Strategy and Markets: McDonald’s in China

When a business is just starting up it is important that they have a well thought out business plan. This business plan should include an industry description, their competition, management and operations information, and other essential factors. As well, a business should have well-defined strategies and tactics. If you are a successful business, it can be easy to not continually update your strategy, based on the market, industry, and environment where you compete. This problem has even affected one of the biggest companies in the world: McDonald’s. McDonald’s is hugely successful, expanding throughout the world, including locations in China. A problem with expanding into new markets is that pre-existing strategies and tactics may not be suited to the new environment. For instance, in China, McDonald’s is offering the exact same breakfast items that they do in the United States. Their breakfast sales have been quite low because most Chinese people want congee for breakfast, not egg-mcmuffins. However, McDonald’s has not changed their menu at all. In my opinion, this shows a lack of business strategy. Strategy is always changing, and if you are not willing to change or adapt your strategy to new conditions and environments, then you will not be successful. It is in McDonald’s best interest to listen to their customers, and change their menu and strategy accordingly.