With its headquartered in the United States, the company began in 1940 as a Rebecca restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald’s has made a high profile brand image because of its quality food, quick seen/ice, cleanliness, everyday value and so on. (McDonald’s, 2014) As at the year ended 2013, More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.
Of the total McDonald’s restaurants worldwide: Over 57% are conventional franchisees Nearly 24% are licensed to foreign affiliates or developmental licensees 19% re company-operated (About McDonald’s, 2014) In 1948 McDonald’s begins its activities in USA and it experienced the taste of success from the beginning. In 1955 it was introduced as ‘McDonald’s Corporation’ founded by Ray Crock. In 1967, the company started to extend its business worldwide, now McDonald’s is one of the biggest and reputed global food service retailers in the world. McDonald’s, 2014) McDonald’s as a global company has to consider the various factors that affect them politically such as laws, agencies and groups and individuals that influence and limits organizations in various societies that they operate. The dimensions being evaluated include the government attitude to foreign markets, the stability and financial policies of a country and government bureaucracy, Trade control and Import restrictions.
For the environmental factors, McDonald’s is facing problems such as pollutions and too much waste of raw materials issues. Also there are lot of criticize about their waste production, recycling and climate change. McDonald’s annual report for 2013 states that, there is a possibility that perceived effect of change in weather tatter or climate could have a direct impact on the company’s operation (McDonald’s Annual Report, 201 3) This analysis also shows the importance of social factors in terms Of consumer trend, taste and their communities in those regions that McDonald’s operates.
Ray Crock said “McDonald’s IS proud to be a part of the communities we serve. Through involvement in youth sports, local charities, and events that inspire the world, giving back is an essential part of the way we operate every day, McDonald’s is a people business” (About McDonald’s, 2014) The legal aspect of the analysis looks at he taxes, registration, staff laws and safety laws, McDonald’s as a giant food chain has to be responsible regarding legal issues like this.
For example in many of their market including the United States and Europe, they are subject to increase regulations which has increased the cost of doing business and in the developing countries the company is face with the risk associated with new and untested laws and judicial systems” (McDonald’s Annual Report, 201 3, P. 12) “The economic conditions in both globally and local markets of McDonald’s are affected and the current global environment has been hardhearted by persistently weak economies, high unemployment rates, inflationary pressure and volatility in financial markets.
Many major economies, both the advanced and the developing, are still facing ongoing economic issues and theses conditions have pressured”(McDonald’s Annual Report, 2013, P. 12). The technological factors is keen for McDonald’s, the impact Of innovation is also considerable to meeting the customers expectation. MCDONALD’S INDIA McDonald’s opened its first door in India in October, 1996. Ever since there have been heir family restaurants in Iambi and other regions. McDonald’s commitment to its Indian customers is evident even in development of special sauces that use local spices and chilies.
The mayonnaise and all other sauces are egg-less. McDonald’s also pioneered the establishment of Cold Chain across India which helps maintain freshness and nutrition in every product (McDonald’s India, 2013). McDonald’s currently has 300 restaurants in India of which 145 are in North & East India and 155 in West & South India (McDonald’s India, 2013). McDonald’s in India is a SO-SO joint venture partnership between McDonald’s Corporation [USA] and two Indian genuineness. Amid]ataxia’s company hard castle Restaurants Pit. Ltd. Owns and operates McDonald’s restaurants in Western India.
While Cosmonaut Plaza Restaurants Pit. Ltd headed by Viking Basic owns and operates the Northern operations (McDonald’s India, 2014). IMPACT OF GLOBALIZATION ON MCDONALD’S INDIA “Globalization has become one Of the most debated subjects Of recent times. It has been hailed as one of the best things to happen to the world by its proponents, while opponents have labeled it as neo-imperialism. The impact of it can be affected either positively or negatively (Puzzle, 2014) EMPLOYMENT McDonald’s in India has provided lot of employment opportunities for the people in India.
They have provided quality employment and long-term careers to the Indian people. McDonald’s restaurant in India employs around 50 people on an average, performing 25 different job responsibilities, from the counter crew to the restaurant management (About McDonald’s, 2014) When McDonald’s first came to India in 1996, they started with 50 employees but with their world-class training input to its employees can today be seen close to 10,000 plus employees. The company currently employed directly tit McDonald’s restaurant across India.
