MCDONALDS IN VIETNAM

By Ayodeji Akin Abiri

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Table of Contents Abstract 1.0 Introduction 1.1 Background note 1.2 Global Strategy 2.0 McDonalds 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

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McDonald Enters Vietnam Abstract This paper analyzes the globalization options for McDonalds by going into Vietnam. The paper explores McDonalds 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 McDonalds. Key words: globalization, strategy, fast food, expansion 1.0 Introduction

McDonalds Corporation is the worlds largest hamburger fast food chains which serves up to 64 million customers daily. McDonalds 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 McDonalds 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 McDonalds as it added significantly to the companys revenue and operational earnings in the past 30 years. McDonalds 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 McDonalds home market-the US, China was the major growth market with 1000 restaurants and over 60,000 employees as of 2010. In Asia, McDonalds became the symbol of modern lifestyle in countries like China, Thailand, India and Indonesia. However it remained American in its services, menu, and administration. McDonalds brought in difference in its ingredients and products to fit the Asian palate and culture. McDonalds 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 McDonalds 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. McDonalds hired 20 carhops to provide fast food service to customers. The McDonalds 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 McDonalds to introduce self-service, serve more customers, increase speed, eliminated carhops and reduced the price of hamburger by half. The McDonalds brothers in 1953 decided to go into franchising as a mandate to expand their business. A franchisee needed a thousand dollars to receive the McDonalds name, one week training from Art Bender, and a basic description of McDonalds service system. The role of Bender is to train staff at the franchisees
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restaurant, make contact with bakeries and butchers for supplies, supervise equipment installation, etc. The first McDonalds franchise was Neil Fox, who started a drive-in restaurant in Phoenix, Arizona. It became an example for the McDonalds 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 McDonalds 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 McDonalds restaurants that opened and he persuaded the McDonalds brothers to open more outlets. But the McDonalds brothers were content with the present operations and were not interested in expanding the business. Kroc applied for a McDonalds franchise and he applied his experience as a salesman to create an effective franchising business. He retained McDonalds formula and shaped the operating principles of quality, cleanliness, service and value. Under Ray Krocs supervision, McDonalds developed to be the largest fast food chains in the US. (Refer to Exhibit 1 for a brief note on McDonalds growth) 1.2 Global Strategy

After attaining success in the US, McDonalds 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. McDonalds 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, McDonalds opened a restaurant that was the biggest joint venture between a food company and the Soviet Union. McDonalds 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, McDonalds 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. McDonalds had strong presence in Canada, UK, Japan, France and Australia. These countries accounted for 37 percent of McDonalds revenue in 1991. McDonalds 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 McDonalds 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. McDonalds 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 McDonalds to change its strategy by stopping its plan to open new stores and focus on developing its current restaurants. McDonalds 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 McDonalds outlets of which about 80 percent were franchised. (Refer to Exhibit 2) The key to McDonalds international success is franchising. Franchising to local people helped the companys operations in foreign countries easy in terms of product and service. McDonalds generated US$4.9 billion in 2007 due to growth in global operations. The companys entry into new markets showed its flexibility with respect to customs and local food preferences. McDonalds 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 McDonalds menu were the roots for the companys international success. The global strategy that was adopted was called Plan to win which focused on the five Ps of marketing- People, Place, Products, Promotion and Price.

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The key to McDonalds 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. McDonalds did not serve pork, maintained the Halal menus and they observed the Islamic laws for preparing food. In Japan, McDonalds brand name was changed to Makudonaldo to make the pronunciation easy for the Japanese consumers. In Israel, McDonalds 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. McDonalds 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 McDonalds 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 McDonalds 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 McDonalds 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, McDonalds has always been delivering value to its customers.

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2.0

McDonalds in Vietnam

Vietnam is a huge potential to McDonalds 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. Vietnams 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

McDonalds is going to adopt the Green Field approach in Vietnam. The wholly owned subsidiary will be the best option for McDonalds 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 McDonalds restaurants. The city is also suitable as a start up due adequate infrastructure, government support, low tax and convenience. McDonalds 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 McDonalds 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 McDonalds 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, customers interest and so on.

Economic

Member of WTO. Steady economic growth.

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McDonalds Enters Vietnam

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 Vietnams 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. McDonalds SWOT Analysis of HCM City

2.3

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 Countrys 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 McDonalds will be able to implement its QSCV Principle McDonalds Quality assurance and good customer service are better than competitors

Aggressive competitive strategy Low price of products Ability to learn from competitors mistakes

Weakness

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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. Government policies on fast food and healthy meal. Outbreak of bird flu.

