Environmental Regulation And Western Food Culture In India Commerce Essay

Environmental Regulation And Western Food Culture In India occupation EssayEnvironmental regulation and western for board finish in India was almost non-existent. In pursuit of frugal ripening, the Government of India liberalised the economy in forage sector and kept surroundingsal regulation of multinational cans to a minimum in order to attract remote direct enthr iment. international corporations induct often been blamed for taking advantage of weak enforcements in India however, in recent socio-economic classs, legion(predicate) of them have started to self-regulate and often set their environmental standards above the minimum compliances enforced by the Government of India.Advancement of strange civilization in India in the fodder patience has forgetn m whatever multinational companies (MNCs) an opportunity to grow and flourish. MNCs that set up operations in India or do caper with Indian companies find that managing Indian men requires understanding Indian treat kitchen-gardening that has evolved over several centuries. gum olibanum in that location is a need to understand the difference in the culture of Indian forage industry. Many socio economic factors and distinguishable influencing factors ar liable for setting a spic-and-span trend. These factors mold the independent variables on which the sense of taste of selection of fodder entrust depend i.e. dependent variables. These bookss atomic number 18 separate based on-(a) Studies corresponding to major influencing factors governing selection and pack of off-the-rack fodder items.(b) Studies corresponding to the socioeconomic factors touching the acquire for ready- do victuals items.(c) role model for examining the environmental comement of MNCsThe conclusion expected from the servek is that the socio economic factors and other influential factors play an meaning(a) role on consumers p conjureence in viands industry. Based on the finding, few suggestion s and limitations alter influential factors to Indian aliment industry for future inquiry result be provided. Andmy research will a manage investigate the miscellany in environmental anxietyin nutriment industry.Globalisation and the Indian fodder IndustryA study into the key factors influencing consumer demeanour in the Indian sustenance industry.A comparative study of past and limn culture and environment in Indian food industryByRounak GoenkaG0759654K confuse submitted to University of Bradford School of ManagementIn commenceial fulfilment of the requirementsFor the Degree ofBSc. (Hons.) in Business ManagementBBMD20932ACONTENTSPage No.Abstract1Chapter 1 Introduction ..4Objective of the look for4 come along to the question5Chapter 2 belles-lettres Review6Influencing factors alter prime(a) and demand6 see of Socio-economic factors9Influence of Global flows..11Framework for examining the environmental counseling of MNCs..13Chapter 3 An overview of culture in I ndian food industry14Chapter 4 Study of globularized food culture evolving in India16Chapter 5 PepsiCo18Chapter 6 KFC21Chapter 7 McDonalds.22Chapter 8 Analysis and Conclusion.24References26Chapter 1 Introduction Objective of the exploreFast-food is non an alien concept to Indians roadside shops have offered snacks-to-go since time old and the country has a long tradition of indigenous stiff-food served by a variety of street vendors.With the rapidly maturement middle class state and changing lifestyle, India is blessed with one of the quickest growing fast food marts in the universe. The fast food industry in India has evolved with the changing lifestyles of the girlish Indian population. There argon legion(predicate) factors that makeIndia an attractive market place for Western consumer goods. With one-sixth of the worlds population,India is the second most populous countryin the world, following China. The purposesof this research is to comp atomic number 18 th e attitudes or sonew food obtains amidst innovators/earlyadopters and non-innovators and also is to data-basedly substantiate if the forces of globalization ar mending consumer culture and behavioural traits in a create country (India).The Indian fast food market has been witnessing rapid growth on the back of positivistic developments and carriage of massive investments. Currently, market growth is largely fuel bring by the rise new(a) population, working women, hectic schedules, and increase disposable income of the middle-class menages. most of the unique properties of fast food like quick served, court advantage, etc are making it highly popular among the masses. Thus, India offers enormous opportunities for both domestic as well as international players.In the past, the overwhelming majority of Indian consumers had little purchasing power, and spent almost on the whole of their income on the elementary necessities. Industrial growth and increasing affluence of the middle classes, however, have led to important increasesin consumer demand and spending power. Regardless of this compulsory Indian input, as yet, these western companies cannot match the