McDonald's opened its first location in Beijing in 1992 and has since expanded to over 1,300 restaurants across China, with plans to reach 2,000 locations by the end of 2013. While it faces competition from other fast food chains like KFC, McDonald's has found success in China by tailoring its menu and operations to Chinese tastes and customs, such as conducting research on Chinese preferences and establishing high food safety standards. Moving forward, McDonald's strategies include expanding its healthier options, focusing on technology and convenience, and further penetrating major Chinese cities and regions.

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Ruchita Ranjan
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313 views7 pages

Mcdonald'S China: Presented By: Team Xi

McDonald's opened its first location in Beijing in 1992 and has since expanded to over 1,300 restaurants across China, with plans to reach 2,000 locations by the end of 2013. While it faces competition from other fast food chains like KFC, McDonald's has found success in China by tailoring its menu and operations to Chinese tastes and customs, such as conducting research on Chinese preferences and establishing high food safety standards. Moving forward, McDonald's strategies include expanding its healthier options, focusing on technology and convenience, and further penetrating major Chinese cities and regions.

Uploaded by

Ruchita Ranjan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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McDonald`s China

Presented by: team XI

McDonald`s in China
McDonald's Corporation is US based restaurants chain. In 1930 McDonalds brothers opened restaurant called Airdrome in Arcadia,

California
Headquarter: McDonald's Plaza , located in Oak Brook, Illinois. Total Revenue : US$ 27.006 billion In October 1992,opened first Beijing outlet on Wangfujing street. Quick-serve restaurant (QSR) sector grew by 14% in 2011. McDonald's total revenue up 19% in 2011 . McDonald with 1300 restaurants in China currently. Plan to expand that number to 2000 by the end of 2013.

SWOT
Strength
Good positioning and target

Weakness
Limited menu items.

customers Large investment in marketing promotion and branding Local Coverage like shopping centre Good community-caring Opportunities image like charity

Increasing price pressure. Faces quality issue Issues in logistics


Threats

Health conscious customer on offering more varieties Competitors like KFC,local food Better cost control outlets Cope with the fast changing consumer needs and trends Franchaisees didn`t maintained McD`s standard Growing Dining out Market

Challenges

The Chinese government system and the law system was a bit tougher than other countries they were operating. At first they were not allowed to franchise in China, but in 2004 they were allowed. At present, the top spot is held by rival Kentucky Fried Chicken (KFC), owned by Yum! Brands Inc, which has about 3,200 locations. McDonald's has about 1,300. The Chinese fast-food chain Kungfu Catering Management Co Ltd has more than 300 Zhen Kungfu restaurants, while Taiwan's Ting Hsin Group operates more than 1,000 Dicos fried-chicken stores. California Pizza Kitchen Inc and German upscale seafood chain Nordsee GmbH, also plan to enter the market. More players are coming in, giving consumers more choices and threatening to cut into McDonald's market share.

Strategies:

Mc.Donalds continued the operating policies and Americanized traditions in its early days in China. Mc.Donald`s waited until the right time for moving aggressively into Chinese market. McDonald's strategic plan in China was concentrate on core menu extensions, convenience and value. Drive-thru is a brand new concept and the first trial of MacDonald's in China. It opened up a 'Dollar Menu known as the 'Value menu that offered sandwiches and other items at lower price Its objective constructs the region unification currency management structure All McD stores had hand held washing stations and hand sanitizers. Food Safety was priority. McDonalds conduct various research about Chinese taste. From these research, McDonalds generates new menu that is sold in all over the world. If new menu is devised from meeting and so on, McDonalds test in some stores. McDonalds carefully conduct research and make stored at cleared standard place.

Future
By 2014, about 70 percent of McDonald's stores in

China will have features like free WiFi, cozier seats, selected music and outdoor seating. Implement the strategy that fueled its success in the U.S. Sell low-calorie meals with zero-calorie soft drinks. Sell a massive variety of fruits from strawberries to passion fruit- contain little to no added sugars or fats of any kind. Focus on big cities and the eastern and central part of China .

Thank You

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