...THUNDERBIRD THE GARVIN SCHOO L OF INTERNATIONAL MANAGEMENT A07 -05 -00 15 KISHORE DASH McDoNALD's IN INDIA I do not see any thing wrong with McDonald\ doing business in India. A/fer all, if ts not McDonaldization that we know of 11 is a Big MaCcommodatw n. A Senior Bureaucrat in New Delhi In October 1996, McDonald's opened irs ttrst Indian ourlec in Vasant Vihar, a n affluent residential colony in India's capital, New Delhi. As of November 2004 , McDonald 's has opened a total of 58 restaura nts, mostl y in the northern a nd western parr of India (Exhibit 1). 1 While McDonald 's opened 34 restaura nts in five years (by 2001 ), 58 restaurants in eight yea rs (by 2004), it is now pla nning to add more than 90 new restaurants in the next three years. 2 Although the initial scenes of crowds lining up for days outside the M cDonald 's res taurants in Delhi and Mumbai are no longer seen, Indian consumer response to McDonald's products still remains very strong. The ten McDonald's I visited in Mumbai and Delhi were pac ked with young people, children , and yo ung p a renrs enjoying ice c reams, sp icy potato wedges (instead of the usual frenc h fries), and Happy M ea ls. The growth of M cDonald's in India is not as rapid as in China (Exhibit 4) . Bur irs growth is nevertheless impressive . How did McDo nald's d o it? How d id a hamburger cha in becom e so promi nent in a cultural z.one dominated by non-beef, non-pork, vegetarian, and regional foods such as chofa bhatura...
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...Starbucks Case Study: A Latte of Errors #1: Form the possessive singular of nouns by adding ’s or ’. Examples: The company’s value proposition included high quality coffee, excellent customer service, and store ambience. OR Starbucks’ value proposition included high quality coffee, excellent customer service, and store ambience. Exception: its and it’s The first (its) is the possessive form of a singular subject; the second is a contraction, meaning “it is.” #2: In a series of three or more terms with a single conjunction, use a comma after each term. Example: The company’s value proposition included high quality coffee, excellent customer service, and store ambience. #3: Contractions It is best to avoid the use of contractions in academic and professional writing. #4: Use the proper case of pronoun. Example: Starbucks is a singular noun. Just because it has an ‘s’ on the end of its name, does not make it multiple companies. Starbucks should make the $40 million investment in its stores. #5: Punctuation marks (commas, periods, semicolons, etc.) belong inside quotation marks. Example: Starbucks referred to each of its store employees as “partners.” #6: Lose and losing versus loose and loosing Lose: (verb) to fail to maintain or retain something; to come to be without Loose: (adjective) not firm, taut, or rigid; free from anything that binds or restrains Other rules to keep in mind: Choose a suitable design and stick to it...
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...THE GOLDEN ARCHES IN INDIA Introduction: The Golden Arches are the symbol of McDonald's, the global fast-food restaurant chain. Originally, real arches were part of the restaurant design. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and in the current Golden Arches logo, introduced 1968, resembling an "M" for "McDonald's. McDonald's overall business: Internationally, McDonald's is the largest chain of fast food restaurants, operating over 31,000 restaurants serving 46 million people in more than 118 countries (But now it is 33,000 restaurants and served on 68 million customers each day in 119 countries). In 1954, a man named Ray Kroc discovered a small burger restaurant in California, and wrote the first page of McDonald’s history. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. This can only be attributed to the fact that McDonald's management style and strategies are extremely effective when faced with the vast amount of issues it has in its sixty plus years of history. McDonald's business in India: McDonald’s success in global growth is exemplified in its achievement in infiltrating the Indian food market. This infiltration has been made famous due to management and strategic issues encountered by McDonald's from the macroeconomic...
