mcdonald's in vietnam
TRANSCRIPT
MCDONALD’S IN VIETNAM
By Ayodeji Akin Abiri
McDonald’s Enters Vietnam Page 1
Table of Contents
Abstract
1.0 Introduction 3
1.1 Background note 4
1.2 Global Strategy 5
2.0 McDonald’s In Vietnam 8
2.1 Entry Strategy 9
2.2 PESTEL analysis of Vietnam 9
2.3 SWOT analysis of HCM city 11
2.4 Expansion strategy 12
2.5 Franchising in Vietnam 13
2.6 Drive-thru restaurants 13
2.7 Localization strategy 13
3.0 Competition & challenges 14
3.1 Recommendations 15
3.2 Conclusion 15
Exhibit I 16
Exhibit II 18
Exhibit III 29
References 32
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McDonald Enters Vietnam
Abstract
This paper analyzes the globalization options for McDonald’s by going into Vietnam.
The paper explores McDonald’s global strategy as well as its expansion strategy. Aside
from the globalization evaluation, this study also examines the entry mode in Vietnam.
In the concluding sections, I was able to outline the challenges and recommendations
for McDonald’s.
Key words: globalization, strategy, fast food, expansion
1.0 Introduction
McDonald’s Corporation is the world’s largest hamburger fast food chains which serves
up to 64 million customers daily. McDonald’s annual report in 2007 revealed that it
served one billion more customers globally in the previous year because of its
reasonably priced menus such as Ein Mal Eins in Germany, the value Menu in China
and the Dollar Menu in the US. These menus normally included up to 10 items with
desserts, side dishes, entrees and drinks which could be mixed by customers to make a
meal or a fast snack.
According to McDonald’s 2010 report, global comparable sales growth was 5%,
earnings per share is 11%, average number of customers served per day was 64
Million. The Asia/Pacific, Middle East, and Africa (APMEA) contributed to 21 percent of
its total revenues, driven by comparable sales increases in China, Australia and most
other markets. Asia is one of the vital markets for McDonald’s as it added significantly to
the company’s revenue and operational earnings in the past 30 years.
McDonald’s entered Asia in 1971 with the first restaurant in Tokyo, Japan. Since then it
began to expand steadily in Japan and other Asian countries. Honk Kong in 1975,
Singapore in 1998, Malaysia in 2001 Taiwan in 2003, South Korea in 1988, China in
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1990, and India in 1996. Apart from McDonald’s home market-the US, China was the
major growth market with 1000 restaurants and over 60,000 employees as of 2010.
In Asia, McDonald’s became the symbol of modern lifestyle in countries like China,
Thailand, India and Indonesia. However it remained American in its services, menu, and
administration. McDonald’s brought in difference in its ingredients and products to fit the
Asian palate and culture.
McDonald’s entry into Vietnam is certain to bring a new style of fast food service to local
people and will no doubt provide strong competition to similar names like KFC (US),
Jollibee (the Philippines), Lotteria (Japan), which have been in Vietnam for more than
10 years and Subway (US) which just entered.
1.1 Background Note
The early stages of McDonald’s date back to the 1930s, when the McDonald brothers
(Mac and Dick) opened a fast-food restaurant called Airdrome in Arcadia, California,
that sold coffee, tea and hot dogs. Stimulated by the decent response to their first
eatery, they decided to increase their business. In 1940, they opened a grill restaurant
in San Bernadino, California. The grill restaurant had up to 25 items on its menu like
pork sandwiches and barbecue beefs. McDonald’s hired 20 carhops to provide fast food
service to customers.
The McDonald’s brothers ran the restaurant for eight years until they found it difficult to
cope with the large scale of the business with many staff, broad menus huge crowds
that packed the restaurant. In 1948, they reduced the menu in order to scale down
operations and develop a method to attend to customers rapidly with fewer resources.
The process helped McDonald’s to introduce self-service, serve more customers,
increase speed, eliminated carhops and reduced the price of hamburger by half.
The McDonald’s brothers in 1953 decided to go into franchising as a mandate to
expand their business. A franchisee needed a thousand dollars to receive the
McDonald’s name, one week training from Art Bender, and a basic description of
McDonald’s service system. The role of Bender is to train staff at the franchisee’s
McDonald’s Enters Vietnam Page 4
restaurant, make contact with bakeries and butchers for supplies, supervise equipment
installation, etc.
The first McDonald’s franchise was Neil Fox, who started a drive-in restaurant in
Phoenix, Arizona. It became an example for the McDonald’s chain. The franchise
business grew from strength to strength the following years.
