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By Ayodeji Akin Abiri
McDonald’s Enters Vietnam
Table of Contents Abstract 1.0 Introduction 1.1 Background note 1.2 Global Strategy 2.0 McDonald’s In Vietnam 2.1 Entry Strategy 2.2 PESTEL analysis of Vietnam 2.3 SWOT analysis of HCM city 2.4 Expansion strategy 2.5 Franchising in Vietnam 2.6 Drive-thru restaurants 2.7 Localization strategy 3.0 Competition & challenges 3.1 Recommendations 3.2 Conclusion Exhibit I Exhibit II Exhibit III References 3 4 5 8 9 9 11 12 13 13 13 14 15 15 16 18 29 32
McDonald’s Enters Vietnam
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
McDonald’s Enters Vietnam Page 3
The process helped McDonald’s to introduce self-service. In 1948. The grill restaurant had up to 25 items on its menu like pork sandwiches and barbecue beefs. A franchisee needed a thousand dollars to receive the McDonald’s name. which have been in Vietnam for more than 10 years and Subway (US) which just entered. China was the major growth market with 1000 restaurants and over 60. California. eliminated carhops and reduced the price of hamburger by half. California. McDonald’s brought in difference in its ingredients and products to fit the Asian palate and culture.000 employees as of 2010. serve more customers. In 1940.1990. one week training from Art Bender. when the McDonald brothers (Mac and Dick) opened a fast-food restaurant called Airdrome in Arcadia. India and Indonesia. they opened a grill restaurant in San Bernadino. In Asia. and a basic description of McDonald’s service system. Lotteria (Japan). and India in 1996. 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. Stimulated by the decent response to their first eatery. tea and hot dogs. The McDonald’s brothers in 1953 decided to go into franchising as a mandate to expand their business. increase speed. menu. they reduced the menu in order to scale down operations and develop a method to attend to customers rapidly with fewer resources. McDonald’s hired 20 carhops to provide fast food service to customers. However it remained American in its services. McDonald’s became the symbol of modern lifestyle in countries like China. Jollibee (the Philippines). they decided to increase their business. Thailand. 1. broad menus huge crowds that packed the restaurant.1 Background Note The early stages of McDonald’s date back to the 1930s. 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). Apart from McDonald’s home market-the US. The role of Bender is to train staff at the franchisee’s McDonald’s Enters Vietnam Page 4 . and administration. that sold coffee.
In the mid-1990s. The first McDonald’s franchise was Neil Fox. McDonald’s opened a restaurant that was the biggest joint venture between a food company and the Soviet Union. 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. France. etc. supervise equipment installation.600 outlets outside the United States through joint ventures. Arizona. 1967 opened its first international restaurant in Canada.restaurant. The franchise business grew from strength to strength the following years. (Refer to Exhibit 1 for a brief note on McDonald’s growth) 1. 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. cleanliness. It became an example for the McDonald’s chain. franchises and wholly-owned McDonald’s Enters Vietnam Page 5 . McDonald’s developed to be the largest fast food chains in the US. Ray Kroc in 1954. Australia and England. make contact with bakeries and butchers for supplies. He retained McDonald’s formula and shaped the operating principles of quality.000 customers daily.2 Global Strategy After attaining success in the US. 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. service and value. McDonald’s on June 1. 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. In 1990. But the McDonald’s brothers were content with the present operations and were not interested in expanding the business. McDonald’s was already in 58 countries by operating more than 3. Under Ray Kroc’s supervision. More restaurants followed in the early seventies with presence in Germany. who started a drive-in restaurant in Phoenix. Kroc applied for a McDonald’s franchise and he applied his experience as a salesman to create an effective franchising business.
