26-7-17
McDonald’s knew
foods whereas Amit Jatia (who managed McDonald’s branches in South and west
India) and Vikram Bakshi (who managed
McDonald’s branches in North and East India) knew properties (Real Estate). The first
question which should come in mind is “why the two business entity from different
business affair joined hands IN 1995 to start a Joint Venture?”
If we closely
observe, the reason is apparent. It was a win-win situation for both the
parties. India was open for new business Ideas. In their meetings
they had discussed all the reasons and conditions which were outside and inside
the control of the future joint venture. First they discussed political, social and newly changed economical
conditions of India. Once they found them favorable they brought their
discussions to prospective customers and competition in India.
McDonald had International quality of
food which most of the Indians had not tasted before. There was almost no
competition for McDonald’s products. Huge market was waiting for the
penetration, indicating wishful revenue generation. However, McDonald’s management also noticed that Indian business
environment is different from the business environment of Europe or America, so
they needed a different plan for Indian market to grow the business.
Amit Jatia
and Vikram Bakshi used their past experience
and made proper surveys in real estate
to find suitable properties and Invested the money at proper location.
There was no Internet in 1995 to enter and spread into Indian Business environment (like Amazon is
doing in India these days). Brick and mortar was the only way to start and expand.
Value alone, of
these properties, have made them milliners (comparing prices of properties in 1995 and in 2017). Apart from that, McDonald’s food became alternative
of weekend, holiday and birthday food.The food was safe, delicious and affordable to
pocket. Parents approved the food whereas children loved it consequently profit
poured in. Restaurants branches spread generating full as well as part time Jobs
for Indian youngsters and taxes for Indian government.
Q.1 Which three
feature of environment mentioned above?
Q.2 Which type of
plan they were thinking to use in India?
Q.3 Which two importance
of environment highlighted above?
Q.4 Which two importance
of management highlighted above?
COMPOSED BY PATHAK SIR @pathaksirbst ( at twitter)
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