adaptation in general business

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ADAPTATION IN GENERAL BUSINESS

Adaptation is the “adjustment to environmental conditions.”Adaptation entails a process of

knowledge acquisition and experience that enables the firms to evaluate the risks and

opportunities. Adaptation occurs at two levels:

MACRO - that represents the adaptation of the firm to its external environment

MICRO - that represents the internal adaptation of the firm’s processes, tasks, routines,

structures

INTERNATIONAL ENVIRONMENTAL ADAPATION BY MULTINATIONAL BUSINESS

Multinational companies (companies that compete in more than one country), in their aim to

develop their business practices, increase profitability and overcome any problems related with

the saturation of existing markets, expand their operations to overseas markets. The MNCs are

exposed to a multitude of international environment from which they depend for essentialresources, clients, financial resources, and broad wealth of inputs. Moreover, MNCs operating

in foreign environments face a liability of foreignnes, that accrues from the lack of knowledge

and insufficient adaptation to the environment. As such, the MNCs face a set of constraints that

differ from those of purely domestic firms.

Firms ‘success is depend on the environment surrounding it and how well the firm deal with

that environment or change that environment. When firms enter in international business it

face different environmental aspects of different countries like rules defined by the political ,

social, legal and economic institution etc. In order to become successful MNCs must comply

with the rules, norms and behaviours set forth by the institution of that place where it operate.

Environmental changes and specifically how firms respond to these changes, causes variation.

Firms are selected in or out, depending (at least partly) on their pool of capabilities and

resources that permits them to perform given the environment. Only those best fitted should

survive, being retained – it is likely that the best performers develop a set of new resources and

capabilities that renders them an idiosyncratic competitive position To adapt to the

International Business Environment , the multinational corporations need to engage in:

Systematic collection of information on all environmental dimensions and

the economic agents in the local markets. Processing this information to enhance environment knowledge.

Identification of the more vulnerable internal areas and external opportunities

towards a better environmental fit.

Implementation of the “best practices” more adjusted to the identified environment.



Each International Business Environment dimension is likely to have a somewhat diverse impact

on the MNC’s adaptive strategies . Each dimension imposes a different set of opportunities,

threats, challenges, and constraints. For example, if cultural diversity is considered a threat

when operating in a foreign IBE, the MNC is likely to prefer having a high content of local

citizens in their organization chart, occupying executive roles. But, if the political risk proves tobe dominant, a set of alliances and interlocking directorates with public officials may hedge

against potential hazards. Similarly, if the income profiles of the countries are significantly

diverse the adequate strategy may be to adapt the product to fit into the local habits and

incomes or positioning the product in a specific market segment. The exchange rate threat may

be best overcome through the internal practice of transfer prices and local (or external)

supplies. Thus the IBE dimensions are not static; they co-evolve to embed the simultaneous

evolution of firms and exogenous environments (local and international).



PepsiCo serves 200 countries and is a world leader in providing food and beverage products. Its

brands consist of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo

International and Quaker Foods North America. Some of PepsiCo's brands are over 100 years

old, however the company was only founded in 1965 when Pepsi-Cola merged with Frito-Lay.

PepsiCo then attained Tropicana and Gatorade when they merged with the Quaker OatsCompany. The combined retail sales average about $92 billion. The company is focused on

being the premier producer in supplying the world with convienient foods. They offer a wide

variety a food options as well, including healthy options.

PepsiCo stands out as a company because of its sustainable advantage. It includes widely

known brands, innovative products, and powerful market skills. The company also tries to

benefit the community. To make themselves a sustainable company, they have put a focus on

the environment and benefiting society with their business. Recently, PepsiCo released

information of their plan to drive sustainable water practices and improve rural water in Africa,

China,India and Brazil.

