Analyzing McDonald's Success: A Case Study of China's Market

This case study examines McDonald's entry and adaptation to the Chinese market. It highlights the importance of understanding Chinese culture, including food habits, traditions, and communication styles. Initially, McDonald's faced challenges by introducing a menu similar to that in Western countries. However, the company adapted by offering innovative products like Tapioca Pearl milk tea and Taro Pie, aligning with local tastes. The case study also explores how McDonald's catered to Chinese consumption habits, such as providing family-friendly dining environments and adjusting its menu for local preferences. Furthermore, it discusses the significance of incorporating Chinese traditions, such as Spring Festival decorations, and effective communication strategies. The conclusion emphasizes the crucial role of product innovation, understanding consumption habits, respecting traditions, and effective communication for McDonald's success in China.

Case Study on Culture
(McDonald's and Adapting
in China)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
China is one of Ancient civilization, the culture of china is very old. Chinese culture is
unique and diverse, thus harmoniously blended which invaluable possession to world.
McDonald's was quite late entered in China (Crawford, 2015). This assignment will include
about Chinese culture and how McDonald's introduced in China. The whole information about
product and food habits of Chinese people.
MAIN BODY
Earlier McDonald's was not evolved in China. On April 1992, American chain that is
opened for the first time in some restaurant which was situated in Beijing, at that time it was with
29 cash and 700 seats registers and it was able to provide service to more than forty thousand
customers on it's first day. These restaurants became landmarks very soon for the Chinese
tourists which could experience 'real' American food in China. MCD started expending very
quickly in the Mainland China, in 1996 it had 29 restaurants which was in Beijing (McDonald's
Cultural Adaptability. 2019). This incredible growth was due to that at that time China was
starting up to western market. This culture was eager to experience and absorb western style.
CEO this company could see vast market opportunity so CEO planned to open some more
restaurants more than 600. Introducing McDonald's in this country was not easy there were some
strategies and failure were faced during opening MCD such as:
Innovative product: Approach of McDonald's to China has been different in compare to
other countries. Due to common enthusiasm towards the western culture, they decided to plan
same menu which was sold in other western countries. This was not appreciated by local people
of China, this was big mistake of this company. China is mainly impose to their culture rather
than acting adapting and locally taste of other country. Chinese individuals have been very
careful about nutrition and health, soon people started to realize that this meal is not filling and
was too greasy (Wang, Li and Tam, 2014). Due to such problems McDonald's started
introducing innovative products which attracted Chinese people to eat it as they were providing
with Tapioca Pearl milk tea and Taro Pie that is traditional part of Chinese cuisine.
Consumption habits: Chinese individuals, go to restaurant on every occasion for them
it's more than having a dinner. Their eating habits are very particular in consumption of food,
they always prefer Chinese cuisine which differs their consumption habits. In China, mostly
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restaurants are constructed in down town area, in that area population will be condensed and also
near children's playground so that parents can stay and relax for longer time. Most of
McDonald's are built near highways as they believe in 'car life style'. For Chinese individuals
dining is combination of chatting, having fun, eating and relaxing this habit made McDonald's
more successful as they provide proper place and food to eat and talk (Xu, 2014). Even Chinese
drivers prefer to eat earlier to driving as they can sit and make themselves relax in McDonald's
which made them more to visit this place due to such kind of facilities. As per their eating habits
McDonald's changed and updated their menu which helped them to increase their customers.
Tradition: Chinese custom is very different and unique compare to other countries.
Spring festival is very important festival in China, this is Chinese new year as well as beginning
of spring. At this time McDonald's will alter decoration sin restaurants and “China red” which is
Chinese element and also animal sign for this festival added to decoration, product package and
commercials (De Mooij, 2018). McDonald's will embellish restaurant by using traditional
Chinese paper-cutting animal signs and flower work. Such kind of things make this service more
effective as Chinese are very traditional for their culture.
Communication: Effective communication requires better language for people who are
living in that particular country. Considering language variation between two cultures is very
important which has to been considered when any international brands are expending any
product and brand into the other country (Lee and et. al., 2014). Specially Chinese individuals
were very interest on the name of food with funny pronunciation so that they can easily
remember it. McDonald's have made such a menu which is less appealing, but so easy to
understand. For example “pie with pineapple (凤凤凤)”, “hamburger with pork & egg (凤凤凤凤)”,
etc.
CONCLUSION
This assignment is concluded as China culture is very old and has different traditions.
Starting McDonald's in China was not so easy, evolution of McDonald's in China took certain
things to pay attention so that it can be more successful such as innovative product, consumption
habits, their tradition and communication which mainly included translation and language of
China.
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REFERENCES
Books and Journals
Crawford, A., 2015. McDonald's: A Case Study in Glocalization. Journal of Global Business
Issues. 9(1). p.11.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Xu, Y., 2014. Understanding CSR from the perspective of Chinese diners: the case of
McDonald’s. International Journal of Contemporary Hospitality Management. 26(6).
pp.1002-1020.
Lee, P. Y. and et. al., 2014. The role of personal values in Chinese consumers’ food consumption
decisions. A case study of healthy drinks. Appetite. 73. pp.95-104.
Wang, J., Li, Z. and Tam, V. W., 2014. Critical factors in effective construction waste
minimization at the design stage: a Shenzhen case study, China. Resources,
Conservation and Recycling. 82. pp.1-7.
Online
McDonald's Cultural Adaptability. 2019. [Online]. Available Through:
<https://seekingalpha.com/article/855441-mcdonalds-cultural-adaptability-to-bring-continued-
success>.
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