The document discusses China and McDonald's. It notes that China has a socialistic political regime with tensions between rich and poor. China overtook the United States as the primary economic growth engine in 2003, growing over 8% annually since 2005. Culturally, Chinese people differ from others in values and beliefs. McDonald's faces different laws and regulations in different countries that must be considered. It has a strong brand name and large target group but also faces criticism over health issues and growing obesity.
The document discusses China and McDonald's. It notes that China has a socialistic political regime with tensions between rich and poor. China overtook the United States as the primary economic growth engine in 2003, growing over 8% annually since 2005. Culturally, Chinese people differ from others in values and beliefs. McDonald's faces different laws and regulations in different countries that must be considered. It has a strong brand name and large target group but also faces criticism over health issues and growing obesity.
The document discusses China and McDonald's. It notes that China has a socialistic political regime with tensions between rich and poor. China overtook the United States as the primary economic growth engine in 2003, growing over 8% annually since 2005. Culturally, Chinese people differ from others in values and beliefs. McDonald's faces different laws and regulations in different countries that must be considered. It has a strong brand name and large target group but also faces criticism over health issues and growing obesity.
Siddharth Kundu (3278) Yusuf Hakim (3288) Politically, China is a combination of a socialistic political regime Tensions between richer and poorer in China, secondly pension system is on the verge of a collapse and thirdly international disputes with Taiwan on political belonging Stole the primary growth engine title from United Stated back in 2003, with a growth rate more than 8% annually since 2005. Chinese people are quite different culturally from the rest of the world in many aspects like values, beliefs and their way of functioning. Since the time of globalization, China has become better connected to the world The technological development gives rise to advancements in agriculture, medicine, genetics etc. High consumption of beef, potato and chicken since it is the biggest fast food chain in the world.
Different laws impact McDonalds differently in every part of the world. Important factors to be taken into consideration are tax obligation, employment standards, quality requirements etc.
Threat of Entry High profitability level Low Capital requirements Low barriers to entry Minimal relation by incumbents MEDIUM threat of substitutes Low switching cost High buyer propensity substitute HIGH bargaining power of consumers More Buyer than sellers Highly price-sensitive buyers High availability of substitutes
WEAK bargaining power of suppliers Low degree of differentiation inputs Supplier switching cost relative to firm switching cost GREAT intensity of competitive rivalry Great number of players Medium diversity of rivals
Strong brand name; recognizable characters Largest target group Almost certain success of new stores Ability to adapt when faced with criticism Play area for children Many other similar competitors
Not considered healthy
Negative image due to growing obesity
Charity and humanity awareness Changing the image Standardization with adjustments Green energies and green packaging Fierce competition aiming at the same consumer group
Growing criticism due to obesity and other health issues