Ray Kroc in 1954, a salesman for a company that supplies milkshake mixers to
McDonald’s found out that they used a method similar to an assembly line system. He
sensed an opportunity to sell the milk shake mixers to all the McDonald’s restaurants
that opened and he persuaded the McDonald’s brothers to open more outlets. But the
McDonald’s brothers were content with the present operations and were not interested
in expanding the business. Kroc applied for a McDonald’s franchise and he applied his
experience as a salesman to create an effective franchising business. He retained
McDonald’s formula and shaped the operating principles of quality, cleanliness, service
and value. Under Ray Kroc’s supervision, McDonald’s developed to be the largest fast
food chains in the US. (Refer to Exhibit 1 for a brief note on McDonald’s growth)
1.2 Global Strategy
After attaining success in the US, McDonald’s on June 1, 1967 opened its first
international restaurant in Canada. More restaurants followed in the early seventies with
presence in Germany, France, Australia and England. McDonald’s entered Asia in 1971
by opening a restaurant in Japan through a joint venture with a local partner (Den Fujita)
who is a successful business man.
In 1990, McDonald’s opened a restaurant that was the biggest joint venture between a
food company and the Soviet Union. McDonald’s built a $45 million modern food
processing facility in Moscow to meet the increasing demand in the Soviet Union which
attends to 50,000 customers daily.
In the mid-1990s, McDonald’s was already in 58 countries by operating more than 3,600
outlets outside the United States through joint ventures, franchises and wholly-owned
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subsidiaries. McDonald’s had strong presence in Canada, UK, Japan, France and
Australia. These countries accounted for 37 percent of McDonald’s revenue in 1991.
McDonald’s in 1992 opened its first African restaurant in Morocco. It entered the Middle
East in 1993 with the first restaurant in Tel Aviv, Israel. More restaurants followed in
Oman, Saudi Arabia, Egypt, Kuwait, Bahrain, Qatar and UAE. India got its first
McDonald’s in 1996. Afterwards, it opened more outlets in countries like Hungary,
Slovenia and Czech Republic. In 1995, the company had 7,030 outlets in 110 countries
with sales of US$14 billion. A further increase to 11,000 outlets in 114 countries was
recorded in 1998.
McDonald’s recorded a fourth-quarter loss of US$343.8 million in 2002 which was the
first quarterly loss the company will witness as a public company in 38 years. This made
McDonald’s to change its strategy by stopping its plan to open new stores and focus on
developing its current restaurants. McDonald’s closed underperforming outlets, cut jobs,
withdrew from three countries in Latin America and Middle East. This resulted in
opening 600 restaurants in 2001 compared to 2000 in 1996.
As at August 2011, there were a total of 32, 737 McDonald’s outlets of which about 80
percent were franchised. (Refer to Exhibit 2)
The key to McDonald’s international success is franchising. Franchising to local people
helped the company’s operations in foreign countries easy in terms of product and
service. McDonald’s generated US$4.9 billion in 2007 due to growth in global
operations. The company’s entry into new markets showed its flexibility with respect to
customs and local food preferences. McDonald’s adopted a similar strategy used in US
for its international markets, but with some slight variations in the menus offered to suit
local tastes. An operations procedure which focused on quality, service, cleanliness,
and value coupled with a solid local partner with customary McDonald’s menu were the
roots for the company’s international success. The global strategy that was adopted
was called “Plan to win” which focused on the five P’s of marketing- People, Place,
Products, Promotion and Price.
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The key to McDonald’s international success was the ‘think global, act local’ initiative
which helped the company to excel in every region it opened its restaurants. It adapted
its operations based on the home country in which it is operating. An example is
keeping in mind the local sentiments in the Arab countries, Singapore and Malaysia.
McDonald’s did not serve pork, maintained the ‘Halal’ menus and they observed the
Islamic laws for preparing food. In Japan, McDonald’s brand name was changed to
Makudonaldo to make the pronunciation easy for the Japanese consumers.
In Israel, McDonald’s were closed on Saturdays to observe the Jewish Sabbath Day;
restaurants did not serve dairy products; Big Macs were served without cheese in most
outlets. McDonald’s catered for the vegetarians in India by serving the McNuggets; it
also served Maharaja Mac to some religious communities in that are against beef. In
Ireland, the local strategy was a promotion that stated, “Our name may be American,
but we are all Irish”
McDonald’s had to alter its traditional menu to suit the needs of the customers in
different nations. It changed its product offerings to adapt to the tastes of the local
people. Some instances are beer in Germany, guava juices in tropical countries, chilled
yogurt drinks in Turkey, vegetarian burgers in Netherlands, cold pasta and espresso in
Italy, Teriyaki Mac and McGriddles in Japan, McSpagetti in Norway, McHuevo in
Uruguay, Samurai burger in Thailand, and Filet-O-Fish in China.
