McDonald's in India
McDonalds in India
Note: This is intended as an example of an ‘essay style’ for a case analysis. It is not supposed to be perfect but can be used to guide you in how to approach your assignment. Dr Dallas Hanson wrote it and supports the ideas presented but suggests it as ‘plausible’ rather than the ‘right answer’.It is around an 85% answer –better are certainly possible.
Introduction.
McDonalds in India operate in the Indian branded fast food market. That is, fast food that has a western brand and appeals to those who want to experience a western style fast food meal. This is a relatively small market and is new in India even though the basic idea of branded fast food is mature in the OECD. India is a country opening up to international firms but one that nevertheless retains a very strong pro-Indian orientation. It is also the home of a very strong anti-beef ethic and this provides McDonalds with interesting business issues.
Analysing the external environment.
The general environment.
Demographic
At the time the case was written there were around 1 billion ethnically diverse people in India. The majority are Hindu but there is a large Muslim minority. There are around 80 million middle class people in the country (even though their income, generally speaking, is low by OECD standards). There are 70 million ‘strivers’ and ‘climbers’ in this group who have incomes between USA $3000-12,500.
Economic
The big middle class (defined by income) tend to live in the cities where minor infrastructure collapses are common. There is a high cost of living in such cities but good incomes and lifestyles are available there.
There are many huge regional cities but some are much poorer than others and their infrastructure is faulty by OECD standards. The commercial land in these cities is extremely expensive and poses a problem for business expansion.
Socio-cultural
India has a caste system and the Hindu majority have an anti beef ethic
Note: This is intended as an example of an ‘essay style’ for a case analysis. It is not supposed to be perfect but can be used to guide you in how to approach your assignment. Dr Dallas Hanson wrote it and supports the ideas presented but suggests it as ‘plausible’ rather than the ‘right answer’.It is around an 85% answer –better are certainly possible.
Introduction.
McDonalds in India operate in the Indian branded fast food market. That is, fast food that has a western brand and appeals to those who want to experience a western style fast food meal. This is a relatively small market and is new in India even though the basic idea of branded fast food is mature in the OECD. India is a country opening up to international firms but one that nevertheless retains a very strong pro-Indian orientation. It is also the home of a very strong anti-beef ethic and this provides McDonalds with interesting business issues.
Analysing the external environment.
The general environment.
Demographic
At the time the case was written there were around 1 billion ethnically diverse people in India. The majority are Hindu but there is a large Muslim minority. There are around 80 million middle class people in the country (even though their income, generally speaking, is low by OECD standards). There are 70 million ‘strivers’ and ‘climbers’ in this group who have incomes between USA $3000-12,500.
Economic
The big middle class (defined by income) tend to live in the cities where minor infrastructure collapses are common. There is a high cost of living in such cities but good incomes and lifestyles are available there.
There are many huge regional cities but some are much poorer than others and their infrastructure is faulty by OECD standards. The commercial land in these cities is extremely expensive and poses a problem for business expansion.
Socio-cultural
India has a caste system and the Hindu majority have an anti beef ethic