2.4

Expansion Strategies

McDonalds 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, McDonalds 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 McDonalds because Vietnam is country developed in agriculture. McDonalds will ready get raw materials like milk, vegetables and potatoes while the company can export the excess supplies to other countries. McDonalds 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, McDonalds 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. McDonalds as a franchising company has three fourth of its stores worldwide as franchises. Franchising in Vietnam will take place after the McDonalds 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 governments resolution to reduce tariffs on imported cars starting January 1, 2006. This resulted in an increase in peoples 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, McDonalds will introduce the drive-thru model in Vietnam. The drive-thru model has always been an integral part of McDonalds 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.

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To be profitable in Vietnam, McDonalds will need to localize its products like its competitor KFC which added some local products on its menu. A balance between local cuisines and McDonalds traditional products will be very important in the Vietnamese market. McDonalds will introduce dishes like McThai that will combine a variety of herbs, vegetables and meats.

3.0

Competition and Challenges

McDonalds 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.

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McDonalds can also face products imitation from Vietnams local restaurants. However, the biggest threats can come from food safety and disease outbreak such as bird flu 3.1

Recommendations McDonalds 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.

McDonalds should conduct a comprehensive market survey of competitors store locations in Vietnam combined with demographic data that will help McDonalds management discern market gaps, improving profitability and overall efficiency.

McDonalds should continue to have the right products at the right price. Consumer taste inclinations are changing daily and McDonalds must respond by providing a variety of taste and price preferences in order to maintain their competitive advantage alongside other fast food companies

McDonalds should ensure their outlets are showplaces. The green field entry strategy should be used to build restaurants that will always look fresh and contemporary.

McDonalds 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 McDonalds will encounter some tough challenges as it grows to new markets. Fundamental to its prospective success will be maintaining its core strengthsa persistent emphasis on consistency and qualitywhile prudently testing with innovative options. These new initiatives could include identifying more with the local market and
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introducing sophisticated restaurants under novel brands that wouldnt be burdened with McDonalds fast-food image. McDonalds 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

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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

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Exhibit 2: Countries with McDonalds Franchises

Number of currently operating outlets

Country

Date

First outlet location

Notes

United States

May 15 , San 1940 Bernardino, California.

13,381 (source: May 2000)

Canada

June 1, 1967

Richmond, British Columbia.

1,400 (source: March 2007)

Novembe Puerto Rico r 10, 1967

First McDonald's in Latin America and in the Caribbean.

Septemb U.S. Virgin er 4, Islands 1970

Decembe San Jos, 4th street, 36 (source: between 1st and Central Costa Rica r 28, March 2011) 1970 Avenue.

Third country (not U.S. possession) and first outlet outside Northern America where McDonald's opened.

Guam

June 10, 1971

First outlet in Oceania and first outlet outside the Americas.

Japan

July 20, 1971

Tokyo

3,598 (source: First outlet in Asia 2004)

Netherlands

August Zaandam 21, 1971

225 (source: 2011)

First outlet in Europe.

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Panama

Septemb er 1, 1971

37 (source: 2009)

10

Germany

Novembe r 22, 1971

First outlet in West Germany: outlets in the 1,361 (source: former East February 2010) Germany opened in 1991.

11

Australia

May 30, 1971

Yagoona, New South Wales[5]

First outlet 780 (Sep 2011) in Oceania (in a sovereign state)

12

France

June 30, 1972

First outlet in Crteil in 1972 even though 1,161 (source: McDonald's officially December recognizes the first 2009) outlet in Strasbourg in 1979

13

El Salvador

July 20, 1972

11 (source: Sept 2009)

14

Sweden

October Kungsgatan 27, 1973 4, Stockholm

230 (source: December 2009)

First outlet in Scandinavia.

15

Guatemala

June 6, 1974

80 (source: 2011)

16

Curaao

August 16, 1974

17

United Kingdom

October 1, 1974

Woolwich, London

1,250 (United Kingdom-wide, source: 2006)

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18

Hong Kong/ January Hong Kong 8, 1975

Paterson Street, Causeway Bay,Hong Kong Island.

200 (source:20 09)

19

Bahamas

August 4, 1975

20

New Zealand

June 7, 1976

Founded in New Zealand by Wally and Hugh Morris First South Porirua Central, Wellingt 152 (Sep 2011) Island restaurants on opened atLinwood and Merivale , both Christchurch, on 3 November 1987

21

October Switzerland 20, 1976

148 (source: March 2010)

22

Ireland

May 9, 1977

Grafton Street, Dublin

79 (source: February 2009)

23

Austria

July 21, 1977

Schwarzenbergplatz, Vi 168 (source: enna. 2009)

24

Belgium

March 21, 1978

64 (source: 2004)

25

Brazil

February Rio de Janeiro 13, 1979

560 (source: 2009)

First outlet in South America.

