McDonald’s- Business Strategy in India Harvard Case Solution & Analysis

Mc Donald’s is a well-known company all over the world for its services and quality of food. The company, in a short period of time, has seen immense success and the success story of the company starts from the United States of America and it is still in process including Japan, Canada, Singapore, Russia, China and the list goes on.

The company started in the year 1940in theUnited States of America. The company provide best quality food to its customers at a fast pace. The service remained consistent and fast, this is exactly what the customers wanted.

The company kept its tradition consistent with the quality of food and the quality of quick service. The company was a beef based hamburgers server before entering the Indian market; the company changed the basic ingredient of its menu from beef to vegetables.

Symptoms

Following are the symptoms that are prominent in the case and the company has to deal with the following challenges in the process of operations in the country.

Difference of culture:

It was a great challenge for the company to enter in the Indian market as the country has a different culture. The people inIndia are Hindus and they are forbidden to eat beef. Hindus are vegetarians and about 80% of the population of India comprises of Hindus.

Hindus are very emotional with their culture as they believe in the cow being their god and as a sacred animal, so they respect cows and cannot accept any harm to cows. Since the business of the company is of conflicting nature, it is a great challenge for the company to operate in such a country where the conflicts between the company and the people are of such nature.

Pricing:

The population of India is mostly based on people who earn an income of middle and lower than middle level. The average income of people of India is low. Most of the population of India is unable to live a healthy life. Indians are mostly under the line of middle-class people. The market of India is based on the pricing of the products therefore; if the prices of products are high it will be difficult to attract the majority of the population.

Population:

The population of India is the second highest in the world. The population of India is almost above 1.2 billion. The population is divided into many religious segments howeverthe major segment of population is Hindus. Almost 80% of the population comprises of Hindus and other religions are considered as minorities in the country. Islam is the second most populated religion in the country occupying almost 12% of the population and other minorities of the country are Christians, Sikh etc.

Political sentiments:

The political sentiments of the country show the sentiments of the local Indians, the political representation of India was also against any company that sellsbeef products as Hindus consider cow as their godand it is the worst thing to cut a cow into pieces and eat it as food.

Religious sentiments:

The religious people of India are extremists as they consider their religion before making any decision.Moreover, they are forbidden to eat beef therefore, they don’t eat beef and don’t even let others eat beef in front of them as it is the sacred creature of god for Hindus.

Selling beef products is not allowed in India so how can a company that sells beef on a daily basis will be able to do business in India. This seems to be a great challenge for the company and the management of the company.

McDonald’s- Business Strategy in India Case Solution

Customer segmentation:

The customers in India are of three types and the major type is the middle-class level of customers. The middle class of the country is the biggest level of population of the country. The lower middle class is the second and third is the upper class. Customers who are not included in this segment are the ones who cannot even afford to fulfill the basic needs of living for them............................

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