American Chains Famous for Quality in China

American Chains Famous for Quality in China

March 30, 2018

Why are American chains like Pizza Hut, Starbucks and McDonald’s experiencing fast growth and strong success in China?

Three key reasons: Strategic adaptations to the Chinese market and tastes, careful location planning, and adaptation to local cultural preferences in product and service design.

The Chinese have a great desire for goods and services they can trust.  Although some Chinese competitors have entered the market with copycat fast food offerings, many Chinese still want the authenticity, consistency, and high quality of well-known Western brands.

This post is based on the Eater article, Why China Loves American Chain Restaurants So Much, by Clarissa Wei, March 20, 2018. Image source: Ingram Publishing.

Discussion Questions

1. How do the operations strategies of Pizza Hut differ in China versus in the United States?

Guidance: Whereas Pizza Hut is a relatively less expensive, casual, fast food eatery in the United States, in China it’s an upscale, date-night spot that often requires reservations. Thus, a focus on high quality and service is important in China, whereas in the U.S. the strategy is more focused on short processing time and low cost.  This is true, interestingly, even though the standard of living and Continue reading

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NBA All-Star Game at Staples Center? Slam Dunk!

NBA All-Star Game at Staples Center? Slam Dunk!

For the third time, the 2018 NBA All-Star weekend will be held at Staples Center in Los Angeles.

The organizers underscore how experience with hosting major events such as the Grammy Awards and the NBA Finals facilitates the planning and execution of a successful project. Despite being planning pros, though, it took two years of intense preparation to make a slam dunk.

This post is based on the Los Angeles Times article, When the NBA All-Star Show Comes to Town, It’s ‘Managed Chaos’, by P. Coro, February 15, 2018. Image source: PureStock / SuperStock.

Discussion Questions

1. Projects are said to involve nonroutine activities. Can hosting the All-Star weekend at the Staples Center be considered a project if the event already took place in Los Angeles in 2004 and 2011?

Guidance: Discuss the characteristics of projects: unique operations, limited time frame, large number of activities, high cost, variety of skill requirements, multiple teams, etc. Despite past experience with similar projects at the Staples Center (non-unique), the activities are hardly “routine.” Moreover, new infrastructure and programs create new logistical challenges. This project does involve a limited time frame, a very large number of activities, and a high cost. Continue reading

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