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Case Details |
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Case Code: MKTG374
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| Case Length: 10 Pages |
| Period: 2015-2017 |
| Pub Date: 2018 |
| Teaching Note: Available |
| Price:Rs.300 |
| Organization : McDonald’s |
Industry : Restaurants
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| Countries : India |
| Themes: -- |
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McDonald's in India: Troubled Times, Troubled Ties |
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INTRODUCTION |
| On August 21, 2017, US global burger chain, McDonald’s released a notice announcing severance of all ties with its Indian master franchisee (for the North and East Indian regions), Connaught Plaza Restaurants Limited (CPRL), thereby ending a 22-year-old relationship. Termination of the relationship would result in the shutdown of 169 McDonald’s outlets and a loss of around 6,500 jobs along with the abrupt termination of the long-term supply contracts with vendors and property lessors. CPRL was a 50/50 joint venture between McDonald’s India Pvt. Ltd (MIPL), a subsidiary of McDonald’s, and Vikram Bakshi (Bakshi). The CPRL board comprised four members; two McDonald’s representatives, Bakshi, and his wife...
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