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...What is McDonald’s doing right in India? What elements of its business strategy are working for it and how does it manage to get more out of its stores? McDonald’s made a very meticulous and calculated entry into India. Instead of getting the first mover advantage, McDonald’s purposely delayed their entry into India. In the early 1990’s many of the U.S. based fast food chains made their entry into the Indian market with some of the more notable competitors being KFC and Pizza Hut. McDonalds deliberately postponed their entry until 1996 to research various aspects of the Indian market. Much emphasis of their research was placed on Indian consumer tastes, product development, and it’s supply chain. The research that McDonalds did helped them execute a strategic plan of entry. This plan is summed up succinctly in their written strategy, “think global, act local.” As a part of their strategy McDonalds set up two joint ventures on a 50:50 basis with local entrepreneurs from Mumbai and Delhi. The West and South regions are managed by Hardcastle Restaurants (Amit Jatia) and the East and North regions are managed by Cannaught Plaza Restaurants (Vikram Bakshi). This localization strategy was imperative to adapting McDonald’s to the distinct Indian culture and allowed them to strengthen the back-end of the supply chain. In implementing the localization strategy they made a conscious effort to hire local people, purchase from local suppliers, architects, contractors, and materials when...
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...Standardisation vs. adaptation international marketing approach with regards to McDonald’s operations in India Introduction The central purpose of the study is to determine the best international marketing strategy for McDonalds in India and shedding light on these strategies- Standardisation or Adaptation. Background McDonald's™ is a pioneer in the foodservice industry with over 32,000 restaurants in about 130 countries. The brand is handled and overseen by two following business organisations in India: * Connaught Plaza Restaurants Private Limited, headed by Mr. Vikram Bakshi, JV Partner and Managing Director, East and North India * Hardcastle Restaurants Private Limited, headed by Ms. Smita Jatia, Managing Director (MD), West and South India McDonalds believes in Q-Quality, S-Service, C-Cleanliness and V-Value. This motto is their driving force in the Indian marketplace. For McDonalds, India was the first country wherein no-beef or pork products were served. McDonalds in India catered to wants and needs of the people, with different menus as well as food processing plants for vegetarian and non-vegetarian customers. Currently, in India there are 300 McDonalds. Discussion Standardisation approach is quite different from the adaptation international marketing approach. When the needs and wants of the target market are same, standardization strategy comes into the picture. On the other hand, if the wants and needs of the target audience are different, and also...
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...Executive Summary This documentation is mainly about the business operation of McDonald’s in India & how it applies their operation to interact with external environment. This discussed about the Porter’s five forces of models to imply the company’s strategies in details that helps to access the competitive environment in India. PESTLE analysis will give also the details about Political, Economic, Sociocultural and Technological, Environmental and Legal analysis and effects of this analysis on McDonald’s. Dunning eclectic framework provides to complete country’s advantages that helps the McDonalds to analysis India on the basis of how attractive India is in terms of market potential and investment risk.The study conducts a comprehensive study on the MacDonald which is one of the major players in the food services industry in India. The research tries to develop a case study which studies McDonalds and its business process very closely with a greater emphasis on major activities which it carries out in India. We have also discussed about market entry strategy of MacDonald in India. Usually McDonald’s follow franchising of entry mode but in India they followed the joint ventures of entry mode. They choose a busy residential area VasantVihar. Internationalization theory is also provide a prominent theory in international business regarding how firms expand overseas & it suggests that firms minimize the uncertainty associated with going abroad by adopting some kinds of internationalization...
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...McDonalds has become the most successful fast food chain in India, with over 40% of the market share due to their ability to adapt to the realities of India, and the dramatic cultural difference that exists in India. There are four major factors that contributed to the success McDonalds has seen in the Indian marketplace. McDonald's wanted to position itself as 'Indian' and an advocate of 'family values and culture', as well as being 'comfortable and easy'. At that same time, they wanted to communicate that they were committed to maintaining a quality service, cleanliness and offering value for money. Adapting the menu to adhere to the sensitive local taste is the number one factor in McDonald’s success. The Indian culture does not consume beef products, and since there is also a Muslim population in India that does not eat pork, in order to be successful it was imperative that McDonalds adopted a menu that accommodated the religious and cultural requirements in India. McDonalds created a menu with chicken, mutton, and vegetarian items that would satisfy the Indian palate. Another factor in McDonald’s success is that they were also able to modify their menu to affordable prices. Although the large number of middle and upper class are what attracted McDonalds to India, a large portion of the McDonalds consumers are of lower class. In order to appeal to the lower class, it was essential that McDonalds price its menu accordingly. Currently $1 is the equivalent of 65 Indian Rupees...
