The paper "Managing International Business" is a great example of a Business essay. With globalization being embraced by most businesses, the business environment has changed tremendously even as companies scramble for new markets. Euromonitor (2010c) argues that the number of companies operating in the American fast food industry has gone up in the recent past, causing stiff competition and to some extent saturation of the market. Market players are looking for other markets to invest and maximize their profit in the future. One such player is McDonald’ s; a fast food restaurant with headquarters in Texas US. The company has realized how risky it is to focus on one market (the US) in the current business environment.
The risk is contributed by increased competition from other market players such as Dominos, KFC, and Subway systems among others (IBISWorld 2014b). The company is targeting potentially growing markets of China and Singapore. As such, this report analyzes entry strategy and different challenges such as economic, political, and cultural influencing McDonald's entry into Asian markets particularly China and Singapore. To put this discussion into perspective, this report will start by analyzing both Chinese and Singaporean fast food industries. 2.0 Chinese fast food industry The contemporary fast-food sector in China began fairly late together with the adoption of reforms in China.
KFC was the first to establish the first fast food outlets in Beijing, China in 1978, marking the fast-food market in the country (Euromonitor 2010a). In the ’ 80s and ’ 90s, some other fast food venture of Western Origin started entering this market and attained favorable success. Fast food of Chinese origin also started streaming into the market.
According to features of the fast-food market of Chinese origin, fast food is categorized into two main classes as Chinese and Western fast food (Chow et al. 2007, p. 699). Characterization of the Western fast foods is normally fried and roasted with a small number of key ingredients, slight condiments and ingredients are embraced. The major varieties of Western fast food are chicken nuggets, hamburgers, French fries, Pizzas, etc. which are usually accompanied by soft drinks (Lv & Brown 2010, p. 106).
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