Case Study: McDonald's India
1. What are some of the contextual issues for McDonald’s in India (Describe the Indian context using Hofstede/Trompenaars/GLOBE). What are some of the more prominent social instritutions at work that will impact on this case (Religion, Government, Social institutions, Education, Politics, etc.)
Trompenaars:
Particularism:
After many years of studying the Indian food market, build relationships and get to know people to better understand Indian’s needs. McDonald’s was ready to get into India’s market. Indian particularism has to do with the adaptation of decision and behavior to given circumstances. Accepting McDonald’s as part of the India’s economic liberalization and further globalization integration (BRIC), people would change their behavior on consuming McDonald’s as long as McDonald’s would adapt its products into India’s culture For example as making vegetarian hamburgers. Indians focus and care on people’s uniqueness and relationships among their relatives, friends and society in general. For this reason McDonald's concerned on Indians food preferences and social values. McDonald's change the name of the restaurants to ‘McDonald’s Family Restaurants’.This is the strength of McDonald's in India marketing their products to the Indian families. For McDonald’s in India is crucial to remember the importance of trust in a business situation, for example a contract may be not needed, contrarily relationships are seen as a binding agreement. Relationships in business are so important because of the fact that Indians do not trust the system (laws, regulations, etc).
Communitarianism:
Indians for example are really cooperative when they have to work and because of their consensus – oriented culture they rarely say “no” in order to maintain harmony in the group. For McDonald’s is good that India is a consensus-oriented culture because it is easier for them to make deals with Indians. McDonald’s found out that giving back in India is good business. India is a
Trompenaars:
Particularism:
After many years of studying the Indian food market, build relationships and get to know people to better understand Indian’s needs. McDonald’s was ready to get into India’s market. Indian particularism has to do with the adaptation of decision and behavior to given circumstances. Accepting McDonald’s as part of the India’s economic liberalization and further globalization integration (BRIC), people would change their behavior on consuming McDonald’s as long as McDonald’s would adapt its products into India’s culture For example as making vegetarian hamburgers. Indians focus and care on people’s uniqueness and relationships among their relatives, friends and society in general. For this reason McDonald's concerned on Indians food preferences and social values. McDonald's change the name of the restaurants to ‘McDonald’s Family Restaurants’.This is the strength of McDonald's in India marketing their products to the Indian families. For McDonald’s in India is crucial to remember the importance of trust in a business situation, for example a contract may be not needed, contrarily relationships are seen as a binding agreement. Relationships in business are so important because of the fact that Indians do not trust the system (laws, regulations, etc).
Communitarianism:
Indians for example are really cooperative when they have to work and because of their consensus – oriented culture they rarely say “no” in order to maintain harmony in the group. For McDonald’s is good that India is a consensus-oriented culture because it is easier for them to make deals with Indians. McDonald’s found out that giving back in India is good business. India is a