Public Relations people have great opportunities to improve the company's reputation because

of the size and financial stability of the company. PepsiCo is extremely well known in the world

as a leading source of food and beverage products with immense revenue. The challenge for

the Public Relations people is that if something negative were to effect PepsiCo it would put a

damper on all of the products that the company makes. Therefore, the PR people would have a

lot of crisis management in their hands.

PepsiCo, Inc. is an American Fortune 500 company headquartered in Purchase, New York.

Founded in Chicago. It offers over 80 products worldwide, including local variations in the

different countries of operation. PepsiCo owns five different food and beverage brands: Frito-

Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade. A complete profile of PepsiCo’s products is

presented in Figure2.Given the wide range of products under PepsiCo’s food and beverage

brands, this paper narrows its evaluation to environmental management of PepsiCo’s beverage

products in India.

PepsiCo entered India in 1989 by a joint venture (JV) with the Punjab-government-owned

Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. In 1994, Pepsi ultimatelybought out its partners, becoming a fully owned subsidiary and ending the joint venture (Kaye,

2004). The company’s beverage portfolio in India consists of carbonated and non-carbonated

drinks and packaged mineral water. The iconic beverages such as Pepsi, Mountain Dew, 7 Up,

and Mirinda fall under the soft drinks (carbonated) segment. PepsiCo’s non-carbonated

segment broadly consists of sports drinks (Gatorade), fruit juices (Tropicana), and hydrating



beverages such as Aquafina drinking water. The group has built on its expansive beverage

business to support the operations at its 43 bottling plants in India (Pepsi Foods, 2010). As seen

in figure 3, during 2007-08, the sales from non-alcoholic beverage sector made up 72% of its

total sales worldwide.

PepsiCo enjoys a 13% market share of the Indian beverage industry, and over the years its

presence has got bigger—especially in the carbonated drinks (soft drinks) sector. In 2003, India

was one of the top five markets for growth in the soft drinks sector. PepsiCo has invested more

than $1 billion US in its Indian subsidiary (Pepsi Foods, 2010).

PRODUCTS OF PEPSICO

Foods

Cheetos Kurkure

Lay's

Lehar Namkeen

Quaker Oats

Uncle Chipps

Aliva

Beverages

Pepsi

7UP

Aquafina

Gatorade

Mountain Dew

Nimbooz

Slice

Tropicana

Tropicana Twister

ENVIRONMENTAL ADAPTATION BY PEPSI IN INDIA

POLITICAL ADAPTATION –



When PEPSI CO enterd india it had to follow many rules and regulation of government

of India llike they changed their name from pepsi cola to lehar pepsi because it is a

foreign brand and they have to change the name of their different brand.

In 1988, the New York office of the President of the multi-billion cola company PepsiCoreceived a letter from India.The company had been trying for some time to enter the

Indian market - without much success.The letter was written by George Fernandes

(Fernandes), The General Secretary of one of the country's leading political parties,

Janata Dal.

“I learned that you are coming here. I am the one that threw Coca-Cola out, and we

are soon going to come back into the government. If you come into the country, you

have to remember that the same fate awaits you as Coca-Cola."

George Fernandes

The General Secretary–

Janta Dal (- A New Internationalist Magazine Article,commenting on Pepsi's struggle to enter India, in August 1988)

Pepsi make its proposal attractive to the Indian government through their Objectives –

Focus on food & agro-processing

Only 25% investment for Soft drink

Bring advanced food processing technology

Boost image of Made in India to Foreign Market

In August 2003, an environmental group in India claimed that both Coke and Pepsi had highlevels of pesticide residue in their products. New Delhi’s Center for Science and the

Environment tested samples of both products and reported, “each sample has enough

poison to cause… cancer, damage to the nervous and reproductive systems… and disruption

of the immune system. the Indians started to stage protests against the companies that

resulted in partial bans across the nation. Local politicians began to immediately attack

their brands, making the people doubt the brands even more. Eventually, both companies’

products were banned from being sold in government offices, schools and hospitals.

