About McDonald. • McDonald's is a large corporation in the fast food industry. • They have been around since when Ray Kroc started the chain of. The credit of this successful availability goes to the unique supply chain management and control over this entire huge network. KEYWORDS: multi-layered supply-chain, cold chain, Hub and Spoke, SQMS, DQMP. The strength of McDonald‟s India employees amounts 9, people including. Individual Case Analysis: McDonald's Corporation affects McDonald's competitive advantage in a significant way because since its inception.
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Finally, they will have a group ready and able to handle media and cultural crises promptly and tactfully. CASE Hindustan Lever Ltd exploited the cultural preference of light skin complexion to dark skin color in India and lunched an unethical promotional campaign that portrayed light skin superiority and gender inequality. The advertisement campaign created a strategic weakness for HLL which CavinKare Ltd capitalized on to lunch a counter attack by developing an advertisement that is culturally more appealing to a wider segment of the Indian society.
Despite this HLL continued its unethical promotional strategy with a little modification which still portrays color preference. This case analysis will analyze each question in the case analysis in relation torelevant international marketing concepts. Questions and Analysis This case analysis has eight questions that defined and explained the fundamental dynamics of culture in promotional strategies business organizations apply to gain competitive advantage and push their products to all segment of the market.
Basically business ethics is a professional ethic that examines and explains the ethical principles and corporate effort made by a firm to comply with the global best practice. The implication is that businesses try to evaluate the ethical impact of their business practice if itis in line with the generally accepted business practice standard and socially responsible to the general public. Cateora et al, explained that ethical principles provide the framework to help the marketer or firm distinguish between right and wrong, determine what ought to be done and properly justify its actions p.
In this case study Hindustan Lever Ltd in a quest to maintain market leadership lunched series of adverts that portray women with fairer skin as more attractive, happier, intelligent and higher social status.
In fact, skin color has been a powerful theme in India and entire Asia with light skin representing positive values for class and beauty. So to address the issue of selling products that are mildly effective I must point out here that it is unethical business practice.
However Indian dermatologists pointed out that fairness products do not actually work because the only reach the upper layer of the skin and do not affect the production of Melanie. This fact was corroborated by many people who complained that it does not work. Is it ethical to exploit cultural norms and values to promote a product? It is not ethical to exploit cultural norms and values to, promote the product as the cultural norms and values plays an integral part in promoting the product but point should be considered that the advertising is providing benefits to the society rather than doing any harm to the society.
Human dignity should be taken into consideration while promoting through cultural aspects. From this case it is clearly observed that sales of the products are based on the success of advertisements. Skin color is a powerful theme in India and much of Asia where a lighter color represents a higher status. This idea has strengthened and supported in the advertisement by taking the advantage of the dark skin of the people in India and emphasis on the benefit of having a lighter color skin.
The ad went on to show there was a struggle with finding work opportunities because no son was present and it was harder for darker tone women.
After the daughter began using the cream her skin tone starts to lighten. The daughter was then able to acquire a job as a stewardess while treating her father to five course meals.
These ads were racially biased due to the fact that they were implying that lighter tone women will have more opportunities than darker tone women. Fair and Lovely has advertised its products in this way. The derision of any race, caste, skin color, creed and nationality should be avoided in the advertisements. However, pulling off those unethical advertisements off air; sponsoring career fairs in over 20 cities; offering counseling in over career areas and supporting rural scholarships for women on vocational programs helped to reposition Hindustan Lever Ltd as a socially responsible corporate organization.
I believe to counter the charges of unethical advertisement leveled by AIDWA, Hindustan Lever Ltd needs to sustain the foundation to continue to discharge the corporate social responsibilities that informed its establishment. However, HLL should innovate new promotional strategy that will align positively with the Indian culture. If having fair skin is part of your culture then so be it and if you choose to use a product that lightens your skin use it. The most important thing is for HLL to re-evaluate the cultural impact of its advertisement theme as regards to the complaint and charges level against it by AIDWA.
These questions include the following: Does the advertisement promote son preference? Does the advertisement insult the working women? HLL management should go back to the drawing board and map out new promotional strategy that is ethical and acceptable by the Indian society taken into cognizance the cultural imperatives, electives and exclusive and adapt them positively to the Indian culture.
The new promotional strategy should not denigrate women but should show positive virtues of womanhood. Although I do not think love is based on skin color. Is it wrong to promote what the company sells? They could make different commercials without comparing two different skin tones, maybe making a commercial with the products results.