Also they also have indirect employment contribution to over 2,000 people as suppliers and services agent. McDonald’s world-class training center ensures that each employee who has undergone an extensive training program is judged at the end of every course involving assessment at regular interval (Scribed, 2013) ECONOMIC GROWTH Prior to McDonald’s arrival in India, in 1990, McDonald’s and its international supplier partners worked together with local Indian companies to develop product that meet McDonald’s vigorous quality standard.
McDonald’s tankard also strictly adhere to Indian Government regulations on food, health and hygiene. Part of this development has involved the transfer of state of the act food processing technology, which has enable Indian business to grow by improving their ability to compete in today’s international markets (McDonald’s India, 2013) McDonald’s pioneered the effort to develop the aforementioned cold chain, five (5) years prior to opening their first restaurant, so that trademarked high standard would be assured.
This concept has been adopted by various Indian and international players today to deliver quality produce to consumers. McDonald’s north India alone contributes more than RSI 30 core equivalents to USED 7 million annum approximately as sales tax to different state government where they operate (About McDonald’s, 2014) TECHNOLOGY AND EXPERTISE There are other industries in India like Ceramic industries that worked with McDonald’s suppliers from Europe to develop technology and expertise, which allowed Ceramic to expand its business from baking to also breading and batters to McDonald’s India and other companies.
Another benefits area of expertise is agriculture, which allowed McDonald’s and its suppliers to work tit farmers in Toy, punk, Durance and other regions to cultivate high quality iceberg lettuce. (Puzzle, 2014) This included sharing advanced agriculture technology and expertise like utilization of drip irrigation system which reduced over all water consumption, better seeding and agricultural management practices, which resulted in greater yields. In some cases these Indian suppliers had the technology but no market for the product they produced.
For example is a supplier, Dynamic Dairies, through its relationship with McDonald’s was introduced to a large customer of milk casein and other ilk derivatives. CORPORATE SOCIAL RESPONSIBILITY It has been a tradition dating back to the founder Ray Crock and it has become a key element in McDonald’s business today. According to study conducted by ORBITS international, indicates that India shoulders the largest burden of global blindness with almost 52 million blind people of these, more than 320,000 are children.
Keeping up to the effort of supporting the blind, McDonald’s India spearheaded the visit of DC-10, the flying eye hospital in coming to New Delhi. McDonald’s is also supporting an outreach programmer n partnership with ORBITS and SHE, where satellite clinic were established in remote village of Altar to treat villagers with eye problems. McDonald’s has also contributed to the community, through education for young people aged 8-arrears. This objective of McDonald’s is to highlight the achievement of children who have made a difference and dare to dream for the future.
Also in collaboration with the Delhi government they have conducted educational workshops on bus, road, fire safety, fun and fitness etc. Are conducted regularly in schools to keep kids abreast to day to day safety measures McDonald’s India, 2014) CHALLENGES FACED BY MCDONALD’S Some of the challenges that were faced by McDonald’s India when they first entered the Indian market were that “McDonald’s was nearly tossed out of India a decade ago after it was reported that beef flavoring was put into oil used to cook French fries.
Right-wing Hindu activists vociferously protested outside outlets and some were ransacked” (AY Jazzier, 2012). McDonald’s is well known for its 100 per cent pure beef but when they went to the Indian market they had to change their whole menu because 80 per cent of the population does not consume the restaurant’s main staple and it is against their culture and the cows are sacred to majority Hindus and swine are considered unclean by minority Muslims (AY Jazzier, 2012).
McDonald’s had to change its entire outlet into all vegetarian and now McDonald’s menu in India already have 50% vegetarian and the company has made a significant effort to adapt to local tastes. The company’s spokesman, told AY Jazzier that “we have always been cognizant of the religion based and other sensitivities of customers and we believe this endeavor of our will also be well accepted” (AY Jazzier, 2012) Now in all McDonald’s outlets across the world has to adjust to this changes from all the Muslim countries they operate.
In markets across the world, McDonald’s has always respected local cultures and has adapted to local preferences and sensitivities,” said Main. “Going to these cities, which are known as pilgrimage centers in India, is an affirmation of the way we do our business. ” (AY Jazzier, 201 2) This was the main reason for McDonald’s adoption of the concept ‘think globally, act locally’ and even though it is challenging it has been successful for them in many countries.