Presentation on theme: "Differences in Culture: McDonald’s in India"— Presentation transcript:
1 Differences in Culture: McDonald’s in India By: Jessica Weimerskirk
2 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 lifeCultural relativism should be used to understand the culture of certain groups of people around usDealing with businessesCross-Cultural Literacy should be used to understand the culture of certain groups in a business perspective
3 McDonald’s Corporation Everyday, on average, 4 new McDonald’s restaurants are opened somewhere around the world.30,000 restaurants in 120 countriesMcDonald’s restaurants collectively serve about 50 million customers daily.McDonald’s is the world’s largest user of beef.
4 McDonald’s in India Entered India in 1990’s Hinduism in India Challenged McDonald’sCattle is a gift from the godsThey value cow milkDo not eat cattleIndia is also the home of about 140 million MuslimsMuslims do not eat pork
5 Response to Cultural Food Dilemma Created new items for the menu in India“Maharaja Mac” made from mutton“McAloo Tikki Burger” made from chickenAll foods were strictly segregated into Vegetarian and Nonvegetarian linesMany Hindus are vegetarian75% of the menu was “Indianized”
6 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
7 News Travels to IndiaOne McDonald’s restaurant was vandalized causing $45,000 in damage.Riots up roared and the protests beganThe prime minister shut down all McDonald’s restaurants in India until the oil was tested.
8 Expansion in IndiaAfter the storm passed and the negative publicity faded away, the company opened many new restaurants throughout the country.In 2007, more than 130 restaurants
9 In ConclusionCulture 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.