Swot on Mcdonalds

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EXECUTIVE SUMMARY
McDonald’s India was incorporated as a wholly owned subsidiary – McDonalds India Pvt Ltd (MIPL) in 1993. In April 1995, the wholly owned subsidiary entered into two 50:50 joint ventures. The first with Connaught Plaza Restaurants (Mr Vikram Bakshi) to own and operate the Delhi restaurants, and Hardcastle Restaurants (Mr Amit Jatia) to own and operate the Mumbai outlets. This marked the beginning of an incredible era in the international McDonalds timeline. It was the beginning of remarkable growth, lengthy product adaptations, and the entry into a market that was so culturally diverse many saw the venture as unrealistic and essentially a waste of time. This report entails the lengths at which McDonalds had to adapt and connect with the local populations. A brief history is supplied about the company and the nation in question. An analysis of the strengths, weakness, opportunities, and threats is provided and an insight into the most important of all external and internal factors. Major cultural issues and distinctive sociological features are presented throughout the report, along with an insight into McDonalds India’s continual growth.

TABLE OF CONTENTS

1.0Introduction…………………………………………………………………………….4-5

2.0SWOT analysis
2.1Strengths…………………………………………………………………………6 2.2Weaknesses……………………………………………………………………....6 2.3Opportunities…………………………………………………………………….7 2.4Threats…………………………………………………………………………...7 2.5SWOT findings…………………………………………………………….…..7-8

3.0Cultural fit………………………………………………………………………………..9

4.0Cultural issues……………………………………………………………………..….9-10

5.0Progression and Structure……………………………………………………………...10

6.0Strategies and Success…………………………………………………………………..11

7.0References……………………………………………………………………………….12

1.0 INTRODUCTION
McDonalds for many years has been the leader in global fast food, franchised outlets. It has set the standard, for quick, reliable and consistent food, worldwide. The company has rapidly expanded and continues to do so. Opening more stores than any other fast food chain over the past 40 years. McDonalds had entered the Asian market in 1971, beginning with Japan. It had continued to enter various other countries and regions of Asia for the following 35 years.

Year of OpeningCountryRestaurants in 1997Restaurants in 2002 1971Japan24373891
1975Hong Kong140216
1979Singapore105130
1980Philippines157236
1981Malaysia110149
1984Taiwan233350
1985Thailand61100
1988South Korea114357
1991Indonesia103105
1992China ( Beijing)184546
1996India946
1998Pakistan020
1998Sri Lanka02
Source: McDonalds Corporation 2002 Annual Report.

India was always considered a sleeping giant to many western multinationals. It had continued to expand and slowly open its markets, and doors to trade from western nations. India’s population soared through the 1960’s to 1990’s, yet was still an incredibly difficult market to enter, primarily for cultural reasons.

source: BBC News, India’s Population

India is possibly the most diversified nation on the face of the planet. It is home to more that 1.18 billion people, 17.31% of the worlds population. India is home to more than two thousand ethnic groups, and every major religion is represented. McDonald’s first entered the India market in October 1996, since then it has opened a following 168 stores, however there proved many difficult times and obstacles that impended the smooth run of fast food chain.

2.0 SWOT ANLYSIS
2.1 Strengths
McDonalds’ sheer size is it biggest strength that creates so many opportunities for the brands alone. In 2003 it operated more than 31,000 restaurants and served than more than 46 million people daily in 118 countries. That same year McDonalds had attained US$41.5 billion in sales, another point of strength. McDonalds also managed to show US$2.1 billion in operating profits, and had US$24 billion worth of assets. These figures indicated the...
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