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The Golden Arches in India

Presentated By :Md. Nazmus Sakib 0731044Nusrat Fariha 0720002

Md. Golam Hasib 0720482

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MC DONALDS

McDonalds is one of the best known brandworldwide. Founded in 1940 It is worlds leading food service providerwith 33000 restaurants serving in 118 countries

serving 64 million customers each day.

Franchise Model Only 15% of the total number of restaurants are owned by the Company

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MC DONALDS India

McDonalds entered India in 1996. 50:50 Joined ventures Amit Jatia(Hardcastle Restaurants) owns andoperate operations in West & South India.

Vikram Bakshi(Connaught PlazaRestaurants), owns and operates McDonald'sin North and East India

235 restaurants across the country

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Political Democracy Large Bureaucracy Socialist Mind Set

Socio Cultural 80% Hindu 12% Musim 40% vegetarian

Fast Food Industry

General Environment of Fast Food Industry in India

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Suppliers of Key Inputs

VariousSuppliers

BargainingPower-LOW

Rivalry Among Competing

Sellers Domestics Fast Food outlets

American Fastfood Chains

Competition-HIGH

Buyers

Home cooked foodPreference Many Alternatives

Bargaining Power HIGH

Potential New Entrants

Entry Barrier

Threat -LOW

Substitute Products

Local Grocery Stores Waiter on Wheels(WOW )

Threat-Low

Five forces Model of Fast Food Industry in India

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P r i c e

Variety in Food Menu

Local Fast-foodE.g- Dhabas,

Road SideRestaurants

National Fastfood Chain

Nirulas,Darshini

High

Low

Low High

InternationalFast foodChain-

McDonalds,KFC, Baskin-R

Dominos

Strategic Group Map of Fast Food Industry in India

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Strategic & Management issues that McDonaldshad to consider to enter into India

Potentially large consumer Market300 Million

Wide Range of economic reforms -1991Entry of MNCs

1991-1996, Groundwork Phase Indian customers taste, Product

Development, Supply Chain Arrangement

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Think global, act local McDonald's India as a

wholly owned subsidiarythat is known asMcDonald's India Pvt Ltd.

Two joint venture on a50:50 basis in Mumbai &Delhi.

McDonald's Entry in India

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To avoid hurting religious sensibilities of Indian People

To avoid political confrontation withIndian government and political activites

Challenges of McDonald's In India

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Certain issues McDonald's consider whileentering in Indian market:

Research and Development: Different types of Language Religious Sensitiveness

Vegetarian & Non- Vegetarian

Strategies of McDonald's

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To attract customer changetheir core product name BigMac, with the Maharaja

Mac. Change latter to avoidoffending the sensibilites of

Hindus & Muslims. According to the vegetarian &non-vegetarian they separatetheir menu.

Strategies of McDonald's

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Low price than Sri Lanka &Pakistan and providingcomplimentary gifts.

McDonald's often launchedmassive promotionalscheme in collaboratingwith the media partner.

Strategies Of McDonald's

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Tangible Resources Financial Resources Physical Resources Technological ResourcesIntangible Resources Human Resources

Innovation Resources Reputational Resources

Internal Analysis of McDonalds' India

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Distribution Marketing

Research & Development

Capabilities

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Rare Valuable Costly toImitate

Non-substitutable

Supply Chain Yes Yes Yes Yes

Distribution Yes Yes Yes No

R &D Yes Yes Yes No

Core Competency Analysis

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SWOT ANALYSIS

PLEASE ADD UR POINTS

STRENGHTS

Strong brand recognition Strongest Presence Customer Intimacy Product innovation Supply Chain

OPPORTUNITIES

Expand into maximum cities Entry into breakfast category Acquisition of other restaurants

WEAKNESS High overall costs than rivals Adaptation time period Huge Investment

THREATS Changing customer lifestyle Increase in competition Growing health consciouspopulation

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Building Blocks: Efficiency

Quality Innovation Customer Responsiveness

Functional-Level Strategies

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Manufacturing Mass Customization

Low cost andeconomies of scale Flexible Manufacturing

Technology

Achieving Superior Efficiency

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Marketing & Efficiency ( Pricing, Promotion, Advertising, MarketInformation for Product Design, Distribution&Customer Loyalty)

Material Management and Supply Chain, JIT &

efficiency

Human Resource Strategy & Efficiency

Achieving Superior Efficiency

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Achieving Superior Quality Achieving Superior Innovation

Achieving Superior Responsiveness tocustomer

Functional-Level Strategies

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McDonalds had started using India as an exportbase for cheese, lettuce and other product thatwent into its burgers.

Exports had already begun to Sri lanka,HongKong and the Middle east.

The company was also trying to export itsproducts to Europe, Russia and Southeast Asia.

It shows that when you set up a supply chain instrategic location it can service other countriesas well .

Things are becoming global in nature

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Recommendation

In terms of innovation, it isa continuous process andMcDonalds Corporation

India is giving their maximum effort on it. So itis a important factor for McDonalds to go for

continuous innovation.

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