China`s Big Mac Attack Analysis & SWOT

Case Study and SWOT Analysis

China 's Big Mac Attack by James Watson

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Executive Summary

When the first McDonalds franchise in China was opened by Daniel Ng in 1975 , many local competitors did not believe that McDonald 's would become successful . They rely on the idea that Hamburgers using beef patties and bread would not be able to flourish in a country dominated by rice , fish , noodles and pork . Since then McDonalds have grown in China that as of June 1999 , there were already 235 McDonalds restaurant

in China . McDonalds have so much penetrated China that even in the recent conflict when NATO accidentally bomb the Chinese embassy in Belgrade during the War in Kosovo , when it became the primary hit list for boycott of American food and beverages , that the McDonalds restaurant remained busy with local Chinese customers . The various socio-economic forces that lead to the success of McDonalds will be analyzed in this study

Problem Statement

The first part of this document aims to study the regarding the issue of whether McDonald 's is a form of imperialism that is far more effective than militaristic approach . The second part of this study is to investigate McDonald 's growth and identify the key business strategies involved . The study identifies the strengths , weaknesses , threats and opportunities through SWOT analysis . Through this analysis of data , the study aims to provide recommendations for issues identified

Analysis of Data

McDonalds a Form of Cultural Imperialism

Some theorists argue that McDonalds is a form imperialism that penetrates another culture by turning them into something like the Americans . In the recent book of Thomas Friedman , The Lexus and the Olive Tree , he argued that McDonald 's and other manifestations of global culture serve the interests of middle classes that are emerging in autocratic , undemocratic societies (Watson , 2000 . If we look at how McDonalds attracts its customers , we can see that one of the main criteria why customers are attracted is the quality of services . One of this , with great impact in the Chinese community , is McDonald 's policy of cleanliness specifically in their toilets . Since most of the traditional restaurants in China offered little emphasis on toilets this became one of the motivating factors for consumers . Another factor is the greater assurance of safety and cleanliness of the food they get from McDonalds . With rumors about country side migrants selling poisonous food due to the use of detergent , this has further boosted the success of McDonalds . One other factor led to McDonald 's success in China is the one child policy implemented by the government . This has led families to treat their only child to eat at McDonalds as a form of reward for achievements

This form of imperialism , according to theorists , not only invades by changing the culture , but also threatens the survival of indigenous cuisines . In any form of competition there is always a form of threat yet the root cause regarding the decline of indigenous cuisines are attributed to...