The additions and variations did not change the basic structure of McDonald’s menu. Its
menu remained the same globally consisting of burger or sandwich, fries and a Soda
drink. Although the main course was slight different in some countries, the main product
of the company ‘the fries ‘were always present in its entire menu globally.
As per prices, the demand in each country determined the price for McDonald’s
services. A Big Mac with fries will cost more in other countries that in the US because
fries are a common food item in the US than some other countries that sees it as a
luxury. By offering variety and locally related menu extensions, McDonald’s has always
been delivering value to its customers.
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2.0 McDonald’s in Vietnam
Vietnam is a huge potential to McDonald’s global expansion. Over the years, Vietnam
has enjoyed strong economic growth, a change in spending habits, increasing demand
for western brands, growth in urban population and a major tourist destination. Vietnam
now has a more prosperous population with disposable earnings and a cultural
tendency to expend it on fast food in the large urban centers of Ho Chi Minh (HCM)
City, Danag, Hai Phong, Hanoi, and Can Tho. Vietnam’s two main cities are Hanoi and
Ho Chi Minh City. In the middle of these two cities is the famous shoreline where local
and international tourists visit to adore the remarkable scenery of the beaches and
islands on the South China Sea. These cities are rapidly gaining attractiveness and the
associated fast food service industry is facing increasing demand.
According to the results of a study on fast food consumption among Vietnamese people
conducted by AC Nielson in 2009, there is robust demand and fast food is welcomed as
a model. Seventy percent of persons interviewed said that they liked eating at fast food
outlets because they liked the atmosphere and the service standard. Steady fast food
customers tend to be those earning high incomes, with 27 percent responding that they
eat fast food at least once in a week. Sixty percent of people interviewed said that they
chose fast food because they like the swift service, while 26 percent said that they
considered fast food as a right meal.
Vietnam has a young, dynamic and educated population of over 89 million consumers,
the largest in the South East Asia. The country has a literacy rate of 94 percent and a
population growth of 6% which is expected to reach 100 million by 2024. Vietnam is
currently enjoying one of the highest GDP growths in Asia, a 6 percent per year which is
second only to China.
In 1986, there was a significant change in business when the government introduced a
policy called “doi moi” (‘renovation’) to allow limited private enterprise. The policy
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allowed family business to become popular and skilled entrepreneurs from South
Vietnam started to change the country from a dominant government control to a free
market economy.
2.1 Entry Strategy
McDonald’s is going to adopt the ‘Green Field ‘approach in Vietnam. The wholly owned
subsidiary will be the best option for McDonald’s to introduce quality, service and
innovation. A PESTEL analysis of the 8 sub regions shows that the Ho Chi Minh City
has the best conditions to open the first restaurant. HCM city is an area with a growing
middle class who will be the most likely to visit McDonald’s restaurants. The city is also
suitable as a start up due adequate infrastructure, government support, low tax and
convenience.
McDonald’s will take cue from the joint venture success in China by partnering with the
Vietnamese Ministry of Agriculture and its associations to facilitate smooth business
operations. This type of venture will give McDonald’s the ease of receiving agricultural
supplies, buy supplies and build up distribution channels. It will also establish a good
network of local farmers, manufacturers, and other suppliers needed for McDonald’s
business.
2.2 PESTEL Analysis of Vietnam
Political
Government is paying more attention to the benefits and interests of customers.
Many laws have been passed to define the responsibilities of business firms.
Business firms must meet the requirements on product safety, labor laws, truth in
adverts, environmental issues, customer’s interest and so on.
Economic
Member of WTO.
Steady economic growth.
McDonald’s Enters Vietnam Page 9
More jobs with better salaries.
High purchasing power.
Changes in purchasing pattern.
Social
Vietnamese like to buy at a cheap price.
Careful in buying decisions.
Not loyal to one product, but some are likely to choose the products they trust.
Vietnamese prefer to try products by themselves than to believe salespersons.
Technology
HCM city has evolved from a traditional agricultural city to a technological
society.
Modern and high-tech equipment are in use.
Standard of living has improved due to people living in more convenient
conditions and is offered various products and services on demand.
Environmental
Monsoon climate with four distinct season with high humidity.
Environmental problems include water, air and solid waste pollution.
