Globalization of Market and Globalization of Product:

 Around the globe, McDonald’s operates with local partners in traditional

manner. McDonald’s source it’s supplies from local suppliers and uses local
human resources to run its’ operations. McDonald’s also contributes part of
its’ profits to local communities in the form of municipal taxes, reinvestment
and lots of other CSR programs. McDonalds also try to co-operate with local
environment regulations. It also finances and supports activities undertaken
by local communities in order to protect the environment. McDonald’s
regards itself as a corporate citizen in countries it is operating globally.
McDonald’s actions give the company a local identity even though it is
multinational.

 In terms of product globalization, McDonald’s created an excellent example.

McDonald’s localized their products 75% for India. As for religious reasons
demand of Beef and Pork is very little in India, McDonald’s introduced The
Maharaja Mac with chicken by replacing Big Mac (Beef). And also
introduced McAloo Burger replacing Vegetarian Salad Sandwich special
creation only for India. McDonalds continuously changes and adapts their
food offerings for consumers.

Political Environment:

 Political environment of India is pretty welcoming for foreign businesses as

foreign businesses and investments create more jobs in the country.
 By the economic reform of 1991, foreign businesses blessed with special care
from Indian government. As Indian government ensures nurturing
environment for foreign businesses.
 India’s ministry of labor and employment offers the benefit of “Minimum
Wage Bill” which positively impacts profitability of McDonald’s.
 Since August of 2020, government of India started to implement Foreign
Direct Investment (FDI) of 100% for food and manufactured products. This
benefit gives McDonald’s an excellent opportunity to grow, expand and invest
more in India.

Economic Environment:

 By forecast, India’s individual disposable personal income will rise further. In

2016-17, disposable personal income of India was US$2,278.89 and personal
expenditure of consumers was US$250.88 billion. And, during 2011-2012,
India’s total GDP was US$1827.64 billion and by 2016-2017, India’s total
 GDP became US$2,439.01 billion with a positive increase of US$611.37
billion. And as per World Bank’s estimate India’s annual growth will reach to
6.5% by 2017-18. Economic environment of India is quite steady and stable
which is safe to business for McDonald’s.
 As India’s currency-inflation rate is higher, Gap on currency rate effects
fluctuations import and exports of MacDonald’s.

Legal Environment:

 Food Safety and Standards Authority of India (FSSAI) issued to label-stickers

of detailed ingredients of foods, several food businesses came under a strict
scrutiny by food safety organizations for nutritional values. As McDonald’s
foods contains high calorie and trans-fat, this can cause negative impression
about McDonalds’ offered foods from the society.
 India has very complex labor law and licensing system as government
permitted operating hours and specified working hours for women employees
has to be maintained. Corporate Tax of India is under 35% which is constant
average with simplified indirect taxes. So, less burden for McDonald’s to
invest in India.

Cultural Environment:

 Massive cultural barrier for McDonald’s to enter Indian Market was the food
habits of Indian as Indians like hot and spicy foods cooked mainly with
vegetable oil. To grab Indian market successfully, McDonald’s has to adapt
their offered foods in a hot and spicy manner.
 Due to religious reasons in India, demand of beef and pork is very low.
McDonald’s has to localize menu in terms of the food taste of consumers
across India is needed to flourish business.
 In India, consumers are also divided in two groups, vegetarian and non-
vegetarian. McDonald’s has to offer specialized menu complementing both
groups.
Globalization of Market and Globalization of Product:

 Around the globe, McDonald’s operates with local partners in traditional

manner. McDonald’s source it’s supplies from local suppliers and uses local
human resources to run its’ operations. McDonald’s also contributes part of
its’ profits to local communities in the form of municipal taxes, reinvestment
and lots of other CSR programs. McDonalds also try to co-operate with local
environment regulations. It also finances and supports activities undertaken
by local communities in order to protect the environment. McDonald’s
regards itself as a corporate citizen in countries it is operating globally.
McDonald’s actions give the company a local identity even though it is
multinational.

 In terms of product globalization, McDonald’s created an excellent example.

McDonald’s localized their products 75% for India. As for religious reasons
demand of Beef and Pork is very little in India, McDonald’s introduced The
Maharaja Mac with chicken by replacing Big Mac (Beef). And also
introduced McAloo Burger replacing Vegetarian Salad Sandwich special
creation only for India. McDonalds continuously changes and adapts their
food offerings for consumers.

Political Environment:

 Political environment of India is pretty welcoming for foreign businesses as

foreign businesses and investments create more jobs in the country.
 By the economic reform of 1991, foreign businesses blessed with special care
from Indian government. As Indian government ensures nurturing
environment for foreign businesses.
 India’s ministry of labor and employment offers the benefit of “Minimum
Wage Bill” which positively impacts profitability of McDonald’s.
 Since August of 2020, government of India started to implement Foreign
Direct Investment (FDI) of 100% for food and manufactured products. This
benefit gives McDonald’s an excellent opportunity to grow, expand and invest
more in India.

Economic Environment:

 By forecast, India’s individual disposable personal income will rise further. In

2016-17, disposable personal income of India was US$2,278.89 and personal
expenditure of consumers was US$250.88 billion. And, during 2011-2012,
India’s total GDP was US$1827.64 billion and by 2016-2017, India’s total
 GDP became US$2,439.01 billion with a positive increase of US$611.37
billion. And as per World Bank’s estimate India’s annual growth will reach to
6.5% by 2017-18. Economic environment of India is quite steady and stable
which is safe to business for McDonald’s.
 As India’s currency-inflation rate is higher, Gap on currency rate effects
fluctuations import and exports of MacDonald’s.

Legal Environment:

 Food Safety and Standards Authority of India (FSSAI) issued to label-stickers

of detailed ingredients of foods, several food businesses came under a strict
scrutiny by food safety organizations for nutritional values. As McDonald’s
foods contains high calorie and trans-fat, this can cause negative impression
about McDonalds’ offered foods from the society.
 India has very complex labor law and licensing system as government
permitted operating hours and specified working hours for women employees
has to be maintained. Corporate Tax of India is under 35% which is constant
average with simplified indirect taxes. So, less burden for McDonald’s to
invest in India.

Cultural Environment:

 Massive cultural barrier for McDonald’s to enter Indian Market was the food
habits of Indian as Indians like hot and spicy foods cooked mainly with
vegetable oil. To grab Indian market successfully, McDonald’s has to adapt
their offered foods in a hot and spicy manner.
 Due to religious reasons in India, demand of beef and pork is very low.
McDonald’s has to localize menu in terms of the food taste of consumers
across India is needed to flourish business.
 In India, consumers are also divided in two groups, vegetarian and non-
vegetarian. McDonald’s has to offer specialized menu complementing both
groups.