9 billion in 2007 due to growth in global operations. In 1995. Saudi Arabia. The company’s entry into new markets showed its flexibility with respect to customs and local food preferences. Israel. UK. More restaurants followed in Oman. Place. A further increase to 11.030 outlets in 110 countries with sales of US$14 billion. As at August 2011. there were a total of 32. McDonald’s in 1992 opened its first African restaurant in Morocco. Qatar and UAE.People.subsidiaries. Kuwait.000 outlets in 114 countries was recorded in 1998. it opened more outlets in countries like Hungary. McDonald’s generated US$4. McDonald’s had strong presence in Canada. Promotion and Price. 737 McDonald’s outlets of which about 80 percent were franchised. Franchising to local people helped the company’s operations in foreign countries easy in terms of product and service. Japan. France and Australia. An operations procedure which focused on quality. McDonald’s closed underperforming outlets. cut jobs. This made McDonald’s to change its strategy by stopping its plan to open new stores and focus on developing its current restaurants. This resulted in opening 600 restaurants in 2001 compared to 2000 in 1996.8 million in 2002 which was the first quarterly loss the company will witness as a public company in 38 years. It entered the Middle East in 1993 with the first restaurant in Tel Aviv. McDonald’s recorded a fourth-quarter loss of US$343. (Refer to Exhibit 2) The key to McDonald’s international success is franchising. India got its first McDonald’s in 1996. the company had 7. service. The global strategy that was adopted was called “Plan to win” which focused on the five P’s of marketing. Products. Afterwards. withdrew from three countries in Latin America and Middle East. and value coupled with a solid local partner with customary McDonald’s menu were the roots for the company’s international success. These countries accounted for 37 percent of McDonald’s revenue in 1991. McDonald’s Enters Vietnam Page 6 . Bahrain. but with some slight variations in the menus offered to suit local tastes. McDonald’s adopted a similar strategy used in US for its international markets. cleanliness. Slovenia and Czech Republic. Egypt.
Its menu remained the same globally consisting of burger or sandwich. but we are all Irish” McDonald’s had to alter its traditional menu to suit the needs of the customers in different nations. restaurants did not serve dairy products. In Japan. it also served Maharaja Mac to some religious communities in that are against beef. McDonald’s Enters Vietnam Page 7 . It adapted its operations based on the home country in which it is operating. By offering variety and locally related menu extensions. It changed its product offerings to adapt to the tastes of the local people. vegetarian burgers in Netherlands. McDonald’s catered for the vegetarians in India by serving the McNuggets. McDonald’s has always been delivering value to its customers. “Our name may be American. guava juices in tropical countries. McSpagetti in Norway. fries and a Soda drink. In Israel. In Ireland. McDonald’s brand name was changed to Makudonaldo to make the pronunciation easy for the Japanese consumers. McDonald’s were closed on Saturdays to observe the Jewish Sabbath Day. Some instances are beer in Germany. McHuevo in Uruguay.The key to McDonald’s international success was the ‘think global. McDonald’s did not serve pork. Teriyaki Mac and McGriddles in Japan. the local strategy was a promotion that stated. cold pasta and espresso in Italy. the demand in each country determined the price for McDonald’s services. As per prices. The additions and variations did not change the basic structure of McDonald’s menu. Singapore and Malaysia. Although the main course was slight different in some countries. Big Macs were served without cheese in most outlets. act local’ initiative which helped the company to excel in every region it opened its restaurants. the main product of the company ‘the fries ‘were always present in its entire menu globally. and Filet-O-Fish in China. An example is keeping in mind the local sentiments in the Arab countries. Samurai burger in Thailand. maintained the ‘Halal’ menus and they observed the Islamic laws for preparing food. chilled yogurt drinks in Turkey. 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.
Danag. Sixty percent of people interviewed said that they chose fast food because they like the swift service. Vietnam has enjoyed strong economic growth. Hai Phong. growth in urban population and a major tourist destination. Vietnam is currently enjoying one of the highest GDP growths in Asia. Over the years. the largest in the South East Asia.0 McDonald’s in Vietnam Vietnam is a huge potential to McDonald’s global expansion. with 27 percent responding that they eat fast food at least once in a week. The policy McDonald’s Enters Vietnam Page 8 . These cities are rapidly gaining attractiveness and the associated fast food service industry is facing increasing demand. 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. Vietnam has a young. a change in spending habits. Seventy percent of persons interviewed said that they liked eating at fast food outlets because they liked the atmosphere and the service standard. there is robust demand and fast food is welcomed as a model. there was a significant change in business when the government introduced a policy called “doi moi” (‘renovation’) to allow limited private enterprise. Hanoi. 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.2. a 6 percent per year which is second only to China. dynamic and educated population of over 89 million consumers. In 1986. Steady fast food customers tend to be those earning high incomes. Vietnam’s two main cities are Hanoi and Ho Chi Minh City. while 26 percent said that they considered fast food as a right meal. The country has a literacy rate of 94 percent and a population growth of 6% which is expected to reach 100 million by 2024. increasing demand for western brands. According to the results of a study on fast food consumption among Vietnamese people conducted by AC Nielson in 2009. and Can Tho.
