0UNIT1McDonald’sBusinessModel:TheThree-leggedStoolLessonOneAudioScriptMcDonald’sCorporation(MCD)isoneoftheleadingfast-foodrestaurantchainsintheworld,touchingthelivesofpeopleeveryday.Astheworld’slargestchainofrestaurants,itprimarilysellshamburgers,chicken,frenchfries,milkshakes,softdrinks,etc.Thebusinessbeganin1940,witharestaurantopenedbybrothersDickandMacMcDonald.Initially,theyjustownedahotdogstand.Butafterestablishingtherestauranttheyservedaround25items,whichweremostlybarbecued.Itbecameapopularandprofitableteenhangout.Theirintroductionofthe“SpeedServiceSystem”in1948establishedtheprinciplesofthemodernfast-foodrestaurant.ThepresentcorporationdatesitsfoundingtotheopeningofafranchisedrestaurantbyRayKroconApril15,1955.Ineffect,KrocopenedhisfirstandtheoverallninthrestaurantinChicago,Illinois,andgavebirthtoMcDonald’sCorporation.In1958,therestaurantchainsoldits100millionthhamburger.In1960,Krocrenamedhiscompanyas“McDonald’sCorporation”.In1961,KrocconvincedtheMcDonaldbrothers1tosellthebusinessrightstohiminthecompany.Thushepurchasedthebrothers’equityforasumof$2.7millionandledtoitsworldwideexpansion.AsMcDonald’sexpandssuccessfullyintomanyinternationalmarkets,thecompanybecameasymbolofglobalizationandthespreadoftheAmericanwayoflife.Itsprominencealsomadeitafrequentsubjectofpublicdebatesaboutobesity,corporateethicsandconsumerresponsibility.LessonTwoAudioScriptSincesettingupthefirstMcDonald’sinChina,theWesternrestaurantchainhasbeenexpandingsteadilyandsuccessfully.Sofar,otherthanthehomemarket–theUnitedStates–ChinaistheNo.1growthmarketforMcDonald’s,withover1000restaurantsandover60,000employees.ChinaalsorepresentsonethirdofallcapitalexpendituresintheAsia-Pacific,MiddleEastandAfricaregion,wherethefast-foodgiantisin37markets.AccordingtoSkinner,vice-chairmanandCEOofthisworld’slargestfast-foodcompany,“We’vebeensteadilygrowingwithChinaforthepast20yearsandareveryexcitedforwhatthefutureholds,”hesays.2In1990,McDonald’schoseShenzhen,apioneerSpecialEconomicZoneinGuangdongprovinceborderingHongKong,toopenitsfirst500-seatstoreinthedevelopingmarket.McDonald’squicklywonoverthelocalconsumers,duetoitsmanyattractionslikeitsRonaldMcDonaldclown,GoldenArchesortheyellow“M”logo,BigMac,thesmilingattendantsandthequickservice.ThesuccessoftheShenzhenoutletpromptedMcDonald’stoexpanditschainnationwide.AndMcDonald’shasnotstoppedfromaggressivelyincreasingthenumberofitsoutletsinChina.Themainland’sfast-foodmarketisgrowingatarateof16percentperyear.“WearegoingtocontinueourgrowthatafasterrateinChina.Chinaisahugemarketwithgreatopportunitiesforbusinessesaroundtheworld,andit'snodifferentforMcDonald’s,”Skinneradds..HomeListeningInternationalbusinessisatermusedtocollectivelydescribeallcommercialtransactions(privateandgovernmental,sales,investments,logistics,andtransportation)thattakeplacebetweentwoormorenations.Usually,privatecompanies1)__undertake____suchtransactionsforprofit;governmentsfor3profitandforpoliticalreasons.Itreferstoallbusinessactivitieswhichinvolvecross2)border____transactionsofgoods,servicesandresourcesbetweentwoormorenations.Transactionofeconomicresourcesincludecapital,skills,people,etc.forinternationalproductionofphysicalgoods,andservicessuchasfinance,banking,3)___insuranceconstruction,etc.Theincreaseininternationalbusinessandinforeign4)investment___hascreatedaneedforexecutiveswithk...
