Mcdonald's in Vietnam

MCDONALD’S IN VIETNAM

By Ayodeji Akin Abiri

Table of Contents

Abstract

1.0 Introduction 3

1.1 Background note 4

1.2 Global Strategy 5

2.0 McDonald’s In Vietnam 8

2.1 Entry Strategy 9

2.2 PESTEL analysis of Vietnam 9

2.3 SWOT analysis of HCM city 11

2.4 Expansion strategy 12

2.5 Franchising in Vietnam 13

2.6 Drive-thru restaurants 13

2.7 Localization strategy 13

3.0 Competition & challenges 14

3.1 Recommendations 15

3.2 Conclusion 15

Exhibit I 16

Exhibit II 18

Exhibit III 29

References 32

McDonald Enters Vietnam

Abstract

This paper analyzes the globalization options for McDonald’s by going into Vietnam. The paper explores McDonald’s global strategy as well as its expansion strategy. Aside from the globalization evaluation, this study also examines the entry mode in Vietnam. In the concluding sections, I was able to outline the challenges and recommendations for McDonald’s.

Key words: globalization, strategy, fast food, expansion

1.0 Introduction

McDonald’s Corporation is the world’s largest hamburger fast food chains which serves up to 64 million customers daily. McDonald’s annual report in 2007 revealed that it served one billion more customers globally in the previous year because of its reasonably priced menus such as Ein Mal Eins in Germany, the value Menu in China and the Dollar Menu in the US. These menus normally included up to 10 items with desserts, side dishes, entrees and drinks which could be mixed by customers to make a meal or a fast snack.

According to McDonald’s 2010 report, global comparable sales growth was 5%, earnings per share is 11%, average number of customers served per day was 64 Million. The Asia/Pacific, Middle East, and Africa (APMEA) contributed to 21 percent of its total

References: Hill, W.L. (2011). International business: competing in the global marketplace, 8th edn, McGraw-Hill companies Daniels, J Porter, M.E. (1985) Competitive Advantage, New York: The Free Press. Vignali, C. (2001) ‘McDonald’s: “think global, act local” – the marketing mix’, British Food Journal, Vol. 103, No. 2, pp.97–111. Porter, M.E. (1980) Competitive Strategy, Techniques for Analysing Industries and Competitors, New York: Free Press. Whalen, J. (1995) ‘McDonald’s cooks worldwide growth’, Advertising Age International, July/August, p.5. http://en.wikipedia.org/wiki/List_of_countries_with_McDonald 's_franchises. Accessed Oct. 2, 2011 http://www.doingbusiness.org/data/exploreeconomies/vietnam/ http://vietnambusiness.asia/112000-cars-sold-in-2010-down-6/ Accessed Sept 30, 2011 http://www.guidevietnam.com/travel/vietnamese-food-cuisine.html http://www.business-in-asia.com/vn_automobile_industry.htm. Accessed Sept 30, 2011 http://www.eoincostello.ie/pdf_doc/Global_Marketing_and_Competitiveness_Assignment.pd0f “McDonald’s Grows with the Country,” www.en.ce.cn, October 2, 2011 Annual Reports, McDonald’s