mc donalds ob
TRANSCRIPT
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SITUATION ANALYSIS
07-03-2013 2McDonald's Beef Fries ControversyGroup 2
MC DONALDS HISTORY1937- Mc Donald's was started by two brothers, Richard and
Maurice Mc Donald's in California.
1954- Ray Kroc established a franchising company with Mc
Donald's under the name Mc Donald's System Inc.
1965- Mc Donald's went public.
1998- it had over 25000 restaurants in 116 countriesserving more than 1.5 billion customers.
2001- it had 28 outlets in India spread across tier-A cities.
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SITUATION ANALYSIS
07-03-2013 3McDonald's Beef Fries ControversyGroup 2
ALLEGATIONS NUTRITION
ENVIRONMENT
ADVERTISING
EMPLOYMENT
ANIMALS
EXPANSION
FREE SPEECH
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SITUATION ANALYSIS
07-03-2013 4McDonald's Beef Fries ControversyGroup 2
BEEF FRIES CONTROVERSY TOOK PLACE IN 2000
U.S BASED HINDU JAIN SOFTWARE ENGINEER Mr.
SHAH READ AN ARTICLE ABOUT MC DONALDSFRENCH FRIES CONTAINING BEEF
ON AN ENQUIRY MC DONALDS RESPONDED THAT
THEY DO USE SMALL AMOUNT OF BEEF FLAVOUR AS
A INGREDIENT
THE COMPANY JUSTIFIED ITS ARGUMENT BY SAYING
THAT THERE WAS NO LAW TO DISCLOSE THE
INGREDIENTS INPUT
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SITUATION ANALYSIS
07-03-2013 5McDonald's Beef Fries ControversyGroup 2
VARIOUS LAW SUITS WERE FILED AGAINST COMPANY
FINALLY ENDED UP APPOLOGISING AND PAYING A
COMPENSATION OF 10 MILLION US DOLLARS
ALSO IT PAID 4 MILLION US DOLLARS TO 12 PEOPLEWHO HAD FIED THE LAW SUITS
THEY GAVE ADVERTISEMENTS IN NEWS PAPERS
ADMITTING THEIR MISTAKE
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SITUATION ANALYSIS
07-03-2013 6McDonald's Beef Fries ControversyGroup 2
SITUATION IN INDIA LOT OF PROTEST BY VARIOUS POLITICAL AS WELL AS
RELIGIOUS GROUPS SUCH AS SHIV SENA, BAJARANG DAL,
VISHWA HINDU PARISHAD PETITION WAS FILED TO CLOSE DOWN ALL THE OUTLETS IN
INDIA
LOT OF CONFUSION WHETHER THE FRIES BEING SUPPLIED
IN INDIA HAD THE BEEF CONTENT OR NOT RUMUORS HAD IT THAT THESE FRIES INGRIDIENTS WERE
THE SAME AS BEING SOURCED FROM US
WHEN BMC AND FDA CONDUCTED THE TEST IT GAVE
NEGATIVE RESULTS FOR THE BEEF CONTENT
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Problem Identification
07-03-2013 7McDonald's Beef Fries ControversyGroup 2
i. Unethical behaviorii. No word of caution.
iii. Passing the buck attitude.
iv. Loopholes in FDA regulations.v. Inconsiderate towards employees.
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StrengthAstute sense of business.
Globalised.
Financially stable.
WeaknessLack of innovation in
products.
Inconsideration towardsemployees.
PR was not very effective.
OpportunityHuge Market.Only a section of society
was hurt.
ThreatsLoss of faith.Competition.Duplication.
SWOTAnalysis
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Solutions
07-03-2013 9McDonald's Beef Fries ControversyGroup 2
i. Prompt actions should have been taken
ii. Innovation in vegetarian product line
iii. Proper labelling of ingredients
iv. Exhibit sensitivity towards peoples' sentimentsv. Create a better work environment
vi. 24/7 customer helpline
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Nutrition Environment
Advertising Employment
Animals Expansion
Free Speech
Q & A
07-03-2013 10McDonald's Beef Fries ControversyGroup 2
Q1) Analyse the various allegations levelled against McDonald's before the French
fries controversy. What perceptual processes contributed to so much hostilityand criticism despite McDonald's being the number one fast-food chain in the
world?
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Q & A
07-03-2013 11McDonald's Beef Fries ControversyGroup 2
Q2) Discuss the French fries controversy and critically comment on the company's
stand that it had never claimed the fries were vegetarian. Do you think thecompany handled the controversy effectively from the point of management of
rumour?
French Fries-Tallow
Companies point of view Customer point of view
NO!! They were not
Losing Indian Market
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Q & A
07-03-2013 12McDonald's Beef Fries ControversyGroup 2
a. Non acceptance b. Conditional apology
c. FDA to shield d. Compensation
E. Advertisement as medium of apology f. Undercover operation
Q3) Discuss the steps taken by McDonald's to play down the French fries
controversy and critically comment whether the company will be able to come
out this unscathed.
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07-03-2013 McDonald's Beef Fries ControversyGroup 2
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Learning's & Concepts
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Social Psychology: Respecting religious beliefs andsentiments.
Openness
Clarity- Do not play with words in public.
Do not give conditional apologies
Never support your excuses.
Value individuals perception.
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Learning's & Concepts
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Anthropology: Study consumer behavior while offshoringand exploring markets.
Job Satisfaction: (Intrinsic factors):
Low wages, Curtailing workers right, poor safetyconditions, kitchen flooded with sewage, understaffing,
few breaks, Illegal hours, Curtailing workers rights.
Mc. Donalds had Self-Serving Bias.
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