Abstract

The case focuses on the US- based fast food chain McDonald's entry and expansion strategies in the Chinese market. McDonald's entered China in 1990 with its first restaurant in Shenzhen. Since then McDonald's in China has been expanding steadily by providing outstanding quality, service, and value to its customers. For McDonald's other than its home market - the United States, China was the largest growth market with 960 restaurants and over 60,000 employees as of 2008. McDonald's strategic plan in China was to focus on core menu extensions, convenience and value. The case details the operational strategies of McDonald's in China. The case also discusses the different localization strategies adopted by McDonald's and concludes by identifying the challenges faced by McDonald's in China.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate McDonald's globalization strategies.
• Study and analyze the entry and expansion strategies of McDonald's in China.
• Examine some of McDonald's efforts to localize its offerings in China.
• Examine the challenges faced by McDonald's in China.
• Explore future strategies that McDonald's can adopt.

Keywords

Globalization, Entry, Expansion, Localization, Quality, Service, Cleanliness, and Value (QSC&V), Fast food chain, McDonald's, Yum Brands, Kentucky Fried Chicken (KFC), China