A before and after commercial might be better so the people buying the product would know what they are buying. If you want lighter skin you want to be fair. If you want whiter teeth you buy whitening gel, to me it's the same thing. I will use the three ethical principles as a framework to determine what was wrong with the old promotion strategy and also determine what ought to be done. The three ethical principles include: The utilitarian ethics: Rights of the parties: This try to find out if the rights of the parties are respected.
Justice and fairness: Moreover, I would develop a campaign exploring the different types of women, demystifying the beauty stereotype reigned in India. This will change the entire old perception of the brands and reposition these products among both fair and dark skinned people in India in a more ethical manner.
Firms should conduct researches and make provision for variance in research result to accommodate possible adjustment in the future due to shift in cultural trend. Shakti Ammas is a traditional Indian classification of social status based on the color of the skin.
This system emphasizes on whiteness as higher status and positive value while dark as lower status. The implication is that skin color is closely identified with caste and is laden with symbolism. This became cultural norm over time. This is manifested in the Shrinking number of men and women in India who think lighter skin is beautiful.
Factual knowledge is more obvious and can be learnt while interpretive is about acknowledging and accepting different cultural traits and patterns.
Hindustan Lever Limited HLL should conduct research on current cultural trend and modern role of women instead of exploiting out-date and controversial cultural norms that are not fit to the present cultural environment.
Is what Frank did estimable? By whose ethics- those of Latino or the join States? Ethical is defined as conforming to authoritative standards and consistent with agreed principles of correct moral conduct. Franks choice to implement bribery in those of Latino is ethical. In the definition above, being ethical or unethical is in the eyes of the country.
If the country doesnt view this as an subject area then neither should Frank. However, in the United States, this bribery would be considered unethical because of the morals that the U. Even though this may be ethical in Latin, bribery is still considered to be black when it comes to the foreign cosset Practices Act. The Foreign Corrupt Act states that it is improper to bribe foreign government officials to obtain or hold open business.
The Omnibus Trade and Competitiveness Act of reduces liability of collective offices from having reason to know about bribes, and also permits lubrication payment if universal in the culture.
The choices that Frank is making may be ethical in Latino, but it is definitely felonious. Frank is a United States citizen and just because he relocated to Latino, he still has to surveil the rules of the Foreign Corrupt Act.
In this case, Frank is making illegal bribes by bribing a jefe versus bribing the dock workers. Identify the types of payments made in the case; that is, are they lubrication, extortion, or subornation? The money given to jefe was an slip of extortion. It was apparent that the jefe did not use the money that was given to him to remedy the supposed damages that he claimed he would fix. An example of lubrication in this case is when Frank gave the dock workers a fistful of pesos to vivify up the process of transferring the machines to Latino trucks.
Frank seemed to imply that there is a similarity between what he was doing and what happens in the United States. Is there any difference? Frank says that when you have big dinner parties where different treatment or close businesses and stakeholders pay the bill, is a tipe of bribery.
The difference is that in the U. Are there any legal differences between the money paid to the dockworkers and the money paid the jefe government official?
Any ethical differences? Yes, there are differences between the two cases. Chief bribe is unethical way of making business to increase and this effort is not made by the company, instead giving money to the workers, is a means of motivation to increase their efficiency and thereby help the company. Within ethical codes, here is a way to encourage but it still being a bribe. Who is right? S Company are trying to establish a new business system, without bribery and honest practices, regardless of whether the country you are working methods involve the use of bribes and are seen as normal.
Franks attitude would must always be with ethical codes continue talking with the government to get what they wanted but this not means a bribe, instead negotiating. Frank had to wait for American mechanics or find another solution within the same country. If I had done this, you probably would have lost the client and their profits, but had established a cleaner and proper business conduct.
What are the company interests in this problem? Within the policies of the company there is no possibility of bribing, but if this happens, as in the case of Frank, former president of the company preferred to skip this, because he gave more importance to the profits it was generating Frank, no matter how it was generated.
Explain how this may be a good example of the SRC self-reference criterion at work. This is a perfect example of the SRC, because he closed his view to himself and nothing else, and belittles the work of the other people. Do you think Bill will make the grade in Latino? Why or why not? What will it take? Bill will succeed in Latin as honest working methods establish and implement the strategy that worked well in the United States.
