McDonald’s India Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies (2024)

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McDonald’s India Case Study Solution

100 Percent Localization Strategy or Import some Supply Strategy

Localization strategy of using local potatoes for 100 percent using one supplier is a better option for the company to pursue, because it will enable the company to reduce its costs of production, which will assist the company to meet its growth prospectus and increase their earnings by providing cheap price to their customers. Although in the mean time when the company will be pursuing 100 percent localization strategy, it should use multi-tier supplier strategy in order to meet the 100 percent demand till the time when the company will be able to meet 100 percent demand from the adoption of localization strategy. It can be seen in the below table that the profit of McDonalds can be improved considerably if 100% localization of potatoes is considered.

100% localization
Selling price per unit70
Units sold5000
Revenue350000
Cost per unit40
Variable costs200000
Fixed costs60000
Profit90000
80% localization
Selling price per unit70
Units sold5000
Revenue350000
Cost per unit52
Variable costs260000
Fixed costs60000
Profit30000

Vertical Integration

Vertical integration will strengthen the assured supply because if the company is integrated with supplier of potatoes i.e. if McDonalds manages to have its own supplying company of the quality potatoes then it will not have to rely on other suppliers to acquire the desired potatoes. Furthermore, the suppliers usually supply to the number of restaurants, which limits the capacity of McDonalds to acquire the desired potatoes to fulfill the desired demand of the customers by 100 percent through local low cost potatoes, which compels the company to import the potatoes to fulfil the 100 percent demand of the consumers. Hence, the vertical integration will strengthen the McDonalds to strengthen the assured supply............

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McDonald’s India Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies (2024)

FAQs

What is the McDonald's case study all about? ›

McDonald's faces various problems such as: a weakening brand, low sales, ineffective promotions and the inability to keep up with its competitors. The main problem the firm needs to address to solve all these issues is its marketing mix functions.

Why did McDonald's fail in India? ›

The biggest problem McDonald faced was during the launch of its product in India was the public image it was carrying as an International food chain and not matching Indian standards. There were concerns raised about how the burgers are made in McDonalds. with suppliers and this is precisely what it has done in India.

What are the promotional strategies that McDonald's adopted when it entered the Indian market? ›

McDonald's does it promotion through television, hoardings and bus shelters. Some of the most famous marketing campaigns of McDonalds are: “You deserve a break today, so get up and get away – To McDonald's”, “Aap ke zamane mei, baap ke zamane ka daam”, “Food, Folks, and Fun” and “I'm loving it”.

Does the movement into the Indian market represent any risks for McDonald's? ›

The movement into the Indian market does represent risks for McDonald 's . McDonald 's in India had to change most of its menu because of the many diversities of language and religion . According to the case analysis , the company had to be creative with its products that would be sold at the new McDonald 's .

What is an example of a case study? ›

Some famous examples of case studies are John Martin Marlow's case study on Phineas Gage (the man who had a railway spike through his head) and Sigmund Freud's case studies, Little Hans and The Rat Man. Case studies are widely used in psychology to provide insight into unusual conditions.

What is McDonald's main message? ›

Our mission is to make delicious feel-good moments easy for everyone. This is how we uniquely feed and foster communities.

What is the problem with McDonald's in India? ›

New Delhi, India – McDonald's has faced boycott calls in India from right-wing Hindus after the global fast-food chain said its outlets served halal meat. The controversy erupted after McDonald's India said on Twitter that all its restaurants are halal certified. “All our restaurants have HALAL certificates.

Why is McDonald's so successful in India? ›

Overall, McDonald's success in the Indian market can be attributed to its ability to adapt to local tastes and preferences, as well as its focus on offering a range of menu options and creating a family-friendly atmosphere in its restaurants.

Is McDonalds shutting down in India? ›

The global fast food joint will be shutting down 169 outlets spread across North and East India owing to the termination of the franchisee agreement between its India arm McDonald's India Private Ltd (MIPL) and Vikram Bakshi-headed Connaught Plaza Restaurants Ltd (CPRL).

