What lessons does the experience of McDonald’s in India hold for foreign fast food chance and retails stores? Answer 1: Not only McDonald’s but also the other companies want to develop their business outside their counties, what they have to do first is to study and survey the countries they want to invest. Like this case, McDonald’s already knew cow is considered sacred and there are about 50% of the people are vegetarian in India, and McDonald’s already changed their menu to meet their culture.
However, a worldwide famous fast food store, McDonald’s, deceived and destroyed their fame. In addition, they also have to pay 10 millions for lawsuit. Thus, to learn the culture, understand the culture and meet the culture are the import lessons to win the business. Question 2: Is there anything that McDonald’s could have done to have foreseen or better prepared itself for the negative publicity associated used beef extract in the frying oil?
Answer 2: In the frying oil case, first McDonald’s matter-of-course had sincerely apology all the people in India, they promised there won’t have the similar case happen again, and they will fully respect Indian culture. Second, they already had a group of people to study India culture deeply, and to research the proper food for Indians. Third, clearly indicate the “Nutrition Facts” for each meal. Finally, they paid 10 millions for lawsuit and lost their trust from McDonald’s.
Question 3: How far should a firm such as McDonald’s go in localizing its product to account for culture differences? At some point, might it not lose disadvantage by doing so? Answer 3: Since McDonald’s want to develop its business in India, they definitely have to meet Indian’s culture because their target consumer is the middle class of the second biggest population (12 billion) in the world. If McDonald’s want to gain a big profit, they have to adjust their business strategy because their market is in India.
The Essay on Effect of culture in business
1. A growing number of Americans work for foreign-owned firms in the United States. Do you think that these American employees are being influenced by the foreign owner’s approach to management and the culture of the country of the owner? Because of globalization, businesses are open to do business in new markets and improving profits. Also because of globalization, companies are faced with ...
As all the people know, McDonald’s is an American fast food chain store where supply American food such as French fries, Coca Cola, and Hamburger. McDonald’s won’t lose their advantages like fast service, clean environment, safe playground and “Happy Meal” for kids as well as the clear restroom which Indian like, if their food can fit in with local people. According to the Financial Times, McDonald’s are going to open 2 vegetarian restaurants, one is in Amritsar which is the holiest site of Indian’s minority, and the other is in Katra which is the second busiest pilgrimage place in India. MFY” (Made for You) food preparation platform is an unique concept for the 2 outlets to emphasize McDonald’s make the food as your order, quickly, safety food, healthful. Furthermore, McDonald’s will open double stores of current 271 in next 3 years in India. After the French fries oil case, McDonald’s did have learned a lesson to make the food to conform the local’s market and culture.
