Lesson learnt
The McDonalds and other multinational businesses establishing branches in different countries should always study the cultural practices of the local people. Study of the culture will help the company in stocking the right product with the right description. Noncompliance with the culture of the society makes the consumers desist from buying the products of the company. The business suffers from the negative image whenever consumers complain about their services or products because of cultural compliance. Complying with the culture of the local people will help the organization to eliminate chances of being sued by the locals. The litigation might cost the business billions of money and loss of customer, which could be avoided with proper market study.
Preparedness for the negative image
McDonalds should have a quality control department for preparedness in any problem that arises in the production of its food products. The quality control department should have noticed the difference in what is offered to customers with what the customers thinks they are consuming. McDonalds should have had a department that deals with complains from customer early enough before getting to the media or courts. The department should have settled the case with the litigants or opted for an out of court settlement, which would reduce the effect on the company’s image.
How far to go in localization
Business like McDonald should look at the size of the future market before localization. The Indian market size consists of millions of customers making it feasible enough for the company to localize its products. Small market size cannot support the production of a new product making it hard for the business to localize. The localization of the product should go to the extent that will provide satisfaction to the customers and avoid any litigation. Localization of the company product should be carried in places where the business will not make any returns in investment.
