Mcdonalds in India – Case Study

WALMART Group GMITE Batch 6 Abhishek Agrawal Ajit Varghese Brijesh Chauhan Karthikeyan Palani Manendra Jain Nalukurthy Rajeshbabu Satish kumar Dosapati Sushma GN McDonalds India A Loc all toldy Owned Comp whatsoever McDonalds is the valets leading global dietservice retailer with much than than 33,000 locations serving approximately 64 million customers in 118 countries each day. more than 80% of McDonalds alimentation houses worldwide argon owned and operated by independent local anaesthetic anaesthetic men and women. In India, McDonalds is managed by cardinal Indian entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt.Ltd. owns and spearheads McDonalds trading operations in West & South India. Hardcastle Restaurants was appointed Development Licensee for McDonalds in India in 2010, a progression from Joint imagine partner. Vikram Bakshi, MD and Joint Venture Partner, Connaught Plaza Restaurants Private Limited, owns and operates McDonalds in North and E ast India. Celebrating all over 15 years of leadership in food service retailing in India, McDonalds no. has a network of over 235 restaurants across the country. Local Sourcing Is make for Truly Indian ProductsMcDonalds India is committed to sourcing al most(prenominal) all of its products from within the country. forward to its launch, the union invested six years to develop its unique cold chemical chain, which has brought approximately a veritable revolution in food handling, immensely benefiting the farmers at one end and enabling customers to get the amplyest fictitious character food products, dead fresh and at a great value. McDonalds India today has certain local Indian businesses, which crowd out supply the highest quality products required for its Indian operations. consider for Indian Customs and CultureMcDonalds worldwide is well known for the high degree of respect to the local culture of each market it operates in. In line with this respect for local cul ture, India is the first country in the world where McDonalds does non offer any beef or pork items. McDonalds has developed a menu especially for India with vegetarian selections to suit the Indian palate and has likewise re-engineered its operations to address the special requirements of vegetarians. Special care is taken to construe that all vegetable products are prepared separately, using dedicated equipment and utensils.This insularism of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. So oft so that the mayonnaise and soft serves are also 100% vegetarian and McDonalds uses altogether vegetable oil as a cooking medium in India. An Employer of Opportunity McDonalds India is an employer of opportunity, providing quality employment and long-term careers to professionals across the country. The average McDonalds restaurant employs 60-80 people from crew to restaurant manager.McDonalds invests in it s employees, leveraging world class-training inputs to occasion ambassadors of the brand and creating food service professionals with global attitudes. The brand currently has over 8000 employees in India. Quality, Service, Cleanliness & Value McDonalds is drive backn by the philosophy of Quality, Service, and Cleanliness & Value for Money. This translates into a commitment to provide customers high quality products, served quickly with a smile, in a clean and pleasant environment at an affordable price.This efficaciously means that the McDonalds menu is priced at a value that the largest segment of the Indian consumers can afford while at the same time ensuring that quality is non sacrificed for value rather McDonalds leverages economies to minimise monetary values while maximise value to customers. Major issues ? NUTRITION Type of high fat, low vulcanized fiber diet promoted by McDonalds is linked to serious diseases such as face disease, obesity and diabetes. The sort of d iseases that are now answerable for nearly three-quarters of immature deaths in the western world.McDonalds respond that the scientific evidence is not conclusive and that their food can be a valuable part of a balanced diet. Some people say McDonalds are entitled to grapple junk food in exactly the same way that drinking chocolate or cream cake manufacturers do if people want to deal it thats their decision. But should McDonalds be allowed to advertise their products as nutritious? Why do they sponsor sports events when they sell unhealthy products? And what on earth are they doing opening move restaurants in hospitals? ? Ecological SustainabilityVegetarians and animal welfare campaigners arent too keen on McDonalds for obvious reasons. As the worlds largest user of beef they are responsible for the flagellation of hundreds of thousands of cows per year. In Europe alone they use half a million chickens every week, all from windowless factory farms. Is it acceptable for the f ood persistence to exploit animals at all? Again, McDonalds argue that they stick to the letter of the integrity and if there are any problems it is a matter for government. They also telephone call to be concerned with animal welfare. ? Deep Market PenetrationIn order to grow McDonalds needs to expand to former(a) cities and towns in India rather than con centrating in Delhi. Mumbai & few other cities, For expansion to succeed, McDonalds can no longer depends on its processing & distributions centers in and or so Delhi & Mumbai, assumption Indias poor transportation and road facilities, the logistic