Watch this 15 minutes video, featuring an interview with a former KFC executive on KFC’s success in China and how it exploited a first-mover advantage back in 1987 when the fast-food operator opened its first outlet near Tiananmen Square in Beijing.

During its first 20 years in China, KFC opened more than 2,000 other restaurants across the country as part of its rapid growth strategy - a phenomenal achievement for any industry or company.

Ask students to examine the role and impact of globalization and international trade on the growth and evolution of KFC's multinational business in China. Also ask them to consider the impact of KFC's operations on the host country.

Watch this 5-minutes video interview with the CEO of LEGO, talking about the privately held company’s organic growth strategy, built on the multinational company's corporate culture of creativity and innovation.

Business management terminology used during the interview include:

• market segmentation

• innovation

• competitive advantage, and

• finance

Joergen Vig Knudstorp, CEO of LEGO, mentions how the multinational company increased its profit and market share in 2012 as demand for its new building block sets for girls (LEGO Friends) boosted sales growth.

LEGO’s story is rather unique as it was relied only on organic growth. The Danish multinational company has never made an acquisition. Instead, it focuses new product development and a culture of innovation. The multinational company also relies on its strategy of collaboration with leading movie makers around the world to generate interest in its products. Examples include the following toy sets:

• Disney’s Cars, Toy Story and Star Wars

• Marvel’s (owned by Disney) Spider-Man

• Rovio’s Angry Birds

• DC Comics’ Batman

• Universal Pictures’ Jurassic World and Back to the Future

• Columbia Pictures’ Ghostbusters

• And of course, its very own LEGO Movie

No doubt, such strategy has helped to successfully spur LEGO’s sales revenue, profits and growth. LEGO’s strategy is summed up nicely by CEO’s statement: “We want to be the best, not the biggest”.

 Watch this animated video about the history of LEGO and how the founder and his family built an empire.

This is a fantastic and entertaining 45-minutes video documentary about the growth and evolution of McDonald’s, one of the world's largest multinational companies. There are some excellent links to many aspects of the Business Management course, including aspects of corporate culture and contrasting cultural dimensions. The video also features a former Four Seasons chef who talks about his career move to the McDonald's, while the company's expansion in China and concerned nutrition-conscious customers are also explored.

This CNBC documentary looks at the history and working philosophy behind the world's largest fast-food corporation, featuring a number of interviews and examples that students can use for Unit 1.5 Growth and evolution as well as developing their application skills (using real-world examples).

 Click the hyperlink to watch the video on Vimeo.

Questions for students

1. Who was the founder of McDonald’s restaurants?

2. How much is McDonald’s annual turnover?

3. How many calories are there in a Big Mac meal?

4. Back in the 1950s, how much did it cost to open a McDonald’s store?

5. How much does it cost today to buy a McDonald’s franchise?

6. What is the best-selling product in McDonald’s?

7. How much does a McDonald’s manager earn?

8. How many countries does McDonald’s operate in?

9. In which year did McDonald’s report its first ever quarterly loss?

10. What was the cause(s) of this loss?

11. How much was invested in new stores as part of McDonald’s growth strategy in the early 2000s?

12. What “double blow” did McDonald’s experience?

13. What premium product did McDonald’s introduce to its breakfast menus?

14. What percentage of McDonald’s revenues in the USA comes from the breakfast menu?

15. What is the largest burger sold at McDonald’s?

16. How many children in the USA are considered to be obese (overweight)?

17. According to Marian Nestle (nutritionist), what are the consequences of eating too much fast food?

18. According to McDonald’s, only one other character is more globally recognized than Ronald McDonald. Who?

19. How many McDonald’s outlets of there in Hong Kong?

20. What cultural problems did McDonald’s face with the introduction of the Drive Thru in China in November 2005?

21. What type of growth strategy did McDonald’s use with Sinopec to boost the number of Drive Thru outlets in China?

22. What advantage does KFC enjoy over McDonald’s in its operations in China?

23. What has become the latest ‘Chinese’ food?

24. What percentage of McDonald’s outlets operates in foreign countries?

25. Reflections: What was the most interesting thing about McDonald's that you discovered from watching this video?

 Teacher only box

1. Who was the founder of McDonald’s restaurants?

Ray Kroc (1955)

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2. How much is McDonald’s annual turnover?

