McDonald's in China


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Case Details:

Case Code : BSTR305
Case Length : 20 Pages
Period : 1998-2008
Pub Date : 2009
Teaching Note : Available
Organization : McDonald's Corporation
Industry : Fast Food Industry
Countries : China

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"China is certainly a significant market for McDonald's, and they're focused on seizing that."1

- John Owens, Analyst, Morningstar Inc2 in 2007.

"You have to remember that in places like Australia and Spain it took us 10 to 15 years to make money. China is in its 15th year and it's making very good money; it just could do better."3

- Matthew Paull4, McDonald's Chief Financial Officer, in 2005.

Introduction

McDonald's Corporation (McDonald's), one of the world's largest fast food chains, disclosed in its Annual Report, 2007, that it served one billion additional customers globally in the year 2007 than in 2006 because of its reasonably priced menus such as Ein Mal Eins5 in Germany, the Dollar Menu6 in the US, and the Value Menu7 in China.

These menus typically included eight to ten items including entrees, side dishes, desserts, and drinks which could be assorted by customers to create a meal or a quick snack.

McDonald's in China - Next Page>>


1] Joe McDonald, "McD's Preps for China Drive-Thru Boom,"www.breitbart.com, January 19, 2007.
2] Morningstar, Inc. is an investment research company based in Chicago, Illinois, USA.
3] "McDonald's China Takes on KFC with Drive-Through Concept,"www.meatprocess.com, May 12, 2005.
4] Matthew Paull retired from McDonald's in 2007.
5] Ein Mal Eins in German means one by one.
6] The Dollar menu was introduced by McDonald's in 2003 in the US. The menu features some of McDonald's favorite foods for only a dollar.
7] In China , McDonald's launched a similar version of its "Dollar Menu"known as the "Value Menu"that offered sandwiches and other items at a lower price. People can mix and match items to suit their budget.


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