Intercultural business competencies | Assignment
Added on 2021-02-20
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Intercultural businesscompetencies
EXECUTIVE SUMMARY Intercultural competences is a process of developing targeted skills, knowledge, strategiesand ideas that helps company to interact inter-culturally (Kumari and Nirban, 2018). It refers tothe ability of company that how it functions effectively in different cultures. Present studyincludes the problem faced by McDonald's in India. The first problem faced by the company isreligious and cultural problem for which company has provided solutions by changing the menuand price according to the Indian economy and customer needs. Second problem in the report ispoor management and slow service. Company solved this problem by giving training andinduction sessions, doing proper recruitment and time management. Lastly report includes thethird problem i.e. shutting down of McDonald's in half of the India. Company solves thisproblem by changing supply chain.
Table of ContentsEXECUTIVE SUMMARY ............................................................................................................2INTRODUCTION...........................................................................................................................4PROBLEMS FACED BY McDonald's IN INDIA..........................................................................4Problem 1: Religious and cultural constraints............................................................................4Problem 2: Poor management and slow service.........................................................................7Problem 3: The problem of shutting down of McDonald in half of the India..........................10CONCLUSION..............................................................................................................................12RECOMMENDATIONS...............................................................................................................13REFERENCES..............................................................................................................................13
INTRODUCTIONTo know the tree firstly understand how deeply it is rooted in ground with this thoughtentering in any intercultural business, the business has to understand the culture of that place(Swartz and Luck, 2018). Intercultural business competencies is making business with differentculture by entering in market and competing with other company present in market. McDonald'scompany is a fast food company of America. The company was founded in 1940 its restaurantwas firstly opened in Richard and Maurice McDonald's in San Bernardino, California, US. InIndia McDonald established for first time in 1996 its restaurant in Basant Lok, Vasant Vihar,New Delhi. For the first time in the world the restaurant did not serve beef in its menu. Thepresent report will study about the problems that is faced by the McDonald company in India.Study will be done by taking three main problems with its solution and justification of theproblem. All three problems will be discussed separately.PROBLEMS FACED BY McDonald's IN INDIAProblem 1: Religious and cultural constraintsProblem faced: One of the major problem that McDonald's faces in India was religious and culturalissues. As McDonald's was carrying a public image of international food chain and do not matchthe Indian standards. There was a concern in the minds of Indian people that how the burger ismade, what is the cost and it serves 90% non-veg snacks. India is a big country and lands ofancient river, company have to keep in mind the cultural, social and economical factors whichaffects its profits. India is very diverse and has different religion and communities likeBuddhism, Sikhism, Hinduism, Islam, Christianity and Jainism having different beliefs andvalues. 80% of the Indian population practice Hinduism which prohibit non-vegetarian food.Because of these issues McDonald's face decrease in market share in India, complexity indeveloping supply chain, making a brand image (Hickman, Louis, and Mesut Akdere, 2018). AsMcDonald's is international brand, company serves only non-veg food so in India, peopleprotested in front of their restaurants. Company also faces cultural problems in markets of Indiawhich may destroy its reputation and stop them from expansion. Indian people prefer familydining instead of breakfast concept. This problem makes difficulty for enterprise in marketingand attracting new customers. Enterprise need to provide training to employees to maintainrelation with the customers and make them satisfied. Company also had to satisfy the authorities
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