government support. 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. It will also establish a good network of local farmers. customer’s interest and so on. service and innovation. The wholly owned subsidiary will be the best option for McDonald’s to introduce quality. manufacturers. low tax and convenience. environmental issues. The city is also suitable as a start up due adequate infrastructure. labor laws. Economic • • Member of WTO. Page 9 McDonald’s Enters Vietnam . 2. Many laws have been passed to define the responsibilities of business firms.1 Entry Strategy McDonald’s is going to adopt the ‘Green Field ‘approach in Vietnam. Steady economic growth.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 PESTEL Analysis of Vietnam Political • • • Government is paying more attention to the benefits and interests of customers. Business firms must meet the requirements on product safety. truth in adverts. and other suppliers needed for McDonald’s business. HCM city is an area with a growing middle class who will be the most likely to visit McDonald’s restaurants. A PESTEL analysis of the 8 sub regions shows that the Ho Chi Minh City has the best conditions to open the first restaurant. buy supplies and build up distribution channels. 2. This type of venture will give McDonald’s the ease of receiving agricultural supplies.
High purchasing power. Social • • • • Vietnamese like to buy at a cheap price. Environmental • • • Monsoon climate with four distinct season with high humidity. air and solid waste pollution. Slow progress in achieving environmental sustainability due to low awareness in local departments. Not loyal to one product.• • • More jobs with better salaries. Standard of living has improved due to people living in more convenient conditions and is offered various products and services on demand. Vietnamese prefer to try products by themselves than to believe salespersons. Environmental problems include water. Technology • HCM city has evolved from a traditional agricultural city to a technological society. but some are likely to choose the products they trust. • • Modern and high-tech equipment are in use. Careful in buying decisions. Changes in purchasing pattern. 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 McDonald’s Enters Vietnam Page 10 .
Judiciary is controlled by the ruling party (CPV).3 Strengths • Largest metropolitan city in Vietnam with 9 million people. • • Good transport and communication systems. Majority of the population is young and literate.• • • Weak and evolving legal system. • Economic center of Vietnam. Fast growing economy that has reduced poverty rate to the barest minimum.GDP per capital is $2800 compared to Country’s average of $1042. McDonald’s SWOT Analysis of HCM City 2. Vietnam is constantly passing progressive laws that are making it more open for foreign investors to do business. 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 McDonald’s Enters Vietnam Page 11 . • Potential government interference to satisfy their own agenda.
Outbreak of bird flu. vegetables and potatoes while the company can export the excess supplies to other countries. McDonald’s Enters Vietnam Page 12 .• • • Late Entry 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. A food processing plant will also be built at different locations in the country. drive through restaurants and delivery services. extended hours of service. McDonald’s will ready get raw materials like milk. This will be an advantage to McDonald’s because Vietnam is country developed in agriculture.4 Expansion Strategies McDonald’s success in HCM city will act as an impetus to expand to other regions in Vietnam. Government policies on fast food and healthy meal. menu additions. McDonald’s will focus on strategies related to quality breakfast. 2. The focus of expansion in other regions will be in busy locations like shopping malls or organized markets. convenience. value for money. Through the proposed agreement with the Vietnamese Ministry of agriculture and local farmers. McDonald’s will be able to open 50 outlets yearly.