bottleneck of transporting food item from one place to other will add to the cost of its products, it needs to build new processing & distribution centers in other cities for operational efficiency, this would require additional investment and cost can not be easily passed on to the consumers.Price increase is the last amour that McDonalds can afford if it wants to succeed in Indi a, Already for most of the people McDonalds is associated with high proices. ? Adaptability of portfolio towards local needs Given Indias fragmented regional culture where no single food mouthful predominates, McDonalds need to develop new product on perpetual basis. Developing new products adds complexity & cost and raises the risks of errors. It also runs counter to McDonalds culture and history. Yet if McDonalds does not do it on fastness basis, Companys popularity will be short lived.It will be difficult for company to meet the range of different competitors, most notably the placegrown food chains which offers a variety of products at middling prices. ? CULTURAL SENSITIVITY( I feel this is a major issue) India is country with change cultural diversity. The diversity reflects in eating habits with majority of population is vegetarian quiesce a section of people with non-vegetarian food preference. India is land of spices. Indians like high food and prefer satellite joint s as roadside food stalls. ordinarily home cooked food is preferred and dining out option is earlier reserved for special occasions.The food habits are also driven by the religious sentiments. In May 2001, a class action lawsuit1 was filed against the worlds largest fast-food chain McDonalds, in Seattle, US. The lawsuit alleged that the company had, for over a decade, duped vegetarian customers into eating French fries2 that contained beef extracts. Minor issues ? ADVERTISING McDonalds spend over two billion dollars each year on advertising Using collectible toys, television adverts, promotional schemes in works and figures such as Ronald McDonald the company bombards their main target group children.Many parents object strongly to the influence this has over their own children. McDonalds argue that their advertising is no worse than anyone elses and that they adhere to all the advertising codes in each country. But others argue it still amounts to distrustful exploitation of c hildren some consumer organizations are calling for a ban on advertising to children. Why do McDonalds sponsor so many school events and learning programs? Is their Childrens Charities genuine philanthropy or is there a more explicit publicity and profit motive? ? ENVIRONMENTOne of the well-known(a) and sensitive question about McDonalds is are they responsible for the demolition of tropical forests to make way for cattle ranching? McDonalds say no. Many people say yes. So McDonalds sue them. Not so many people say yes anymore, but does this mean McDonalds arent responsible? They every year produce over a million tons of packaging, used for erect a few proceeding before being discarded. What environmental stamp does the production and disposal of all this have? Is their record on recycle and recycled products as green as they make out?Are they responsible for litter on the streets, or is that the fault of the customer who drops it? Can any multinational company operating on Mc Donalds scale not append to global warming, ozone destruction, depletion of mineral resources and the destruction of natural habitats? Recommendation for Growth spick-and-span Business Channels Home Delivery, breakfast, extended hours and Drive-Troughs. As per estimates, home legal transfer can increase store sales about 15% and drive troughs by 50%. Attract College Crowd (Youth) Similar to KFC StreetWise menu, which offers products to college students at affordable price.Employees and Customers In India, McDonalds employ 5,000 people and serves half a million customers a day via its 169 family restaurants. McDonalds has 85,000 employees and serves 2. 5 million customers a day in the UK. Local Vegetarian Menu In India, McDonalds does not offer pork or beef-based products. Its menu is more than 50 per cent vegetarian. The fast food retail chain has separate production lines and processes for its vegetarian and non-vegetarian offerings. McDelivery Online In India, McDonalds fir st launched home language of meals in Mumbai in 2004.McDonalds now has plans to launch web-based delivery service in India (across 75 McDelivery cities) in 2010, a pilot for which has already been tested by it in Hyderabad. The company hopes to add 5 per cent to sales via Web delivery. McDonalds web-based delivery model will be based on serving the customer quickly wherein the drive time does not exceed seven minutes because its food has to be eaten within ten minutes of preparation. The footfalls in India are amongst the highest in the world, but the average bill is amongst the lowest.At present (March 2010), dominos Pizza (operated by Bhartia Group-promoted Jubilant Foodworks under a predominate franchise agreement) has a 65% market share in the home delivery segment. MFY (Made for You) food preparation platform MFY is a unique conceit (cooking method) where the food is prepared as the customer places its order. All new coming(prenominal) McDonalds restaurants are based on M FY. This cooking method has helped McDonalds further strengthen its food safety, hygiene and quality standards. McDonalds has around 10 MFY restaurants in its portfolio.