Slow progress in achieving environmental sustainability due to low awareness in
local departments, weak commitment by sectarian agencies and capacity
challenges at all levels.
Environmental sustainability is part of Vietnam’s Comprehensive Poverty
reduction and Growth Strategy.
Legal
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Weak and evolving legal system.
Judiciary is controlled by the ruling party (CPV).
Vietnam is constantly passing progressive laws that are making it more open for
foreign investors to do business.
Potential government interference to satisfy their own agenda.
2.3 McDonald’s SWOT Analysis of HCM City
Strengths
Largest metropolitan city in Vietnam with 9 million people. Majority of the
population is young and literate.
Economic center of Vietnam- GDP per capital is $2800 compared to Country’s
average of $1042. Fast growing economy that has reduced poverty rate to the
barest minimum.
Good transport and communication systems.
Tourism haven
Huge pool of skilled labor force
McDonald’s will be able to implement its QSCV Principle
McDonald’s Quality assurance and good customer service are better than
competitors
Aggressive competitive strategy
Low price of products
Ability to learn from competitors’ mistakes
Weakness
Late Entry
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Limited Menus than competitors
Contribution to obesity
Opportunities
Increase in demand for fast food in Vietnam
Innovation in product and services
Fast food penetration still low which is an opportunity for growth
Threats
More local and foreign competitors rising quickly.
Government policies on fast food and healthy meal.
Outbreak of bird flu.
2.4 Expansion Strategies
McDonald’s success in HCM city will act as an impetus to expand to other regions in
Vietnam. The focus of expansion in other regions will be in busy locations like shopping
malls or organized markets. Through the proposed agreement with the Vietnamese
Ministry of agriculture and local farmers, McDonald’s will be able to open 50 outlets
yearly. A food processing plant will also be built at different locations in the country. This
will be an advantage to McDonald’s because Vietnam is country developed in
agriculture. McDonald’s will ready get raw materials like milk, vegetables and potatoes
while the company can export the excess supplies to other countries.
McDonald’s will focus on strategies related to quality breakfast, convenience, menu
additions, value for money, extended hours of service, drive through restaurants and
delivery services.
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2.5 Franchising in Vietnam
In the long-term, McDonald’s will franchise some of its restaurants in Vietnam. This is to
reduce the business expansion cost and create more jobs opportunities for the local
people. McDonald’s as a franchising company has three fourth of its stores worldwide
as franchises. Franchising in Vietnam will take place after the McDonald’s business in
Vietnam is refined.
2.6 Drive-Thru Restaurants
During the 2000s, Vietnam witnessed remarkable economic development that
generated a huge market for fast food, consumer goods and cars. The automobile
industry in Vietnam was stimulated by the government’s resolution to reduce tariffs on
imported cars starting January 1, 2006. This resulted in an increase in people’s income,
change in lifestyle, and improved standard of living. According to Vietnam Automobile
Manufacturers Association, in 2010 over 110, 000 manufactured or assembled cars
were sold in Vietnam. Due to the continuous rise in the ownership of cars, McDonald’s
will introduce the drive-thru model in Vietnam. The drive-thru model has always been an
integral part of McDonald’s which has given a brand advantage. The model will thrive in
a residential and business area in the city.
2.7 Localization strategy
Vietnamese customers are loyal to their Vietnamese cuisine with a rich eat out tradition.
Vietnamese food depends deeply on rice grown in water paddies throughout the
country, with cuisines varying from simple everyday meals to complex cuisines
designed for the Monarch. Attaining a balance between meat and fresh herbs; as well
as a careful use of spices to get a fine taste, Vietnamese is said to be one of the
healthiest yet most divine cuisines globally. Peanuts are also used commonly in
Vietnamese cuisine.
To be profitable in Vietnam, McDonald’s will need to localize its products like its
competitor KFC which added some local products on its menu. A balance between local
cuisines and McDonald’s traditional products will be very important in the Vietnamese
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market. McDonald’s will introduce dishes like ‘McThai’ that will combine a variety of
herbs, vegetables and meats.
3.0 Competition and Challenges
McDonald’s will face intense competition in Vietnam local and foreign competitors. Its
biggest rival is KFC (Yum Brands) which has 77 outlets and has operated for 14 years
in Vietnam. Vietnamese customers are already familiar with their brand and they have
been expanding by the year. KFC has a well-developed distribution system that
permitted it to gain access to places other than the main city locations. KFC marketing
policies focus on the young population and children with special marketing programs.
KFC is also planning to launch their drive-thru restaurants.
