Differences in Culture: McDonald’s in India

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Presentation transcript:

Differences in Culture: McDonald’s in India By: Jessica Weimerskirk

What is Culture? Culture – A system of values and norms that are shared among a group of people that constitutes a way of living. Dealing with everyday life Cultural relativism should be used to understand the culture of certain groups of people around us Dealing with businesses Cross-Cultural Literacy should be used to understand the culture of certain groups in a business perspective

McDonald’s Corporation Everyday, on average, 4 new McDonald’s restaurants are opened somewhere around the world. 30,000 restaurants in 120 countries McDonald’s restaurants collectively serve about 50 million customers daily. McDonald’s is the world’s largest user of beef.

McDonald’s in India Entered India in 1990’s Hinduism in India Challenged McDonald’s Cattle is a gift from the gods They value cow milk Do not eat cattle India is also the home of about 140 million Muslims Muslims do not eat pork

Response to Cultural Food Dilemma Created new items for the menu in India “Maharaja Mac” made from mutton “McAloo Tikki Burger” made from chicken All foods were strictly segregated into Vegetarian and Nonvegetarian lines Many Hindus are vegetarian 75% of the menu was “Indianized”

McDonald’s Gets Caught 3 Indian business men, all vegetarians, filed a lawsuit against McDonald’s in the U.S. for using beef extract in the oil used to make french fries. McDonald’s claimed to use 100% vegetable oil. Lawsuit settled for $10 million and an apology

News Travels to India One McDonald’s restaurant was vandalized causing $45,000 in damage. Riots up roared and the protests began The prime minister shut down all McDonald’s restaurants in India until the oil was tested.

Expansion in India After the storm passed and the negative publicity faded away, the company opened many new restaurants throughout the country. In 2007, more than 130 restaurants

In Conclusion Culture should always be respected no matter where a company is located. Cross-Cultural Literacy, an understanding of how cultural differences across nations can effect the way business is practiced, should be present in every business society. Not paying significant attention to culture differences can prove to be detrimental in an international business.