Pepsi attempted to ease the people’s minds by staying quiet until all their research had

been properly administered and interpreted. After sometime to deal with this situation

Pepsi began a public relations offensive that claimed, “Pepsi is one of the safest beverages

you can drink today.” and said that there were pesticides in Pepsi but it was the same

amount that could be found in any other product produced in India. In research it is

found that the sample was 24 times above the general standard finalized by the bureau of

india.



It joined with Godrej an Indian company .Pepsi ‘s willingness to do exactly as india wanted

has proving to be very beneficial for the company Pepsi is now also involved in

countertrade in india , which has helped them to develop their business in india .

CULTURAL ADAPTATION –

At the time of navratri pepsi has sponsored big , popular dance competition called garba

dances to boost their sales. They team up with zee alpha,a popular T.V channel

amongst the gujarati, to broadcast the navratri festival.

C ricket is very popular in india pepsi take advantage of it. It has run very successful

campaigns with cricket, especially the one day series.

Pepsi take advantage of Indian cultural festivals to promote their product.

SOCIAL ADAPTATION-

In India a region that faces severe water shortages , an agriculture process called DIRECT

SEEEDLING of rice introduced by pepsico helps growers avoid three water intensive

steps- puddling, transplanting, standing water. After successful trials with direct seeding

in pepsi co’s R&D fields, the company has developed a direct seeding machine for its

farmers. In 2010 pepsico expanded direct seeding and applied it to approximately 10000

acres, saving more than 7 billion litres of water . there is also a 70% reduction of greenhouse emission.

In consultation with local govt. pepsico introduced lass water intensive citrus plantation

for farmers as an alternative to pady and set up two fruit processing plants in the

region.

CAP Foundation- Partner in training and provide alternate livelihood options for

Tsunami affected communities in Andhra Pradesh and Tamil Nadu.

Project Healing Touch Partner in Mission Vijay – Programme to provide ex-servicemen

with sustainable livelihoods

PepsiCo India – Akshay Patra Partnership PepsiCo India has partnered with AkshayaPatra, an NGO that supports the "Mid-day meal" program launched by Government of

India feeding over 1.4 million underprivileged students every day of the school year, in

20 locations, across 9 states in India

It extended it contracts farming initiatives to groundnuts in the year 2000



ENVIRONMENT ADAPTATION-

A larger part of its sustainability efforts involves reducing the negative effects resulting

from the production and consumption of its product.

Pepsi co involved in several water conservative efforts through out its business

operation like rain water harvesting inintiative in its manufacturing location such as roof

water harvesting and recharge ponds.

ECONOMIC ADAPTATION-

Pepsi generate employment opportunities 8000 people were working for the Company.

As the recent conomic downturn has pagued the economy, company has to restructure

their sales and marketing campaigns greatly. Also with diminishing profits they had to

undergo downsizing internally and rethinking upon how to penetrate the market.



In the 1890s, William Hesketh Lever, founder of Lever Bros and later Lord Leverhulme, wrote

down his ideas for Sunlight Soap – his revolutionary new product that helped popularize

cleanliness and hygiene in Victorian England. “It was toward make cleanliness commonplace; to

lessen work for women; to foster health and contribute to personal attractiveness, that life may

be more enjoyable and rewarding for the people who use our products (Unilever CompanyWebsite, 2008)”.

Founded in 1930 and based in United Kingdom, Unilever is one of the world’s leading suppliers

of fast moving consumer goods across Foods and Home and Personal Care categories.

Unilever’s portfolio includes some of the world’s best known and most loved brands. The group

operates worldwide and employs 174,000 people in 316 companies by the time of writing

(Unilever Financial Report,).

Since it was founded, Unilever established new business in several countries, such as United

Kingdom, Germany, Spain, USA, Argentina, Turkey, Netherlands, Canada, China, South Africa,Italy, Sweden, Brazil, Russia, and Czech Republic and operated its own production factory in 158

strategic locations in those countries. For competing in foreign market, Unilever owned 316

subsidiaries worldwide and until 2008, Unilever has launched about 900 different brands.