Lotteria is one of the most successful restaurant chains in Vietnam, with 67 restaurants.
Lotteria offers a range of promotions such as discounts of fifteen percent to twenty
percent to make their restaurants more attractive to Vietnamese customers. With a
steady expansion strategy, Lotterria has vowed to continue to conduct research and
develop products and services to make them suitable with Vietnamese customers.
Jollibee with 30 restaurants has seen Vietnam as a key market to its growth
Subway with one restaurant is planning to open 25 restaurants in 5 years. Its entry into
the Vietnamese market will make it more vibrant and create more choices for the
Vietnamese customers
There is also a risk of new small scale competitors in the fast food market because of
minimal capital requirements, lack of managerial complexity, and low entry barriers.
McDonald’s can also face products imitation from Vietnam’s local restaurants. However,
the biggest threats can come from food safety and disease outbreak such as bird flu
McDonald’s Enters Vietnam Page 14
3.1 Recommendations
McDonald’s should use a scheme that will satisfy their Vietnamese employees
through a benefits program that will energize, attract, retain and reward talented
staff who will be able to generate superior results and boost the corporations
leadership position in the fast food industry.
McDonald’s should conduct a comprehensive market survey of competitors’ store
locations in Vietnam combined with demographic data that will help McDonald’s
management discern market gaps, improving profitability and overall efficiency.
McDonald’s should continue to have the right products at the right price.
Consumer taste inclinations are changing daily and McDonald’s must respond by
providing a variety of taste and price preferences in order to maintain their
competitive advantage alongside other fast food companies
McDonald’s should ensure their outlets are showplaces. The “green field” entry
strategy should be used to build restaurants that will always look fresh and
contemporary.
McDonald’s must keep promoting their brand in Vietnam. This should include
motivating the employees to work for the brand, taking the lead on environmental
issues and promoting consumer health matters.
3.2 Conclusion
McDonald’s will encounter some tough challenges as it grows to new markets.
Fundamental to its prospective success will be maintaining its core strengths—a
persistent emphasis on consistency and quality—while prudently testing with innovative
options. These new initiatives could include identifying more with the local market and
introducing sophisticated restaurants under novel brands that wouldn’t be burdened with
McDonald’s fast-food image. McDonald’s could also look into growing more
McDonald’s Enters Vietnam Page 15
aggressively in other Asian and African countries where the prospects for substantial
growth are greater.
Exhibit I: McDonalds International Expansion
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*The list is not exhaustive and compiled from various sources
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YEAR COUNTRY YEAR COUNTRY
1940 USA 1988 South Korea
1967 Canada 1988 Hungary
1967 Puerto Rico 1990 Russia
1971 Japan 1990 China
1971 West Germany 1991 Greece
1971 Australia 1992 Poland
1972 France 1993 Israel
1974 UK 1993 Saudi Arabia
1975 Hong Kong 1994 UAE
1976 New Zealand 1995 South Africa
1976 Switzerland 1996 India
1978 Belgium 1998 Pakistan
1979 Brazil 1998 Sri Lanka
1979 Singapore 1999 Georgia
1981 Malaysia 2001 Mauritius
1984 Taiwan 2003 Kazakhstan
1985 Italy 2008 Algeria
1986 Argentina 2011 Bosnia and
Herzegovina
Exhibit 2: Countries with McDonald’s Franchises
# Country Date First outlet locationNumber of currently
operating outletsNotes
1 United StatesMay 15 ,1940
San Bernardino, California.13,381 (source: May 2000)
2 CanadaJune 1, 1967
Richmond, British Columbia.1,400 (source: March 2007)
3 Puerto RicoNovember 10, 1967
First McDonald's in Latin America and in the Caribbean.
4 U.S. Virgin
IslandsSeptember 4, 1970
5 Costa RicaDecember 28, 1970
San José, 4th street, between 1st and Central Avenue.
36 (source: March 2011)
Third country (not U.S. possession) and first outlet outside Northern America where McDonald's opened.
6 GuamJune 10, 1971
First outlet in Oceania and first outlet outside the Americas.
7 JapanJuly 20, 1971
Tokyo3,598 (source: 2004)
First outlet in Asia
8 NetherlandsAugust 21, 1971
Zaandam225 (source: 2011)
First outlet in Europe.
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9 PanamaSeptember 1, 1971
37 (source: 2009)
10 GermanyNovember 22, 1971
1,361 (source: February 2010)
First outlet in West Germany: outlets in the former East Germany opened in 1991.