Vietnam witnessed remarkable economic development that generated a huge market for fast food. McDonald’s Enters Vietnam Page 13 . Attaining a balance between meat and fresh herbs. consumer goods and cars. change in lifestyle.2. 2006. and improved standard of living. 2. This resulted in an increase in people’s income. McDonald’s will franchise some of its restaurants in Vietnam. The model will thrive in a residential and business area in the city. Vietnamese food depends deeply on rice grown in water paddies throughout the country. 2. The drive-thru model has always been an integral part of McDonald’s which has given a brand advantage. McDonald’s as a franchising company has three fourth of its stores worldwide as franchises. The automobile industry in Vietnam was stimulated by the government’s resolution to reduce tariffs on imported cars starting January 1.6 Drive-Thru Restaurants During the 2000s. Franchising in Vietnam will take place after the McDonald’s business in Vietnam is refined. Vietnamese is said to be one of the healthiest yet most divine cuisines globally.5 Franchising in Vietnam In the long-term. This is to reduce the business expansion cost and create more jobs opportunities for the local people. According to Vietnam Automobile Manufacturers Association.7 Localization strategy Vietnamese customers are loyal to their Vietnamese cuisine with a rich eat out tradition. Due to the continuous rise in the ownership of cars. as well as a careful use of spices to get a fine taste. 000 manufactured or assembled cars were sold in Vietnam. McDonald’s will introduce the drive-thru model in Vietnam. Peanuts are also used commonly in Vietnamese cuisine. with cuisines varying from simple everyday meals to complex cuisines designed for the Monarch. in 2010 over 110.
3. 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. KFC marketing policies focus on the young population and children with special marketing programs. McDonald’s will introduce dishes like ‘McThai’ that will combine a variety of herbs. With a steady expansion strategy. Vietnamese customers are already familiar with their brand and they have been expanding by the year. lack of managerial complexity. Lotteria offers a range of promotions such as discounts of fifteen percent to twenty percent to make their restaurants more attractive to Vietnamese customers. KFC has a well-developed distribution system that permitted it to gain access to places other than the main city locations. KFC is also planning to launch their drive-thru restaurants.To be profitable in Vietnam. Its biggest rival is KFC (Yum Brands) which has 77 outlets and has operated for 14 years in Vietnam. Lotterria has vowed to continue to conduct research and develop products and services to make them suitable with Vietnamese customers.0 Competition and Challenges McDonald’s will face intense competition in Vietnam local and foreign competitors. Lotteria is one of the most successful restaurant chains in Vietnam. vegetables and meats. and low entry barriers. 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. with 67 restaurants. McDonald’s Enters Vietnam Page 14 . 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 market.
1 • Recommendations McDonald’s should use a scheme that will satisfy their Vietnamese employees through a benefits program that will energize. retain and reward talented staff who will be able to generate superior results and boost the corporations leadership position in the fast food industry. Fundamental to its prospective success will be maintaining its core strengths—a persistent emphasis on consistency and quality—while prudently testing with innovative options. However. • McDonald’s should continue to have the right products at the right price. taking the lead on environmental issues and promoting consumer health matters.McDonald’s can also face products imitation from Vietnam’s local restaurants.2 Conclusion McDonald’s will encounter some tough challenges as it grows to new markets. the biggest threats can come from food safety and disease outbreak such as bird flu 3. The “green field” entry strategy should be used to build restaurants that will always look fresh and contemporary. This should include motivating the employees to work for the brand. • 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. attract. improving profitability and overall efficiency. 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. • McDonald’s must keep promoting their brand in Vietnam. These new initiatives could include identifying more with the local market and McDonald’s Enters Vietnam Page 15 . 3.
McDonald’s could also look into growing more aggressively in other Asian and African countries where the prospects for substantial growth are greater. Exhibit I: McDonalds International Expansion McDonald’s Enters Vietnam Page 16 .introducing sophisticated restaurants under novel brands that wouldn’t be burdened with McDonald’s fast-food image.
YEAR 1940 1967 1967 1971 1971 1971 1972 1974 1975 1976 1976 1978 1979 1979 1981 1984 1985 1986 COUNTRY USA Canada Puerto Rico Japan West Germany Australia France UK Hong Kong New Zealand Switzerland Belgium Brazil Singapore Malaysia Taiwan Italy Argentina YEAR 1988 1988 1990 1990 1991 1992 1993 1993 1994 1995 1996 1998 1998 1999 2001 2003 2008 2011 COUNTRY South Korea Hungary Russia China Greece Poland Israel Saudi Arabia UAE South Africa India Pakistan Sri Lanka Georgia Mauritius Kazakhstan Algeria Bosnia and Herzegovina *The list is not exhaustive and compiled from various sources McDonald’s Enters Vietnam Page 17 .
