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Macdonald's entering China Market

Overview of this lecture: What is culture? Determinants of culture Social structure Religious and ethical systems Language Education Culture and the workplace Panasonic and Japan’s Changing Culture How is cultural change starting to affect traditional values in Japan? How might Japan’s changing culture influence the way Japanese businesses operate in the future? What are the potential implications of such changes for the Japanese economy? How did traditional Japanese culture benefit Matsushita during the 1950s-1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so? How Do Cultural Differences Affect International Business? Understanding and adapting to the local cultural is important for international companies cross-cultural literacy - an understanding of how cultural differences across and within nations can affect the way in which business is practiced cross-cultural literacy is important for business success A relationship may exist between culture and the costs of doing business in a country or region MNEs can be agents of cultural change McDonald’s and change of dining culture in some countries like China and India

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Added on  2023-05-28

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This paper explores Macdonald's market entry strategy into the Chinese market, including China's business environment, market entry theories, and the best market entry model for Macdonald's with a focus on the advantages and disadvantages.

Macdonald's entering China Market

Overview of this lecture: What is culture? Determinants of culture Social structure Religious and ethical systems Language Education Culture and the workplace Panasonic and Japan’s Changing Culture How is cultural change starting to affect traditional values in Japan? How might Japan’s changing culture influence the way Japanese businesses operate in the future? What are the potential implications of such changes for the Japanese economy? How did traditional Japanese culture benefit Matsushita during the 1950s-1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so? How Do Cultural Differences Affect International Business? Understanding and adapting to the local cultural is important for international companies cross-cultural literacy - an understanding of how cultural differences across and within nations can affect the way in which business is practiced cross-cultural literacy is important for business success A relationship may exist between culture and the costs of doing business in a country or region MNEs can be agents of cultural change McDonald’s and change of dining culture in some countries like China and India

   Added on 2023-05-28

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Running Head: MACDONALD'S ENTERING CHINA MARKET
Macdonald's entering China Market
Name:
Academic Affiliation:
Date:
Macdonald's entering China Market_1
MACDONALD'S ENTERING CHINA MARKET 2
Table of Contents
Introduction......................................................................................................................................1
Literature Review............................................................................................................................1
China’s Business Environment....................................................................................................1
Rapid economic growth............................................................................................................1
Encouragement of Foreign Direct Investment.........................................................................2
Technological and infrastructure..............................................................................................2
Modes of Entry into Foreign Markets.............................................................................................2
Licensing......................................................................................................................................3
Franchising...................................................................................................................................3
Joint Venture................................................................................................................................3
Exporting......................................................................................................................................4
Strategic Alliance.........................................................................................................................4
Internet.........................................................................................................................................4
Company Analysis...........................................................................................................................5
Macdonald position at home country (USA)...............................................................................5
Macdonald position at China.......................................................................................................6
Analysis and Discussions................................................................................................................6
MacDonald’s Internationalization................................................................................................6
Macdonald's entering China Market_2
MACDONALD'S ENTERING CHINA MARKET 3
Product......................................................................................................................................7
Place.........................................................................................................................................7
The suggested entry model in Chines Market..............................................................................7
Franchising...................................................................................................................................7
Factors contributing to the choice franchise entry model............................................................7
Stiff competition.......................................................................................................................8
Avoiding high operation cost...................................................................................................8
Better opportunity to respond to the China market..................................................................8
Conclusion and implication.............................................................................................................8
References........................................................................................................................................9
Macdonald's entering China Market_3
MACDONALD'S ENTERING CHINA MARKET 4
Introduction
In the current globalization era, a different sector is being transformed and affected such
as economic, political as well as business organizations that keep on struggling to survive by
strategizing different ways of doing business and going out from the borders of their own
country(Kazlauskaite et al., 2015). Different reasons such as search of new more market, cheaper
raw materials as well as labor are among the numerous factors that drive business to venture into
the international market to gain competitive advantage (Lin, 2012). China is one of the newly
emerging international markets that attract numerous international businesses, especially from
the Western World. China market is of great concern due to its rapidly developing demographic
composition, rising per capita income increasing consumer purchasing power and increased open
business environment (Csontó 2014).
Consequently, the decline in the home markets has forced some of the business especially
from the US to opt out for long-term global growth. This means that international organizations
such as Macdonald have a greater opportunity to grow extensively in the China market when the
bets market entry mode is adopted. Therefore the current paper focuses on MacDonald’s market
entry strategy into the Chines market. The paper explores China’s business environment, Chine’s
market entry theories, and later discuss the best market entry model for MacDonald’s with a
focus on the advantages and disadvantages. The paper finalizes with the lessons and the
implications of the practice experience gained from Macdonald’s entry mode.
Macdonald's entering China Market_4

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