11 AustraliaMay 30, 1971
Yagoona, New South Wales[5] 780 (Sep 2011)First outlet in Oceania (in a sovereign state)
12 FranceJune 30, 1972
1,161 (source: December 2009)
First outlet in Créteil in 1972 even though McDonald's officially recognizes the first outlet in Strasbourg in 1979
13 El SalvadorJuly 20, 1972
11 (source: Sept 2009)
14 SwedenOctober 27, 1973
Kungsgatan 4, Stockholm230 (source: December 2009)
First outlet in Scandinavia.
15 GuatemalaJune 6, 1974
80 (source: 2011)
16 CuraçaoAugust 16, 1974
17 United
KingdomOctober 1, 1974
Woolwich, London1,250 (United Kingdom-wide, source: 2006)
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18 Hong Kong/
Hong KongJanuary 8, 1975
Paterson Street, Causeway Bay,Hong Kong Island.
200 (source:2009)
19 BahamasAugust 4, 1975
20 New ZealandJune 7, 1976
Porirua Central, Wellington 152 (Sep 2011)
Founded in New Zealand by Wally and Hugh MorrisFirst South Island restaurants opened atLinwood and Merivale, both Christchurch, on 3 November 1987
21 SwitzerlandOctober 20, 1976
148 (source: March 2010)
22 IrelandMay 9, 1977
Grafton Street, Dublin79 (source: February 2009)
23 AustriaJuly 21, 1977
Schwarzenbergplatz, Vienna.168 (source: 2009)
24 BelgiumMarch 21, 1978
64 (source: 2004)
25 BrazilFebruary 13, 1979
Rio de Janeiro560 (source: 2009)
First outlet in South America.
26 SingaporeOctober 20, 1979
Liat Towers, Orchard Road121 (source: 2004)
27 SpainMarch 10, 1981
276 (source: 2004)
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28 DenmarkApril 15, 1981
83 (source: December 2009)
29 PhilippinesSeptember 27, 1981
Morayta, Sampaloc, Manila320 (source: 2011)
30 MalaysiaApril 29, 1982
Jalan Bukit Bintang, Kuala Lumpur[10]
194 (source: 2009)
First outlet in a Muslim-majority country.
31 NorwayNovember 18, 1983
Nedre Slottsgate, Oslo68 (source: December 2009)
32 TaiwanJanuary 28, 1984
Taipei City, Taiwan338 (source: 2004)
33 AndorraJune 29, 1984
3 (source: 2009)
34 WalesDecember 3, 1984
35 FinlandDecember 14, 1984
Tampere 93 (source: 2004)
36 ThailandFebruary 23, 1985
88 (source: 2004)
37 ArubaApril 4, 1985
38 LuxembourgJuly 17, 1985
7 (source: 2009)
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39 VenezuelaAugust 31, 1985
197 (source: 2009)
40 ItalyOctober 15, 1985
near Piazza di Spagna, Rome392 (source: 2009)
41 MexicoOctober 29, 1985
500+ (source: 2011)
42 CubaApril 24, 1986
Guantanamo Bay 1 (source: 2009) Guantanamo Bay
43 TurkeyOctober 24, 1986
Istanbul160 (source: 2010)
First outlet in the Greater Middle East.
44 ArgentinaNovember 24, 1986
Belgrano, Buenos Aires187 (source: 2009)
45 Macau/
MacauApril 11, 1987
Then Portuguese territory; McDonald's would only open a restaurant in Portugal itself 4 years later
46 ScotlandNovember 23, 1987
Dundee[13]
Second store was Kirkcaldy. It took over 13 years since McDonald's first appeared in the UK.
47 Yugoslavia/
Serbia
March 24, 1988
15 (source: 2011)First outlet in a communist country and first outlet in the Balkans.
48 South KoreaMarch 29, 1988
Seoul243 (source: 2011)
49 Hungary April 13, Budapest[14] 100 (source: Second communist country,
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1988 2009)first Warsaw Pact member, thus first outlet behind theIron Curtain.
50 Soviet Union/
RussiaJanuary 31, 1990
270 (source: 2010)
51 ChinaOctober 8, 1990
Shenzhen 850 (August 2010)
52 ChileNovember 19, 1990
69 (source: 2009)
53 IndonesiaFebruary 23, 1991
Sarinah, Jakarta110 (source: 2009)
54 PortugalMay 23, 1991
CascaiShopping, Cascais 91 (source: 2004)
55 United
Kingdom Northern Ireland
October 14, 1991
Belfast 32 (source:2006)
56 GreeceNovember 12, 1991
48 (source: 2004)
57 UruguayNovember 18, 1991
Montevideo
58 MartiniqueDecember 16, 1991
59 Czechoslovaki
aMarch 20, 1992
72 (source: 2006)First outlet in Czech Republic.
