Mcdonald's Expansion Into the Chinese Market

This report was created to examine issues arising within the business opportunity that is available for McDonalds and to recommend certain actions that McDonalds should take in respect to strategy, ethics and social responsibility, culture and cultural behaviours and legal and political issues.

The research draws attention to the business opportunity that McDonalds is faced with. Investigation within strategy reveals that McDonalds is headed into a direction where franchising may build up on the growth and popularity of the company. The ethics and social responsibility section of this report include food safety, packaging safety to responsible management of resources globally. Culture and cultural behaviours play one of the most important roles in regards to franchising and international management. Opening a business in a different country means new cultural views and environments. Lastly, legal and political factors that McDonalds needs to pay attention to when opening more franchises in China are different laws that fall under intellectual property, contract, and dispute resolution laws. Furthermore, these specific laws that exist in one country may not exist in another.

Brief outlines of possible recommendations that are extracted from each section of this report are:

• McDonalds in China should change their menu to suit the Chinese community’s taste such as more chicken options than beef;

• McDonalds needs to invest more time, money and resources to study the international market thoroughly;

• McDonalds should produce a new design to the restaurants in China to suit the culture that is involved;

• McDonalds should seek to make their franchises a wholly foreign owned enterprise (WFOE)

OVERVIEW OF THE ORGANISATION

In the age of internationalisation it is appropriate to express the view that people from all over the world are able to share in all kinds of foods from different parts of the globe due to the international business of food and...