Date: Sept 29, 2012
Question 1: What lessons does the experience of McDonald’s in India hold for foreign fast food chance and retails stores?
Answer 1: Not only McDonald’s but also the other companies want to develop their business outside their counties, what they have to do first is to study and survey the countries they want to invest. Like this case, McDonald’s already knew cow is considered sacred and there are about 50% of the people are vegetarian in India, and McDonald’s already changed their menu to meet their culture. However, a worldwide famous fast food store, McDonald’s, deceived and destroyed their fame. In addition, they also have to pay 10 millions for lawsuit. Thus, to learn the culture, understand the culture and meet the culture are the import lessons to win the business.
Question 2: Is there anything that McDonald’s could have done to have foreseen or better prepared itself for the negative publicity associated used beef extract in the frying oil?
Answer 2: In the frying oil case, first McDonald’s matter-of-course had sincerely apology all the people in India, they promised there won’t have the similar case happen again, and they will fully respect Indian culture. Second, they already had a group of people to study India culture deeply, and to research the proper food for Indians. Third, clearly indicate the “Nutrition Facts” for each meal. Finally, they paid 10 millions for lawsuit and lost their trust from McDonald’s.
Question 3: How far should a firm such as McDonald’s go in localizing its product to account for culture differences? At some point, might it not lose disadvantage by doing so?
Answer 3: Since McDonald’s want to develop its business in India, they definitely have to meet Indian’s culture because their target consumer is the middle class of the second biggest population (12 billion) in the world. If McDonald’s want to gain a big profit, they have to adjust their business