Several key facts of Unilever Group can be shown in the Table1 below.

The Unilever Group manufactures a wide range of consumer products including packaged food,

weight management products, personal and household care. It splits its business activities intotwo divisions, Foods and Home & Personal Care: the cosmetics and toiletries business comes

under the Personal Care subdivision, its largest in terms of revenue generation.

The diversity of Unilever’s cosmetics and toiletries portfolio, which encompasses some of the

world’s leading brands such as Rexona, Dove and Axe/Lynx/Ego, contributes to its success in the

global market. The company also owns a number of successful regional brands such as

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Lifebuoy. In recent years Unilever has increasingly turned to focus on strengthening its position

in the mass market.

Unilever ranked third in the global cosmetics and toiletries market in 2006, with a share of 7%.

The company has a strong global presence, with Western Europe, Latin America and Asia-Pacific

as its key markets.

Hindustan unilever limited-

It is a subsidiary of unilever. Hindustan Unilever Limited (HUL) is India's largest Fast Moving

Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages. They endow the

company with a scale of combined volumes of about 4 million tonnes and sales of nearly

Rs.13718 crores.

HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star

Trading House by the Government of India.

The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to

"add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with

brands that help people feel good, look good and get more out of life. It is a mission HUL shares

with its parent company, Unilever, which holds 52.10% of the equity. The rest of the

shareholding is distributed among 360,675 individual shareholders and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,

Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are

household names across the country and span many categories - soaps, detergents, personal

products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured

over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's

distribution network, comprising about 4,000 redistribution stockists, covering 6.3 million retail

outlets reaching the entire urban population, and about 250 million rural consumers.

ENVIRONMENTAL ADAPTATION BY UNILEVER IN INDIA

POLITICAL ADAPTATION-



By the mid-1950 the Indian govt. had began to encourage unilever to allow a local

shareholding in business .

Due to government influence in 1956 the separate detergents, vanaspati and personal

products business were reorganized into Hindustan lever with 10% of equity sold o the

public. Further because of government pressure unilever raised the local shareholding by 1965

to 14%.

The Indian govt. also encouraged the appointment of Indian national as managers

.Unilever appointed the first “locals” to managerial position in India .in 1949 a

managemen training scheme was started. In 1961 an Indian national PL TANDON was

appointed chairman.

Government has control over import of raw material and also have control over import

of capital equipment. In order to diversified their business in India unilever convinced

the govt. that it contribute to the economy, it helps it to getting import license to importcapital equipment and so on

Unilever also accepted low dividend remittances for years which is imposed by Indian

government.

There was a surge of demands for local equity participation.

Due to control of Indian govt. over imports unilever found substitute of their raw

material which was imported by them like use of unconventional oils for soapmaking

reduced imports of tallow. In chemicals, new processes were developed relying on

Indian turpentine, Javanese citronella, Indian lemon grass oil for perfume.

By the end of the 1970s Hindustan Lever had developed four chemicalsfrom lemon grass, five from citronella, and one from turpentine. The R and D

program enhanced the company’s reputation with the Indian government and the

Indian professional classes, the latter facilitating the recruitment of excellent staff.

Unilever like other foreign companies was challenged by the enactment of the FERA

legislation under which all companies not engaged in non technology industry had to

bring their shareholding down to 49% from 1974. After long and complex negotiations

,an agreement was negotiated with the govt under which a foreign company was

permitted to hold 51% of the equity with the condition that it had to exported 10% of

its production. Hindustan lever then set about to satisfy the govt that It meet thesecriteria and the company began to expand its export from india.

CULTURAL ADAPTATION



Indian women after oil their hair before washing it, so western shampoos that do not

remove the oil have not sold well unilever reformulated its shampoo for india and

ditched the conditioner.

