Mc Donald's

McDonald’s: Is China Lovin’ it?

1.What is the need for McDonald’s to conduct environmental analysis

The need for McDonald’s to conduct an environmental analysis is to get information of the outside forces in order to determine how will act the company.

Is important for a successful company to match their internal strengths and weaknesses with their external threats and opportunities.

2.What are the general environmental forces that influence or have influenced McDonald’s development in China?

External environmental factors have taken a big importance in the development of McDonald’s in China.

The main forces that had to analyze McDonald’s were the successful and unsuccessful factors of their major rival there: KFC.

Another environmental force that played a large role in McDonald’s growth in China was the local Chinese quick service restaurants’ (where customers could buy local cuisines such as noodles)

It also had to analyze the effects of the growing middle class and the huge population, which generated a lot of wealth for other restaurants and therefore, more competition.

Consumers’ desires were also important for McDonald’s as they increased its operating hours to 24h and implemented home delivery service.

Finally, Suppliers permitted that the 95% of McDonald’s food were from local growers.

3.Based on the environmental analysis, what are the opportunities and threats presented to McDonald’s operations in China? 

* During this time people have been moving from rural to urban population centers where incomes are higher. This increasing has helped the fast food industry.

* As the Chinese economy continues to develop, improvements to local infrastructure may create opportunities for an improved supply chain.

* Increasing the number of franchisees will allow McDonald’s to expand to new locations while minimizing risk.

* A threat found during the environmental analysis was the competition in the Chinese fast food market...