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McDonald's Beef Fries Controversy

SITUATION ANALYSIS11-08-20102McDonald's Beef Fries Controversy Group 2MC 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 countries serving more than 1.5 billion customers.2001- it had 28 outlets in India spread across tier-A cities.

SITUATION ANALYSIS11-08-20103McDonald's Beef Fries Controversy Group 2ALLEGATIONSNUTRITIONENVIRONMENTADVERTISINGEMPLOYMENTANIMALSEXPANSIONFREE SPEECHSITUATION ANALYSIS11-08-20104McDonald's Beef Fries Controversy Group 2BEEF FRIES CONTROVERSYTOOK PLACE IN 2000U.S BASED HINDU JAIN SOFTWARE ENGINEER Mr. SHAH READ AN ARTICLE ABOUT MC DONALDS FRENCH FRIES CONTAINING BEEFON 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

SITUATION ANALYSIS11-08-20105McDonald's Beef Fries Controversy Group 2VARIOUS 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 SUITSTHEY GAVE ADVERTISEMENTS IN NEWS PAPERS ADMITTING THEIR MISTAKE

SITUATION ANALYSIS11-08-20106McDonald's Beef Fries Controversy Group 2SITUATION IN INDIA LOT OF PROTEST BY VARIOUS POLITICAL AS WELL AS RELIGIOUS GROUPS SUCH AS SHIV SENA, BAJARANG DAL, VISHWA HINDU PARISHADPETITION 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 NOTRUMUORS HAD IT THAT THESE FRIES INGRIDIENTS WERE THE SAME AS BEING SOURCED FROM USWHEN BMC AND FDA CONDUCTED THE TEST IT GAVE NEGATIVE RESULTS FOR THE BEEF CONTENTProblem Identification11-08-20107McDonald's Beef Fries Controversy Group 2Unethical behavior No word of caution.Passing the buck attitude.Loopholes in FDA regulations.Inconsiderate towards employees.

11-08-20108McDonald's Beef Fries Controversy Group 2Solutions 11-08-20109McDonald's Beef Fries Controversy Group 2Prompt actions should have been takenInnovation in vegetarian product lineProper labelling of ingredients Exhibit sensitivity towards peoples' sentimentsCreate a better work environment24/7 customer helplineNutrition Environment

Advertising Employment

Animals Expansion

Free Speech

Q & A11-08-201010McDonald's Beef Fries Controversy Group 2Q1) 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?Q & A11-08-201011McDonald's Beef Fries Controversy Group 2Q2) 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 notLosing Indian Market

Q & A11-08-201012McDonald's Beef Fries Controversy Group 2Non acceptance b. Conditional apology

FDA to shield d. Compensation

E. Advertisement as medium of apology f. Undercover operationQ3) 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.

11-08-2010McDonald's Beef Fries Controversy Group 213Learning's & Concepts11-08-201014McDonald's Beef Fries Controversy Group 2Social Psychology: Respecting religious beliefs and sentiments.OpennessClarity- Do not play with words in public.Do not give conditional apologiesNever support your excuses.Value individuals perception.

Learning's & Concepts11-08-201015McDonald's Beef Fries Controversy Group 2Anthropology: 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.

Thank U!!Arpita-1021239Darshan-1021213Jobin-1021219Rochak-1021256Rahul-1021226Rohit-1021229Saurabh-1021231Tanu-1021234Group-211-08-201016McDonald's Beef Fries Controversy Group 216