McDonald’s in China
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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. McDonald’s Vegetable and Seafood Soup and Corn Soup were introduced, and the company worked to modify the restaurants’ design. During the 2004 Spring Festival, McDonald’s on Beijing’s Wangfujing Street attracted many people with a traditional Chinese look, decorating their interiors with paper-cuts of the Chinese character Fu (Happiness), magpies and twin fishes, all auspicious symbols.