popularity of local Indian chains such(prenominal) as Nirulas or the corner shops selling indigenousfoods. To compete, they are not all changing their parentage models precisely also their identity. There has been a drastic change, as seen in past, in taste and preferences of the consumers in India. India has interpreted a step forward in adopting western culture. Thus international firms have been adapting Indian culture while running their air here. In past there were many restrictions in the culture of consumers in India, but now many of them has moved forward with the taste of new generation. exactly some of them are still real conservative towards the food sector.Approach to the ResearchOn the back of rising disposable income, changing consumer behavior, grand population base, In dia is witnessing a tremendous growth is its fast food industry over the past few years. Other reasons like rising follow of nuclear families, exposure to western cuisine and increasing number of employ women are also having a satisfying have-to doe with on the take out trends and growth of the fast food industry in the country. As a publication, all the international players like Pizza army hut, Dominos, McDonalds and KFC, etc. are investing huge amount of silver to grab a divide of this highly lucrative market.Three big food companies have been taken in consideration for this research. And their case studies are been discussed below, which shows us how did the company manage to change its ethnical environment to adjust with the country requirements and ethical issues. This wallpaper focuses on determining afoodchoice model in wake of changingfoodand consume habits in India, using books reviews, exploratory surveys and reliable data sources.This case study focuses on growing trends towards organicfoodand green consumerism in viewofrising global obesity with fastfood habit in Western countries and significantly very(prenominal) less in India despite obesity being an plaguey in India.Literature review used in this research is-Influencing factors affecting choice and demandInfluence of Socio-economic factorsInfluence of Global flowsFramework for examining the environmental management of MNCsWith the help of above literature review we can discuss how the taste of Indian consumers has been changed and also we can analyse how the companies by changing its strategy has achieved their goal in Indian market. Findings Based on literature reviews and exploratory surveys, the key determinants forceing consumersfoodchoice are passion for eating out, socialize, ambience and taste for school and college goers and convenience for dual-income families in urban India. Findings signalize that fastfoodcompanies can no longer rely on convenience as USP in Ind ia, unless the implicationsof comparable on consumers health are given equal importance in the years to come.Chapter 2 Literature ReviewInfluencing factors affecting choice and demand -A phratrys demand for food away from home also may depend on the ages of family members. atomic number 53 reason is that the tastes may change as peck progress with their age. The confirmable study conducted by Byrene et al, (1998) observes that the rest homes with younger members slope to spend to a greater extent money on fast food restaurants, while households with onetime(a) people tend to spend more(prenominal) than money on full service restaurants. In this context, Blisard (2001) while, stating the significance of age in the demand for food items prepared removed home, observes mistakableity in the behaviour by the members of incompatible generations at the same points in their lives. concord to Friddle et al., (2001) the sensitivity of taste buds diminishes with age and hence, th ey observe that the older people may demand foods with bolder flavours.In addition to the taste factor, veritable textural properties are also intrinsic in judgments of qualities like crispness, crunchiness, and freshness all of which are important in the selection of food items. Barthes (1975) has suggested that there is a general symbolic opposition mingled with crisp, brisk, and sharp foods and soft, soothing, and sweet foods in Western cultures. Texture and flavour may also be associated with palatability and digestibility. Firth (1966) observed that people sometimes use these descriptive characteristics to distinguishing between prefer and less preferred foods and those consumed under normal or starvation conditions.The possibility of household production proposed by Becker (1965) explains how prices, income, demographics, and time constraints can all mould a households purchases of items like food. He extended the classical demand surmise to explain these aspects more el aborately. jibe to this economic model, the monetary value of food purchased includes the cost of consumption, cost of preparing the equivalent food in the home and also the cost of cleaning up after a repast or snack. In the context of the Beckers model, a household manager can be delineate as the person primarily responsible for shopping, prep, cleaning, and other household chores.In the study