sses opportunities the business can pursue and threats that could negatively impact it. This type of analysis concludes with a plan on how the business can take advantage of opportunities and either overcome or minimize its threats.
In the past 10 years, Chinese government was loosen restriction foreign companies invested in China Market.
The general environmental forces that could influence or have influenced McDonald’s development in China
Demographic force: * Due to uneven wealth distribution in China, they applied the use of a tier pricing model to sell products at a range of prices for consumers with different purchasing power.
Political and government force: * Due to underpaying their part-time employees, the government implicated that the salary needed to be increased, so that they raised their cost at the same time.
Technological force: * With its technological know-how, it has developed its own internal supply network, including farms in China to sell to both the domestic and export market, helping it maintain stable and secure supply.
Social cultural force: * For teens’ and young adults’ growing appetite for Western food and nightlife, it had begun extending its business hours to 24 per day since the beginning of 2006. * For Changing Chinese lifestyle in the growing popularity of internet shopping among China’s younger generation, it partnered with Chinese online shopping site to attract internet users. * For fast-paced lifestyle of young Chinese, it launched home delivery service to expend over its original in-store service.
Economic force: * There is a continuous inflation in China. It makes McDonald’s products price has been raised increasingly every year. * The cost has increased due to the inflation, making its profit decreased in order to maintain competitive price to compete with other restaurants.