MCDONALD’S IN INDIA • Diverse cultures and religions is the biggest hurdles. • Increase in vegetarian item in a menu like veg zinger, veg Snacker etc. • The prices of the menu were kept less considering in the mind to keep it more affordable as well as maintain the quality and standard. • Different staff members for vegetarian and non- vegetarian section. MCDONALD’S IN INDIA • Employment opportunity. • Family centric and child centric strategy. • Location strategy. • McDonald’s India is a 50-50 Joint venture partnership between mcd(u.s) and two Indian businessman amit jatia and Vikram Bakshi. SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS PESTLE ANALYSIS POLITICAL INFLUENCES • India is quite rich as far as Political structures and Policies are concerned, this is the reason why International Organizations face difficulties when they are entering in India.
• Some of the political parties are against fast food chains in
India as they want to see only vegetarian restaurants in their country as the existence of meat in their menus in India is apparently offensive to Hindu religion.
• There is an impending legal dispute as well in the McDonald’s
franchise in India where certain infringement of rights and violations of religious laws pertaining to the contents of the food. ECONOMICAL INFLUENCE • Variables such as currency exchange, employment, interest rate, tax ratio and need of international supply affects the economical influence of McDonald’s in India.
• Business for McDonald’s for India with high unemployment
rate, dealing in rupees as currency and millions of people living below poverty line is a concern for McDonald’s
• India on the other hand is having a booming economy, low tax
rate, availability of labour and development of middle class society is a positive sign for the company. SOCIO CULTURAL INFLUENCE • The social factors that are associated with McDonald’s in India are the suppliers and the workforce of the organization is fragmented and they are diversified.
• McDonald’s also have to face the pressure of different social
and ethnic groups that are relevant in the socio-cultural environment of India.
• McDonald’s was quick in removing their pork products from
India’s menu using the concept of consumer behaviour and product personality. TECHNOLOGICAL INFLUENCE • The company’s key tool for marketing is by means of Facebook, google ads, collaboration with websites like Snapdeal, and times deal to promote sales in India.
• Customer’s can place orders and make online payments. They
can also track their orders from their smartphones. These became a great tool to provide extra ordinary customer service.
• Technology is needed in supply chain mgmt., order taking,
inventory control. These can make management more reliable, effective and cost saving. LEGAL INFLUENCE • The company has provided their customers the relevant data that they need with reference to the nutritional substances of their products. This is to attend to the arguments of obesity charged against the products of the company also operations in predominantly Muslim countries require their meat to conform to the Halal requirements of the law. Also in INDIA they had to eliminate beef, pork and Mutton out of India’s product menu. ENVIRONMENTAL INFLUENCE • MCcDonald’s Corporation can improve its environmental programs and sustainability to strengthen its brand and business performance. The aim of these endeavors is to address the opportunities associated with the rising interest for corporate environmental programs, and the increasing emphasis on sustainable business practices. In this PESTEL/PESTLE analysis, such external factors create opportunities that support McDonald’s business stability and potential growth. On the other hand, changes in climate conditions in some regions threaten the company. For example, these climatic conditions determine the availability and stability of food supply, and influence the company’s supply chain. In this aspect of the PESTEL/PESTLE analysis, the ecological external factors highlight corporate social responsibility opportunities, although McDonald’s also needs to further diversify its supply chain to address the effects of changes in climate conditions. • Environmental LEGAL The company has provided their customers the relevant data that they need with reference to the nutritional substances of their products. This is to attend to the arguments of obesity charged against the products of the company also operations in predominantly Muslim countries require their meat to conform to the Halal requirements of the law. Also in INDIA they had to eliminate beef, pork and Mutton out of India’s product menu.