of food choices on Native Americans Galloway and Gibbs (1976) concluded that inadequate victuals take aims were the result of insufficiency of purchasing power or else than the lack of edible knowledge. Similarly, DeWalt and Pelto (1976) conducted a study on food rating with factor analysis- as the basis for analytical construct. In the context of this study, the respondents in a Mexican village were asked to rate food according to taste, healthfulness, and economic value, and found that people had accurate notions of nutrition. Also, this study found that people chose food mainly on budgetary considerations. The factors related to food choice in this study were identify through factor analysis from sets of food choices provided by respondents. In similar line of thought Schuftan (1979) stated that the real problem in malnutrition is lack of food-purchasing power from the buyers and hence, he suggested that the nutrition programs should address malnutrition in economic rather than nutritional wrong that is, they should measure deficits in the purchasing power of the households and give priority to nutrition programs that generate income, new employment opportunities in food production, and food-related services.The impact of specific economic and demographic characteristics of a household, in its demand for ready-made food items are considered very important. In this context, McCracken and Brandt (1987) analyzed the descent between some key household characteristics and expenditure at several(predicate) categories of restaurant. The empirical analyses of the ir study have shown the influencing pattern of economic and demographic characteristics of households in their demand for restaurant made food items. Also, they stated that an inverse family relationship could be observed between the number of people in the household and its requirement for food prepared outside home. The significant finding indicated in the above study observes decrease in the expenditure of large households for food items prepared outside home. This is understandable for the simple reason that cost of cooking in terms of fuel expense is less, if food is prepared for more number of people. Based on the household survey data from the year 1970s and 1980s, Nayga and Capps (1994) studied the relationship between a households characteristics and its frequency of dinning at each category of food selling enterprises. Hiemstra and Kirn (1995) analyzed the impact of household characteristics on expenditure by eating occasion and market segment.A specific household may dem and more restaurant made food items if both husband and wife work outside. In such situations food prepared outside home will form a convenient meal option if the sellers are reasonably accessible. Two studies conducted by Popkinn and Solon (1976) and Popkin (1980) identified deficiencies in the food intake of children who have their mothers with employment. Further, these studies substantiate no such deficiencies in the food intake of the children who have their mothers without employment. According to Byrene et al., (1998) the spending for fast food is increasing along with the number of hours, the household manager works in the labour force. In this context, Rajmohan and Panchanatham (2002) reported that the effeminate employment in IT jobs makes women to struggle a lot in terms of fulfilling the domestic responsibilities like preparing food items at home. This practically means that more office responsibilities for women will cause increased demand for ready-made food items in the market.Influence of Socio-economic factorsThe booming Indian economy (Lenartowicz and Balasubramanian, 2009) and the huge Indian consumer market (Enderwick, 2009) is encouraging many researchers to study the various socio-cultural proportions influencing the Indian consumers behaviour (Kopalle et al., 2010). Another stream of study that is luring leading researchers (Craig et al., 2009 Yaprak, 2008) is the diverge of forces of globalization on the changing consumer culture of a society. such influence, according to Ger and Belk (1996), would be more intensive on the consumers in the developing economies of the world, India being one of them. In fact, Durvasula and Lysonski (2008) and Mathur et al. (2008) have empirically shown how forces of globalization are bringing in changes in the culture of Indian consumers. One such culture based dimension of consumer behaviour is physicalism.The menstruation work studies materialism, a construct defined by Belk (1984) and Richins (19 87) giving importance/being attached to worldly possessions, and its influence on consumer culture, which encompasses the prevalent cultural influence among consumers, in the Indian context. Extant research suggests that globalization is rapidly influencing consumer culture in India with people showing increasing predisposition towards inappropriate brands (PTFB), a construct defined by Bandyopadhyay (2001), Batra et al. (2000) and Kinra (2006) as admiration of foreign brands and intention to purchase them vis- a-vis home countrys brands. Such cultural influences