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The Golden Arches in India
Presentated By :Md. Nazmus Sakib 0731044Nusrat Fariha 0720002
Md. Golam Hasib 0720482
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MC DONALDS
McDonalds is one of the best known brandworldwide. Founded in 1940 It is worlds leading food service providerwith 33000 restaurants serving in 118 countries
serving 64 million customers each day.
Franchise Model Only 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 andoperate operations in West & South India.
Vikram Bakshi(Connaught PlazaRestaurants), owns and operates McDonald'sin North and East India
235 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
VariousSuppliers
BargainingPower-LOW
Rivalry Among Competing
Sellers Domestics Fast Food outlets
American Fastfood Chains
Competition-HIGH
Buyers
Home cooked foodPreference Many Alternatives
Bargaining Power HIGH
Potential New Entrants
Entry Barrier
Threat -LOW
Substitute Products
Local Grocery Stores Waiter on Wheels(WOW )
Threat-Low
Five forces Model of Fast Food Industry in India
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P r i c e
Variety in Food Menu
Local Fast-foodE.g- Dhabas,
Road SideRestaurants
National Fastfood Chain
Nirulas,Darshini
High
Low
Low High
InternationalFast foodChain-
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 Market300 Million
Wide Range of economic reforms -1991Entry of MNCs
1991-1996, Groundwork Phase Indian customers taste, Product
Development, Supply Chain Arrangement
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Think global, act local McDonald's India as a
wholly owned subsidiarythat is known asMcDonald's India Pvt Ltd.
Two joint venture on a50:50 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 withIndian government and political activites
Challenges of McDonald's In India
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Certain issues McDonald's consider whileentering 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 BigMac, with the Maharaja
Mac. Change latter to avoidoffending the sensibilites of
Hindus & Muslims. According to the vegetarian &non-vegetarian they separatetheir menu.
Strategies of McDonald's
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Low price than Sri Lanka &Pakistan and providingcomplimentary gifts.
McDonald's often launchedmassive promotionalscheme in collaboratingwith the media partner.
Strategies Of McDonald's
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Tangible Resources Financial Resources Physical Resources Technological ResourcesIntangible 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 toImitate
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 recognition Strongest Presence Customer Intimacy Product innovation Supply Chain
OPPORTUNITIES
Expand into maximum cities Entry into breakfast category Acquisition of other restaurants
WEAKNESS High overall costs than rivals Adaptation time period Huge Investment
THREATS Changing customer lifestyle Increase in competition Growing health consciouspopulation
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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, MarketInformation 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 exportbase for cheese, lettuce and other product thatwent into its burgers.
Exports had already begun to Sri lanka,HongKong and the Middle east.
The company was also trying to export itsproducts to Europe, Russia and Southeast Asia.
It shows that when you set up a supply chain instrategic location it can service other countriesas well .
Things are becoming global in nature
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Recommendation
In terms of innovation, it isa continuous process andMcDonalds Corporation
India is giving their maximum effort on it. So itis a important factor for McDonalds to go for
continuous innovation.
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