Mcdonalds in India

Topics: Investment, Mumbai, Economy of India Pages: 8 (2668 words) Published: November 8, 2011

Section 1 – introduction
Section 1.1 – Executive summary
Section 1.2 – Introduction to report
Section 2 – Theoretical background
Section 2.1 – Theories
Section 2.2 – India
Section 2.3 – McDonald’s in India
Section 2.4 – Dunning Eclectric Paradigm applied
Section 2.5 – Vernon Life-Cycle applied
Section 3.1 - Findings
Section 4.1 – Interpretation/discussion
Section 5 – conclusion
Section 5.1 – Conclusion
Section 6 – bibiliography
Section 6.1 – References

Section 1 - Introduction
Section 1.1 – Executive summary
This report consists of the following:
* A brief introduction to the report.
* Explanation on the theoretical background of the report explaining why I have decided to apply the Eclectic Paradigm and Vernon life cycle theories to McDonald’s investment in India. Brief definition of the five stages in a products life according to the Vernon life cycle theory. * I am going to introduce the Dunning Eclectic Paradigm to analyze the OLI factors involved in India for McDonald’s as a company. * Vernon Life-Cycle applied to analyze a McDonald’s product in India using the five stages that the theory suggests every product has. * India as a country and a potential investment for a multinational looking to invest in India. * The history of McDonald’s in India, when they entered, FDI it is etc. * OLI factors are introduced and advantages are discussed. * The Vernon Life-cycle theory is introduced and is based on the McDonald’s McVeggie product in India. * Empirical evidence is now looked at in terms of how much has been invested over the years, how India is doing economically and what will happen in the future. * An interpretation of McDonald’s in India and whether or not it has been a success? * A conclusion of the report and my final opinion on McDonald’s in India and what the future holds. Section 1.2 – introduction

This is a report that based on evaluating the rationale for McDonald’s, an American company, Foreign Direct Investment into India. The report aims to look at India as an investment for a big multinational two different theories when looking at the aspects involved with investing in India and also analyzing the empirical evidence on India from an economical perspective and what McDonald’s plans to do in the future. Section 2 – THEORETICAL bACKGROUND

Section 2.1 – THEORIES
The theoretical background that I am going to apply to this part of the report and question are the Dunning Eclectic Paradigm and Vernon Life Cycle, as I am attempting to evaluate why McDonald’s have joint ventured into a country such as India in terms of FDI. I intend to use the OLI mode from the Dunning Eclectic Paradigm. I also aim to use product life-cycle model from the Vernon theory to look at a McDonald’s product in India as it suggests that in the early stages of a products life, all the factors and labor linked with that particular product come from the area in which it was invested in.

Product life-cycle
These are five stages in a product's life cycle according to the Vernon Life-Cycle theory: * introduction
* growth
* maturity
* saturation
* decline
Section 2.2 – india as a country and potential investment
Fast food companies such as McDonald’s invest abroad either to exploit a foreign market or to secure better access to particular business factors such as cheap labor and new consumers. When you think about the Indian culture and the way of life in terms of what the Indian people actually eat and don’t eat with most of the people being vegetarians, how could a company that sells several different meat products achieve success here? India is one of the toughest markets to enter for multinational companies, mainly due to their governmental hardships enforced by the Indian government. This is because of the Indian government making sure...
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