are also likely to impact Indian consumers purchase behaviour, e.g. credit card usage (Chibber, 2010), impulse purchases (Datamonitor Report, 2010) and consideration of shopping as an enjoyable behaviour (Ghosh et al., 2010). Although marketing scholars (Cleveland et al, 2009 Richins and Dawson, 1992) have already established the impact of materialism on these important consumption traits, studying the same in the Indian c ontext would provide interesting insights for both scholars and practitioners alike. The paper gum olibanum makes an effort to study extent of secular values (MV) amongst Indian consumers differences in such values based on demographics whether such values impact various buying behaviour traits of Indian consumers and are itself being wedge by the onslaught of forces of globalization.Materialism among Indian consumers has been studied by Chaudhuri and Haldar (2005) and Cleveland et al. (2009). These studies brought frontward the relationship that materialism has with cultural adherence and regional differences with-in India (Chaudhuri and Haldar, 2005) and materialisms impact on various purchase behaviour like purchasing frequency of sumptuosity products, etc. (Cleveland et al., 2009). Though Cleveland et al. (2009) also attempted to study the relationship between materialism and various demographic variables like age, income, gender and educational arriere pensee for the Indi an sample they could not get significant results on any of the relationships. Both Cleveland et al. (2009) and Chaudhuri and Haldar (2005) used student samples in their study, which could limit the generalization of their findings. Further, uncomplete of these studies attempted to operationalize globalization as an antecedent impacting the MV of Indian consumers. These studies also did not empirically study the impact of other demographic factors (besides age) like income, educational qualification and gender on the MV of Indian consumers. The present study addresses these existing gaps in the extant literature.Pettys and Balagopal (1998) are of the view that since item-by-item attachment in India is seen as temporary and as an illusion, Indians are very non-materialistic. They also believe that an inherent risk of westernization is that the Indian consumers might drive more materialistic. On the other hand, Venkatesh (1995) states that Indians are not averse to materialism becau se in Indian culture spiritualism and materialism are not considered opposites, instead they belong to the same realm of experience and hence there is no confrontation of beliefs if both are take together. Still, compared to other authentic nations like USA and New Zealand, Indians are relatively less materialistic (Ger and Belk, 1996). This might be due to conservatism preached by the Indian culture. The results of Chaudhuri and Haldars (2005), empirical study on Indian respondents showed that there is a significant proscribe correlation between the degree of materialism and the intensity of cultural adherence. In other words the more a person moves away from the Indian culture, the more are the chances that materialism will manifest itself in him.Influence of Global flowsGlobalization is leading to various types of global flows across the world. According to Appadurai (1990), there are five types of global flows mediascapes (flows of image and communication), ethnoscapes (flow s of tourists, migrants and foreign Students), ideoscapes (flows of policy-making ideas and ideologies), technoscapes (flows of applied science and know-how) and finanscapes (flows of capital and money). Considering the influence of these global flows, Craig et al. (2009) observe that in todays world, cultural products and lifestyles from the developed world are spreading across developing countries. This is the result of contact through traditional media such as TV and films, as well as through new media such as the internet, electronic social networking, blogs, etc. (Craig et al., 2009).This phenomenon, according to Craig et al. (2009), is changing the cultural fabric and patterns of a society as products, icons, lifestyles and rituals of one culture are being adopted by another (Craig and Douglas, 2006). Further, its pervasive influence on consumer behaviour is affecting consumer tastes, preferences and purchase behaviour (Douglas and Craig, 1997). Venkatesh and Swamy (1994) st ate that Indian consumers, even if they have not travelled abroad, are still being influenced by the consumerism (or consumer culture) brought by foreign influence through media and products (foreign brands). Ger and Belk (1996) state that the reason for this is that with the coming of globalization and westernization, developing countries consumers emulate the lifestyles and consumption patterns of more economically developed nations. Many studies (Batra et al., 2000 Kinra, 2006 Maxwell, 2001) have shown that Indian consumers have a very high PTFB. According to Eckhardt and Mahi (2004), these foreign brands are also bringing foreign cultural influence with them in the Indian market place.Since 1991, India has witnessed a dramatic