Pest for Mcdonald in China
INTRODUCTION
McDonalds, being an American based fast food company was also very successful in other western countries. The cultural and consumer behavioral similarities among those nations might have caused a positive impact in this success. However it’s not only in western countries that McDonalds was successful but also in eastern countries as well. Among those Asian countries, McDonalds has become one of the most preferred fast food destinations. After xxx years of its operations, with vast experience in several cultures, McDonalds eyed the mainland Chinese market which they saw a huge potential of growth and expansion despite the fact that 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. But unlike in other countries which McDonalds are operating, they are a bit reluctant to franchise in mainland China. On the other hand there is a tight competition among various food suppliers, both western foods and traditional Chinese foods.
The aim of this paper is to 1. Critically analyse the environmental forces affect on McDonalds development in China 2. Critically evaluate the opportunities and threats for McDonalds operations in China 3. Find out the strategic groups in the fast food industry in China and with what group does McDonalds compete most
This paper included three major parts which each part discuss about each objective mentioned above followed by a simple conclusion.
ENVIRONMENTAL FORCES AFFECTED ON MCDONALDS DEVELOPMENT IN CHINA
Basically when it comes to an environmental analysis, its either PESTEL or SWOT frameworks are used. In this paper the PESTEL framework is used to analyse the external environmental forces. PESTEL stands for Political Economical Social Technological Environmental Legal factors of the external environment in which the organization is operating. PESTEL
McDonalds, being an American based fast food company was also very successful in other western countries. The cultural and consumer behavioral similarities among those nations might have caused a positive impact in this success. However it’s not only in western countries that McDonalds was successful but also in eastern countries as well. Among those Asian countries, McDonalds has become one of the most preferred fast food destinations. After xxx years of its operations, with vast experience in several cultures, McDonalds eyed the mainland Chinese market which they saw a huge potential of growth and expansion despite the fact that 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. But unlike in other countries which McDonalds are operating, they are a bit reluctant to franchise in mainland China. On the other hand there is a tight competition among various food suppliers, both western foods and traditional Chinese foods.
The aim of this paper is to 1. Critically analyse the environmental forces affect on McDonalds development in China 2. Critically evaluate the opportunities and threats for McDonalds operations in China 3. Find out the strategic groups in the fast food industry in China and with what group does McDonalds compete most
This paper included three major parts which each part discuss about each objective mentioned above followed by a simple conclusion.
ENVIRONMENTAL FORCES AFFECTED ON MCDONALDS DEVELOPMENT IN CHINA
Basically when it comes to an environmental analysis, its either PESTEL or SWOT frameworks are used. In this paper the PESTEL framework is used to analyse the external environmental forces. PESTEL stands for Political Economical Social Technological Environmental Legal factors of the external environment in which the organization is operating. PESTEL