1. How Mc.Donalds Run Their
Business In China
Pham Van Thanh-s1180246
Week7
12/6/2012 1

2. Content
• What is Mc.Donalds?
• Mc.Donalds’s business
• Mc.Donalds’s strategies
• Mc.Donald’s business in China
• Mc.Donald’s service
• Mc.Donald’s finance
• Issues
• Conclusion
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3. 1. What is Mc.Donalds?
• The world biggest fast food restaurant
• Founded by Richard and Maurice McDonalds
in 1940
• Headquarter in United State
• Serving around 68 million people each day in
119 countries
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4. 2. Mc.Donalds’s business
• Mc.Donald’s restaurant founded in 119
countries
• Operates more than 34.000 restaurant in the
world
• Employing around 1.7million people
• Offer both counter-service and drive-though
service
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5. 3. Mc.Donalds’s strategies
• Best-effort: operates the best possible service
• Competitor competition policy reasonable
– Decrease price
– Expanded the scale of business
– Policy of employee
• Focus on children
• Usually renew menu, make many choose for
customer
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6. 4. Mc.Donalds’s business in China
• Founded in 1990 in Shenzhen
• Now, have 960 restaurant with 60.000
employees
• Grow up every year
• Plan to expanded their business to big city, the
eastern and center part of China
• China is potential market with huge
population and working source
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7. 7. McDonalds’s service
• One of the most high quality service company
• 2 type of services:
– Counter service
– Drive-through service
• Serviced 24 hour/day and 7day/week
• In some countries, McDonalds has home
delivery
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8. 8. McDonalds’s finance
• Has two sources of profit:
– Sales made by restaurant
– Rental and royalty
• McDonalds use their profit for
– Open new restaurants
– Investing in existing restaurant
– Reduce borrowing
– Pay dividend
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9. 9. Issues
• McDonalds had some issues with
– Defamation
– Trademark and copyright
– Labor
– Advertising
• One of the most attention issues recently is
healthy and safely in some countries such as
China, India…
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10. 10. Conclusion
• McDonalds is successfully in service a huge
amount of fast food to a lot of people
• This success is based on
– Nice strategies
– Good marketing
– The management, service, finance
• But there are some issues that need to
overcome such as: healthy, safety…
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