113746544-03-mcdonalds-final 2
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The Golden Arches in India
Presentated By :
Arifa Akhtar 1211270
Zia
Sajid
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MC DONALDS
McDonalds is one of the best known brandworldwide.
Founded in 1940
It is worlds leading food service provider
with 33000 restaurants serving in 118 countries
serving 64 million customers each day.
Franchise ModelOnly 15% of the total number of
restaurants are owned by the Company
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MC DONALDS India
McDonalds entered India in 1996.
50:50 Joined ventures
Amit Jatia(Hardcastle Restaurants) owns and
operate operations in West & South India.
Vikram Bakshi(Connaught Plaza
Restaurants), owns and operates McDonald's
in North and East India
250 restaurants across the country
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Political
Democracy
Large Bureaucracy
Socialist Mind Set
Socio Cultural
80% Hindu
12% Musim
40% vegetarian
Fast Food Industry
General Environment of Fast Food Industry in India
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Suppliers of
Key Inputs
Various
Suppliers
Bargaining
Power- LOW
Rivalry Among Competing
Sellers
Top Brands Competitors
Same criteria of food industry
Competition-HIGH
Buyers
One price strategy Quality of food
Bargaining Power
LOW
Potential New Entrants
Entry Barrier
Threat -HIGH
Substitute Products
Burger King, KFC, Indian Cuisine,
Indian local shops, IndianVegetarian restaurants
Threat-HIGH
Five forces Model of Fast Food Industry in India
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Price
Variety in Food Menu
Local Fast-food
E.g- Dhabas,
Road Side
Restaurants
National Fast
food Chain
Nirulas,
Darshini
High
Low
Low High
InternationalFast food
Chain-
McDonalds,
KFC, Baskin-R
Dominos
Strategic Group Map of Fast Food Industry in India
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Strategic & Management issues that McDonaldshad to consider to enter into India
Potentially large consumer Market
300 Million
Wide Range of economic reforms -1991 Entry of MNCs
The environment factors in India
Indian customers taste, Product
Development, Supply Chain
Arrangement
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Think global, act local
McDonald's India as a
wholly owned subsidiary
that is known as
McDonald's India Pvt Ltd.
Two joint venture on a
50:50 basis in Mumbai &
Delhi.
McDonald's Entry in India
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To avoid hurting religious sensibilities of
Indian People
To avoid political confrontation with
Indian government and political activites
Challenges of McDonald's In India
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Certain issues McDonald's consider while
entering in Indian market:
Research and Development:
Different types of Language
Religious Sensitiveness
Vegetarian & Non- Vegetarian
Strategies of McDonald's
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To attract customer changetheir core product name Big
Mac, with the Maharaja
Mac. Change latter to avoid
offending the sensibilites of
Hindus & Muslims. According to the vegetarian &
non-vegetarian they separate
their menu.
Strategies of McDonald's
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Low price than Sri Lanka &
Pakistan and providing
complimentary gifts.
McDonald's often launched
massive promotional
scheme in collaborating
with the media partner.
Strategies Of McDonald's
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Tangible Resources
Financial Resources
Physical Resources
Technological Resources
Intangible Resources
Human Resources
Innovation Resources
Reputational Resources
Internal Analysis of McDonalds' India
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Distribution
Marketing
Research & Development
Capabilities
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Rare Valuable Costly to
Imitate
Non-substitutable
Supply Chain Yes Yes Yes Yes
Distribution Yes Yes Yes No
R &D Yes Yes Yes No
Core Competency Analysis
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SWOT ANALYSIS
PLEASE ADD UR POINTS
STRENGHTS
Strong brand recognitionStrongest Presence
Customer Intimacy
Product innovation
Supply Chain
OPPORTUNITIES
Expand into maximum citiesEntry into breakfast category
Acquisition of other restaurants
WEAKNESSHigh overall costs than rivals
Adaptation time period
Huge Investment
THREATSChanging customer lifestyle
Increase in competition
Growing health conscious
population
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Building Blocks:
Efficiency
Quality Innovation
Customer Responsiveness
Functional-Level Strategies
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Manufacturing
Mass Customization
Low cost andeconomies of scale
Flexible Manufacturing
Technology
Achieving Superior Efficiency
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Marketing & Efficiency
( Pricing, Promotion, Advertising, Market
Information for Product Design, Distribution
&Customer Loyalty)
Material Management and Supply Chain, JIT &
efficiency
Human Resource Strategy & Efficiency
Achieving Superior Efficiency
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Achieving Superior Quality
Achieving Superior Innovation
Achieving Superior Responsiveness tocustomer
Functional-Level Strategies
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McDonalds had started using India as an export
base for cheese, lettuce and other product that
went into its burgers.
Exports had already begun to Sri lanka,HongKong and the Middle east.
The company was also trying to export its
products to Europe, Russia and Southeast Asia.
It shows that when you set up a supply chain in
strategic location it can service other countries
as well.
Things are becoming global in nature
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Recommendation
In terms of innovation, it is
a continuous process and
McDonalds Corporation
India is giving theirmaximum effort on it. So it
is a important factor for
McDonalds to go for
continuous innovation.
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