60 GuadeloupeApril 8, 1992
61 PolandJune 17, 1992
249 (source: 2010)
62 MonacoNovember 20, 1992
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63 BruneiDecember 12, 1992
1 (source: 2004)
64 MoroccoDecember 18, 1992
Casablanca
First outlet in Africa - McDonald's is now present in all continents except Antarctica.
65 Northern
MarianasMarch 18, 1993
2 (source:August 2011)
First outlet opened on the island of Saipan - Along with the a second outlet in 1997
66 IsraelOctober 14, 1993
153 (source: May 2010)
67 SloveniaDecember 2, 1993
In Čopova Street, Ljubljana 16 (source: 2009)
68 Saudi ArabiaDecember 8, 1993
60 (source: 2009)
70 KuwaitJune 15, 1994
37 (source: 2007)
71 New
CaledoniaJuly 26, 1994
72 OmanJuly 30, 1994
9 (December 2009)
73 EgyptOctober 20, 1994
50 (source 2003)
74 BulgariaDecember 10, 1994
36 (source: 2011)
75 BahrainDecember 15, 1994
14 (source: 2010)
76 LatviaDecember 15, 1994
8 (source: January 2011)
First outlet in the Baltics.
77 United Arab December
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Emirates 21, 1994
78 EstoniaApril 29, 1995
8 (source: 2011)
79 RomaniaJune 16, 1995
126 (source: 2010)
80 MaltaJuly 7, 1995
8 (7 in Malta, 1 in Gozo, source: 2009)
81 ColombiaJuly 14, 1995
Centro Andino, Bogota78 (source: November 2009)
82 SlovakiaOctober 14, 1995
25 (source: 2011)
83 South AfricaNovember 11, 1995
129 (source: 2009)
84 QatarDecember 13, 1995
7 (source: 2003)
85 HondurasDecember 14, 1995
86 Saint MartinDecember 15, 1995
87 CroatiaFebruary 2, 1996
Zagreb19 (18 opened, 1 opening) (source: 2011)
88 Western
SamoaMarch 2, 1996
89 Fiji IslandsMay 1, 1996
3 (source: 2001)
90 LiechtensteinMay 3, 1996
2 (source: 2009)
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91 LithuaniaMay 31, 1996
9 (source: 2011)
92 CyprusJune 12, 1996
13 (source: 2004)
93 IndiaOctober 13, 1996[18]
Delhi192 (source: 2010)
94 PeruOctober 18, 1996
22 (source: 2009)
95 JordanNovember 7, 1996
96 ParaguayNovember 21, 1996
6 (source: 2009)
97 Dominican
RepublicNovember 30, 1996
98 French
PolynesiaDecember 10, 1996
Tahiti
99 BelarusDecember 10, 1996
Minsk 6 (source: 2011)
The company claimed this as McDonald's "100th country" although this calculation included many non-sovereign territories even though McDonald's shut down in Iceland in 2009 it is the 99th country as of November 1, 2009.
100 UkraineMay 28, 1997
Kiev 72 (source: 2011)
101 YemenAugust 22, 1997
102 Republic of
MacedoniaSeptember 6, 1997
6 (source: 2010)
McDonald’s Enters Vietnam Page 26
103 EcuadorOctober 9, 1997
10 (source: 2007)
104 RéunionDecember 14, 1997
105 Isle of ManDecember 15, 1997
106 SurinameDecember 18, 1997
2 (source: 2010)
107 MoldovaApril 30, 1998
108 NicaraguaJuly 11, 1998
6 (source: June 2010)
McDonald's outlets ceased operation during the Nicaraguan civil war and re-established a presence in 1998 after an absence of two decades.
109 LebanonSeptember 18, 1998
110 PakistanSeptember 19, 1998
25 (source: 2005)
111 Sri LankaOctober 16, 1998
112 San MarinoJuly 6, 1999
Borgo Maggiore. 1 (source: 2010)
113 GibraltarAugust 13, 1999
114 AzerbaijanNovember 6, 1999
Baku 7 (source: 2011)
115 French
GuianaFebruary 22, 2000
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116 American
SamoaSeptember 29, 2000
117 MauritiusJuly 4, 2001
Port Louis 2 (source: 2011)
118 MayotteMay 1, 2003
120 MontenegroJune 1, 2004
Budva 1 (source: 2006)
A McDonalds restaurant was opened in Budva in 2004,but it has been closed in 2007 due to the lack of location.
