Do you think McDonald’s has done well in addressing the key macro- environmental factors in India, and why? I will start off by saying; Yes, I think McDonald’s did really well in addressing the key macro-environmental factors in India. To give some more debt to this answer, I found it convenient to use the PESTEL analysis as a tool to identify the key macro-environmental factors that were relevant for McDonalds when they entered India, and then shortly comment on each of them what McDonalds did that was so good.
Until the early 1990s, India’s political parties were critical of foreign companies operating in India. After that the market opened more up, but still the political climate seems to be in some ways critical of foreign MNC’s. To deal with these problems McDonald’s choose to partner up with local companies and to create joint-ventures. Their local business partners knew which steps that needed to be taken to create political goodwill and how make the introduction of McDonalds go as smoothly as possible.
When McDonald’s entered India, it was crucial for them to be aware of the local culture, and to not appear as bold Americans. India was known for their sensitivity to cultural imperialism, and they feared that the western culture would come in and dominate the traditional Indian values, traditions and so on. McDonald’s was careful and they listened closely to the local demands and did their best to adjust to the target market’s needs. I am aware that this is closely tied to the socio-economic factor, but eventually this also has a huge affect on the political environment. McDonald’s seems to have succeeded in with the way they monitored the market and the way they customized their concept to fit the Indian market. If you compare the little resistance that McDonald’s seems to face from the government, to India’s ranking on the Ease of Doing Business-index, it looks like McDonald’s...