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The Golden Arches in India

Presentated By :

Arifa Akhtar 1211270

Zia

Sajid

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MC DONALDS

McDonalds is one of the best known brandworldwide.

Founded in 1940

It is worlds leading food service provider

with 33000 restaurants serving in 118 countries

serving 64 million customers each day.

Franchise ModelOnly 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 and

operate operations in West & South India.

Vikram Bakshi(Connaught Plaza

Restaurants), owns and operates McDonald's

in North and East India

250 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

Various

Suppliers

Bargaining

Power- LOW

Rivalry Among Competing

Sellers

Top Brands Competitors

Same criteria of food industry

Competition-HIGH

Buyers

One price strategy Quality of food

Bargaining Power

LOW

Potential New Entrants

Entry Barrier

Threat -HIGH

Substitute Products

Burger King, KFC, Indian Cuisine,

Indian local shops, IndianVegetarian restaurants

Threat-HIGH

Five forces Model of Fast Food Industry in India

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Price

Variety in Food Menu

Local Fast-food

E.g- Dhabas,

Road Side

Restaurants

National Fast

food Chain

Nirulas,

Darshini

High

Low

Low High

InternationalFast food

Chain-

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 Market

300 Million

Wide Range of economic reforms -1991 Entry of MNCs

The environment factors in India

Indian customers taste, Product

Development, Supply Chain

Arrangement

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Think global, act local

McDonald's India as a

wholly owned subsidiary

that is known as

McDonald's India Pvt Ltd.

Two joint venture on a

50:50 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 with

Indian government and political activites

Challenges of McDonald's In India

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Certain issues McDonald's consider while

entering 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 Big

Mac, with the Maharaja

Mac. Change latter to avoid

offending the sensibilites of

Hindus & Muslims. According to the vegetarian &

non-vegetarian they separate

their menu.

Strategies of McDonald's

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Low price than Sri Lanka &

Pakistan and providing

complimentary gifts.

McDonald's often launched

massive promotional

scheme in collaborating

with the media partner.

Strategies Of McDonald's

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Tangible Resources

Financial Resources

Physical Resources

Technological Resources

Intangible 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 to

Imitate

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 recognitionStrongest Presence

Customer Intimacy

Product innovation

Supply Chain

OPPORTUNITIES

Expand into maximum citiesEntry into breakfast category

Acquisition of other restaurants

WEAKNESSHigh overall costs than rivals

Adaptation time period

Huge Investment

THREATSChanging customer lifestyle

Increase in competition

Growing health conscious

population

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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, Market

Information 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 export

base for cheese, lettuce and other product that

went into its burgers.

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

The company was also trying to export its

products to Europe, Russia and Southeast Asia.

It shows that when you set up a supply chain in

strategic location it can service other countries

as well.

Things are becoming global in nature

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Recommendation

In terms of innovation, it is

a continuous process and

McDonalds Corporation

India is giving theirmaximum effort on it. So it

is a important factor for

McDonalds to go for

continuous innovation.

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