McDonald’s in India: The ‘beef fires’ controversy

Résumé du document

McDonald's came into existence in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino in California and envisioned a nationwide fast food chain. Kroc revolutionized the American restaurant industry. McDonald's is today the world's largest fast food chain serving 47 million customers daily. It is one of the most valuable brand and worth more than $25 billion. The Golden Arches gained universal recognition. Even if the company has roots in the US, it is now a citizen of the world, and expanding mostly in Asia and India.

The business model of the company is very simple: only 15% of the total number of restaurants is owned by the company and the remaining 85% is operated by franchisees. They have to comply with the quality, service, cleanliness and value propositions (QSCV) of the brand. McDonald's aims is to act like a retailer and think like a brand. In fact, the company focuses on delivering sales and protect its long term brand reputation.

The company is based on three successful components: operational excellence, leadership marketing and innovation. The operational excellence focuses on delivering exceptional experiences to 47 million customers served every day, while improving the speed and efficiency of the service, implement QSCV rules and strengthen the hospitality.

Extraits

[...] It has a joint venture with Connaught Plaza Restaurant which manages operations in North India, and Hard Castle Restaurants, which operates in Western India. The company is now expanding to cities like Pune and Jaipur. Many challenges appeared in the penetration of Indian Market. One of the assets of the brand is that they continually adapted to the customers' tastes, value system, lifestyle Most Indians must not consume beef or pork. To survive, the company, mostly know for its hamburgers, had to be responsive to the Indian sensitivities. [...]

[...] Indeed, the first McDonald's answer to Mr. Hister Shah mentioned that nothing in the law required the company to mention the presence of beef flavor in its fries. (Answer a little bit negative in the context of the American law.). Moreover, McDonald published a public denial, which was perceived as an injurious provocation for vegetarian and Hindus people, in which was mentioned that it was the first time that someone was in trouble because of animal fat. Unfortunately, it was a lie; McDonald already said that in 1993 letter. [...]

[...] That's why McDonalds came up with chicken, lamb and fish burgers. Moreover, India has a huge population of vegetarians. McDonalds came up with a new line of vegetarians items like McVeggie burger. McDonalds adhered to Indian Government Regulations on food, health and hygiene. There are stringent cleaning standards, for example, the trays are sanitized several times each hour. When the group entered in India, it was perceived as targeting the urban upper class people. But today, it is viewed as an affordable place to eat without compromising on the quality of food, service and hygiene. [...]

[...] The case has become a classic example of a corporate giant's struggle to uphold its image amid allegations of unethical practices. Although Mc Donald's is recognized as the first fast food chain in the world, hostility and criticism against this society are very strong. The company is largely criticized on Nutrition, Advertising, Environment, and Employment. Nutrition: Most people agree that industrial hamburgers and fries wrapped in synthetic paper and plastic are harmful to health. In addition, the meal is served very quickly because it has to be eaten as soon as possible. [...]

[...] McDonald's restaurants are renovated as "natural", green, brown and yellow. But it is only for the communication. Environment: Poor farming conditions for chickens used for hamburgers: dark room, food packed with antibiotics, misshapen legs for half the chickens because of obesity, gas chamber to kill sick chickens slaughtered in deplorable conditions. McDonald's destroyed vast areas of rainforest in Central America to install pasture land for cattle to be sent to the United States as burgers and pet food as well to provide the equipment fast food packaging. [...]