1967 Richmond. 1971 225 (source: 2011) First outlet in Europe. British Columbia.Exhibit 2: Countries with McDonald’s Franchises Number of currently operating outlets # Country Date First outlet location Notes 1 United States May 15 . 4 Septemb U. 36 (source: between 1st and Central Costa Rica r 28. 1. 1967 First McDonald's in Latin America and in the Caribbean. San 1940 Bernardino.S. possession) and first outlet outside Northern America where McDonald's opened. McDonald’s Enters Vietnam Page 18 . Third country (not U. 1971 First outlet in Oceania and first outlet outside the Americas. 1971 Tokyo 3.598 (source: First outlet in Asia 2004) 8 Netherlands August Zaandam 21. 6 Guam June 10. March 2011) 1970 Avenue. 13. Virgin er 4.S. Islands 1970 5 Decembe San José. 7 Japan July 20. 4th street.381 (source: May 2000) 2 Canada June 1. California.400 (source: March 2007) 3 Novembe Puerto Rico r 10.
1973 4.161 (source: McDonald's officially December recognizes the first 2009) outlet in Strasbourg in 1979 13 El Salvador July 20.250 (United Kingdom-wide.9 Panama Septemb er 1. 1972 First outlet in Créteil in 1972 even though 1. 11 Australia May 30. 1972 11 (source: Sept 2009) 14 Sweden October Kungsgatan 27. source: 2006) McDonald’s Enters Vietnam Page 19 . 1974 17 United Kingdom October 1. 15 Guatemala June 6. 1971 Yagoona. London 1.361 (source: former East February 2010) Germany opened in 1991. 1974 80 (source: 2011) 16 Curaçao August 16. 1971 First outlet in West Germany: outlets in the 1. 1974 Woolwich. 1971 37 (source: 2009) 10 Germany Novembe r 22. Stockholm 230 (source: December 2009) First outlet in Scandinavia. New South Wales First outlet 780 (Sep 2011) in Oceania (in a sovereign state) 12 France June 30.
26 Singapore October Liat Towers. Orchard 20. 200 (source:20 09) 19 Bahamas August 4. Wellingt 152 (Sep 2011) Island restaurants on opened atLinwood and Merivale . both Christchurch. 1976 148 (source: March 2010) 22 Ireland May 9. 1979 560 (source: 2009) First outlet in South America. 1976 Founded in New Zealand by Wally and Hugh Morris First South Porirua Central. 1978 64 (source: 2004) 25 Brazil February Rio de Janeiro 13. Vi 168 (source: enna. 2009) 24 Belgium March 21. 1977 Schwarzenbergplatz. 1979 Road 121 (source: 2004) 27 Spain March 276 (source: McDonald’s Enters Vietnam Page 20 . Causeway Bay.Hong Kong Island. 1977 Grafton Street. on 3 November 1987 21 October Switzerland 20. 1975 20 New Zealand June 7.18 Hong Kong/ January Hong Kong 8. Dublin 79 (source: February 2009) 23 Austria July 21. 1975 Paterson Street.
Oslo 1983 68 (source: December 2009) 32 Taiwan January Taipei City. 1984 338 (source: 2004) 33 Andorra June 29. 1985 McDonald’s Enters Vietnam Page 21 . Ma 320 (source: Philippines er 27. Jalan Bukit Bintang. nila 2011) 1981 30 Malaysia April 29. 1981 83 (source: December 2009) 29 Septemb Morayta. Taiwan 28. 31 Norway Novembe r 18. 1982 Kuala Lumpur 194 (source: 2009) First outlet in a Muslimmajority country. Tampere 1984 93 (source: 2004) 36 Thailand February 23. Nedre Slottsgate. Sampaloc. 1985 88 (source: 2004) 37 Aruba April 4. 1981 2004) 28 Denmark April 15. 1984 35 Finland Decembe r 14. 1984 3 (source: 2009) 34 Wales Decembe r 3.10.
