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    Globalization Theory Revised1

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    Mcdonald 11Presentation Transcript

    1. One world, One Burger- McDonaldsWelcome to McDonald's India!!

    2. consumer behavior

    3. HistoryFounded in 1940By Dick and Mac McDonald in CaliforniaIntroduction

    of speedee service system in 1948Ronald McDonald introduced in 1963Ray

    Kroc gives the idea of franchising.10/3/2011

    4. McDonald's in INDIAEntered in India 1996McDonald's India is a 50 50 JV

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    partnership between MCDONALDS CORPORATION (U.S.A) and two Indian

    businessman AmitJatia and Vikram BakshiTrained extensively with their Indian

    management team in Indonesia and US before launchThe entire menu was

    changed

    5. McDonalds in INDIA90% of McDonald's business is owned and run by

    independent franchisees in IndiaActively Involver in many social activities like

    CHILD EDUCATION, PULSE POLIO etc.

    6. 10/3/20116consumer behaviorIndian challenge40% vegetarians selections to

    suit Indian tastes.Respect for local culture-no beef or pork served.Soft serves

    and mc shakesare egglessRe-formulated own products using spices favored by

    Indians.Only vegetable oil used as cooking medium.

    7. McDonalds Corporation has been growing and spreading internationally for

    the past three decades.Although McDonalds seems convenient, cheap and

    clean there are many negative aspects of the business. In spite of paying their

    employees low wages and negatively impacting other cultures, McDonalds

    have managed to position themselves as a positive piece of Americana. The

    unethical practices of this large fast food corporation are known but do not

    seem to detract from the all-American image that the corporation seeks toproject.

    8. 2004-worlds largest marketer of fast foodServes in 120 countries31,000

    restaurantsEmploys 360,00047 million customers per day

    9. Ethical problemAlthough McDonalds makes the effort to support children

    with life threatening illnesses, thediet offered by this corporation and others

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    contributes to obesity, heart disease, asthma, andpossibly mad cow disease.

    What kind of message are we giving our children when we promotehealthy

    eating, and at least 59 of the nation's 250 children's hospitals have fast-

    foodrestaurants? (Tanner, 2006)Environmentally, McDonalds practices are

    also questionable. Unlike a fresh ground beefpatty at a local butcher shop, a

    typical fast-food hamburger patty contains meat from more thanone thousand

    different cattle, raised in as many as five countries (Schlosser, 2004). This

    raisesthe possibility of a particular patty containing contaminants of unknown

    origin. As notedpreviously, instead of locally grown potatoes, the corporation

    uses their own geneticallymodified potatoes. The practices of using food from

    extreme distances, is problematicenvironmentally. From a public health

    perspective, the use of beef from mult iple sources makescontaminated sources

    far more difficult to trace.

    10. Impact on foreign culturesNot only do McDonalds products harm individual

    and environmental well-being, they are alsohaving an influence on some East

    Asian cultures with the corporations entry into thosecountries. Critics c laim

    that the rapid spread of McDonalds and its fast-food rivals

    underminesindigenous cuisines and helps create a homogenous, global

    culture (Watson, 2006). Chineseparents want to connect their children to the

    world outside of China, so they reward them with atrip to McDonalds, but in so

    doing they are also taking away from their culture. In twentyyears [Yunxiang

    Yan, a UCLA anthropologist] predicts, young people in Beijing (like

    theircounterparts in Hong Kong today) will not even care about the foreign origin

    of McDonaldswhich will be serving ordinary food to people more interested in

    getting a quick meal than inhaving a cultural experience (Watson,

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    2006).Another major change brought to the East by the entry by McDonalds

    and Americancorporations into Asian countries, is the new obsession with

    American culture.