M6D7: McDonalds' Organizational Advantages, Chinese Market

M6D7
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Venturing into any international market entails the utilization and perfection of a specific strategy. There are various strategies that a company or organization can use so as to break into such markets. The Chinese market is one example of a market that has traditionally been tough to break into, especially for western companies. McDonalds is the best example of a successful entry into a foreign market.
In the year 1990, McDonalds managed to successfully break into the Chinese market. China is a difficult market to break into because of the cultural practices in the nation. For example, the Chinese are accustomed to taking natural foods; therefore, embracing fast foods was a rather new practice to them. Additionally, majority of the population did not have the financial muscle to enjoy luxury, which was perceived to be brought by the company.
McDonalds ventured into the Chinese market as a joint venture with a Chinese company in the year 1990(Edwards,2011).The good thing about a joint venture is that it enables a new business to access more resources in a new market, such as human and technical resources. Additionally, it also helps in minimizing the risks through the distribution of the same (Carter, n.d.).Upon entry into the Chinese market, McDonalds marketed itself as a high-end food joint. This was particularly captivating, especially foe the rapidly growing middle class in the country, who wanted to associate themselves with it, since it looked and sounded unique and classy.
The biggest disadvantage of a joint venture is the ever-present threat of a conflict or a dispute. There might be various points of conflicts concerning the management of affairs of the company. This mainly stems from the varied performance of each of the businesses concerned, which in turn introduces varied perceptions among the responsible parties. A partnership agreement is usually important in helping to avert this.