McDonald’s corporation is referred to as the number one worlds’ forerunner of worldwide brand expansion with its branches located evenly throughout the entire globe. Most of its branches are based in U.S, that is approximate 1700 and the rest are within 51 countries in the region. All the branches are oblige to major their focus on the marketing strategy and improving their operational excellence ensuring that their innovation level are to another notch in comparison to potential competitors. It forces the management to introduce a new strategy known “plan to win”. It entailed a revitalization program of a particular brand that rotated in and out five distinct aspects. Promotion, people (customers), prices, a strategic place, and the product in the market were the main drivers, which the plan aimed at for adequacy and productive.
The plan was smoothly absorbed in chain market and the entire branches in the country. This price – plan though did not work as expected, therefore prompted the control units in china to establish a substantial plan of adding more value to its products in a variety ways. They were able to come up with a program commonly referred to as RMB 5 program. McDonald made it through china markets smoothly without having to incur many challenges and barriers since RMB 5 program facilitated the process. This so because it went ahead in specifying prices of given products in the market share thus eliminating the ambiguity in the pricing policy (Adam, 2011).
According to the feedback given by the company, courtesy of the initiative, they reveal that they were able to reach their customers in an affordability state through means of shifting the brands far away from the tendency of promotion but rather for the purposes of affordability. McDonald is place to be in china, most of the citizen irrespective of their cultures, traditions, and religions turn out in large number to purchase meals from the restaurants. There has been a trend since the establishment or rather development of McDonald branch in china that is highly contributed by the fact that it offers high quality and standard fast food for both adults and children. The other factor that has seen this company to elevate to high levels of marketing is that it has a strong, well-developed management, well plan and calculated objectives (Toivanen, 2011).
China turns out to be a market, which is developing at a considerably high rate thus leading McDonald to stand out as the biggest targets in the region. In a marketing context an investor would take chances to invest in the business bearing in mind the fact that it is potential for penetrating the market are high compared to the already existing fast food services. McDonald reveals this principle on the way it based its roots in quiet a large number of cities in china. Fast food activities takes place in over 100 cities within the entire country of china and has intentions to expand its area of operation by opening of an extra 500 stores within a stipulate period of five years to come. This goal was record back in 2005 when it announced 643 stores that has already been set in existence within the borders of china (Gatlin, 2002).
The increasing high rate of the drive through restaurants is because of the increasing numbers of Chinese motorists within the urban centers. Due to the expansion of the china general economic activities it has led to increase of population in the urban hence demanding for more stores to cater or settle the high demands of fast foods in the country. To meet this demand it called for an extra step to be initiated. It thus motivates McDonald to get into a partnership with reputable oil “giant” organization found within china known as Sinopec. The partnership accelerates the entire process and effectiveness of the strategy. This move motivates the operation of the company enabling it to achieve a 2.5 percent of the world’s total by setting up 760 restaurants in the country. In 2008, McDonald got a great boost from the Olympic Games held in china. that is, it was able to develop or rather expand its previous total numbers of already existing restaurant to 1000 store and ensuring that the trend predominate consistently throughout the other coming years (Adam, 2011).
The general set up and ways things are taking place in the restaurant are currently changing. They are becoming more of Americanized as indicated by the emergence or existence of two restaurants with a drive through. The rest of the stores are in process of catering for people demand of buying vehicles thus serving as a gauge to the exact rate or population of people that would be eating fast food in the cities (Wysocki, 2004).
Unlike in America based McDonald Corp they faces risks and difficulties of the general organizational competition. It simply means that the marketing and operational infrastructure is not effective compared to that of America, which is cost - effective. It also faces a bigger challenge on the issue of easy accessibility to the stores since china lacks adequate infrastructure. On the terms of an average, developing a brand new store would mean that one has to incurs twice as much as one would have used in America. For winning their customer loyalty, it initiated a way of cutting down the price of burger. America and china branches are totally on different accounts because America has a broader market coverage compared to that of china which is still developing and required more innovations to be set in place for it efficiency (Toivanen, 2011)
McDonald background information on how it got into china market, it got its way through back in 1990 in a city known as Shenzhen. Then later after discovering other areas, has a sufficient disposal income alongside a constant pedestrian and vehicle traffic. It was quite an experience and difficult task identify the suitable place to set up drive through thought it eventually settled for Shanghai, Beijing among others. In comparison to united state based company they are both currently widely spread with drive through that in return facilitate a larger number or coverage and commendable transactions (Gatlin, 2002).
In conclusion, the laws and cultures within china had the negative and positive impact in the early stages of development of McDonald corps. Culture acted as the major determinant as to what the people in a community should be supply with. In addition, it helped the organization to discover what the communities regard to be best and against their moral hence assist in remaining competitive in the market share. The set rules that governed the general undertaking of any business within china were also a factor that influences McDonald operation. The country rules and regulation required that all its activities take in account for maintain food safety. The Chinese culture was well incorporate into the company policies of marketing hence facilitating development of a good customer product relationship. All the rules and cultural practice considered the company would in an adequate position to make large volume of sale in their restaurants.
Gatlin, J., Holmes, C., & Wysocki, A. F. (2002).Gainesville McDonald's: selecting an appropriate expansion plan. Gainesville, Fla.: University of Florida, Institute of Food and Agricultural Sciences, Food and Resource Economics Dept..
Toivanen, O., &Waterson, M. (2011).Retail chain expansion: the early years of McDonalds in Great Britain. London: Centre for Economic Policy Research.
Wysocki, T. (2004).McDonald's Corp. Mergent's Dividend Achievers, 1(3), 170-170.
Adam, H. (2011). Mcdonalds. new york: Creative Paperbacks Inc.