McDonalds: Brazil and China

Topics: McDonald's, Hamburger, Fast food restaurant Pages: 16 (4560 words) Published: August 8, 2014
McDonalds:
Brazil and China

Introduction
In 1940, Dick and Mac McDonald open a Bar-B-Q drive in restaurant in San Bernardino, California. In1948, they close down to change what they sold. They now sold 9 items: 15¢ hamburgers, cheeseburgers, potato chips, coffee, milk, soft drinks, and a slice of pie. In 1949, their world famous fries replace potato chips. As stated on McDonald’s website in 1954, Ray Kroc sells the brothers multi-mixers, becomes their franchising agent, and in 1955 creates the McDonalds Corporation. They quickly grew through out the United States and then into other countries. Two of those countries are China and Brazil, which is where our focus will be. We will discuss political and economic issues and resolutions, cultural issues and their resolutions, human resource issues and resolutions, and give recommendations on how they can improve competitiveness. McDonald’s became part of China in 1990 with the first 500-seat store in the town of Guangdong province. As the Chinese came to love McDonald’s products, such as the food and the bright lively décor of the yellow and red and even the clown, it grew to a staggering 460 locations by the end of year of 2002 (Jie, 2008). At the end of 2004, McDonald’s grew to 600 locations throughout China. Nine years later, McDonald’s has 2,000 locations being presented in China with plans of spanning into even more provinces in China. McDonald’s theory on expanding is that they will establish and hold one spot until that location has been successful and running smoothly before opening another. McDonald’s doesn’t believe in opening up mass amounts of restaurants without having a successful establishment first. KFC, whom is McDonald’s biggest competitor doesn’t believe in this theory. KFC motto is that you open up as many stores as possible and then fix problems as they arise (Woke, 2011). KFC came to China in 1987 and opened 1,200 stores by the end of 2004. That was double the number of stores McDonald’s had at the time. In 2013, KFC had 3,200 stores throughout China, compared to McDonald’s 2,000. As the numbers show, McDonalds is slower than KFC to open stores. McDonald’s markets their image traditionally like we do in the USA, because the Chinese believe that is what the people want. The Chinese say that if they want rice and Chinese style food they will go to their location restaurants and eat there, but since the Chinese want that American taste and culture they eat at McDonald’s. So, McDonald’s represents the bright colors red and yellow and with big menus and big red shoe clown Ronald McDonald. McDonald’s also offers a delivery service, which was a first for fast food for many countries. They deliver their food via motorcycle or bicycle (Jie, 2008). The following are some products offered in McDonald’s stores. These products are varied, but also not all products offered in China are going to be listed due to the fact that some of them are only offered during certain seasonal specials and McDonald’s are very big on no photography in stores of their menus from personal experience back in March 2010. One of the first new products offered was the corn cup. It was very popular choice, because the people saw it as a healthy alternative. Other items are the potato burger and the sausage, egg and twisty pasta served in Hong Kong (McDonald's food you can't get here). Finally, the straws being handed out to every customer are wrapped up and then after opening there is a fortune style note inside the straw that give you a fortune saying as well as some other information to deal with the surrounding areas. Differences from China and Brazil

Brazil offers a Facebook page solely to interact with people with everything that is going on with the restaurant and any new items that come out will be posted when due so. China on the other hand doesn’t have a Facebook page, due to the privacy acts and control the government has on the country. Facebook is one of...


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