Emphasis on Local Management
McDonald’s has given the adage of “think global, act local” a concrete shape in India. The company’s localization strategy is clearly manifest in the critical area of management.
McDonald’s decided to set up two joint ventures on a 50:50 basis with two local entrepreneurs in Mumbai and Delhi. In Mumbai, Amit Jatia’s company, Hardcastle Restaurants Private Limited, was selected to own and manage McDonald’s restaurants in the western region.
In Delhi, Vikram Bakshi’s Connaught Plaza Restaurants Private Limited was chosen to own and manage McDonald’s restaurants in the northern region.
Both Vikram Bakshi and Amit Jatia are responsible for running McDonald’s in India. Vikram Bakshi has extensive background in real estate development in Delhi, while Amit Jatia, a vegetarian, has a chemicals and textile business background in Mumbai.
It was not their backgrounds, however, that won the confidence of the Big Mac’s management. Rather, it was their business plan emphasizing India-centric management strategies and their easy access to bureaucracy so critical to effective government relations building.
McDonald’s has given the adage of “think global, act local” a concrete shape in India. The company’s localization strategy is clearly manifest in the critical area of management.
McDonald’s decided to set up two joint ventures on a 50:50 basis with two local entrepreneurs in Mumbai and Delhi. In Mumbai, Amit Jatia’s company, Hardcastle Restaurants Private Limited, was selected to own and manage McDonald’s restaurants in the western region.
In Delhi, Vikram Bakshi’s Connaught Plaza Restaurants Private Limited was chosen to own and manage McDonald’s restaurants in the northern region.
Both Vikram Bakshi and Amit Jatia are responsible for running McDonald’s in India. Vikram Bakshi has extensive background in real estate development in Delhi, while Amit Jatia, a vegetarian, has a chemicals and textile business background in Mumbai.
It was not their backgrounds, however, that won the confidence of the Big Mac’s management. Rather, it was their business plan emphasizing India-centric management strategies and their easy access to bureaucracy so critical to effective government relations building.