1985 7 (source: 2009) 39 Venezuela August 31. 1985 500+ (source: 2011) 42 Cuba April 24. 1985 197 (source: 2009) 40 Italy October near Piazza di Spagna.38 g Luxembour July 17. 15. Buenos Aires 2009) 1986 45 Macau/ Macau April 11. Belgrano. 1986 160 (source: 2010) First outlet in the Greater Middle East. 1987 Then Portuguese territo ry. 44 Argentina Novembe 187 (source: r 24. Dundee 1987 Second store was Kirkcaldy. Guantanamo Bay 1986 1 (source: 2009) Guantanamo Bay 43 Turkey October Istanbul 24. 1988 McDonald’s Enters Vietnam Page 22 . It took over 13 years since McDonald's first appeared in the UK. 15 (source: 2011) First outlet in a communist country and first outlet in the 47 March Yugoslavia/ 24. McDonald's would only open a restaurant in Portugal itself 4 years later 46 Scotland Novembe r 23. 1985 Rome 392 (source: 2009) 41 Mexico October 29.
49 Hungary April 13. 1991 ern Ireland Novembe r 12. 1990 February Sarinah. 1988 243 (source: 2011) Balkans. 1991 270 (source: 2010) 850 (August 2010) 69 (source: 2009) 110 (source: 2009) Shenzhen 52 Chile 53 Indonesia 54 Portugal CascaiShopping. Montevideo 1991 56 Greece 48 (source: 2004) 57 Uruguay 58 Decembe Martinique r 16. first Warsaw Pact member. Jakarta 23. thus first outlet behind theIron Curtain. Cascai 91 (source: s 2004) 32 (source:2006) United October 55 Kingdom North Belfast 14. 59 McDonald’s Enters Vietnam Page 23 . Budapest 1988 100 (source: 2009) Second communist country. 1990 Novembe r 19.Serbia 48 South Korea March Seoul 29. 1992 akia 72 (source: 2006) First outlet in Czech Republic. 1990 October 8. 1991 Novembe r 18. 1991 Czechoslov March 20. Soviet 50 Union/ a 51 China Russi January 31. 1991 May 23.
1993 Decembe In Čopova Street. 1992 1 (source: 2004) First outlet in Africa McDonald's is now present in all continents except Antarctica. 1993 June 15. 1994 Decembe 67 Slovenia Saudi Arabia Kuwait New Caledonia Oman 68 70 71 72 9 (December 2009) 50 (source 2003) 36 (source: 73 74 Egypt Bulgaria McDonald’s Enters Vietnam Page 24 . 1992 Novembe r 20. 1993 Ljubljana Decembe r 8.60 Guadeloupe April 8. 1994 July 30. 1994 October 20. 1992 Decembe r 12. 1992 June 17. Casablanca 1992 Northern 65 Marianas March 18. 1993 66 Israel October 14. First outlet opened on 2 the island of Saipan (source:August Along with the a second 2011) outlet in 1997 153 (source: May 2010) 16 (source: 2009) 60 (source: 2009) 37 (source: 2007) 249 (source: 2010) 61 Poland 62 Monaco 63 Brunei 64 Morocco Decembe r 18. 1994 July 26. r 2.
1995 Decembe r 14. 1995 McDonald’s Enters Vietnam Page 25 . 1994 Decembe r 15. Emirates 1994 78 Estonia April 29.r 10. 1994 2011) 75 Bahrain 14 (source: 2010) 76 Latvia 8 (source: First outlet in January 2011) the Baltics. 1995 July 7. Bogota 82 Slovakia 83 Novembe South Africa r 11. 1995 8 (source: 2011) 126 (source: 2010) 8 (7 in Malta. 1995 October 14. 1 in Gozo. 1995 Decembe r 13. 1994 Decembe r 15. 1995 June 16. Decembe United Arab 77 r 21. 1995 84 Qatar 7 (source: 2003) 85 Honduras 86 Decembe Saint Martin r 15. 1995 Centro Andino. source: 2009) 78 (source: November 2009) 25 (source: 2011) 129 (source: 2009) 79 Romania 80 Malta 81 Colombia July 14.
