(Doc) Development of Intercultural Management Competencies
Added on 2021-02-20
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Intercultural business competencies
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Cultural Problem Faced by McDonald's in India.........................................................................1Solution for Problem....................................................................................................................3Justification..................................................................................................................................5CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONIntercultural competence is the ability of the organization to work efficiently across the glob togain growth and success in the business. This is consisted of effective communicate and workwith different people with different cultural. The cultural factors are the external issues that arefaced by the organization and this factors can affect the business of company (Zwerg-Villegasand Martínez-Díaz, 2016). These cultural factors are related to religious values, moral values,traditional language and rules of behaviour. When an organization is performing business on theinternational level then they have to face different communities of local place and their culturebeliefs and moral values affect the business strategies and planning of organization. McDonald isan American originated restaurant chain that was established in year 1940 by Richard andMaurice McDonald's at San Bernardino, California, USA. This report is providing brief ofcultural issues that are faced by McDonald in India. As per the problems relevant suggestions areprovided to solve this cultural issues in country to run the business with good marginal output orprofit. Justifications are also provided for the solutions that are suggested for different problems.This study is covering the religious issues of people that are related restriction of food items forparticular religion. For this report issue of Veg and Non vegetarian food restriction is considered.MAIN BODYMcDonald's restaurant chain is operating all over world and serving the customers by providingfast food products and beverages to them. There are total 290 Mc Donald's outlets in India. Dueto some issues there are McDonald's shut downed 165 outlets in north and east India. Companyis facing various cultural issues in India. This cultural issues are originated from religious beliefsof people of country. There in India people of different religion are living and each religionfollows various practices that are restricted in their religion. As an American restaurant chain thefast food menu of McDonald's is quit different form eating habits of people of south Asiacontinent where religion of communities play important role in eating habits of people.Cultural Problem Faced by McDonald's in IndiaMcDonald's restaurant chain comes to India in year 1996 and the first outlet of chain was openedin Delhi in joint venture with Vikram Bakshi at Vasant Vihar. Initially this venture had faceddifferent problems that are related to awareness of customer related to product and services ofrestaurant chain. As the people start getting aware off this restaurant then the actual problem forcompany were started (Kumari and Nirban, 2018). Major people in India follows Hindu and1
Muslim religion. People from both this religion are particular about restrictions mentioned intheir religion. According to Hindu religion cow is considered as sacred animal and people avoideating beef which is obtained from slaughtering the cows that is not allowed in Hindu culture.This is major issue for McDonald's in India. The other religious issue is related to Muslimcommunity pork is considered as Haram that means it is prohibited in Muslim community. Themenu of McDonald is mostly contains this two form of meat in food product. Major populationof India are from Hindu and Muslim religion and that creates big problem to company.Other thing about his that people are divided in two categories in the first category is ofpeople who are vegetarian and other is consists who eats the non vegetarian food product butavoid pork and beef. In this case the major issue is related to source of meat. This issue orproblem force the company to perform re-engineer of their menu as per religious need ofcustomers of in India. According to the survey of Sample Registration System which was of baseline and released in year 2014 by the registrar general of India 71 percent of people in Indiaabove 15 year age are non vegetarian. As this report of survey conclude that most of the businessprofit company can gain could be from non vegetarian customers' by also they can not avoid restof 19 percent of vegetarian people in India (Nita and Solomon, 2016). According to the surveypeople who live in the north and east India prefer vegetarian food over non vegetarian cause oftheir religious beliefs and regular eating habits. In united states of America that is base origincountry of McDonald's people prefer both pork and beef as food but in India company can notoffer this to the customer because it is not allowed in their religion. People of India who avoidnon vegetarian food wants the company to separate the cooking department of both vegetarianand non vegetarian fast food. This religious values create trouble to McDonald's in operationand serving customers. This thing is forcing to the company to provide alternative solution forthis issue.Apart from the non vegetarian category of people McDonald's also have to target thevegetarian customer but company was only serving non vegetarian fast food products. Cause ofthis reason it is difficult for McDonald's to earn profit in states like Rajasthan, Punjab, Jammuand Kashmir and Utter Pradesh. These are the major kind of problems that are faced by theMcDonald's India (Esterhuizen and Kirkpatrick, 2015). The religious issue influence theselection of customer and this is important for the organization to know the religious aspects andvalues to design the menu of restaurant accordingly. There is major impact of religious issue on2
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