Marketing McDonald’s in India Harvard Case Solution & Analysis

MacDonald’s India Background:

MacDonald started its operations in India in October 1996. MacDonald in India is the 50-550 vendor partnership between MacDonald Corporation (USA) and the regional Indian partner’s Amit Jatia own the hard castle restaurant private limited and operates MacDonald restaurant in western India while Vera Bakshi owns Connaught plaza restaurant and operates in northern India.

1)    Macro environment:

PESTEL Analysis:

The external macro and micro environment analysis in which business operates is called PESTEL Analysis. It stands for political, economical, social, technological, environmental and legal factors.

Political factor:

There are some political influences on MacDonald in India.

  • MacDonald’s activities in India is affected by the government polices on the regulation on the fast food restaurant. The lawsuit was filed against MacDonald in India by attorney, Harish Bharti.
  • India is very rich in term of politics and some Hindu national parties were against the food because they only want vegetarian food restaurant in India so they protested against fast food restaurant, which used beef in their menu.
  • MacDonald is very popular in India but due to some health concern issues, government is trying to control the marketing activities of fast food restaurants.
  • The ranking for the political influences is 5 on the basis of importance.

Economical factor:

MacDonald has faced a lot of economic variables when it entered in India. These are as follows:

  • The business of MacDonald is already established in USA with low risk but in India where majority of population are below poverty line and the unemployment rate is very high so dealing in rupees as currency is a concern for MacDonald.
  • Economic factors such as employment rate, currency exchange rate, interest rate, international supply needs to meet the demand of its products and tax rate have impact on the MacDonald operations in India. But India is a booming economy that has low tax rate, availability of the labor in abundance because of high employment and the development of the middle class in India where people can spend more and more on expensive food at fast food restaurant is a positive sign for MacDonald’s future in India.
  • The consumer purchasing power and the annual disposable income is increasing in India.
  • The ranking of economical factor on the basis of importance is 6.

Social factor:

Social factor has a great impact on the sales of any organization. Social factors that impact MacDonald’s operations in India include:

  • The religion of USA has not much impact on MacDonald as it is a liberal society but in India there is a very versatile society. India is a large country in terms of population but still Hindu’s don’t eat beef and meat; however, Muslims only eat halal. In India, religion has a great impact on society which is a big concern for MacDonald.
  • The life style of people in India is changing, the earning power of the population is increasing and the increase in middle class where people like to go outside to eat in restaurants has a good impact on the society.
  • The ranking of this factor on the basis of importance is 4.

Technological factor:

Technological factor does not have a very high impact on the fast food restaurants. The technological factor in India for MacDonald includes:

  • The most important benefit of globalization is the advancement in the technology. MacDonald does not use too many complicated technology for their operations but still they need a highly competitive technology.
  • Technology is used in supply chain management, order taking, inventory control, and quick payment procedures. The use of technology can make more effective and reliable management and has cost saving benefits in short-term as well as in long-term. Customer will come over and over after getting what they want in the disciplinary way and on time.
  • The ranking of technological factor is 5 on the basis of importance.

Environmental factor:

As MacDonald is increasing its number of restaurant day by day so environment is an important factor of concern. The environmental factors that impact MacDonald in India includes:

  • Air pollution and disposal of raw material in the form of waste are some environmental factors that may impact the environment
  • MacDonald in India provides a great environment along with their all services to their customers where they have quality food.
  • The ranking of environmental factor on the basis of importance is 6.

Legal Factors:

  • Legal regulation is an important factor that is always the biggest concern to  MacDonald. There are many different legal requirements that MacDonald should consider after its entrance into India.
  • This legal requirement includes labour and employment law, company law and tax requirement.
  • The ranking of legal factor on the basis of importance is 7.

Porter’s five forces:

Porter’s five forces model is designed by Michael E. Porter, which analyzes the five competitive forces that helps to determine the effectiveness of an..........................

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