1996 Novembe r 21. 1996 October 18. 1996 June 12. 1996 May 1. 1996 6 (source: 2011) The company claimed this as McDonald's "100th country" although this calculation included many non-sovereign 98 99 McDonald’s Enters Vietnam Page 26 .87 Croatia February Zagreb 2. 1996 March 2. 1996 91 92 Cyprus 93 India Delhi 94 Peru 95 Jordan 96 Paraguay 6 (source: 2009) Novembe Dominican 97 r 30. Tahiti 1996 Decembe Minsk r 10. Republic 1996 French Polynesia Belarus Decembe r 10. 1996 Lithuania May 31. 1996 October 13. 1 opening) (source: 2011) 88 Western Samoa Fiji Islands 89 3 (source: 2001) 2 (source: 2009) 9 (source: 2011) 13 (source: 2004) 192 (source: 2010) 22 (source: 2009) 90 n Liechtenstei May 3. 1996 19 (18 opened. 1996 Novembe r 7.
1997 Decembe r 14. 1997 Decembe r 18.territories even though McDonald's shut down in Iceland in 2009 it is the 99th country as of November 1. 1997 August 22. 1997 6 (source: 2010) 10 (source: 2007) Kiev 72 (source: 2011) Yemen Septemb 10 Republic of er 6. 1997 April 30. 2 Macedonia 1997 10 3 10 4 Ecuador October 9. 2009. 1998 McDonald’s Enters Vietnam Page 27 . 10 0 10 1 Ukraine May 28. 2 (source: 2010) 10 6 10 7 Suriname Moldova 10 8 Nicaragua July 11. 1998 McDonald's outlets ceased operation during the Nicaraguan 6 (source: June civil war and re2010) established a presence in 1998 after an absence of two decades. 1998 10 9 Lebanon Septemb er 18. 1997 Réunion 10 5 Decembe Isle of Man r 15.
One location in Baghdad for the U. 2001 May 1. McDonald's opened its first restaurant in BiH on 12 1 Iraq August Baghdad 10.11 0 11 1 11 2 11 3 11 4 Pakistan Septemb er 19. 1999 February 22. Army. After 10 some years of trying to enter the Bosnian market with no success. 2000 Septemb er 29. 2 Herzegovina 2011 Sarajevo 2 (source: 2011) McDonald’s Enters Vietnam Page 28 . 2003 Port Louis 7 (source: 2011) 11 French 5 Guiana 11 American 6 Samoa 11 7 11 8 Mauritius 2 (source: 2011) Mayotte 12 0 Montenegro June 1. 1998 October 16. 25 (source: 2005) Sri Lanka July 6. 2004 Budva 1 (source: 2006) A McDonalds restaurant was opened in Budva in 2004. but there is also a knockoff called MaDonal. 2000 July 4.S.but it has been closed in 2007 due to the lack of location. 2006 1 (source: 2006) 12 Bosnia and July 20. San Marino 1999 Gibraltar August 13. 1999 1 (source: 2010) Azerbaijan Novembe Baku r 6. 1998 Borgo Maggiore.
yet no Vietnamese food abroad can equal in flavor or quality to that made in Vietnam itself. and is also made into different kind of cakes and noodles. with dishes varying from simple everyday meals to most complex dishes designed for the King. 12 Trinidad & 3 Tobago August 2011 Westmoorings.07/20/2011. Spices and ingredients Vietnam’s ingredients reflect its geography and climate.wikipedia. McDonald’s Enters Vietnam Page 29 . Port of Spain 1 (source: 2011) Source: www. In brief. Vietnamese cuisine depends heavily on rice grown in water paddies throughout the country. lime or kaffir.com Exhibit III The Food of Vietnam . most Vietnamese dishes or meals are a combination of a variety of vegetables. as well as a selective use of spices to reach a fine taste. Reaching a balance between fresh herbs and meats. while ongoing planning is wrapping up for outlets in Banja Luka and Mostar. McDonald's previously had stores in Trinidad (May 6 1997 October 25 2003) but closed due to low sales. Vietnamese food can be considered one of the healthiest yet most divine cuisines worldwide. Besides a number of Buddhist vegetarian dishes. herbs and meats. Common herbs may include lemon grass.Vietnamese Food Increasingly famous worldwide with restaurants sprawled over the globe. Rice (grown in water paddies throughout the country) is the main starch used in everyday meals. Currently slated to reopen at The Falls At West Mall. Days later construction started on the first drive-thru.