increase of multinational corporation activity, giving rise to tremendous economic development of the country (Emde, 1999). From provision of services to manufacturing, multinational corporations (MNCs) play a big role in almost all the economic sectors i n India. Consequently, their business operations impact the physical environment of the country on a large scale. In the post-industrialized era, MNCs in the developing world are changing their environmental management in the context of various inborn and external drivers. These changes often lead to an introduction of new strategies, systems, and practices across the environmental management of MNCs (Moser, 2001). Despite significant environmental policies introduced in India, such as the Water Act (1974), bearing Act (1981), and Environmental Protection Act (1986), its environmental timberland has move to deteriorate (Reich Bowonder, 1992).Indias Industrial Policy of July 1991 radically pushed for an open economy by globalization, liberalization, and privatization. The policy opened up Indias economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity (Goyal, 2006). The economic policy reforms of India r emoved constraints for entry of MNCs into India, allowed Indian companies to form joint ventures with the foreign companies, and encouraged a free inter-country transfer of technology and labor (Goyal, 2006). An open economy, large manpower, and a weak environmental restrictive manikin reduced the cost of doing business in India as compared to other developing countries such as Brazil, Mexico, China, and Indonesia (Jain et.al, 2006). Therefore, these factors made India a preferred depot of MNC activity from developed countries.Framework for examining the environmental management of MNCsThe project draws from the framework within organization theory and specifically on Andrew Pettigrews famous work on the management of strategic change (Pettigrew, 1987). His framework has been widely fitted to study how changes in the management of environmental and social issues by MNCs operating(a) in less developed countries can lead to sustainable development (Moser, 2001). Pettigrew offers a framework -consisting of tether dimensions context, content and process. He suggests that organizational change process and decision-making can be understood in terms of these three inter-linked dimensions. The context of change is concerned with how an MNCs internal context and aspects of external environment promote or inhibit the change process. Internal context refers to characteristics of the MNCs internal organization its structure, culture, and politics, and how these have shaped/continue to shape its environmental management (Moser, 2001). The external context can be sub-divided into courtly and knowledgeable components. The formal or institutional component of context consists of factors such as headquarter policies, force countrys (India in this case) regulatory framework, investor pressure, standard industry codes of conduct, international regulations, international nongovernmental organizations (NGOs), and media comment. The informal or socio-political component c onsists of factors such as brand image, risk management, competition, eco-efficiency (cost intensity with reduced environmental impact), and pressure from local or domestic NGOs, public, and local communities. The content dimension of the framework refers to the economic, social and environmental impacts (both positive and negative) of current MNC practices and operations. The process dimension refers to how change within an MNC is effected over time. The bankers acceptance of environmental management changes can also be understood in terms of the interrelated dimensions of context, content, and process. This research focuses on the content and context dimensions as they apply to the case study. In the context dimension, only the external aspects containing formal and informal institutions are studied. These external aspects play the role of drivers that change the environmental management of MNCs. The content dimension is studied to direct the second research question about the i mplementation of new environmental strategies, systems, and practices to incorporate the changes set or impeded by the contextual factors listed above.Chapter 3 An overview of culture in Indian food industryDue to the cultural and personal attitudesof Indian consumers about food and the sensed importance of fresh food, urbane food is anew concept to this population, and thus should be viewed as anew product and an innovation. Countlessnew products are introduced on world markets only to fail and to be taken off the market within a few months. Usually, the failureof anew product is go with by substantial financial losses to manufacturers, middlemen, and retailers. Market researchers, therefore, need to get wind carefully the relationship betweenproduct and marketing innovation, and other important variables that make the introductionof aproduct successfulin new markets.Food diversity is an implicit characteristic ofIndias diversified culture consisting of different regions