Case Study: McDonald's India

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1. What are some of the contextual issues for McDonald’s in India (Describe the Indian context using Hofstede/Trompenaars/GLOBE). What are some of the more prominent social instritutions at work that will impact on this case (Religion, Government, Social institutions, Education, Politics, etc.) Trompenaars:

Particularism:
After many years of studying the Indian food market, build relationships and get to know people to better understand Indian’s needs. McDonald’s was ready to get into India’s market. Indian particularism has to do with the adaptation of decision and behavior to given circumstances. Accepting McDonald’s as part of the India’s economic liberalization and further globalization integration (BRIC), people would change their behavior on consuming McDonald’s as long as McDonald’s would adapt its products into India’s culture For example as making vegetarian hamburgers. Indians focus and care on people’s uniqueness and relationships among their relatives, friends and society in general. For this reason McDonald's concerned on Indians food preferences and social values. McDonald's change the name of the restaurants to ‘McDonald’s Family Restaurants’.This is the strength of McDonald's in India marketing their products to the Indian families. For McDonald’s in India is crucial to remember the importance of trust in a business situation, for example a contract may be not needed, contrarily relationships are seen as a binding agreement. Relationships in business are so important because of the fact that Indians do not trust the system (laws, regulations, etc). Communitarianism:

Indians for example are really cooperative when they have to work and because of their consensus – oriented culture they rarely say “no” in order to maintain harmony in the group. For McDonald’s is good that India is a consensus-oriented culture because it is easier for them to make deals with Indians. McDonald’s found out that giving back in India is good business. India is a communitarian society they care about the community as a whole. For example the well being of others (community service) is really important in India’s society. McDonald’s have been involved in many community-related programs helping children mainly. For example the girl- child program that focus to improve the status of the girl-child in India’s chauvinist society. Every time McDonald’s expanded to other cities it created new job opportunities. This will make McDonald’s gain official support and help its brand and reputation in Indians minds. Neutral:

Majority if Indians prefer to keep their feelings controlled, it means not showing publicly affection, touching but caring about other by doing good to others. For McDonald’s it was important to use not an emotional but a neutral communication to the customers. In advertisings they show they care about Indians habits adapting their products into Indian’s dietary preferences. Diffuse:

India is a diffuse culture where everything is connected to everything. For that reason was important to McDonald to build a good relationship with the Indians. It is always recommended to take time to get to know them and become friends with them when negotiating something because of the diffuseness in the culture. McDonald’s used many strategies and a long time to get to deal with Indians officials. For McDonald’s it was easy to cooperate with them. The outcome is the problem’. The diffuseness in India can be connected to religion, Karma, Gandhi. A lot of actions are done in order to be reborn. Everything is connected. Ascription:

Even though is difficult to clearly position Indian in a category we chose ascription because of the caste system. Professional titles, age, degrees and caste level are indicators of status. Friendships and kinship are more important than expertise. So for McDonald’s was right to get those two representatives in India, not because of their expertise but because of their background and social connection with...
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