McDonald s India
Cross Cultural Perspective: McDonald’s India
ETH/316
May 1, 2014
Cross Cultural Perspective: McDonald’s India
McDonald’s launched it first restaurant in 1996. Unlike any other market, McDonald’s corp. has ventured in, India showed to be one of the toughest. As India’s population is very diverse and complex between different communities, religions, beliefs, and value systems, Mcdonald’s had to consider the cultural, economical and sociopolitical factors.
Cultural Issue
Because 80% of the population in India practice Hindu, which prohibits the consumption of beef, and of practicing muslims who do not consume pork, McDonald’s in India was the first of its kind to serve non-beef and non-pork products. McDonald’s understood that to be successful in this market they would have to consider the cultural differences factor. According to “Mcdonald’s entry to India” (2014),“To honor the cultural differences between religions, the company categorized the cooking tools as well as employees in vegetarian and non-vegetarian category”(para 6). When entering a new foreign market, respecting the country’s cultural beliefs is essential into earning the trust of its people and avoid any type of opposition. McDonald’s believes in setting strict rules, and even requires non-vegetarian employees to shower prior to entering the vegetarian side of food preparation. In a country where beef and pork is largely not consumed, one would think McDonald’s was heading for failure; although it proved to adapt well to its culture.
A strategy McDonald’s used and showed to be profitable was the introduction of local tastes to the menu. “Items such as the Maharaja Mac, which is a Big Mac made with chicken patties instead of beef. It also offers a McAloo Tikki, a burger made with a spicy breaded potato patty , red onions, tomatoes and a "special vegetable sauce"”(Choi, 2014, para 5). Furthermore, all ingredients in the vegetarian products are completely vegetarian including the
ETH/316
May 1, 2014
Cross Cultural Perspective: McDonald’s India
McDonald’s launched it first restaurant in 1996. Unlike any other market, McDonald’s corp. has ventured in, India showed to be one of the toughest. As India’s population is very diverse and complex between different communities, religions, beliefs, and value systems, Mcdonald’s had to consider the cultural, economical and sociopolitical factors.
Cultural Issue
Because 80% of the population in India practice Hindu, which prohibits the consumption of beef, and of practicing muslims who do not consume pork, McDonald’s in India was the first of its kind to serve non-beef and non-pork products. McDonald’s understood that to be successful in this market they would have to consider the cultural differences factor. According to “Mcdonald’s entry to India” (2014),“To honor the cultural differences between religions, the company categorized the cooking tools as well as employees in vegetarian and non-vegetarian category”(para 6). When entering a new foreign market, respecting the country’s cultural beliefs is essential into earning the trust of its people and avoid any type of opposition. McDonald’s believes in setting strict rules, and even requires non-vegetarian employees to shower prior to entering the vegetarian side of food preparation. In a country where beef and pork is largely not consumed, one would think McDonald’s was heading for failure; although it proved to adapt well to its culture.
A strategy McDonald’s used and showed to be profitable was the introduction of local tastes to the menu. “Items such as the Maharaja Mac, which is a Big Mac made with chicken patties instead of beef. It also offers a McAloo Tikki, a burger made with a spicy breaded potato patty , red onions, tomatoes and a "special vegetable sauce"”(Choi, 2014, para 5). Furthermore, all ingredients in the vegetarian products are completely vegetarian including the
References: Choi, C. (2014). McDonald 's to beef up in India with Meatless Menu. Retrieved from http://www.businessweek.com/ap/2012-09-04/mcdonalds-to-open-vegetarian-restaurants-in-india Corporate Social Responsibility. (2012-2013). Retrieved from http://www.mcdonaldsindia.net/Corporate-Social-Responsibility.aspx Gordon, A. (2014). McDonald 's adapts to India. Retrieved from http://www.thunderbird.edu/blog/faculty/washburn/2010/12/14/mcdonalds-adapts-to-india McDonald 's India. (2012-2013). Retrieved from http://www.mcdonaldsindia.net/mcdonalds-india.aspx McDonald 's entry to India. (2014). Retrieved from http://www.assignmentpoint.com/business/mcdonalds-entry-to- india.aspx The McDonald 's 'Beef Fries ' Controversy. (2014). Retrieved from http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/The%20McDonald%20Beef%20Fries% 20Controversy.htm