Production and operation management

PRODUCTION AND OPERATION MANAGEMENT

Presented by:Seema SinghAmit Rana

The IndianMcDonalds Case

Introduction• McDonald’s entered India in the year 1996 when

the fast food retail market in India was at a nascent stage.

• Encountered with several challenges in the beginning in terms of adapting to the tastes, preferences and culture of the local customers, changing the perception of Indian consumers towards American food habits, obstruction from political parties, issues with distribution, designing a proper supply chain to training the employees on McDonald’s standards, the fast food giant emerged to be the market leader by 2011.

• Though McDonald’s commands the leadership position in the Indian fast food market their exists stiff competition from the local traditional fast food retailers as well as other multinational firms which entered the fast growing Indian fast food market.

• In the face of intensified competition, can McDonald’s retain its dominant position? This case is meant for MBA/MS students as a part of the Service Marketing/ International Marketing/ Strategic Marketing Management curriculum.

Issues:

» Various issues and challenges associated with marketing a service, especially a Quick Service Restaurant (Definition of service, characteristics of service, service marketing mix, etc)

» Understand various issues and challenges in International marketing (Adaptation Vs. Standardization, etc.).

» Study the marketing strategies adopted by McDonald’s in India

» Identify the various challenges faced by QSRs operating in the fast food retail market in India

» Explore ways in which McDonald’s can overcome these challenges and maintain its leadership position in the Indian market.

"Whatever a guy anywhere in the world wants, a guy in India wants that as well… The consumer is beginning to recognize that quick-service restaurants mean quality and value for money."1

Amit Jatia, vice-chairman of McDonald’s India – south and west, in 2011

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