Han T. Oo
AC 9

McDonald’s Corp

Quality of Operation in term of management

McDonald used to be one of the best names out there famous for its fast food, but as the world is becoming modernized and globalized, McDonald needs to keep up with its new competitors, which are more creative in offering in terms of customer service and variety. For that reasons, management has faced a lot of problems in their international businesses, especially in China. One of the issues McDonald faced in China is lack of appreciation of cultural and legal system differences. The lesson McDonald learned is that “ In China, you have to play Chinese rules.” The issue was when a new Chinese based Fast Food Company created a similar name to McDonald in Chinese Language; McDonald sued the company in Chinese court. But McDonald did not have the legal connections, as does the local Chinese fast food company, McDonald was not able to run the business in Chinas as the way the company expected. Therefore management of multinational corporations must understand the differences in culture of doing business in foreign country. Not only that, the board of directors and shareholders’ interests must be the priority interest of the company rather than the management acting on their own interest. As the McDonald’s company management faces numerous issues in China, the company lacks of recognition of the important of building business relationships cost a lot not only in terms of profit but also in term