What are some of your initial reactions about the differences you notice between home country and host country operations of a multinational fast food chain such as the McDonalds? Cultural differences though difficult to observe and measure are very important, especially when doing the business in the foreign markets. Failure to comprehend these differences can lead to embracing missteps, strain relationships and impact the business performance.
Therefore, It appears as if catering to the Indian culture and preferences is part of McDonald’s grand strategy to penetrate deep in the huge Indian market. Also, McDonald’s is opening vegetarian restaurants in two holy cities of in North India, one in Amritsar and another in Katra. Where McDonald’s is offering vegetarian products such as McAloo Tikki, which is derived from traditional North Indian snack made of boiled potatoes and various spices. “Aloo” means potato, and the word “Tikki” means a cutlet.
It is served hot along with tamarind and coriander-mint sauce and sometimes chickpeas and yogurt. Since, the food is an essential part of cultural profile and by introducing local flavors McDonald’s has struck the right cord with its customers in India. It is very important for an American multinational company to present their products according to the local tastes because food is an integral part of culture. For example McDonald’s has almost thousand restaurants in China though still it lags behind to KFC.
Since, KFC’s in China has included Chinese flavors in it’s menu therefore successfully captured a huge chuck of the market and out performed McDonald’s. Seems managers at KFC has understood the value of “think globally act locally. ” www. thechinaexpat. com/kfc-advertising-in-china Recipe of Aloo Tikki – http://cooks. ndtv. com/recipe/show/aloo-tikki-231373 2. Why is it important for an American multinational company to differentiate in its product offerings in countries outside of the U. S. Share at least one example of such differentiation from another multinational company. Think Globally Act Locally – Navneet Kumar