Food of three regions Like everything else. Fish sauce and soy sauce are used as both flavorings and dipping sauces for nearly every dish. fish sauce and prawn sauce and has many stir fried dishes. Central Vietnam is distinct in its extreme spices and color of food. the Vietnamese use a minimal amount of oil while cooking. Hue’s cuisine. and even dog or other wild animals are also used but not widely. affected by royal cuisine once created for kings and queens. duck.Popular meats are pork. Peanuts are also used widely in Vietnamese cuisine. beef. but more salty than in other regions. Vietnamese cooks aim to preserve the freshness and natural taste of food as much as possible. Lamb. fish and vegetables. and black pepper (instead of chili) to create spice. Vegetarians and those with allergies should be careful and ask beforehand while enjoying Vietnamese cuisine. birds. Thai and Chinese cuisines (due to trade and immigrants). With harsh weather and less developed agriculture than the South. The taste is strict and less sweet. Hence Vietnamese cuisine is often considered as one of the healthiest foods in the world. Southerners prefer sweet tastes (created by adding sugar or coconut milk) and spicy tastes McDonald’s Enters Vietnam Page 30 . Southern Vietnamese are heavily affected by Cambodia. boil. stir fry. chicken. prawn and various fish. Style of cooking The Vietnamese cook their food in a variety of ways: deep fry. Unlike the Chinese. emphasized on quality and quantity – A meal constitutes of many complex dishes served only at small proportions. steam. North Vietnamese tend to use less meat. North Vietnam’s food uses soy sauce. Vietnamese food also differs geographically from location to location.
Each member of the family has a small bowl and chopsticks with which they take food from the table throughout the meal. Many foods (such as cakes) are wrapped in banana or coconut leaves.(created by chili peppers). crab noodle (bun rieu). Vietnamese cuisine has many different types of noodles and cakes (mostly made from rice). but the food is placed in the middle. Southerners prefer seafood and use simple cooking methods with larger and less servings. a meat or fish dish and a vegetarian dish (either stir fried or boiled). Customs Influenced by the Chinese. A variety of dried fish and sauces originate from the South. a soup dish to eat with rice. To name a few: beef soup noodles (pho). chopsticks and spoons are used in Vietnam. Vietnamese noodles and cakes Besides the typical meal with rice.guidevietnam.com McDonald’s Enters Vietnam Page 31 . younger Vietnamese always ask the elders to eat first. Vietnamese do not eat in separate servings. spring rolls (nem). When eating with elders. A typical family meal A typical Vietnamese meal (lunch or dinner) will include steamed rice. sticky rice cake (chung cake) Source: www.
E. 103. McDonald’s Enters Vietnam Page 32 . McGraw-Hill companies Daniels. Accessed Oct. p. 8th edn. (1995) ‘McDonald’s cooks worldwide growth’. http://en. 20. 8th edn. W. J.References Hill. 2011 http://www. Accessed Sept. Vignali.L. (2001) ‘McDonald’s: “think global. J. C. New York: Free Press. 2.wikipedia. New York: The Free Press. (1998) International Business: Environments and Operations. Reading. (1985) Competitive Advantage. Vol. Advertising Age International. (1980) Competitive Strategy. International business: competing in the global marketplace. Techniques for Analysing Industries and Competitors. L. (2011).org/wiki/List_of_countries_with_McDonald's_franchises. 2. M. pp. MA: Addison-Wesley. British Food Journal. and Radebaugh. act local” – the marketing mix’.E. Whalen. 2011. Porter. Porter.doingbusiness.5. July/August. M. No.org/data/exploreeconomies/vietnam/.97–111.
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