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The Rationale for McDonalds to be in Japan before and after Tohoku - Essay Example

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The author of the paper gives detailed information about the background and main reasons for McDonald's going to Japan market, such as increasing sales and profit, and describes the effects of Tohoku earthquake on McDonald's and other multinationals…
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The Rationale for McDonalds to be in Japan before and after Tohoku
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Download file to see previous pages They had taken over the business, “The Airdome” from their father McDonalds who was selling Hamburger and ready juice and renamed it “McDonalds Famous Barbeque”. Initially there were a number of items in the menu but after realising that the bulk of their profits were in burgers, they decided to stick to burgers only. Later through franchising, the business started spreading into other states of America for example Arizona. This was a suggestion by a business partner, Rey Kroc, milk-shake-mixer machine vendor who realised they were using some of his machines. The chain started growing and the first in United Kingdom was opened in 1974 and later in Japan in 1978(Yuece, 2006).
The 5000th restaurant was opened in Kanagawa (Greater Tokyo area), Japan, in 1978. This was in collaboration with an export Giant known as Fujita. He took McDonalds through a cultural adaptation that saw the Company getting accepted in Japan. The name McDonalds was even changed to suit Japanese pronunciation, the menu was changed to incorporate Japanese menu. Thereafter, McDonalds has expanded its operation in so many other countries with the decision to expand being driven by so many factors.
The main reason McDonalds going to Japan was to explore and discover new markets to increase sales and profit. During this time, other businesses like Wendy’s, Hardees, and many others, using model similar to McDonalds’ had come up and were directly competing with McDonalds, thus the US market was becoming more and more saturated. There emerged a “Burger-War” that was characterised by intensified and heavily funded market campaigns. Some like Wendy’s reported losses while others like Hardees struggled to stay in business. McDononalds had to rethink its strategies and Go into foreign countries like Japan to remain profitable. Japan was recovering from effects of Second World War. The support from its ...Download file to see next pagesRead More
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