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...McDonald case analysis History and growth of McDonald across Globe : McDonald Corporation is the world's leading food service retailer with more than 31,000 restaurants in 120 countries serving more than 50 million customers each day. Origin of this US based company can be traced back in 1940 as a barbecue restaurant operated by the Richard and Maurice McDonald . Ray Kroc another business man joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers . McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services,". In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol. McDonald serves some of the world famous favourite food like French fries ,Big Mac, hamburgers, soft drinks ,desserts, shake etc . Mc Donald focus on global expansion strategies .McDonald’s first opened stores outside the United States in 1967 in British Columbia and Puerto Rico . Currently it has made its presence in 120 countries . McDonald Business model is based on Franchises . Almost 85% of its restaurant is based on franchise model only 15% is owned by company. In India, McDonald's is a joint-venture company managed by two Indians. While Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India, McDonald’s restaurants in North & East India are owned...
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...insecure in their job and negotiate more about financial matters (Shama, 1978). Despite many companies cutting theirs operational costs or reducing employees, McDonald’s in India planned to increase its headcount and strategically do not cut its cost. Taking advantage from the reducing prices of real estates, McDonalds start to gain more market share. McDonald’s management team believed that the economic crisis gives more opportunities to conduct business aggressively. Exploring the case study for McDonalds – Business Strategy in India, a study approach is to explore the whole picture of a successful this fast good chain’s action and strategy to cope with down turn economy. In other words, this case was about to discusses how McDonald’s managed to buck the trend, its early years and business strategy to get more out of its stores in India. On the same time, how McDonald’s can maintain and improve their performance by adjusting their competitive strategy properly. 2. Introduction McDonald's is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 58 million people in around 130 countries each day. 70 percent of our restaurants worldwide are owned and operated by independent, local businessmen and businesswoman. In 1996, McDonald's opened in India for the first time, a country...
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...Mcdonalds in India full Assignment Mcdonald is the world famous fast food restaurant.The idea of mcdonald’s was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California.their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport.In 1940 the restaurant was renamed as Mcdonald’s Famous Barbeque.In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamberger,cheeseburger,soft drinks French fries and apple pie.in 1954 a turning point came in mcdonald’s brother history.Ray kroc a seller of Multimixer milkshake visited mcdonald and he liked the idea of mcdonald.Mcdonalds corporation was build in those times and as a result kroc started expanding their business by opening franchises for mcdonalds.1960 mcdonald’s advertising campaign “look for the golden arches” gave mcdonald’s sale a big boost.1965 mcdonald corporation went public.in 1968 mcdonal open its 1000th restaurant.1974 mcdonalds started their business in UK and Newzealand.in 1980 mcdonalds was facing very big competition from its rival Burger King and Wendy but mcdonald with its innovation was experiencing boost in its sales.in early and mid ninties mcdonalds was having decline in their sales and as a result they start improving their business.taste was improved and some new menu items were introduced.Mcdonald introduced first Kosher Mcdonald in...
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...http://talkfinanceonline.com/swot-analysis-of-mcdonalds/ SWOT analysis of Mcdonalds April 18th, 2012 | Author: admin Share Swot analysis on McDonalds. McDonalds is an international food outlet preferred by every age group around the world. It is a multinational food outlet, despite this it has to be analyzed to evaluate its strengths, weaknesses, opportunities and the threats. Let’s analyze the outlet using swot analysis. Weakness * The weakness that hits the list is the employee turnover rate. Every year many of their employees are fired out of the restaurant * McDonalds mostly advertises products and food items that targets children. You will notice that bill boards always display the advertisements of Happy Meal and any other deal that is ordered for the kids mainly * Health conscious people seldom complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints * They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name Strength * McDonalds holds a very strong brand name worldwide * They have large partnerships with other companies that provides them with their desired products, this increases the goodwill of the company * Socially responsible firms earn a good name in the market due to their projects they do to help people, McDonalds is one the most reputed firms who are...
