McDonald’s Business Expansion to China

McDonald's Expansion to China
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McDonald's Expansion to China
Rui (2016) acknowledged that two years after McDonald's entered China's mainland (Shenzhen) in 1990, it grew to form several other branches. Thirty years later, China is now the third country with several McDonald's locations globally, followed by Japan and others. The Chinese McDonald's slogan is 'affordable prices, good service and tasty flavors,' attributes that have made them sell in large for the company in a country with diverse culinary heritage.
McDonald's core competencies.
McDonald's got into the Chinese food market when there was little competition for Western food. This is perhaps one of the reasons why it gained much popularity over a short period. Other factors determined the competency of the company in China, like its production of great quality foods. Though McDonald's is known for tasty burgers, crispy French fries, and milkshake, they have, over time, made impressive local tastes to keep their customers. The restaurant conformed to Chinese foods, which has increased its demand in the market. They also have excellent customer service and friendly employees, whom they place on the forefront of useful services. With frequent checks, they ensure that the food served meets the recommended safety standards. The Chinese McDonald's Slogan of 'Get together at McDonald's...' makes families and friends always want to share meals at their outlets. They promote the feeling of togetherness amongst the locals. For those who wish to have celebrations of either birthdays or wedding anniversaries, McDonald's provides the locals with an affordable venue. This has led to the increase of locals choosing them over others. According to Jeon (2016), the company is also using the Franchise Business Model to its advantage. This way, the company experienced much growth and is overrunning its competitors across the market. It sold its brand to most people and became a renowned investment all over China. Through this, it created employment to local citizens who understand the various dynamics of their localities. For children, there are special spaces known as Children's paradise, particularly in cities where they meet mostly after school to have fun. With more than 300 million children, McDonald's provides a forum for educating these children on societal issues. Competitions and awards are often supported by this company to ensure academic progress.
Reason for expanding abroad.
The CAGE framework offers businesses like McDonald's a broader view of distance and provides ways of determining location and opportunities and risks that come with it. McDonald's is one type of industry that can be affected by distance because food is influenced by the cultural and national identities of its consumers. Its administrative distance was shrunk by governmental policies such as low taxes. McDonald's has reduced the geographical distance due to the sprung stores everywhere, and they need not travel far to get to their consumers. The company reduced its economic distance with the hel...