Who does McDonald's target in India? ›

Most of McDonald's audience is lower to middle income families in both urban and rural areas.

How McDonald's can improve? ›

How McDonald's Can Improve Customer Service
  • Recognize that people matter. Match your investments in products and processes to your investments in your people. ...
  • Shifting the paradigm. ...
  • Rethink your definition of service. ...
  • Train your employees. ...
  • Put your money where your mouth is. ...
  • Establish daily rituals.
Apr 12, 2013

What is the latest campaign of Mcdonalds India? ›

We've got you”. The campaign captures the minutiae of daily life in a way that is relatable, fun loving and empathetic. Conceptualized by DDB Mudra Group, the campaign includes three films, each capturing three distinct eureka moments experienced by McDonald's fans while life throws unexpected curveballs.

What are the economic factors affecting McDonalds in India? ›

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.

What are the ethical issues of McDonalds? ›

McDonald's Failed To Protect Workers Against Violent Customers, Lawsuit Says A lawsuit by 17 McDonald's workers recounts threats, harassment and assaults, accusing the fast-food chain of "undermining safety" with late-night work, store design changes and inadequate training.

What are the problems McDonalds is facing? ›

Despite the euphoria, McDonald's faces growing difficulties as rising costs and falling market share have led to franchisee cash flow issues. Consumer satisfaction and employee turnover trends suggest that McDonald's efforts to automate and mechanize its operations harm its brand value.

What are the 3 methods of case study? ›

He has helpfully characterised three main types of case study: intrinsic, instrumental and collective[8].

What are the three most important areas of a case study? ›

3 Key Components of an Effective Business Case Study
  • The Problem. One of the strongest appeals of business case studies is that they address real life problems. ...
  • Solution Options. The Solution Section of a business case study essentially builds the case for the sponsor's product or service. ...
  • The Results. ...
  • Conclusion.
Oct 31, 2009

How do you analyze a case study? ›

Writing a Case Study Analysis
  1. Read and Examine the Case Thoroughly. Take notes, highlight relevant facts, underline key problems.
  2. Focus Your Analysis. Identify two to five key problems. ...
  3. Uncover Possible Solutions/Changes Needed. ...
  4. Select the Best Solution.

What are 3 facts about McDonald's? ›

12 Hard-To-Believe Facts About McDonald's
  • A New McDonald's Opens Every 14.5 Hours. ...
  • The Caesar Salad is More Fattening than their Hamburger. ...
  • More People Eat at McDonald's Each Day than the Entire Population of the UK. ...
  • They Are the World's Largest Toy Distributor. ...
  • The McDonald's Arch is More Recognizable than the Holy Cross.

What are the 5 values of Mcdonalds? ›

Mission and Values
  • Serve. We Put Our Guests and People First.
  • Inclusion. We Open Our Doors to Everyone.
  • Integrity. We Do the Right Thing.
  • Community. We Are Good Neighbors.
  • Family. We Get Better Together.

What is the main reason for McDonald's success? ›

“Quality, Service, Cleanliness and Value” was Kroc's motto.

These efforts towards process repetition and efficiency not only set the basis for McDonald's success from the standpoint of customers' expectations, but also help McDonald's stay on top in a culture where producing at a quick pace is commonly expected.

What is the value of McDonald's in India? ›

The total revenue of McDonald's operated by Westlife Development Private Limited (WDL) in India was over 15 billion Indian rupees in fiscal year 2022, up from about ten billion Indian rupees in fiscal year 2021.

Who is handling McDonald's in India? ›

Today, Amit has established over 72 world-class restaurants across West & South India for McDonald's. Amit has also been spearheading Supply Chain and Product Development for the McDonald's system in India.