In India gulab jamun is a famous sweet which is made by mawa. Unilever launch a quick

mix for gulab jamun which was later to become a standard feature of Indian restaurantsin Britain.

HUL develops detergent bars for people who wash their clothes manually , and

toothpaste to be used with fingers instead of toothbrush.

HUL introduce skin lightning cream because Indians girls are more conscious about

our fairness .

ECONOMIC ADAPTATION-

HUL launch different product according to the society of india. For example- RIN for aspiring

class and wheel for poorer

Unilever developed a low cost toothbrush the pepsodent fighter which retails at a price

equilvalent to just euro 20.

Unilever Indian subsidiary, Hindustan unilever , was reputedly the first to use sachets to

sell single use packs of its shampoos. The concept was to lure the millions of potential

India, who may not have had ready cash for a higher – priced and larger shampoo

bottle. For them, the smaller packets, with correspondingly lower prices,made a sound

purchasing position.

The sachet concept has become marketing lore in india and it is estimated that about

70 percent of the volume of shampoos sold is packed in sachet

SOCIO –ECONOMIC ADAPTATION-

Unilever factory depend on increasing the milk availability in the etah district. In 1976

the chairman of Hindustan Lever, T.Thomas, reviewed the situation and sent five

supervisors from the factory and assigned them to different villages within the district.

The supervisors were all agricultural graduates who had been trained within the

company in the milk procurement operation and they were familiar with the localenvironment.

After six weeks supervisors told the Thomas about the number of problems facing the

villagers in lack of finance, professional guidance, lack of essential inputs such as

fertilizers and lack of warehousing and marketing facilities.

The outcome was a development program aimed at improving the prosperity level of

the Etah district farmers through their own efforts by providing them with animal



husbandry skills. They traines farmer about crop rotation, seed selection, fertilizers

dosage. Farmers were helped to get loans.

TECHNOLOGICAL ADAPTATION

HUL developed a proprietory technology in detergents which reduces water

consumption by 50% a significant benefit, given the acute water shortage in most of

india where laundry consumes 20% of household water.

It also developed and patented a low cost device which makes water as safe as boiled

water, besides removing pesticides.

Product innovation of HUL include detergent bars for people who wash their clothes

manually , and toothpaste to be used with fingers instead of toothbrush,a skin lightning

cream and a unique shampoo and hair oil.

Use advance technology to coat one side of a soapbar with plastic-VIM. So it takes to

longer to wear down.

SOCIAL ADAPTATION

HUL believes that an organisation's worth is also in the service it renders to the

community.

HUL is focusing on health & hygiene education, women empowerment, and water

management. It is also involved in education and rehabilitation of special or

underprivileged children, care for the destitute and HIV-positive, and rural

development. HUL has also responded in case of national calamities / adversities and

contributes through various welfare measures, most recent being the village built by

HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused

devastation in South India.

In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti,

HUL is creating micro-enterprise opportunities for rural women, thereby improving their

livelihood and the standard of living in rural communities. Shakti also includes health

and hygiene education through the Shakti Vani Programme, and creating access to

relevant information through the iShakti community portal. The program now covers 15

states in India and has over 45,000 women entrepreneurs in its fold, reaching out to

100,000 plus villages and directly reaching to 150 million rural consumers. By the end of

2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages,

touching the lives of over 600 million people.



HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The

programme endeavours to induce adoption of hygienic practices among rural Indians

and aims to bring down the incidence of diarrhoea. It has already touched 84.6 million

people in approximately 43890 villages of 8 states. The vision is to make a billion Indians

feel safe and secure.

Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company

headquartered in Vevey, Switzerland. It is the largest food company in the world measured by

revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee,

confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000

people in over 150 countries and have 461 factories or operations in 86 countries. Nestlé sales

for 2011 were almost CHF 83.7 billion. It is one of the main shareholders of L’Oreal, the world’s



largest cosmetics company. Nestlé history begins back in 1866, when the first European

condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk

Company. In Vevey, Switzerland, Nestlé founder by Henri Nestlé, a German pharmacist,

launched his Farine lactee, a combination of cow’s milk, wheat flour and sugar, saving the life of

a neighbour’s child. Nutrition has been the cornerstone of the company ever since. In 1905, TheAnglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page,

merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and

Anglo-Swiss Milk Company. The company grew significantly during the First World War and

again following the Second World War, expanding its offerings beyond its early condensed milk

and infant formula products. In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the

world’s most profitable corporation. The Nestlé Corporate Business Principles are at the basis

of the company’s culture, developed over 140 years, which reflects the ideas of fairness,

honesty and long-term thinking. Nestlé believes that not only possible to create long-term

value for their shareholders if their behaviour strategies and operations also create value for

the communities where they operate, for their business partners and of course, for their

consumers.

Nestlé vision is to meet the various needs of the consumer everyday by marketing and

selling foods of a consistently high quality. Their objectives are to deliver the very best quality in

everything they do, from primary produce, choices of suppliers and transport, to recipes and

packaging materials.

Their mission is they strive to bring consumers foods that are safe, of high quality and

provide optimal nutrient to meet physiological needs. Nestlé helps provide selections for allindividual taste and lifestyle preferences.

Nestlé purpose is to offer safe, tasty, convenient and nutritious foods to improve health

and well-being of consumers of all ages all over the world. To meet the needs and desires of

today’s and tomorrow’s consumers, Nestlé is strongly committed to Research and Development

(R&D) to improve products and develop new foods with specific health benefits (Nestlé.com,

2012).

NESTLE INDIA

Nestlé's relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-

Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the

Indian market.



Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in the

country. It has a broad based presence in the foods sector with leading market shares in instant

coffee, infant foods, milk products and noodles. It has also strengthened its presence in

chocolates, confectioneries and other semi processed food products during the last few years.

The company has launched Dairy Products like UHT Milk, Butter and Curd and also venturedinto the mineral water segment in 2001. Nestle’s leading br ands include Cerelac, Nestum,

Nescafe, Maggie, Kitkat, Munch and Pure Life.

ENVIRONMENTAL ADAPTATION BY NESTLE IN INDIA

POLITICAL ADAPTATION-

After India's independence in 1947, the economic policies of the Indian Government

emphasised the need for local production. Nestlé responded to India's aspirations byforming a company in India and set up its first factory in 1961 at Moga, Punjab, where

the Government wanted Nestlé to develop the milk economy.

For almost two decades there was no new additions of manufacturing facilities due to

restrictive policy environment after establishment of moga factory and another factory

in Tamil nadu.

Nestle India’s operations were restricted to importing and trading of condensed milk

and infant food.

In 1978, the company issued shares to the Indian public to rreduce its foreign holdings

to 40%.

According nestle ‘s business principle- nestle continues its commitment to follow and

respect all applicable local laws in each of its subsidiary.

CULTURE ADAPTATION-

In Indian value system, “health is wealth” and it is a synonym of wellness in ithe food. It

means of eating food from whole grains, which provides nutritional benefits such as

vitamins, mineral and fibres. NESTLE india got positive feedback from consumers by

launching magi vegetable atta noodles.



They worked on same platform .they acknowledged Indian definition of health and to

match itself with that in their new variant nestle offered whole wheat and vegetable

that give nutrition equivalent to three rotis

Across most of the world, nestle ‘s magi is known best as a soups and sauces brand. Inindia it has become the generic word for instant noodles. The product sold in india,

though beans little resemblance to the ramen of east india. It was introduced in 1982

with a masala flavoring and over the next 25 years, nestle continued to launch variants

that would appeal to local and regional tastes. Of course, they were’t all equally

successful, and the masala variant continues to be maggi’s best seller

SOCIAL ADAPTATION-

Nestle dairy development heritage in India began humbly in Moga on 15 November1961, collecting only 511 kgs of milk on first day. Today Moga factory collects over 1.3

million kgs of milk per day during the flush season, with over 110,000 farmers in India

selling milk to Nestlé.