26

Singapore

October Liat Towers, Orchard 20, 1979 Road

121 (source: 2004)

27

Spain

March

276 (source:

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10, 1981

2004)

28

Denmark

April 15, 1981

83 (source: December 2009)

29

Septemb Morayta, Sampaloc, Ma 320 (source: Philippines er 27, nila 2011) 1981

30

Malaysia

April 29, Jalan Bukit Bintang, 1982 Kuala Lumpur[10]

194 (source: 2009)

First outlet in a Muslimmajority country.

31

Norway

Novembe r 18, Nedre Slottsgate, Oslo 1983

68 (source: December 2009)

32

Taiwan

January Taipei City, Taiwan 28, 1984

338 (source: 2004)

33

Andorra

June 29, 1984

3 (source: 2009)

34

Wales

Decembe r 3, 1984

35

Finland

Decembe r 14, Tampere 1984

93 (source: 2004)

36

Thailand

February 23, 1985

88 (source: 2004)

37

Aruba

April 4, 1985

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38

Luxembour July 17, 1985

7 (source: 2009)

39

Venezuela

August 31, 1985

197 (source: 2009)

40

Italy

October near Piazza di Spagna, 15, 1985 Rome

392 (source: 2009)

41

Mexico

October 29, 1985

500+ (source: 2011)

42

Cuba

April 24, Guantanamo Bay 1986

1 (source: 2009)

Guantanamo Bay

43

Turkey

October Istanbul 24, 1986

160 (source: 2010)

First outlet in the Greater Middle East.

44

Argentina

Novembe 187 (source: r 24, Belgrano, Buenos Aires 2009) 1986

45

Macau/ Macau

April 11, 1987

Then Portuguese territo ry; McDonald's would only open a restaurant in Portugal itself 4 years later

46

Scotland

Novembe r 23, Dundee[13] 1987

Second store was Kirkcaldy. 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, 1988

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Serbia 48 South Korea March Seoul 29, 1988 243 (source: 2011)

Balkans.

49

Hungary

April 13, Budapest[14] 1988

100 (source: 2009)

Second communist country, first Warsaw Pact member, thus first outlet behind theIron Curtain.

Soviet 50 Union/ a 51 China Russi

January 31, 1990 October 8, 1990 Novembe r 19, 1990 February Sarinah, Jakarta 23, 1991 May 23, 1991

270 (source: 2010) 850 (August 2010) 69 (source: 2009) 110 (source: 2009)

Shenzhen

52

Chile

53

Indonesia

54

Portugal

CascaiShopping, Cascai 91 (source: s 2004) 32 (source:2006)

United October 55 Kingdom North Belfast 14, 1991 ern Ireland Novembe r 12, 1991 Novembe r 18, Montevideo 1991

56

Greece

48 (source: 2004)

57

Uruguay

58

Decembe Martinique r 16, 1991 Czechoslov March 20, 1992 akia 72 (source: 2006) First outlet in Czech Republic.

59

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60

Guadeloupe

April 8, 1992 June 17, 1992 Novembe r 20, 1992 Decembe r 12, 1992 1 (source: 2004) First outlet in Africa McDonald's is now present in all continents except Antarctica. 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, Casablanca 1992

Northern 65 Marianas

March 18, 1993

66

Israel

October 14, 1993 Decembe In opova Street, r 2, 1993 Ljubljana Decembe r 8, 1993 June 15, 1994 July 26, 1994 July 30, 1994 October 20, 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

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r 10, 1994 Decembe r 15, 1994 Decembe r 15, 1994

2011)

75

Bahrain

14 (source: 2010)

76

Latvia

8 (source: First outlet in January 2011) the Baltics.