121 IraqAugust 10, 2006
Baghdad 1 (source: 2006)
One location in Baghdad for the U.S. Army, but there is also a knockoff called MaDonal.
122 Bosnia and
HerzegovinaJuly 20, 2011[21]
Sarajevo 2 (source: 2011)
After 10 some years of trying to enter the Bosnian market with no success, McDonald's opened its first restaurant in BiH on 07/20/2011. Days later construction started on the first drive-thru, while ongoing planning is wrapping up for outlets in Banja Luka and Mostar.
123 Trinidad &
TobagoAugust 2011
Westmoorings, Port of Spain 1 (source: 2011)
Currently slated to re-open at The Falls At West Mall. McDonald's previously had stores in Trinidad (May 6 1997 - October 25 2003) but closed due to low sales.
Source: www.wikipedia.com
Exhibit III
McDonald’s Enters Vietnam Page 28
The Food of Vietnam - Vietnamese FoodIncreasingly famous worldwide with restaurants sprawled over the globe, yet no Vietnamese food abroad can equal in flavor or quality to that made in Vietnam itself. In brief, Vietnamese cuisine depends heavily on rice grown in water paddies throughout the country, with dishes varying from simple everyday meals to most complex dishes designed for the King. Reaching a balance between fresh herbs and meats; as well as a selective use of spices to reach a fine taste, Vietnamese food can be considered one of the healthiest yet most divine cuisines worldwide.
Spices and ingredients
Vietnam’s ingredients reflect its geography and climate. Rice (grown in water paddies throughout the country) is the main starch used in everyday meals, and is also made into different kind of cakes and noodles. Besides a number of Buddhist vegetarian dishes, most Vietnamese dishes or meals are a combination of a variety of vegetables, herbs and meats.
Common herbs may include lemon grass, lime or kaffir. Popular meats are pork, beef, chicken, prawn and various fish. Lamb, duck, birds, and even dog or other wild animals are also used but not widely. Fish sauce and soy sauce are used as both flavorings and dipping sauces for nearly every dish.
Peanuts are also used widely in Vietnamese cuisine.
Vegetarians and those with allergies should be careful and ask beforehand while enjoying Vietnamese cuisine.
Style of cooking
The Vietnamese cook their food in a variety of ways: deep fry, stir fry, boil, steam. Unlike the Chinese, the Vietnamese use a minimal amount of oil while cooking. Vietnamese cooks aim to preserve the freshness and natural taste of food as much as possible. Hence Vietnamese cuisine is often considered as one of the healthiest foods in the world.
McDonald’s Enters Vietnam Page 29
Food of three regions
Like everything else, Vietnamese food also differs geographically from location to location. North Vietnam’s food uses soy sauce, fish sauce and prawn sauce and has many stir fried dishes.
With harsh weather and less developed agriculture than the South, North Vietnamese tend to use less meat, fish and vegetables; and black pepper (instead of chili) to create spice. The taste is strict and less sweet, but more salty than in other regions.
Central Vietnam is distinct in its extreme spices and color of food. Hue’s cuisine, affected by royal cuisine once created for kings and queens, emphasized on quality and quantity – A meal constitutes of many complex dishes served only at small proportions.
Southern Vietnamese are heavily affected by Cambodia, Thai and Chinese cuisines (due to trade and immigrants). Southerners prefer sweet tastes (created by adding sugar or coconut milk) and spicy tastes (created by chili peppers).
A variety of dried fish and sauces originate from the South. Southerners prefer seafood and use simple cooking methods with larger and less servings.
Customs
Influenced by the Chinese, chopsticks and spoons are used in Vietnam. Many foods (such as cakes) are wrapped in banana or coconut leaves. When eating with elders, younger Vietnamese always ask the elders to eat first.
A typical family meal
A typical Vietnamese meal (lunch or dinner) will include steamed rice; a soup dish to eat with rice, a meat or fish dish and a vegetarian dish (either stir fried or boiled).
Vietnamese do not eat in separate servings, but the food is placed in the middle. Each member of the family has a
McDonald’s Enters Vietnam Page 30
small bowl and chopsticks with which they take food from the table throughout the meal.
Vietnamese noodles and cakes
Besides the typical meal with rice, Vietnamese cuisine has many different types of noodles and cakes (mostly made from rice). To name a few: beef soup noodles (pho), crab noodle (bun rieu), spring rolls (nem), sticky rice cake (chung cake)
Source: www.guidevietnam.com
McDonald’s Enters Vietnam Page 31
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