How is McDonald's brand positioned in India? ›

"The starting point for McDonald's India was to position itself as Indian, represent family values and culture and at the same time be comfortable and easy," said Arvind Singhal, director, marketing of McDonald's India West & South.

What is McDonald's slogan in India? ›

McDonald's India- North and East has launched a heart-warming film as part of its “We Get It” campaign, with the tagline “You've got this. We've got you”.

What is McDonald's called in India? ›

Westlife Foodworld Limited (formerly Westlife Development Limited) is an Indian fast food restaurant holding company. Its wholly owned subsidiary Hardcastle Restaurants Pvt. Ltd. (HRPL) holds the master franchise for McDonald's in western India and South India.

When did McDonald's become popular in India? ›

By 1994, the company had 15000 outlets in 79 countries. In India, the company arrived years after the 1991 reforms. India was the 95th country McD entered.

What country is McDonalds leaving? ›

CHICAGO, May 16, 2022 – After more than 30 years of operations in the country, McDonald's Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business.

Is McDonald's profitable in India? ›

The company, which owns the franchise for McDonald's Corp (MCD. N) in west and south India, reported consolidated net profit after tax for the December quarter of 363.5 million rupees ($4.43 million) compared with 208.2 million rupees a year earlier.

What items are discontinued from McDonald's in India? ›

"To ensure a more consistent McDonald's India experience across the different regions, we have permanently removed some of the least popular items including the McAloo Wrap, Chicken McGrill, Egg Wrap, Grilled Chicken Wrap, and Maaza beverage.

Who bought McDonalds in India? ›

So far, McDonald's had two business entities in India. The other one is Amit Jatia's Hardcastle Restaurants, which runs McDonald's business in southern and western India. The financial details of McDonald's settlement with Bakshi, however, have not been disclosed so far.

What is the best selling McDonalds item in India? ›

McSpicy Paneer Burger

Today, it's one of the biggest selling items on the McDonald's India menu. The spicy bread-coated paneer fillet is the hero here, offering the perfect combination of a crunchy exterior, soft interior, packed with protein, and remarkable flavour.

Who supplies fries to McDonalds in India? ›

The company, along with its supplier McCain, has worked closely with farmers in India to produce process-grade potato varieties, Vikram Bakshi claimed.

What are the 3 pillars of growth strategy for McDonald's? ›

Our Business Model and Growth Strategy
  • Franchisees bring the spirit of entrepreneurship and commitment to communities.
  • Suppliers are dedicated to highest levels of quality and safety.
  • The company facilitates learning and sharing across McDonald's more than 36,000 restaurants.

What McDonald's should improve? ›

McDonald's should be focusing on improving the quality of its core products. Locally sourced ingredients, organic food, and a high standard of quality are not necessarily the first thing consumers want from McDonald's.

What is McDonald's main strategy? ›

McDonald's Generic Strategy (Porter's Model)

McDonald's generic strategy is cost leadership, which builds competitive advantage through cost minimization. The company has standardized processes designed to maximize efficiency, minimize costs, and ensure profitability despite the use of competitive selling prices.

Is McDonald's expanding in India? ›

In 2022, the demand for fast food amongst the working millennials and Gen Z, grew quite a bit. Now, the quick service restaurant (QSR) McDonald's wants to scale up its presence in North and East India. The fast food giant recently opened its largest restaurant in India, in Guwahati, Assam.

What was the entry strategy of McDonald's to enter India? ›

McDonald's entered the Indian market in 1996 as a joint venture two local partners with Hardcastle Restaurants Private Limited and Connaught Plaza Restaurants Private Limited. To enter a market where consuming the cow is consider a religious and spiritual symbol was clearly very difficult.

Which is the biggest McDonald's in India? ›

McDonald's India largest restaurant has been set up at Guwahati, which is spread across 6,700 sq ft with a capacity of 220 people at a time.

What does Ray Kroc say was the most important thing about McDonald's? ›

A Unique Philosophy. Ray Kroc wanted to build a restaurant system that would be famous for providing food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, fries and beverages that tasted just the same in Alaska as they did in Alabama.