$21 billion

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3. How many calories are there in a Big Mac meal?

1,430 calories and 59 grams of fat

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4. Back in the 1950s, how much did it cost to open a McDonald’s store?

$30,000

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5. How much does it cost today to buy a McDonald’s franchise?

$1,000,000 or more

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6. What is the best-selling product in McDonald’s?

French fries

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7. How much does a McDonald’s manager earn?

$100,000 and above per year; McDonald's owner/operators often earn $1 million or more annually; McDonald's successful owner/operators may work 14-20 hours per week, but they reap the financial benefits; They rely on store managers and operations managers to run their busy franchises

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8. How many countries does McDonald’s operate in?

118 countries

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9. In which year did McDonald’s report its first ever quarterly loss?

2002

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10. What was the cause(s) of this loss?

Due to a lack of strategic focus; growth strategy including opening 2,000+ restaurants a year which is simply not sustainable; poor customer service (such as cold food and dirty washrooms)

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11. How much was invested in new stores as part of McDonald’s growth strategy in the early 2000s?

$4 billion

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12. What “double blow” did McDonald’s experience?

The CEO died of a heart of attack (at a McDonald's convention!) and his successor also passed away very shortly after due to cancer

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13. What premium product did McDonald’s introduce to its breakfast menus?

Coffee – attracting customers from Starbucks

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14. What percentage of McDonald’s revenues in the USA comes from the breakfast menu?

25% (25 cents from each dollar of sales at McDonald's)

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15. What is the largest burger sold at McDonald’s?

Double Quarter Pounder

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16. How many children in the USA are considered to be obese (overweight)?

9 million; Large servings and unhealthy option choices are major contributing factors to this

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17. According to Marian Nestle (nutritionist), what are the consequences of eating too much fast food?

Blood pressure goes up, as does people's weight, which is not sustainability; This is one reason why McDonald's hired its head chef ("Chef Dan") to lead the food innovation department, where he develops the products necessary to satisfy a changing society; New additions mentioned in the video include  Asian chicken salad, fruit and yogurt parfait, and the snack wrap

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18. According to McDonald’s, only one other character is more globally recognized than Ronald McDonald. Who?

Santa

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19. How many McDonald’s outlets of there in Hong Kong?

200 in HK, and over 800 in mainland China

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20. What cultural problems did McDonald’s face with the introduction of the Drive Thru in China in November 2005?

Cultural difference - the Drive Thru was a new concept to the Chinese in late 2005, so customers did not know how to use such a service; People ordered using the Drive Thru service but then took their food into the restaurant to eat their food! Hence, there is a need for training so workers can guide their customers

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21. What type of growth strategy did McDonald’s use with Sinopec to boost the number of Drive Thru outlets in China?

In July 2006, McDonald's opened its first Drive Thru with Sinopec (the Chinese state oil company, with 30,000 outlets); This can be described as a strategic alliance or joint venture between McDonald's and Sinopec

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22. What advantage does KFC enjoy over McDonald’s in its operations in China?

KFC has twice the number of restaurants in China than McDonald's

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23. What has become the latest ‘Chinese’ food?

Big Macs - a clear sign of globalization due to MNC business activity

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24. What percentage of McDonald’s outlets operates in foreign countries?

More than 50%

25. Reflections - What was the most interesting thing about McDonald's that you discovered from watching this video?

Answers will vary between students, but encourage them to make links to:

• Unit 1.5 Growth and evolution, such as internal growth through expansion in overseas markets, and external growth strategies such as the use of strategic alliances.

• The importance of corporate and national cultures (Drive-Thru in China), and business strategy (McDonald's growth strategy given it earns more than half of its revenues from outside of the USA) and change as a key concept (menu updates to suit societal changes in attitudes towards healthier food choices).

 Download a PDF copy of the worksheet to use with your students here.