How Do You Think the Asian Passenger Air Transport Air Transport Marketplace Will Shake Out? What Lessons Can Be Drawn from the North American and European Experience?

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CASE STUDY 4 : McDONALD AND HONG KONG

INTRODUCTION

McDonald's Restaurants (Hong Kong) Limited was established in 1975. The first McDonald's restaurant, which offered customers the very first American Big Mac Meal in Hong Kong, was located at Paterson Street, Causeway Bay. Today there are over 200 McDonald's restaurants in Hong Kong, and more than 10,000 McDonald's staff.

Question 1:

Using the SWOT analysis, verify the attributes that are helping McDonald to stay competitive in the fast food industry in Hong Kong. Do remember to include the internal and external factors that may part in influencing your SWOT analysis.

A SWOT analysis determines a company's position by examining 4 factors ·Strengths
·Weaknesses
·Opportunities
·Threats

Strengths and weaknesses are said to be internal, that is, controlled by the company. Opportunities and Threats are outside the company's control and are therefore said to be external influences.

|Company |Strength |Weaknesses |Opportunities |Threats | |McDonalds (Hong |Company related satisfaction of|the company have limited |the company have limited |The company have limited housing| |Kong) |customer by their product. |housing space made it hard |housing space made it hard|space made it hard for ordinary | | |Company practice fast services |for ordinary people to host |for ordinary people to |people to host family | | |of quality food |family gatherings. |host family gatherings. |gatherings. |

QUESTION 2

Construct a PESTEL analysis to show the competitive advantages that McDonald has to stay and continue its operation in Hong Kong.

Pestel Analysis

Stand for political, economic, socio-cultural, technological, environmental and legal analysis of forces that could impact the business environment. To find the circumstances surrounding the market and as an instrument for understanding the market situation such as market growth, market potential and the direction of a company’s operations.

1. Political

Political parties and alignments at local, national and European or regional trading - bloc level. Example like on taxation and employment law. Government ownership of industry and attitude to monopolies and competition.

Ronald McDonald was opened by McDonalds in Asia in 1996 for the house welcomes families with critically ill children to stay at the house while the children are undergoing treatment in a nearby children’s hospital. The house provides the needs of the families and Ronald McDonald visits the children in the hospital to bring them joy during the time that they are undergoing the difficult process of treatment.

Many are aware of disadvantages of fast food indicate the harmful elements like cholesterol and adverse effects like obesity are attributable to consuming fast food products. Government should not allow these businesses to operate. However, most countries allow these businesses to run despite being aware of the potential adverse effects encountered.

2. Environment

• ‘Green’ issues that affect the environment.

• Rubbish, waste and its disposal.

As a trademark in Hong Kong, McDonalds was the first restaurant to implement a smoke-free policy as a move of the company to take responsibility for the health of its customers, mainly children, who deserve a smoke-free environment where they can eat and play. This policy is an important policy that should be applied by all countries.

3. Social cultural

• Change in lifestyle

• Education and health

• Demographic change

McDonalds in Hong Kong celebrated the World Children’s Day together with deaf-mute children. Over 2,000 volunteers, both children and adults,...
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