Sample Essay

The business model is quite different from that of other organizations. In the similar manner certain strategists also claim that the structure of McDonalds is a blend of different cultures. The business model of McDonalds in India is similar to the business model in different countries. This organization work on the basis of marketing fees and franchise fees which is calculated on the basis of sales. The difference is that McDonalds also collect a certain amount of rent which in certain cases is collected on the basis of sales (Buttle, 2008). The franchise agreement actually varies on the basis of country, location, age contract.

In India this organizations collaborates with the local suppliers to produce effective and efficient results. The skilled workers are used effectively by these organizations and they have a great strategy of hiring low skilled workers and then this organization saves the cost by paying them low. Therefore, it can be said that the entire model of McDonalds is driven by technology and they minimize human specialization. However, it can be said that the best part of their strategy is the minimization of their cost by hiring low cost workers and in this way they transfer the benefit towards the consumers by which they are retained in both the short and the long run.

In India their collaboration with the local entrepreneurs is considered as a famous strategy of McDonalds and they have actually set two joint ventures in India on the basis of 50:50 (Nobrega 2008). Similarly, the business model is localized in India and their strategy is to hire local people in their restaurants and even in their operations.

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