First Challenge
McDonald’s has a lot of competition amongst in China, examples may include Kentucky Fried Chicken (KFC) and Mom and Pop food stands. When McDonald’s opened its first store in China in 1990, their rival KFC had already been there for three years. It is estimated that 1.900 KFC stores are opened in China, which is more than twice as many as the Golden Arches (McDonald’s). Besides KFC, McDonald’s has other competitions in China, such as Mom and Pop food stands. These businesses are usually owned by the same family generations in a single location , and their food are considered as traditional, convenient and cheap.
Second Challenge
Furthermore, the sanitation in China is another major issue for the McDonald’s. China is still considered as a developing country, and its food safety is a nightmarish problem where corruption is rampant and safe food handling practices are in doubt. Moreover, because McDonald’s is one of the major sponsors of the 2008 Olympics in Beijing, they want to provide customers a hygienic environment with sanitized meals.
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