McDonald’s India Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

McDonalds’s India: Optimizing the French Fries Supply Chain

Introduction

McDonald’s is said to be the only brand in the world that has achieved an instant appreciation and brand recognition in most of the countries. The brand has known to have largest fast food restaurants worldwide, and the company has more than 47 million customers globally. McDonald’s have more than 31000 restaurants that are engaged in serving more than 47 million customers in more than 119 countries in the world. The products of the company include several fast food items along with different soft drinks as well. Major products include: chicken products, hamburgers, salads, cheese burgers, breakfast items, fries, desserts and ice creams.

In addition to that, there are playgrounds in the restaurants in most of the countries. The main strategy of the company include expansion, and the company is aggressively engaged in expansion into various countries, in fact, global expansion has become a key success factor for McDonald’s. The company has not only engaged in expansion in terms of increasing their franchise but also in expansion of the menu. The restaurant has included alternative options for meals like snack wraps and salads to improve the people’s interest in being healthy and health conscious. All the restaurants in the world of McDonald’s are operated by a franchisee, and the source of revenue for the company is through royalties, rent and the annual fees that have been paid by the franchisee.

History

McDonald’s Restaurant was opened by two brothers namely, Mac and Dick in 1940 in San Bernardino. The basis of the restaurant was based on the introduction of a system that was based on speedy service. By the end of 1948, the restaurant had built its brand on the standards of fast food eating place. The current company was initiated and founded by Ray Kroc in Illinois in 1955. It was the number ninth restaurant in the world, but the brand was later acquired by Kroc completely and further expanded worldwide. The business has expanded and flourished enormously and became famous as a sign of international expansion.

McDonalds’s Strategy

Marketing strategy of McDonald’s does include making a balance between company’s internal resources with external environments of the company. Further, the company is planning to follow basic competencies so as to increase shareholders’ value. McDonalds’s strategy includes being the most famous brand in the world and a place where people would love to come and eat. In addition to that, it has included a strategy that is based on promoting and emphasizing the concept of healthy junk food. The McDonald’s current strategy is based on endorsing its brand as a healthy place to eat and thus portraying healthy image for the brand. Other than that, McDonald’s is planning to make changes in its menu as well and it is planning to add healthy food items like sausage burrito and cinnamon roll in it. The main purpose of this strategy is to give a balance lifestyle to individuals that in turn will attract new customers and will help in retaining the existing ones.

McDonalds’s in India

The brand made its entrance in India in 1996 by making a joint venture with two Indian businessmen. The businessmen were engaged in running Connaught Plaza Restaurants and Hardcastle Restaurants. Both the entities were engaged with McDonald’s by making equal joint venture with the parent company. The operations of the restaurants are based on 240 restaurants in India and they are planning to make it 500 restaurants by the end of 2014. To cater the Indian customers, the brand has customized its menu according to the religious preferences and tastes of Indian customers. In addition to that, pork and beef items are strictly prohibited in the Indian franchises because of the religious factors as 80 percent of Indians do not eat beef or pork. The meats used in the Indian franchises include: chicken, fish and vegetable made products like Aloo patties and McVeggie.

Along with that, McDonald’s have made some changes in some of the products by adding local spices liked by Indians. These customized products include: McAloo Tikki burger, Veg. Pizza, Chicken McGrill and McVeggie Burger. As eggs are not eaten my many communities in India, thus; they have customized sandwiches as well in which eggs are not included. The restaurants in India have further made sauces and dips without putting egg as an ingredient. Not only sauces, dips and sandwiches, the restaurants have also offered drinks and McShakes without eggs to cater the majority of Indian customers.

Local suppliers for McDonald’s make available the finest quality; freshest and clean ingredients as McDonald’s make no compromise on quality. Absolute observance has been given to Indian regulatory body on health; hygiene and food along with maintaining the international standards of the brand. The basic motto of McDonald’s is based on providing friendly and fast service to its customers. In addition to that, severe rules ....................

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