Business Problem

Business Problem

Introduction

McDonalds’s corporation was found in 1948, and the headquarters of it located in Illinois at United States. In today’s world, McDonalds’s market value is 93.9 billion. It is a famous international fast food corporation and it has 34500 restaurants in 119 countries around the world. In McDonalds’s corporation, it mainly offers fast food, such as Big Macs, Chicken McNuggets, McFlurry, and so on.

In recent years, McDonalds’s corporation still uses conservative strategy marketing plan in China. Because it doesn’t use localized strategy, McDonalds’s corporation keeps its food standardized production, in other word, the food tastes is the same at wherever McDonalds’s restaurants located in the earth. In china, because McDonald’s corporation refuses to use localized strategy, its market shares are occupied by its competitor KFC who uses localized strategy to cater to Chinese people’s tastes.

Business Question

The managers of McDonalds’s corporation would better think about the some questions: Do we need use localized strategy in China? This localized strategy will bring a big change to the McDonald’s, and that will break the tradition policy of McDonald’s. For using this strategy, McDonald’s have to change many flavors of food or add some Chinese flavor food to meet the needs of Chinese people. So the cost will increase and the McDonalds’s needs more and more people research, develop, product, and promote.

The following are hypothesized:

1. The localized strategy will attract more and more Chinese to eat McDonald’s localized products

2. The new strategy will enlarge McDonald’s Chinese market shares

3. The staffs will enhance their production skills easily and quickly.

4. The new strategy will make more money for long time

5. The new strategy will keep the brand image of McDonald’s in China