McDonald's Beef – Fries Controversy
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McDonald's Beef – Fries Controversy
08/04/2023 McDonald's Beef – Fries Controversy Group 2
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SITUATION ANALYSISMC DONALDS HISTORY
1937- 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 countries serving more than 1.5 billion customers.2001- it had 28 outlets in India spread across tier-A cities.
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SITUATION ANALYSISALLEGATIONS
• NUTRITION• ENVIRONMENT• ADVERTISING• EMPLOYMENT• ANIMALS• EXPANSION• FREE SPEECH
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SITUATION ANALYSISBEEF FRIES CONTROVERSY
• TOOK PLACE IN 2000• U.S BASED HINDU JAIN SOFTWARE ENGINEER Mr.
SHAH READ AN ARTICLE ABOUT MC DONALDS FRENCH FRIES CONTAINING BEEF
• ON AN ENQUIRY MC DONALDS RESPONDED THAT THEY DO USE SMALL AMOUNT OF BEEF FLAVOUR AS A INGREDIENT
• THE COMPANY JUSTIFIED IT’S ARGUMENT BY SAYING THAT THERE WAS NO LAW TO DISCLOSE THE INGREDIENTS INPUT
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SITUATION ANALYSIS• 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 PEOPLE
WHO HAD FIED THE LAW SUITS• THEY GAVE ADVERTISEMENTS IN NEWS PAPERS
ADMITTING THEIR MISTAKE
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SITUATION ANALYSISSITUATION 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 Identificationi. Unethical behavior ii. No word of caution.iii. Passing the buck attitude.iv. Loopholes in FDA regulations.v. Inconsiderate towards employees.
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Strength Astute sense of business. Globalised. Financially stable.
Opportunity Huge Market. Only a section of society was hurt.
SWOTAnalysis
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Solutions i. Prompt actions should have been takenii. Innovation in vegetarian product lineiii. Proper labelling of ingredients iv. Exhibit sensitivity towards peoples' sentimentsv. Create a better work environmentvi. 24/7 customer helpline
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• Nutrition Environment
• Advertising Employment
• Animals Expansion
• Free Speech
Q & AQ1) Analyse the various allegations levelled against McDonald's before the French fries controversy. What perceptual processes contributed to so much hostility and criticism despite McDonald's being the number one fast-food chain in the world?
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Q & AQ2) 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 the company handled the controversy effectively from the point of management of rumour?
French Fries-TallowCompanies point of view Customer point of view
NO!! They were not…Losing Indian Market
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Q & A
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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Learning's & ConceptsSocial Psychology: Respecting religious beliefs and
sentiments.OpennessClarity- Do not play with words in public.Do not give conditional apologiesNever support your excuses.Value individual’s perception.
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Learning's & ConceptsAnthropology: Study consumer behavior while offshoring
and exploring markets.
Job Satisfaction: (Intrinsic factors): Low wages, Curtailing workers right, poor safety
conditions, kitchen flooded with sewage, understaffing, few breaks, Illegal hours, Curtailing workers rights.
Mc. Donalds had Self-Serving Bias.
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Thank U!!Arpita-1021239Darshan-1021213Jobin-1021219Rochak-1021256
Rahul-1021226Rohit-1021229Saurabh-1021231Tanu-1021234
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