Nestle milk collection area has expanded over the years and today covers 30,000

square kilometers. They have also constructed 2,815 milk collection centres in villages

across the country to facilitate its considerable daily milk collection.

Nestlé’s approach to rural development aims at ensuring thriving farmers and thrivingcommunities while respecting natural capital. We work at both a farm and community

level to improve yields, safeguard incomes, contribute investment and make a

difference to people’s quality of life.

The dairy industry is an important factor in rural economies. its work with Indian dairy

farmers continues to grow through sustainable relationships of shared value.

T hrough the NESCAFÉ Plan, we bring together Nestlé’s pledge to sustainable coffee

farming, production and consumption under one leaf.

In those cases where the required agricultureal raw materials are not exist, but the

natural production condition exist,it encourage local production and provide assistance

for cultivation and dairy farm management.

Nestle India is allying with National Diabetes, Obesity and Cholesterol (NDOC)

Foundation to study the specifics and patterns of diabetes prevalence in the country. Dr

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Anoop Misra, Director, department of diabetes and metabolic diseases, Fortis Hospitals

will lead the research.

ENVIRONMENT ADAPTATION –

Nestle helps in plant growing and livestock husbandry methods which:

preserve and improve natural soil productivity and economize and protect water

resources

allow the lowest, most appropriate and safe use of agro-chemicals

use the least energy.

Evaluation of individual plant performance wih regard to operations which have an

impact on the environment.

In distribution energy efficient and pollution controlled methods are encourage

wherever possible.

Nestlé continues to partner with institutions with expertise in the field of water

research and outreach across the country to develop awareness regarding water

conservation and sustainability.

Nestle saw that in moga many schools had not a clean drinking water facility. lack of

clean drinking water was a key concern for the community. Many village schools were

only equipped with hand pumps which provided poor quality water to their students.

To help improve access to safe drinking water, Nestlé began constructing clean drinking

water facilities in schools around all of its factories to benefit the surrounding

communities.

Nestle research centre provides the scientific support needed to prevent and solve

environmental problems.

In R&D of nestle studies are carried out to find new ways of using industrial residues to

create value added by product.

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Mcdonald is the world famous fast food restaurant.The idea of mcdonald’s was introduced by

two brothers Mac (Maurice) and Dick (Richard) Mcdonald in California.their father Patrick

Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the

airport.In 1940 the restaurant was renamed as Mcdonald’s Famous Barbeque.In 1940 bothbrothers came to a conclusion that most of their profit comes from selling hamburger so they

made their menu very simple by selling only Hamberger,cheeseburger,soft drinks French fries

and apple pie.in 1954 a turning point came in mcdonald’s brother history.Ray kroc a seller of

Multimixer milkshake visited mcdonald and he liked the idea of mcdonald. Mcdonalds

corporation was build in those times and as a result kroc started expanding their business by

opening franchises for mcdonalds.1960 mcdonald’s advertising campaign “look for the golden

arches” gave mcdonald’s sale a big boost.1965 mcdonald corporation went public.in 1968

mcdonal open its 1000th restaurant.1974 mcdonalds started their business in UK and

Newzealand.in 1980 mcdonalds was facing very big competition from its rival Burger King and

Wendy but mcdonald with its innovation was experiencing boost in its sales.in early and mid

ninties mcdonalds was having decline in their sales and as a result they start improving their

business.taste was improved and some new menu items were introduced.Mcdonald introduced

first Kosher Mcdonald in Jurusalam and Halal mcdonalds in india(1995 and 1996

respectively).mcdonald start creating healthy image and invested heavily on refurbishment in

2000’s.today mcdonald’s has more than 33000 outlets and is operating in 125 countries.it is the

world leading brand in fast food.

