McDonald's in India

1094 Words3 Pages
bulb-icon

Recommended: McDonalds Resources, Capabilities, and Core Competencies

McDonald’s Corporation, established in 1955, owns one of the world’s most well-known and valuable brands and holds a leading share in the global branded quick service restaurant segment. The Corporation has more than 30,000 restaurants in 119 countries serving 47 million customers each day.

McDonald’s entered India in 1996 through joint ventures with two Indian entities, Hardcastle Restaurants Pvt. Ltd. and Connaught Plaza Restaurants Ltd .Hardcastle Restaurants Pvt. Ltd. owns and operates McDonald’s restaurants in western India through a 50-50 joint venture with the parent company. Through a similar partnership, Connaught Plaza Restaurants Pvt. Ltd owns and operates McDonald’s operations in northern India. There are 60 McDonald’s restaurants in India employing over 2,000 people who serve more than 1.5 lakh customers across the country every day.

India challenges

• Indians do not consume beef and there is a significant population which is strictly vegetarian.

• Prior to McDonald’s entering India there was no concept of such a food category. This meant low product awareness and absence of the infrastructure (cold chain) and supply chain needed for such a business to be successful. Indian agriculture was tuned to producing for households and not for the processed food industry.

• While all this necessitated high investments in infrastructure creation, the consumer could not afford to pay high prices.

• Availability of real estate is crucial for success in the retail business. Getting quality real estate was an issue. McDonald’s either does outright purchase or enters into long lease of 25 years. Rent control laws, housing societies unwilling to enter into long term leases and required clearances from multiple authorities made acquisition of real estate a difficult proposition.

Factors for Success

McDonald’s India overcame all these challenges by focusing on its core values of delivering quality products, served in a friendly environment, in a clean place, at affordable prices, to set up its growing network of outlets. Several factors contributed to

this:

 Global support with local management

McDonald’s India is a joint-venture company managed by Indians with complete flexibility to run the business.The India team brought local knowledge into the JV.The Indian team also brought in entrepreneurial driveto makes the busin...

... middle of paper ...

...ced with beef extracts .This caused a huge uproar in India , where some McDonalds restaurants where completely vandalized by Hindu activists.

Future Plans

While India is viewed as a tough market with limited scale (McDonald’s is opening 150 stores a year in China against 15- 20 in India), India’s outlook is positive and is considered a growth market. Currently, McDonald’s has 60 outlets in more than 10 cities in India. The company plans to add 15 outlets a year at an investment of US$ 8.7 million (per 15 outlets).McDonald’s is expected to double its investments from US$ 87 million that it has already invested to US$ 174 million by 2006. Fresh investments will be for expansion of McDonald’s India’s supply chain, refurbishing its cold chain, and setting up more outlets. McDonald’s is planning tie-ups with oil marketing companies for setting up McDonald’s outlets at gas stations. Currently, there is one McDonald’s outlet at a BPCL gas station and it is aiming at more such outlets with alliances with other companies as well. McDonald’s is also eager to set up more outlets at places like railway stations, and is working on new product offerings like a fruit drink and desserts.

Show More
Related

  • Fast Food's Impact on Youth Health: A McDonald's Case Study

    855 Words  | 2 Pages

    The McDonalds Company has come to the limelight as one of the fast foods outlet causing health problems to the young people. The youngsters have taken the matter to the judiciary to contest for justice. They have also engaged the media which has publicized the company in that respect. Nonetheless, it is not McDonalds Company alone. The writer confesses that he once dealt in that venture and is remorseful about the woes bedeviling McDonalds.

    Read More

  • McDonalds Corporation

    752 Words  | 2 Pages

    From just one restaurant in San Bernadino, California, run by two brothers, McDonald’s has grown to become the best known and most popular fast food restaurant chain in the world.

    Read More

  • The Globalization of McDonald's

    2634 Words  | 6 Pages

    A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.

    Read More

  • Mcdonalds: An Example Of Product Diversification For Mcdonalds

    1103 Words  | 3 Pages

    McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors

    Read More

  • McDonald's: A Global Company

    1560 Words  | 4 Pages

    According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).

    Read More

  • Mcdonalds Case Analysis

    1425 Words  | 3 Pages

    As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just in time to clean up after McDonald’s first ever quarterly loss. He succeeded by showing that McDonald’s revenue had climbed 11% during 2006 and net profits had climbed 36%. (Dess, Case 40 Pg. 1)

    Read More

  • Mcdonald's Case Study

    1423 Words  | 3 Pages

    McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).

    Read More

  • Mcdonald's Restaurants Influence on Hong Kong Culture

    2087 Words  | 5 Pages

    McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.

    Read More

  • Operations Management: McDonald's Competitive Advantage

    3031 Words  | 7 Pages

    Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.

    Read More

  • Analysis of McDonald’s

    1650 Words  | 4 Pages

    The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).

    Read More

  • McDonalds and Their Impact On Society

    1158 Words  | 3 Pages

    Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.

    Read More

  • McDonald's

    969 Words  | 2 Pages

    In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.

    Read More

  • A research Proposal on the Study of Market Potential of Fast Food Restaurants in India

    782 Words  | 2 Pages

    It will provide entrepreneurs with a competitive edge that will prove invaluable in helping them seek the opportunity in this unexplored area of business. Through this research project one can study the opportunities and potential for Fast Food Restaurant Services in India. Since not too much of research is carried on in this area in India, there is a huge scope for this market and it could be useful for any budding entrepreneur who is interested in this industry.

    Read More

  • The Success of the McDonald’s Franchise

    1280 Words  | 3 Pages

    McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.

    Read More

  • McDonalds Brand

    1089 Words  | 3 Pages

    Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].

    Read More

More about McDonald's in India

Open Document