Q: Identify the functional strategies that McDonald pursue to establish its strong foothold and make India as an export base for cheese, lettuce and other product.
First, we would like to define what does “Strategy” mean?
Strategy is a plan or course of action or set of decision rules making a pattern and creating a commong thread. And Functional Strategy is the approach a functional area take to achieve corporate ans business unit objectives and strategies by maximizing resource productivity.
McDonald’s operating and expanding its business in India with using various functional strategies. They have very successfully set up a first-world standard supply chain and have done an excellent job in setting up a restaurant system with vegetarian/meat areas distinctly differentiated. Overall, they have been very responsive to the Indian environment. In terms of funtional strategy theory McDonald focuses on its marketing strategies as well as its procduction function to establish a strong foothold in indian market.
under functional strategy, McDonald focuses on the following areas:
*R & D Strategy
*Information Management Strategy
**Maketing Strategy: Marketing strategy deals with pricing, selling and distributing a product. Here McDonald’s initial focus area wasthe people of relatively high income in Delhi and Mumbai. Then it set up its pricing and advertising policy to attract this area. ** R&Dstrategy: R&D deals with two very important: 1) Product Innovation and 2) Production Improvement. The starting point for McDonald's India was to change Indian consumers' perceptions, which associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort with the new or different'. McDonald's wanted to position itself as 'Indian' and a promoter of 'family values and culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to communicate that,...
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