and states within. Indians like to have home-cooked meals a concept supported religiously as well as individually. However, with times due to increasing awareness and influence of western culture, there is a shift infoodconsumption patterns among many Indian families. It started with eating outside and moved on to judge a wide variety of delicacies from world-over. Liberalization of the Indian economy in the early 1990s and the subsequent entry of new players set a significant change in lifestyles and thefoodtastes of Indians.Fast foodis one which gained acceptance of Indian palate after the multinationalfast foodplayers adapted the basic Indianfoodrequirements viz. vegetarian meals and selected non-vegetarian options excluding beef and pork totally from their menu.Multinationalfast food outlets initially faced protests and non-acceptance from Indian consumers. This was due to primary perception that thesefast foodplayers serve only non-vegetarian and do not serve vegetarian meals. In addition,fast foodis perceived expensive besides being out-of-way meals in Indian culture.Today,fast food industry is getting adapted to Indianfoodrequirements and is growing inIndia. It is gaining acceptance primarily from Indian youth and younger generations and is becoming part of life. Keeping in view the Indian habits and changing preferences towardsfoodconsumption, this study has its focus to understand the factors affecting the perception of Indian youth, in the age group of 20-30 years, towards consumption offast foodas well as towards making choice offast foodoutlets. All the popular fast food chainshave chalked out massive plans forexpanding theirbusiness and charge throughout thecountry. Moreover, foreign fast-food chains are aggressively increasing their presence in the country. International fast-food chains such as McDonalds, Dominos, Pizza Hut and Kentucky Fried Chicken (KFC) are doing brisk businessin Indias ready-cooked meal fastfood segment.Chapter 4 Study of gl obalized food culture evolving in IndiaSome traditional attitudes of Indians, however, have created challenges to foreign companies that attempt to make a successful entry into the country.Food is believed to be an effective and tangible discriminator of consumer preferences among different cultures. Indian consumers tend to be traditionalin their flack to food products, thus, unlike many countriesin the developing world, Westernfood is not widely consumedin India.The highly distinct tastes of Indian consumers are a challenge for many multinationals seeking to enter the Indianfood market. Unlike citizens of other rapidly industrializing countries, about 40 per cent of Indians are vegetarian, according to reportsin The Economist (1997). Even among Indian meat eaters, many consumers have an aversion to beef and/or pork and dislike frosty meat and fish.Despite these challenges, the US International Trade Administration (2000) estimated that the processed food marketin India was wort h over US$22.2 one thousand millionin 1999. However, marketers need to develop a very high level of expertisein tapping into this potential market since importedfood products are not widely accepted by the general Indian population.Research has demonstrated that younger Indian consumers are more open to bracingfood products and are more likely to perceive importedfood as high quality as compared with locally producedproducts.Direction of business globalization it has to be not only about uniformed customization of the economies of the different countries and human need, but also about sensitive and understanding approach to local and national values and principles. In practise the most mistakes are made alongthis chain of management processes.The success of the foreign business is not only determined by a good quality of the products but a solid preparation, search for adequate businesspartners, market knowledge, attentive acquisition of local staff and a well-founded business con cept. For success of fast foodrestaurant the hive away image isvery important. Firstly, they are functional qualities of a store (assortment, store layout, location, price-value relation). Secondly, psychological attributes refer to the consumers perception of the store attributes, such asfriendliness, helpfulness of store personnel department or attractiveness of decor.For kids market segment and market segment of young people students the emotional material as a part of store image is of great importance. Shoppers differentiate one store from another by the images of each project. The simplest approach to such image projection is likely to be based solely onprice-quality relation.After the liberalization policy that came in force in 1991, fast food industry grown in India as multinational fast food providers have set up their business either jointly with Indian partners or independently. From next chapters we will discuss about the companies environmental management and the cult ural change. And we will see how companies adapt to these situations.Chapter 5 PepsiCoIn this research we will discuss about the change in environmental manageme