McDonalds and India Case study

Part 1

Given the obvious cultural barriers to succeed in the Indian market, I think McDonald thought it would attract a large number of clients by embracing the Indian culture. By introducing an Indian flavor in the industry, the company thought it would attract the loyalties of most Indian customers. McDonald considered India as a good market because it has a strong food culture that has survived for many years. Therefore, attracting Indians to McDonald would be important since the company would have a chance to attract new clients and convert them to frequent and potential clients. The company thought it was worthwhile to try to establish a market in India to attract two communities; Indians and Muslims. The company purposed to attract Indians by removing beef in their menu and pork in the Muslim community. (Harris, 2009).

McDonald thought India was a good market because there are few competitors in the industry. Thus, the company felt this was a great opportunity to expand its business globally. The company would be able to have many clients since there are few restaurants offering the same products and services. Harris (2009) argues that India has been unfriendly and unkind to foreign businesses. However, Harris continues to argue that India warmly welcomes international chains of fast food. Mostly, a large population of young people loves fast food. After a thorough research, the company established that India has the largest youngest population, with over 70% under 35years (Harris, 2009). Therefore, McDonald felt this was a great opportunity to grow since most young people eat fast food.

Typically, McDonald will be a success in India only if it does not contradict the beliefs, customs, and values of the society. Most Indians will identify themselves with the company because the company respects and regards the Indian culture. Additionally, the company will also be a success in India it attracts the second largest community, which is Muslim. Therefore, the company has to embrace the two communities to weather complaints from social activists and politicians.

Part 2

McDonald could embrace two strategies to overcome the barriers listed by Rarick (2003). First, the company could respect and honor the culture of the new market. The company should lay a strong ground where Indians can enjoy its products and services without contradicting their beliefs and customs. To remain competitive in the India market, the company should invest its time and resources to develop favorable customized menu for the Indians. The company should establish that Hinduism is the most prevalent religion in this region. Thus, beef should be removed from all menus to attract Indians who do not eat or even visit restaurants where beef is served. Additionally, should find ways of attracting the second largest community in India, which is Muslim. Now, to establish a successful market to this community, the company should design menus that only include fish, chicken, and mutton products. The company can also introduce vegetarian products to the Indians and add Indian flavor to most products such as burgers.

Secondly, McDonald should market its products to a large number of people who prefer and regard family dining. With this, many families would enjoy group meals and still their culture. Lastly, the company would put their prices affordable to attract teenagers and middle class people to their restaurants. Other strategies include recruiting Indians in the restaurants. By incorporating the mentioned strategies, the company would flourish tremendously.

References

Harris, P. S. (2009). None of us is as good as all of us: How McDonald’s prospers by embracing inclusion and diversity. Hoboken, N.J: John Wiley & Sons.

Rarick, C. A. (2003). Cases and exercises in international business. Upper Saddle River, NJ: Prentice Hall.