Mc Donald's Cross-Cultural Issues in Indian Market
University: Regent College London
Question :
The case study based on Mc Donald's cross-cultural issues which is an American fast food company that was founded in 1940 as a restaurant operated by Richard and Maurice Mc Donald, in the Unites States. The company is one of the largest restaurant chains by its revenue with the serving of the approx 69 million customers daily in over 100 countries. The company is well known for its hamburgers, cheeseburgers and French fries. In additions, the company is offering chicken products, breakfast items, milkshakes, desserts and soft drinks for the customers. The Mc Donald's corporation revenues are generated from the rent, fees paid by the franchises and the royalties as well as sales in company-operated restaurants.
- How far did Mc Donald's be able to analysis the Indian market?
- What were the strategies that were adopted by Mc Donald's to enter into the Indian market?
Answer :
ABOUT THE CASE STUDY
As per the viewpoint of Rajesh Paul,2021, Mc Donald 's is carrying international business practices and the company's restaurant is serving the customers around the global world. As with the increase in the demand for carrying business practices globally. The company has also carried its business practices globally to serve customers with their quality products and services. As when any company carries its business practices globally the company has to face different diversification and different cross-cultural issues. The case is based on cross-cultural issues in Mc Donald's with Indian markets. The company has faced different challenges in order to establish its business in Indian markets and generate revenues and increase profitability.
(Source: Case Study – McDonald’s and Hindu Culture,2018)
ISSUES
- Different tastes and preferences of the customers in the Indian markets.
- Cultural issues faced in context to the religion of the customers.
SOLUTIONS
(Source: Cross-cultural considerations for user interface design, 2013)
As there were many challenges that were faced by the company to establish its entity in the Indian markets. It is has been analysed from the case that the Indian people has the culture of revered the cow and they do not eat the meat of the scared cow and there were different religion as in diversity of Muslims people they do not have the culture to eat the pork food items. To resolve these issues and establish its position in the Indian markets the has taken different steps to generate customers. According to the analysis and research the company has created the Indian version burgers that were made up of mutton and chicken. As all the foods items are segregated vegetarian. The company has also introduced French Fries that were made up of potatoes. As the Indian culture customers love to try different varieties of food and loves spicy food items. The taste and preferences of the Indian customers were different from the other countries.Mc Donald's had faced different challenges as the products they are offering that is hamburgers in the Indian markets is totally proved to be a failure in the Indian markets as according to the analysis the Indian customers generally prefers the spicy food items rather than having normal see food items. Hindu religion customers were preferring the vegetarian food items rather than having non vegetarian food. So to enter in the Indian markets the company has launched different varieties in their burgers. As the Indian customers love to have spicy food items the company has launched the spicy burger with the aaloo tikki burger as tikki was made by potatoes and the burgers found to be spicy. The burger with the aaloo tikki has made the entry of the company in the Indian markets to grab the customers. The newly launched varieties of the burgers let the entry of the company in the Indian markets and generated revenues for the company to sustain its surviving in the markets. As the main problem of the case as the cross cultural issues were the religion issue.
(Source: Mc Donald's in India,2010)
Also Read: Gender Discrimination: Tesco Case
To resolve the another issue as Hindu culture has a strong belief that can be stays unbroken and the use of oil is used by customers in beef and Mc Donald 's is giving any inconstant argument that contained the oil beef extract. From the analysis it can be identified that the cultural issues are the main threats to carry the business practices in different markets. The solutions that can be provided is that the company can employ the local and regular citizens to help the company to carry business practices in a specific culture. The different factors and aspects provide the fast food items and the retail stores to make its entry in Indian markets. As Mc Donald's carrying its business in different style it is necessary for the company to have research and development with the different tools and techniques to analyse the markets before making its entry and ensuring its survival. It is necessary for all the business companies to perform research and analyse the cross cultural factors of the different countries in order to carry the business globally and maintaining a position and generating the revenue and increase the profitability of the company.
RECOMMENDATIONS
It can be recommended from the case study it is essential for all the business companies to analyse the customer 's taste and preferences and analysing the customer's demand and wants by determining the cultural factors as different countries have the different cultural values and belief and according to the the company can design its strategies and implement it in the markets to to create the position and ensuring the survival of the company in the markets. From case study analysis it has been evaluated that is essential for Mc Donald 's to determine the cultural factors of the Indian markets and according to that to grab the customers and generate revenues and profitability and design the strategies and the company 's product to grab more customers and generate a brand identity in the minds of the customers.
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