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BTEC Business Level 3 Unit 39 - Assignment 1 D1 All criteria met for this piece of work; gained a distinction overall for this unit.
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In this assignment, I will be pointing out the potential problems that McDonalds may face in India in
the form of a report.
India is made up of 29 states, In India, the UK is the third largest investor with 380 deals. One of the
main deals that the UK has had with India is the control of the United Breweries which was
purchased for 1.9 billion dollars. Japan is the second largest investor with 388 companies invested in
India, an example of this is the Telecom and Snapdeal which was purchased for 627 million dollars.
The first largest investor of India is the USA, they have around 1100 deals within India which includes
the deal with a company called TATA which is a company that serves worldwide with its
headquarters in Mumbai, India. This company works closely with the production of steel,
locomotives and telecommunication as well as others. Also, the USA have announced the
introduction of Coca-Cola investing 5 billion dollars in India which will take place over the next six
years.
What is the BIS?
The BIS is a company that has a presence in India, the organisation stands for Bureau of Indian
Standards which was established under the BIS Act 1986; they work closely with the Ministry of
Consumer Affairs which deals with distribution of goods, food and the general population of India.
109 products are subject to the BIS, the benefits that has been provided by the BIS is that it ensures
that companies within India provide consumers with goods that are safe, reliable and of high quality;
this helps the economy because it minimises the potential health hazards that consumers may face.
What are the possible changes that McDonalds could face?
One of the potential changes that McDonalds may face is the price of goods this means that the
price of the products in store as well as the goods that are traded may change in price; the trade
prices may increase which means that McDonalds will have an increased expenditure on trading. As
well as this, McDonalds may have to use less resources in order to reduce the outgoing costs. This
will effect McDonalds by making them have to negotiate on price for the goods in order to find the
best deal which will benefit them.
Regulations
Regulations are rules and legislations which are put in place by the Indian Government; businesses
and companies are required to follow each of the rules when trading.
The regulations are put in place in order to ensure that businesses operate fairly; this means that the
each business are required by law to make sure that machinery that is used is running efficiently and
of good quality. Safety checks are carried out by the BIS to see whether the machinery is safe to
operate.
A change that McDonalds may face in India is the possible change in labelling. Label requirements
may have to be enforced by McDonalds in order to cater for the population in India; the label
requirements include the change in language, this means that McDonalds will have to have copies of
declarations in English as well as Hindi in order to cater for English and Hindi speakers; this will
enable customers and employees to read and understand the documents. Travel documents and
other documents will be required to be in both languages to make it understandable to all.
McDonalds will be required to include specific information on the labels of products in a form that
customers can understand, the information that will be required will be ingredient information to
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