Mcdonald started their business in india in 1996.they start their business in india’s

capital New delhi.they choose a busy residential area Vasant Vihar.Mcdonald India is 50-50partnership between Mcdonald USA corporation and Two Indians (Amit Jatia Hardcastle

Restaurant ltd Mumbai and Vikram Bakshi Cannaught plaza restaurant Delhi).Mcdonald as of

now has 210 stores in india.



ENVIRONMENTAL ADAPTATION BY MC DONALDS IN INDIA

POLITICAL ADAPTAION-

Mc donalds managers were well aware of the fact that political activists can create

trouble for foreign based food chains as it happened with KFC in Bangalore in January

1996. To deal with political environment of india mc donalds gave this responsibility to

its two local managing director bakshi and jatia.

Mc donalds took a series of politically correct strategies to deal with the inintial

challenges of the Indian market. Government officials is very pleasing because of employment generation by mc donalds

in india.

ECONOMIC ADAPTATION

Mc donalds restaurant in india employs more than 100 people in all kinds of position-

cashier, cooks, managers etc.

Every expansion of mc donalds bring additional income and employment opportunities

to india’s agriculture work force.

Mc donalds introduce happy price menu for 20rs, which is affordable by Indian

consumer.

ENVIRONMENT ADAPTATION

Mc donalds has instituted a special fund to support GREEN movement in delhi. In

Mumbai, it sponsor various community related activities like- such as “ keep your city

clean” to promote environmental consciousness.

Mc donalds has put up pro- environment advertisement like “ we love green”

Mc-D use low energy LED light bulbs, energy saving equipment and waterless urinals, and

recycle used cooking oil into biodiesel to fuel more than half of delivery trucks.

They also recycle the cardboard boxes used in more than 89% of their restaurants, and more

than 85% of packaging is made from renewable resources

SOCIAL ADAPTATION-

http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/articles/biodiesel-lorries.html

http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/articles/biodiesel-lorries.html



To increase awareness for an active and healthy lifestyle . they has sponsored several

sports related activities like Olympic day run.

It involves in many community related programs like mc donalds spotlight which is an

annual interschool performing arts competition

They has been participating in world children day on nov. 20. Since india has alreadyben celebrated children’s day on nov 14. So they link these two days in india and create

world children week. It celebrates from 14 to 20 nov in restaurant of india.

Mc donalds in Mumbai is known as the blue dot initiative that support education

programs for the girl child.

They working towards improving the status of girl child in india.

They also take part in pulse polio program.

CULTURAL ADAPTATION

A significant number of Indians are vegetarian by choice or for religious reasons,

McDonald's took note of that as far back as 1990, when it began establishing local

supplier partners, six years before it opened its first restaurant in India. Working on its

first no-beef, no-pork menu,

The company ensured that suppliers respected the beliefs of its future customers.

Vegetarian products are prepared with dedicated equipment and utensils and, in some

cases, by a separate workforce. All food is cooked in vegetable oil, and the mayonnaise

and other sauces do not contain egg (considered a non-vegetarian food).

"We understand Indian culture because we were born in it," says Vikram Bakshi,

managing director and joint venture partner, McDonald's India (North and East).

"Physical separation of vegetarian and non-vegetarian products is maintained right from

the farm to the customer."

In the last 50 years, the chain has opened more than 30,000 restaurants in 120 countries

(155 in India), adapting its menu and operations to complement existing eating-out

options. India’s majority hindus rever cows as sacred and 150 million of Indian muslims

do not eat pork, beef. Therefore the iconic all-beef Big Mac has been replaced by the

mutton and chicken Maharaja Mac in India.

McDonald's, stuck to eggless mayonnaise and sauces. Even its trademark chicken dishes

were given a local flavor with the use of Indian spices and cooking techniques.

75% menu available in mc donalds in india is indianized like aloo tikkie burger,mc spicy

paneer, chicken- maharaje- mac, mc- veggie etc.

adaptation in general business

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