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...History of mcdonalds McDonald is the world famous fast food restaurant. The idea of McDonald’s was introduced by two brothers Mac (Maurice) and Dick (Richard) McDonald in California. Their father Patrick McDonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. In 1940 the restaurant was renamed as McDonald’s Famous Barbeque. In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamburger, cheeseburger, soft drinks French fries and apple pie.in 1954 a turning point came in McDonald’s brother history. Ray Kroc a seller of Multitier milkshake visited McDonald and he liked the idea of McDonald. McDonalds corporation was built in those times and as a result Kroc started expanding their business by opening franchises for mcdonalds.1960 McDonald’s advertising campaign “look for the golden arches” gave McDonald’s sale a big boost.1965 McDonald corporation went public.in 1968 McDonald open its 1000th restaurant.1974 McDonalds started their business in UK and Newzealand.in 1980 McDonalds was facing very big competition from its rival Burger King and Wendy but McDonald with its innovation was experiencing boost in its sales.in early and mid-nineties McDonalds was having decline in their sales and as a result they start improving their business. Taste was improved and some new menu items were introduced. McDonald introduced first Kosher McDonald in Jerusalem...
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...Segmentation, Targeting and positioning model of Mcdonalds Segmentation, Targeting and positioning Model of McDonalds: In order to develop a marketing strategy, it is very important for company to understand its target customers. If the company can understand its customer then only it can communicate itself to their consumer Market. Better you know about your consumers, more effectively you could communicate and market them. McDonalds has segmented their products according to bases of Demographic, Psychographic and Behavioral. They have segmented their products and positioned their products according to kids, students and family. But they haven’t segmented their products according to the Adult target group. Also they haven’t started segment related to breakfast in every outlet. Segmentation: Market segmentation is defined as dividing a single market into smaller segments. The basic reason for dividing the market into small segments is to make it simple to address the needs of smaller groups of customers and try to manufacture different products according to their consuming habits. Particularly it is done according to the people who have similar characteristics. It can be done on the basis of age, gender, lifestyle, region, etc. McDonalds in India segmentation it has done is on three different bases: 1) Demographic Segmentation: Kids, Family and Students McDonalds offers different products like Happy Meal which includes a free toy for kids. For families it has made different...
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...mix is used without consideration to the market segmentation. An important aspect of a marketing strategy requires a marketing segmentation, a company must be able to differentiate their products to represent the culture of the host country. Fast food restaurants must carefully consider all aspects of the targeted market in order to be successful. McDonalds is a well-known fast food restaurant all over the world and they are very successful due to their market strategy and how well they adapt to the segmentation of each country they operate in. “McDonald’s products are standard in all franchises. However, the company adjusts to culinary differences in various cultures .” In the case of India, McDonalds offers vegetarian burgers to practicing Buddhists who are not permitted to consuming beef products because of religious believes. McDonalds was able to take their services to India by changing their products to the market demand. Beef products are not in demand in India, and if McDonalds served beef patties in India they would have been unsuccessful. Changing the product to better serve the market demand affects the price. McDonalds will not be able to sell any of their products if the price did not...
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...India Introduction Fast Food Industry Overview India is blessed with one of the fastest growing fast food market of the world. It is estimated to be nearly worth of 41.3 billion USD and it is a healthy growing industry at a compound annual growth rate (CAGR) of 11%. The Organized Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service Industry), which is growing towards at 17%. (Industry report 2014) By year 2017 this bench marks will reach by other category, like as follows: (Ref) Category | Current Market Share | Compound Annual Growth Rate (CAGR) | Expected Market Share by 2017 | Organized | 30% | 12-14% | 45% | Unorganized | 70% | 8-10% | 55% | In present situation Indian GDP is around 6 % for last couple of years. As a result there is a significant numbers of monthly disposable Income are growing gradually. Now a day people of India spend on eating outside almost Rs.33, 000 Crore according to the size of the market. Some recent research study is expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the...
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