Transcript Differences in Culture McDonalds in India

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.