McDonald’s, the world-famous American fast food franchisor, entered China in 1990, when Chinese franchise law did not exist. In this once closed country whose market is only open to foreign investors in 1978, McDonald’s had to adapt to an unfamiliar and rapidly changing environment. Not only was food culture in China very different than in the West, but food culture, lifestyles and legal structure were as a result of increasing economic growth and massive urbanizatio change … Read more »

McDonald’s, the world-famous American fast food franchisor, entered China in 1990, when Chinese franchise law did not exist. In this once closed country whose market is only open to foreign investors in 1978, McDonald’s had to adapt to an unfamiliar and rapidly changing environment. Not only was food culture in China very different than in the West, but food culture, lifestyles and legal structure were changed as a result of increasing economic growth and massive urbanization. Competition was also enhanced the local and foreign restaurants trying to capitalize on China’s growing wealth. As the growing middle class demands higher standards of these companies have been putting local business practices in terms of food health, social funds and other socio-environmental issues to the test in China McDonald. While the nation’s booming economy provided environmental conditions suitable for fast-food culture, environment also posed challenges to the survival of fast-food operator in the country. Would McDonald’s be able to maintain its momentum as China transformed into a developed nation?
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from
Stephen Ko,
Claudia H. L. Woo
Source: University of Hong Kong
14 pages.
Release Date: 2 December 2008. Prod #: HKU802-PDF-ENG
McDonald’s: Is China Lovin ‘It? HBR case solution

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