Parameters they look at before entering a market include : The fast food culture itself was looked into. That is Mc Donald’s saw that KFC and Pizza Hut were already established in Sri Lanka
Way they chose a franchisee are:
Mc Donald’s requested for applications and financial stability was looked into. One of the key aspects they looked into was the softer side of the management – the way they handled the people and customers. Mc Donald’s needs to see Franchisee – A**** P actually manage a Mc Donald’s outlet and see how they handle the employees and customers. They put emphasis on this because this is core to what Mc Donald’s is all about * A***** has 100% of the franchise
Criteria to get a franchise? People oriented is a key criteria looked into. Financial stability was another aspect looked into
How and why did they pick Sri Lanka? (Was it part of their south East Asian Plan?) With Mc Donald’s established in India and a fast food culture emerging in Sri Lanka (KFC/ Pizza Hut), it was only logical for Mc Donald’s to enter the market as part of the Asia Pacific, Middle East and South Asian market plan.
The decision like that made regionally or at Corporate HQ in the US? US Head Quarters monitor the entire business. Everything is monitored and needs approval from the HQ (these include, changes in menu, site location etc – the new Nugegoda site took 4 years of discussions before finalized)