Mcdonalds Essay Example | Topics and Well Written Essays - 4000 words

Mcdonalds - Essay Example However, the real problem which the company is facing in India is the dilemma of implementing the international food standards and at the same time meeting the unique tastes and preferences of the Indians. The success of the company in the market can be evaluated using Porter’s Five Forces. Therefore the competitive forces within the market, the power of suppliers and buyers and the threat of new entrants and substitutes are the forces against which the evolution of McDonald’s in the Indian market can be analyzed. PEST Analysis Political Factors McDonald’s international expansion faced political challenges because â€Å"not everyone in the world was happy to welcome McDonald’s into their country† (Center for Management Research, 2011). However, India has been described as one of the world’s largest democracies, a factor which is attributed to the liberalization of business activities within the country. Because of this liberalization McDonald ’s was allowed to enter the Indian market for its food products. Regardless of this liberalization, foreign investors are only allowed to operate in India through partnership and as a result, the company has ventured into partnerships with local investors such as Hardcastle Restaurants Private Limited which provide food products to the Indian market. Moreover, the Indian government is fairly stable which has provided a secure business environment for McDonald’s business operations. Because of the political stability within India, the company has invested in various parts of the country through opening many outlets which are aimed at serving the market with sufficiency. The marketing strategy of the company includes various promotional campaigns through sports activities. The fact that the government of India is involved in the purchase of large quantities of sportswear demonstrates that the political environment favors the marketing strategy of the company. Economic Fa ctors India is experiencing positive economic growth and thus leading to an increase in the ability of the population to spend money. This has elevated the sales revenue of McDonald’s within the Indian market. The economic climate in India is characterized with Multinational Companies (MNC) restrictions such as the support of companies which promote technological growth as opposed to food companies such as McDonalds and thus causing an economic hindrance of the company’s operations within the country. The economic forces within the Indian market are largely controlled by the market which defines the entry and exit of foreign companies to the market. However there in an increased support for employment within India which has enabled McDonald’s to acquire skilled labor within its business outlets. Social Factors In India, McDonald has been viewed as a â€Å"symbol of American economic and cultural domination† (Center for Management Research, 2011). This ill ustrates that the social environment in India has been a challenge to McDonald’s operations. The major social challenge in India is the fact that cows are being worshipped and thus the company is unable to provide the market with its beef products. It is however argued that the vegetarian diet among Indians did not prevent McDonald’s from success in the Indian market. Since, religion is attributed to the vegetarian di