What was the outcome of the McDonald's hot coffee case? ›

The jury found that McDonald's was 80 percent responsible for the incident. They awarded Liebeck a net $160,000 in compensatory damages to cover medical expenses, and $2.7 million (equivalent to $5,000,000 in 2022) in punitive damages, the equivalent of two days of McDonald's coffee sales.

What is the McDonald's Boys theory? ›

There were several theories that were circulated with regards to the boys' disappearance. One of the first theories was that the two 12-year-old boys - Toh Hong Huat and Keh Chin Ann - may have run away from home. The boys' parents refuted this theory as their boys were well-behaved and may not have run away.

What is the psychology behind the McDonald's logo? ›

The color red is stimulating and is associated with being active. It also increases heart rate, which helps to jumpstart your appetite. The color yellow is associated with happiness and is the most visible color in daylight, so that's why a McDonald's logo is so easy to spot on a crowded road.

Why was the McDonalds concept successful? ›

McDonald's Strategy

By focusing on advertising, franchising, and constant innovations, McDonald's was able to develop a strategy with an effective business model. They targeted their advertisem*nts by branding it as a fun place to go for families.

What would Kroc say is the key to being successful? ›

According to him, “The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it.” The second part of his formula – “doing something about it” or executing – is the real key lesson.

What is the summary of the founder? ›

How did McDonald's fail the 4 step test in the hot coffee case? ›

The jury decided McDonalds had a duty to serve coffee that wasn't so hot that it could create second or third degree burns, that it breached that duty by serving coffee at 180 degrees and not realizing that someone might remove the lid and it would spill, therefore causing burns, that when the coffee spilled out it ...

Why did Mrs Liebeck sue McDonald's? ›

In 1992, 79-year-old Stella Liebeck bought a cup of takeout coffee at a McDonald's drive-thru in Albuquerque and spilled it on her lap. She sued McDonald's and a jury awarded her nearly $3 million in punitive damages for the burns she suffered.

What was Liebeck's original request to McDonald's How did McDonald's respond? ›

Liebeck spent six months attempting to convince McDonald's to pay $15,000 to $20,000 to cover her medical expenses. McDonald's responded with a letter offering $800. Mrs. Liebeck also asked McDonald's to consider changing the excessive temperature of its coffee so others would not be similarly harmed.

What is McDonald's conflict theory? ›

The book puts forward a capitalist peace theory, first published as an opinion piece in The New York Times in December 1996, called the Golden Arches Theory of Conflict Prevention; although slightly tongue-in-cheek, it states: No two countries that both have a McDonald's have ever fought a war against each other.

What is McDonald's training philosophy? ›

McDonald's training combines a variety of ways to acquire information, including demonstration, simulation, and hands-on practice. People need reinforcement to encourage learning. Reward and recognition is an integral part of the curricula because it allows team members to develop skills to give and receive feedback.

Why did the McDonald brothers refuse to do it? ›

After turning McDonalds into a mecca of American popular culture, Kroc persisted in buying the original restaurant. The McDonald brothers strongly refused, because their intention was to leave it to the employees who had inaugurated it in 1940.

Why McDonald's uses red and yellow? ›

Looking at the positive psychology qualities of red & yellow in relation to the fast food industry, red triggers stimulation, appetite, hunger, it attracts attention. Yellow triggers the feelings of happiness and friendliness. When you combine red and yellow it's about speed, quickness.

What does the M mean in McDonald's? ›

Attracting the Customers. The logo for McDonald's is the golden arches of the letter M on a red background. The M stands for McDonald's, but the rounded m represents mummy's mammaries, acccording the design consultant and psychologist Louis Cheskin.

What is McDonald's slogan? ›

Some fun, some food, it's all inside this Happy Meal. (2007–present, used for Happy Meal campaigns.)

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