Case Study McDonald’s Worksheet 4 Worksheet 4 The Localization of McDonald’s p. 1 The Localization of McDonald’s Refer to Worksheet ‘A Brief Introduction to McDonald’s’ and find out the respective years in which McDonald’s branches in Tokyo, Hong Kong, Taipei, Seoul and Beijing were established. Tokyo 1971 Hong Kong 1975 Taipei 1984 Seoul 1988 Beijing 1992 Read the following information: Tokyo The early 1970s saw the maturing of a rich middle-class, and their children grew to become a new generation of consumers. They can afford to eat out frequently. McDonald’s took off was in line with the rise of the younger generations Hong Kong The day when McDonald’s opened in Hong Kong symbolized the beginning of Hong Kong’s permanent economic take-off. Hong Kong was becoming an international commercial centre as well as an entrepot for China trade. The middle-class rapidly replaced the post-war labour class. Taipei Taiwan was gradually taking off to become a major player in world electronics and computers. During this time, the middle-class began to have extra money to engage in leisure activities. Case Study McDonald’s Worksheet 4 The Localization of McDonald’s p. 2 Seoul The South Koreans were beginning to take to consumerism as a lifestyle. Children in South Korea became very keen on hamburgers, pizzas and American-style fried chicken. Many parents who used to be against imported goods would hold birthday parties at McDonald’s for their children. Beijing Since the economic reforms in the late 1970s and early 1980s, the family structure in the big cities of China has undergone rapid changes. By the mid-1990s, birth rates had dropped and parents were willing to spend money on their children. McDonald’s made good use of this opportunity and expanded quickly all across China. The 600 th branch Mac restaurant was opened in the year 2003. 1. According to the above extract, what is the relationship between McDonald’s business development and social and economic factors on the local level? Suggested Answer Social factor: formation of the middle-class; emergence of the nuclear family; falling birth rates; parents’ willingness to spend money on children. Economic factor: economic take-off; formation of consumer life style. McDonald’s in the Eyes of People Read the following extracts and answer the questions. A. Before 1997, McDonald’s food here was the cheapest in the world. Young people gathered with their friends at McDonald’s, while old people came here to enjoy the air conditioning. Visiting McDonald’s means that we are chasing after American culture? I never thought of that before! Case Study McDonald’s Worksheet 4 The Localization of McDonald’s p. 3 To us, McDonald’s stands for American culture and the promise of modernization. McDonald’s is effective in its service and management. It provides a good eating environment and its food is fresh. What we yuppies like most are the mood, its dining atmosphere, and the friendly service here. Consuming at McDonald’s reflects our status. B. McDonald’s is the place we high school students like most for hanging around. We gather here every day from 3 to 6 p.m., eating while doing our homework. I like pure soya milk and corn soup. McDonald’s is the entertainment centre for the ‘good’ students and not one for the C. ‘bad’ students. So mum and dad are comfortable with us being here. McDonald’s here stands for American culture. It reflects D. the complex and contradictory relationship between America and our country in the past 50 years. We like going to McDonald’s because it doesn’t offer wine like traditional restaurants do. Even without the company of friends, I can spend a lot of time in this comfortable environment. Case Study McDonald’s Worksheet 4 The Localization of McDonald’s Because of the recent p. 4 economic downturn, McDonald’s is introducing a ‘super-low price’. During weekdays, hamburgers and cheese hamburgers are sold at half price. I like the “Made for you” system introduced last year, for which food is prepared only when an E. order is placed. It has become very popular since then. 2. A From the above five statements, guess where the speakers come from (Hint: all of them are from Southeast Asia). Support your answer with evidence from what they say. From Evidence Hong Kong “Before 1997, the price of a McDonald’s here is the cheapest in the world.” Compared to prices in other places, McDonald’s food in Hong Kong was quite cheap. B Beijing “Consuming at McDonald’s also reflects our status”. Beijing people think that only the better-off people can afford eating at McDonald’s. C Taipei/Taiwan “I like pure soya milk and corn soup.” McDonald’s in Taiwan provides these kinds of food. Case Study McDonald’s D Seoul/Korea Worksheet 4 The Localization of McDonald’s p. 5 “It also reflects the complex and contradictory relationship between America and our country in the past 50 years.” Since the separation of Korea into North and South after the Korean War in 1950-53, American troops have stationed in South Korea. South Koreans who have a strong nationalist sentiment have mixed feelings towards the long-term stationing of American troops. E Tokyo/Japan “the recent economic downturn” Japan has been in economic downturn in the last ten years Case Study McDonald’s 3. Worksheet 4 The Localization of McDonald’s p. 6 How do A and B’s view different about McDonald’s? Suggested Answer A (Hong Kong people) sees McDonald’s as a cheap restaurant; whereas B (Beijing people) regards McDonald’s as a high-class restaurant. 4. A, B and C all mentioned why they liked to eat at McDonald’s. Do you like to hang around at McDonald’s? Why? Are your reasons similar to A, B and C mentioned? 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