1. What are some of the contextual issues for McDonald’s in India (Describe the Indian context using Hofstede/Trompenaars/GLOBE). What are some of the more prominent social instritutions at work that will impact on this case (Religion, Government, Social institutions, Education, Politics, etc.)
Trompenaars:
Particularism:
After many years of studying the Indian food market, build relationships and get to know people to better understand Indian’s needs. McDonald’s was ready to get into India’s market. Indian particularism has to do with the adaptation of decision and behavior to given circumstances. Accepting McDonald’s as part of the India’s economic liberalization and further globalization integration (BRIC), people would change their
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Synchronous Time:
Time for Indians is seen as a cyclical and repetitive feature. Indians often do more than one activity at a time so when McDonald’s cooperated with Indians it was important for the company to “adapt” itself or at least to be aware of this way of managing time that is completely different to the monochromic American timing. In the synchronic Indian culture, people tend to “give time” to whom they have a relation. The time issue is connected to status as well. And as we know in India castes and social status are important they may give or accept tardiness from high-class people. If McDonald’s does not adjust and know what to expect it will be impossible to do business with Indians.
Outer direction:
Indians see nature as something to live in harmony and in balance with. For example most of Indians are vegetarians they venerate cows (Hindus), pork (Muslims), etc. Indians believe that they must control their own destinies and this is linked with the big green sensitivity. McDonald’s interacts with the environment to attain the company’s goal that is to get into the market and expand their business; McDonald’s has fund- supported green movements in Delhi to promote environmental consciousness and a healthy lifestyle. In this way they will help Indians promoting a good new product that globally is considered as ‘Junk food’ and change that stigma into Indians
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
3. What aspects of McDonald’s management ensure that it was able to deliver a consistent
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
McDonald's Corporation is considered to be the largest fast-food operator in the entire World and was initially formed in 1955 after Ray Kroc had pitched the idea of opening up numerous restaurants founded on the original which was owned by Mac and Dick Mac McDonald. McDonald's in 1965 decided to go public and then introduced its flagship product, which was the Big Mac, sometime in 1968 (Botterill, 2007). Today, McDonald's functions beyond 40,000 restaurants in over 200 nations and have one of the world's most extensively recognized brand names. McDonald's sales started hitting around the mark of $58 billion corporation -wide and over $30 billion in the United States alone in 2012 (S&P).
In February 22, 1992 a man by the name of Chris pulls his 1989 Ford Probe into the drive-thru of an Albuquerque, New Mexico McDonalds. Chris ordered a coffee for his grandmother, 79-year-old Stella Liebeck. Upon receiving the coffee Chris pulls into a parking space so Stella can introduce cream and sugar to her coffee. A 1989 Ford Probe lacks cupholders and features a slanted dashboard. Thus, Stella placed the coffee near her lap and opened the Styrofoam lid. At that moment, 180-degree liquid saturated Stella’s thighs, perineum, genital area, and inner thigh. The sweatpants worn by Stella acted as a sponge that held the scorching liquid close to her skin. Stella sustained third-degree burns over six percent of her body requiring
McDonald’s is not some ordinary fast food restaurant with its trademark logo advertised almost everywhere in the U.S., many people all over the world know about these famous golden arches. The McDonald’s franchising started in 1955 and in less than fifty years, McDonald’s was introduced all over the world in countries such as, China, Japan, Great Britain, Sweden, France etc. McDonald’s global expansion has intermingled with cultural traditions because these countries are becoming more westernized. Since East Asia is becoming more westernized it also means that there is a cultural difference because of the influences from outside the country. The cultures are being changed because of how ideas are expressed by people and not by their
Every day, millions of products ranging from burgers to soda cups are packaged in paper and plastic which effectively becomes detrimental to the earth. Although there have been many controversies regarding the negativity of McDonald’s bio hazardous ways, the article focuses on three strategies of how McDonald’s corporation deviates away from serious trouble. The first is by selling the culture of McDonald’s to the consumer, the second is through transforming the ground which ultimately means that McDonald’s would define the environmental issue according to what they believe to be urgent and critical, and last is through commodification of their products. By advocating a healthy and concerned image of their company, the corporation got away with deviance at an extreme
The segment of the general environment that ranks the highest between the global and socio-cultural considerations is the socio-cultural. The reason being that McDonald’s represents a very strong aspect of the American culture and a major part of the American culture is the food industry. The food industry, in terms of American food consists of a good old- fashioned hamburger, French Fries, and soda and McDonald’s mastered this concept of American food to perfection. On the other hand the global segment especially in
McDonalds was first incorporated in the year 1955 in USA with a single restaurant. Currently, McDonald has transformed to be the biggest and the fastest growing in the industry of fast food services (Employee handbook, 18). The corporation sales are now at a staggering $30 billion an year contributed by the 21,000 stores that are located across 101 different nations around the world. The success of the corporation has been as a result of a great contribution by the company’s management where there has been application of new ideas to give the corporation an upper edge in the market. On analysis of the company’s blueprints, a projection has been made where the corporation
McDonald’s has developed a series of marketing strategies to meet is mission and challenges. One of them is its adaption to local preferences. Let’s take India as an example. “Many Indians are either Hindus or Muslims. The article “Etiquette in Indian Restaurant” indicates that “in Hinduism, the cow is considered a sacred animal so it cannot be eaten; Similarly, Muslims consider the pig to be a very filthy animal so it cannot be eaten”. Because of such religious beliefs, most restaurants do not serve beef and pork. So there is only Chicken on the McDonald’s menu. Besides that, Indian prefer spicy food, even the sundae is spicy. Thanks to that, McDonald’s has remarkable achievements in its global expansion. Two-thirds of its new restaurants are opened outside America.
Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:
Social/Cultural factors: Culture has significant consequences for the attitudes towards the products, attitudes towards purchasing and so on. Nowadays people in Pakistan are more status conscious as compare to old days. Therefore they need more variety to choose from and the McDonald’s have these varieties to offer. Examples of social factors are
McDonalds has been around since 1940, when it was created by Nick and Mac McDonald in Bernardino, California. Since then McDonalds has only grown around the world in popularity and business. There are currently more than 33 thousand restaurants around the world in 119 countries. The chain has remarkably gone form offering just a few items on its menu to a wide range of over a 145 diverse items on its menu. Needless to say McDonalds has embedded itself within the world’s society. The way McDonalds runs its business has many different components. These different items include geography of a location, Weber’s model, development, and mass consumption.
You would hope that businesses all over the world would work to the best of their ability in order to be the best. However, this is not always the case as there are many differences when it comes to businesses that are based in different countries. The way that a UK McDonalds functions is very different to the way Haveli in India does, due to the political, social and legal factors that cause them do so.
Key stakeholders include customers, suppliers, and the employees of McDonalds. The stakeholder most affected is the public-whether one buys from McDonalds or not. Those who do purchase from McDonalds are directly affected by the unhealthy food provided. There have been various experiences, such as Morgan Spurlock, where fast-food consumption led increase of obesity and type 2 diabetes (Trecroci, 2005). To keep a corporation like McDonalds running, it takes a huge toll on society financially and economically. This impact includes the draining of aquifers, contamination of waterways, strip-mined soils, dangerous working conditions, greenhouse methane gas emitted by the millions of hamburger cows in feedlots, their $2 billion advertising and promotional