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McDonald's and Hindu Culture Case Study

Essay by   •  December 9, 2011  •  Case Study  •  389 Words (2 Pages)  •  6,266 Views

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McDonald's has been conducting global business for many years. In the late 1990's, the company has entered in India. Although India is a poor nation, the prosperous middle class was attracted McDonald's. However, there are unique challenges in this case, as for thousands of years India's Hindu culture has revered the cow and do not eat its meat on the one hand, and Indian Muslims do not eat pork. To respect and adapt Indian culture, McDonald's created an Indian version of burgers, which are made from mutton and chicken. Still, in 2001, three Indian businessmen sued the company for secretly use beef extract in the oil of French fries.

The basic problem of this case is a religion issue. The revelation of using beef extract in oil is a serious matter for Hindus, who have chosen to worship cows. The case also involves the mores of norm. Mores are norms that are seen as central to the functioning of a society and there are many differences among the cultures of the world in what people perceive as mores. U.S. and India clearly have different cultures and values, and McDonald's has proved untrustworthy by denying using beef extract in its oil.

McDonald's must understand that cultural differentiations affect the way business is conducting around the globe. In the Hindu case, the firm has not clearly understood the culture of the Indian nation. Management should have been more well prepared to enter the Indian market. Considering the fact that there are numerous different religions in India, McDonald's had to place an extreme focus on their food selection, to not upset or offend any religion in particular.

It may seem silly for McDonald's to be taking away the burger for which is became famous, but in such a multinational company, they had to do what was best for business. McDonald's should always think as a multinational corporation and be open to its customers because they are from different cultures and have different beliefs. They should acknowledge all of its customers all over the world about the ingredients of the food they offer in whatever country they're in so that they won't fall in such loosing case again.

However, a firm such McDonald's should not go too far in localizing its products. Enjoying the "American experience" is what the firm sells and it is its competitive advantage.



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