McDonald’s in India: Not a Happy Meal
(4 pages of text)
Case (Pub Mat)
In September 2017, news spread of McDonald’s India terminating its franchise arrangement with its joint venture (JV) in India. The termination notice was the newest step in the saga of the conflict between the two JV partners—US-based McDonald’s and the Indian partner Vikram Bakshi of Connaught Plaza Restaurants Limited (CPRL). McDonald’s entered India in 1996 through a JV that was originally seen as the perfect combination to share investments, reduce risks, and succeed. The events between 2013 and 2017 showed that this was not true, and many reasons were suggested in the media for the problems—strategy, team, resources, and a mismatched value system. Did the former franchise holder CPRL have a legal right to use the McDonald’s name anymore? Could the partners resolve their differences?
This case can be taught in both undergraduate- and graduate-level courses on organizational behaviour (OB) or human resources (HR) management. It can also be used as part of an international HR management course or conflicts and negotiation course to understand the HR issues involved in a cross-border joint-venture deal. It can also be used to emphasize the ways of resolving conflicts in such deals. This case can also be used to focus on JVs and alliances. By working through the case and assignment questions, students will have the opportunity to learn the following:
- Different HR issues in JVs formed across international borders.
- The role of conflict, culture, and communication in a cross-border JV.
- The implications of these issues and how they might lead to the failure of a JV deal.
Accommodation & Food Services
India; United States, Large, 2017
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