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Choose from Instruction - Essay Example

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McDonald and the influence of a national culture on its success in India Introduction From the article “McDonald's to Expand in India” it is evident that the brand is performing extremely well. The article talks about McDonald increasing its number of branches in India by 40 to take the total to 200…
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From the article we are informed of two possible reasons for McDonald’s success in India: its partnership with two domestic firms and the adaptation of its restaurants to Indian local palates (Bellman, 2009). Analysis of the situation With the continued globalization of world markets, firms are ever more dependent on new products to generate revenues and market share. To maintain their momentum and relative position firms must enter a broader and more diverse set of markets (Yeniturt & Townsend, 2003).

This could be one of the reasons why McDonalds had to get into the Indian market. Some scholars argue that globalization has progressively created a more homogenized world market due to better interconnectedness among the world’s nations (Yeniturt & Townsend, 2003). This implies that an increasing number of consumers from diverse geographic locations and cultural backgrounds are beginning to show similar preferences. These scholars state that this trend is evidenced by the emergence of global brands.

However, Suh and Kwon (2002) differ with that school of thought. They argue that even after tremendous exposure to globalization, consumers from different cultures have different attitudes, perceptions, tastes, preferences and values, and remain reluctant to purchase foreign products. A good example is found in Europe where even with an economic union and a progression toward the standardization of the political and social infrastructure, national cultural values have remained stable over time.

Cultural norms and beliefs therefore remain an important aspect of global marketing. According to Yeniturt and Townsend (2003) culture remains an elusive, multi-faceted dimension that is difficult to harness and understand completely. They argue since consumers’ attitudes and behaviors are significantly influenced by the cultural context of the market it is expected for there to be a strong effect of national culture in the adoption of new products in a country. The downside to this whole globalization trend is what is referred to as cultural imperialism.

Kiely and Marfleet (1998) describe cultural imperialism as the process by which the developed world consciously disseminate their values and norms as being superior to those of the less developed countries (LDCs). Through the use of mass media advertising and the Internet, Western multinational corporations portray the Western lifestyle as something for the LDCs to aspire to. How McDonalds achieved its success McDonalds planned for two major phases for its launch with an understanding of the socio-economic status of the Indian people.

The first phase involved opening branches in Indian cities of relatively high income. In these metropolitan cities, McDonalds banked on the residents’ exposure to Western food and culture. These residents were to lead the second phase by sharing the McDonalds experience to satellite towns, where the firm would open new stores. McDonald also made menus that would attract the locals’ palates. There was no beef or pork or animal fat used to fry the food chains recipes. That is not to say that McDonald’s did not replicate its Western cultures in India.

The company continued to offer fast, friendly service at value-prices. Conclusion Even though economic development continues to lead to a convergence in global markets, and as the influence of mass media creates a global consumer culture we are yet to reach the point where culture,

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