McDonalds In China

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

McDonald's has to do an analysis of the environment of each country in which they choose to enter, and especially China. Since it's not the same to sell in the U.S. than in China, consumer preferences vary widely as they are totally different companies and therefore have completely different needs.

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

The main environmental forces that have influenced the development of McDonald's in China are: competitors, traditions or customs of the Chinese people, society, the economy or economic development and politics.

The main competitor of McDonald's, KFC, came to China five years before McDonald's, so people knew more about the fast-food Company specialized in chicken. McDonald's had to make an effort to find its place in the fast food market. In the following years the company has had to implement changes to compete with its rival. For example build McDonald 's drive-through restaurants. The arrival of other Western brands, like Starbucks, also has made McDonald's have to do changes in their restaurants, giving them for more comfort and more pleasant environment.

Traditions are very important in China and McDonald's has adapted to them. He has decorated his restaurants with typical Chinese elements, has adapted the menu using typical products of Chinese gastronomy, using more chicken and local ingredients. Although well aware that people go to McDonald's because there is an attraction to Western, so do not stop offering the typical American burgers.

Chinese society and the changes it has experienced over the past few years also have been reflected in the different strategies of McDonald's. The amount of people who have car has greatly increased during the last years because the middle class has also increased considerably, to adapt to this new situation McDonald's decided to open McAutos. Also restaurants began to open 24 hours a day since the interest for western food and the nightlife of the people had increased. Also failed to see an opportunity on the Internet, as many people had access to the online world and were associated with Taobao

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

Opportinities:

- Growth of the fast food industry

- Diverse tastes and needs of customers

- Increase of middle class

- Changing the image

- Standardization with adjustments

- Green energies and green packaging

Threats:

- Government protectionism

- Bureaucracy

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