Burger King in India With the ever widening globalization, many businesses that are local are always trying to multinational, and those that are already multinational are all trying to cover other markets where their branches are not situated. This is the same route that Burger King (BK) is looking forward to, and in their case they want diversify into China, Japan and India. There are however several factors that BK must put into consideration before venturing into India in particular. There are various business ventures that have failed to take effect in India and as will be discussed below, there are varying reasons as to why such ventures never took off. As these will be discussed, the PEST (Political, Economic, Social and Technological) analysis of the Indian market will also be looked into and the best approach to each challenge suggested. Political environment It is significant that BK understands the political environment and the political consistency of India before they set foot there. This has been one of the biggest failures of businesses that have ventured into regions without necessarily critically looking at this aspect. The Indian community of predominantly caste oriented. Therefore, the caste, religion and the language that one speaks largely determines the political as well as the social organization that one belongs to (Global Trade.net, 2012). Once the BK has understood the political dimension in regard to the caste system, they will then know
2. By performing some research over the internet, I found out some figures that could justify the attractive of the Indian market. For instance, globally more than one billion people lack access to safe drinking water and approximately 2.4 Billion people
An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014).
India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.
India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian
Finances were examined in affective processing, in the context of figuring out who should the people invest in to get there profitable outcome. Both MCD and QSR are going to have their differences in what they each bring to the table, however, reviewing the cash flow, income statement and financial activities, this narrative research paper is going to explain what is going to have the greater advantage in the end. The bigger bang for your buck if you will. Processing all the information will give us the insight to figure out this great comparison.
The saturation of the US QSR industry has caused firms to look outside of US borders for growth opportunities. Europe has been a very attractive market for global expansion due to its large affluent population and that menu options do not have to be completely customized to the region. China and India are also attractive environments but require more modified product offerings to meet local demands. KFC has had to offer options such as burgers, ribs, or fish to meet local cultural demands in their overseas expansion.
KFCOne of the major competitors for McDonald in the burger segment is KFC. It first came to India in 1995, where it was one of the first multinational food chains to have entered India. It proved not to be a very good time to have come to India where people were still not able to come to terms with multinationals coming to India, and it was targeted by many and remained a not so known food outlet, while the ones which came later became more popular. KFC India had to shut shop in the late 1990s after it faced heavy protests not only from anti-multinational groups but also animal rights' protector, PETA.
The following statistical report is carried out to determine if there is room for growth and if changes need to be met in terms of food management, food handling, and food health standards. If there is, room for growth a loan will be barrowed in order to fulfill the changes.
There are several specific aspects of the political environment, such as the principle of “indigenous availability”. Which was very difficult to trade and also establish the rules and the regulation. Secondly, it was forbidden the use of foreign brands in India.
First, Burger King will experience an increase in revenue after taking over Tim Hortons (Kirby, 2014). The increase of revenue is due to the improved menu resources. However, menu resources will not help Burger King outdo its current competitors like McDonalds. It will only help to improve Burger King position. Improved menu resources perfectly suit the takeover’s new model of concentrating strongly on international growth. Burger King knows Tim Hortons has been trying hard to acquire a base on United States markets for several years now despite highly strong demand in Canada. At the same time, Burger King has been dealing with high competitive tension in the United States fast-food sector. For instance, Chipotle Mexican Grill recently led the country’s fast-casual section.
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.
Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in
Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace
• The phenomenal increase is facilitated by an annual 10% growth in the amount that Americans spent on meals away from home.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's