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Question 1: How did McDonald͛s expand its
operation globally?
Question 2: What was the entry strategy of
McDonald͛s to enter in India? Why did they
choose to enter that way, according to you?
nswer:
V Entry Strategy for India:
Enter in India in 1996 as a 50-50 Joint venture.

Joint venture Partnership between McDonald͛s Corporation (U.S.A.) and

two Indian businessmen.

For Western India McDonald͛s Partner was Mr. Amit Jatia͛s company,
Hardcastle Restaurants Pvt. Ltd., and for North India Connaught Plaza
Restaurants Pvt. Ltd., headed by Mr. Vikram Bakshi.
V ow, why they enter into India as a Joint venture:
Initial Failure of KFC and Kellogg in Indian market.

KFC and Kellogg did not understanding of taste of Indian people, and also
they provide the food at very High cost.

If Organization enter through the joint venture is also reduce the risks
related to the Finance.

At the initially stage McDonald want to know at which level their product
accepted into the new market. So, with the help of Joint venture they can
easily understand the mind set of Customers and they know what to offer to
the new market.
Question 3: What were the challenges before
McDonald͛s India that came in its way to start
operation in India?
Question 4: How did McDonald͛s overcome these
challenges?
Question 5: Evaluate its growth and expansion
strategy in India.
nswer: Growth and Expansion strategy of McDonald in India
Franchise Model: Only 15% of the total number of restaurants are owned by
the Company. The remaining 85% is operated by franchisees.
ù Company follows a comprehensive framework of training and monitoring of
its franchises to ensure about the quality of the food which they provide,
services at the store and cleanness of the store.

ároduct Consistency: By developing a sophisticated supplier networked

operation and distribution system, the company has been able to achieve
consistent product taste and quality across geographies.
ct like a retailer and think like a brand: McDonald͛s focuses not only on
delivering sales for the immediate present, but also protecting its long term brand
reputation.
 McDonald͛s uses demographic segmentation strategy. The main target
segments are children, youth and the young urban family.
To attract children McDonalds has Happy Meal with which toys ranging from
hot wheels to various Walt Disney characters. For this, they have a tie-up with
Walt Disney. At several outlets, it also provides special facilities like ͚Play Place͛
where children can play arcade games, air hockey, etc. This strategy is aimed at
making McDonald͛s a fun place to eat. This also helps McDonald͛s to attract the
young urban families wanting to spend some quality time while their children
have fun at the outlet.

To target the teenagers, McDonald͛s has priced several products aggressively,

keeping in mind the price sensitivity of this target customer. In addition, facilities
like Wi-Fi are also provided to attract students to the outlets like the one at Vile
Parle in Mumbai.
Question 6: Is McDonald͛s ready to start offering
its franchise in India? Examine its franchise
feasibility.