Decembe United Arab 77 r 21, Emirates 1994 78 Estonia April 29, 1995 June 16, 1995 July 7, 1995 8 (source: 2011) 126 (source: 2010) 8 (7 in Malta, 1 in Gozo, source: 2009) 78 (source: November 2009) 25 (source: 2011) 129 (source: 2009)

79

Romania

80

Malta

81

Colombia

July 14, 1995 October 14, 1995

Centro Andino, Bogota

82

Slovakia

83

Novembe South Africa r 11, 1995 Decembe r 13, 1995 Decembe r 14, 1995

84

Qatar

7 (source: 2003)

85

Honduras

86

Decembe Saint Martin r 15, 1995

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87

Croatia

February Zagreb 2, 1996 March 2, 1996 May 1, 1996

19 (18 opened, 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

Liechtenstei May 3, 1996 Lithuania May 31, 1996 June 12, 1996 October 13, 1996[18] October 18, 1996 Novembe r 7, 1996 Novembe r 21, 1996

91

92

Cyprus

93

India

Delhi

94

Peru

95

Jordan

96

Paraguay

6 (source: 2009)

Novembe Dominican 97 r 30, Republic 1996 French Polynesia Belarus Decembe r 10, Tahiti 1996 Decembe Minsk r 10, 1996 6 (source: 2011) The company claimed this as McDonald's "100th country" although this calculation included many non-sovereign

98

99

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territories even though McDonald's shut down in Iceland in 2009 it is the 99th country as of November 1, 2009. 10 0 10 1 Ukraine May 28, 1997 August 22, 1997 6 (source: 2010) 10 (source: 2007) Kiev 72 (source: 2011)

Yemen

Septemb 10 Republic of er 6, 2 Macedonia 1997 10 3 10 4 Ecuador October 9, 1997 Decembe r 14, 1997

Runion

10 5

Decembe Isle of Man r 15, 1997 Decembe r 18, 1997 April 30, 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. 2 (source: 2010)

10 6 10 7

Suriname

Moldova

10 8

Nicaragua

July 11, 1998

10 9

Lebanon

Septemb er 18, 1998

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11 0 11 1 11 2 11 3 11 4

Pakistan

Septemb er 19, 1998 October 16, 1998 Borgo Maggiore.

25 (source: 2005)

Sri Lanka

July 6, San Marino 1999 Gibraltar August 13, 1999

1 (source: 2010)

Azerbaijan

Novembe Baku r 6, 1999 February 22, 2000 Septemb er 29, 2000 July 4, 2001 May 1, 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, 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. One location in Baghdad for the U.S. Army, but there is also a knockoff called MaDonal. After 10 some years of trying to enter the Bosnian market with no success, McDonald's opened its first restaurant in BiH on

12 1

Iraq

August Baghdad 10, 2006

1 (source: 2006)

12 Bosnia and July 20, 2 Herzegovina 2011[21]

Sarajevo

2 (source: 2011)

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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. Currently slated to reopen 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.

12 Trinidad & 3 Tobago

August 2011

Westmoorings, Port of Spain

1 (source: 2011)

Source: www.wikipedia.com

Exhibit III The Food of Vietnam - Vietnamese Food Increasingly 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 Vietnams 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.
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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. Food of three regions Like everything else, Vietnamese food also differs geographically from location to location. North Vietnams 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. Hues 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

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(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 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

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References Hill, W.L. (2011). International business: competing in the global marketplace, 8th edn, McGraw-Hill companies Daniels, J. and Radebaugh, L. (1998) International Business: Environments and Operations, 8th edn, Reading, MA: Addison-Wesley. Porter, M.E. (1985) Competitive Advantage, New York: The Free Press. Vignali, C. (2001) McDonalds: think global, act local the marketing mix, British Food Journal, Vol. 103, No. 2, pp.97111. Porter, M.E. (1980) Competitive Strategy, Techniques for Analysing Industries and Competitors, New York: Free Press. Whalen, J. (1995) McDonalds cooks worldwide growth, Advertising Age International, July/August, p.5. http://en.wikipedia.org/wiki/List_of_countries_with_McDonald's_franchises. Accessed Oct. 2, 2011 http://www.doingbusiness.org/data/exploreeconomies/vietnam/. Accessed Sept. 20, 2011.
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http://news.vneconomy.vn/2010041603283251P0C1/for-your-dining-pleasure.htm http://www.guidevietnam.com/travel/vietnamese-food-cuisine.html. Accessed Oct.3 2011 http://vietnambusiness.asia/112000-cars-sold-in-2010-down-6/ Accessed Sept 30, 2011 http://www.guidevietnam.com/travel/vietnamese-food-cuisine.html. Accessed Sept 30, 2011 http://www.business-in-asia.com/vn_automobile_industry.htm. Accessed Sept 30, 2011 http://www.eoincostello.ie/pdf_doc/Global_Marketing_and_Competitiveness_Assignmen t.pd0f. Accessed Sept 23, 2011 McDonalds Grows with the Country, www.en.ce.cn, October 2, 2011 Annual Reports, McDonalds www.mcdonalds.com

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