You are on page 1of 10

McDonald's Beef – Fries Controversy

Group 2
Akshat Malik 1021302
Raunak Doshi 1021327
L.Srinivas 1021320
J.Ranjit Kumar 1021326
Srikanth Pandey 1021331
Anna Shaji 1021337
Suptha 1021
SITUATION ANALYSIS
The case examines the controversy involving the global fast food
major McDonald's, which was accused of selling its French fries
as a 100% vegetarian product when they contained extracts of
beef oil.

It explores in detail the events that led to the controversy and the
company's reactions to the allegations. 

The case also discusses the eventual settlement of the lawsuit


with the company paying damages to vegetarian groups and
accepting that it had gone wrong.
Identification of Problems

Rules broke Ethics


Code of Federal Regulations

Resistance to change
Not ready to switch to vegetable oil

• Communication
Casual attitude of the management towards the
complaints
SWOT ANALYSIS
STRENGTH WEAKNESS

• Large established customer base • Nutritional Value of food


• Many locations – global • More health conscience people
• Getting Prime real estate
•Allegations
THREATS OPPORTUNITIES

• Appealing to more adults


• Other fast food chains
• Other promotional deals w/ toys
• healthier food can get cheaper
Allegations
Nutrition – High Fat, Low Fibre Food –
Heart
Problems, cancer, obesity.

Environment – Destroying tropical forests.

Employment – Low Wages, poor working


conditions.

Animals – Largest users of Meat.


OPTIONS/ALTERNATIVES
UNCONDITIONAL APOLOGY

BETTER HANDLING OF THE CONTROVERSY

QUICK CHANGE IN MENU

THINK GLOBAL, ACT LOCAL

ETHICAL AND MORAL RESPONSIBILTY

CHANGE MARKETING STRATEGIES


SUGGESTIONS
Short – term
Immediate apology to the public with better
communication
Change names of the dishes to “desi names”
and win back the trust of people
Long – term
Transparent system of operations
Solve the other allegations
Customer oriented rather than Cost oriented
OB Concepts
Perception(McDonald’s & Public point of view)
Values, attitudes and belief
Device the best strategic plan
Influence of external factors
Trust, involvement and commitment.
Poor decision making
Corporate Social Responsibility
Action Promised but Not Delivered
THANK YOU

You might also like