McDonalads BeefControversy

Presented By :Sanket JoshiDarshan JadhavJeevanand YadavMMS-1,Sec-A

INTRODUCTION

MC DONALDS McDonald's in India is a locally owned and managed company run by Indians, employing local staff, procures from local suppliers to serve its customers. McDonald's is a leading international fast food restaurant chain with 30,000 restaurants spread across the globe. In India, it launched its operations in 1996. It now has 54 restaurants with a daily inflow of 500,000 customers

BACKGROUND

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

PERCEPTION

BEEF CONTROVERSY

BEEF 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

HALO EFFECT

McDonald’s the world’s largest fast-food chain McDonald’s, in Seattle, US promised and promoted their French fries being 100% vegetarian. The company had duped vegetarian customers into eating French fries that contained beef extracts

BOUNDED REALITY

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

SOCIAL RESPONSIBILITY

Ronald McDonald’s house of charities.Environmental leadership.DiversityEmploymentEducationSafety/quality

AFTER MATH

March 2002:-Mcdonald,s announcedto pay US $10 million to vegetarian& religious groups.

Company decided to pay US $4000to 12 plaintiff of 5 law suits Posted a new & detailed apology Convene an advisory board to adviceon vegetarian matters

DECISION MAKING

After the lawsuit filed against McDonald’s for using French fries that contain beef extract. They made a decision that they will make all the products without using beef. They decided to make vegetarian and products with chicken