He will need strong strategies based on cost or differentiation to compete healthily without bribes. How can an overseas manager be prepared to face this Any manager that aims to work abroad in the future, you will need excellent training. This training should address issues such as practices, norms, lifestyles, culture, etc.. Your skills and abilities will give you the tools to resolve conflicts that may arise. When we observe across cases, its mostly the state and the airline company who is at loss due to these legal and ethical lapses Airbus — Sabena Case: The party which suffered significant loss should be the state as the Belgian government had The public relation staff should understand the driver behind these articles which is the interest the target audience of these magazines has in such articles.
The PR staff should engage their business leaders with various popular magazines and journals for preparation and publication of businesses cases, share information about deals as and when it can be made public, use these medium particularly to advertise about the company to sow doubts on the credibility of the projections of the publisher.
Boeing which used to be the market leader during the 70s has lost ground since Airbus has entered the market but it has made efforts at all levels including marketing, technological advancement, pricing and politics to counter the Airbus attempts to clinch further share of the segment. As more and more airlines across countries are divested by the respective states behind the stage dealings will reduce and accountability will increase across all the stakeholders thus marketing becomes an important function Technological: With the advancement of times and innovations like video conferencing designing the future of air-travel technological prowess will define the future of any seller in this market Pricing: In Boeing filed cases against the France and other Euro nations for providing unjustified aid to Airbus.
Boeing has to be vigilant of such arrangements in future too and should lobby in cooperation with the US government to prevent such grants Organization Structure: There have been many instances in the past where business entities have been created to sail the deal through.
Boeing should try to bring transparency in to the organization structure, establish entities across key geographies and share the deal information in the public domain as and when possible.
How and why? Marketing efforts of the companies are guided by the corporate objectives decided by the top management. Airbus has relied more on politics and influencing key decision-makers to clinch the deals than on communicating the key features, Total-Cost of Ownership and service contracts Boeing on the other hand seems to be behaving more like a market leader who has invested on technological prowess, tried to maintain the market share and grab deals by communicating features, TOC, transparency and service agreements.
The OECD convention binds each of the signatories under anti-bribery statutes which demands strict accounting, cooperation to investigation, incorporate legal procedures against bribery within the domestic laws and treatment as an extraditable offence. If France had adopted the OECD convention on bribery the stated cases would not have taken place in first place or the responsible parties have been persecuted.
KAC — Airbus Case: As signatory to the OECD convention the French government and Airbus- France would have been liable to extend full support to the investigation and would have furnished the details of the deal. Knowing that in case of an investigation they would have to furnish the demanded details Airbus would have refrained from being party to such a contract Thus OECD would have reflected drastic changes in the company operating procedures and accounting methods.
But, internationally struggle towards improving its image, especially in certain countries, after the new trends towards stopping childhood obesity.
Problem Statements Major: What could have prompted the Golden Arches and set up an enterprise that will compete against McDonald's? What are the adverse effects in the McDonald's Company as a result of changing its Menu? What will management do to maintain the stability and position of the company in the market?
The case is reviewed and analyzed with the liable information that can be found in the internet. It is approached with limited information about McDonald's setup. Objective of the Case Study Analysis: McDonald's should target its Ronald to do more advertisement for healthy food and nutrition. McDonald's should help and donates of position its earning to Ronald McDonald's house which helps children with life threatening illness.
McDonald's should label their food with amount cholesterol and sugar. They should encourage kids to eat healthier foods and by adding toys to healthy foods only. Decision Made After exhaustive contemplations, it is decided that alternative no.
By putting a label with their food content McDonald's can rapidly minimize the controversy about their product that most of people blame for obesity in their country. In that way McDonald will not be blame responsible for the cause of obesity in their country.
On the marketing side, focusing on only one niche has proven as the success in many related cases. This allows the company to concentrate fully on its products and its development as well as in servicing its most profitable market; there is a great responsibility that its name can be equated with its products. This is the law first to market in marketing. By focusing narrowly in the production of fast-food industry.
It also utilizes its resources better. No What are the characteristics of the car rental industry? How do these characteristics influence the design of service delivery processes in this industry in general?
In general, services are characterized by their intangibility; perish ability, heterogeneity and simultaneity. But different services vary significantly in the extent to which these characteristics hold. Intangibility While strictly speaking, the "service" of car rental is intangible, given the physical nature of the rented vehicle, it really is not as intangible as many other services in the sense that the consumer can see and touch the rented vehicle.
For the vast majority of the period during which the customer uses the service of car rental, the physical car is the service provided. For many services, intangibility makes it very difficult for the consumer to judge quality and for the producer to control quality. This is not nearly as difficult a proposition in the case of car rental.
The "convenience" factor e. If a day goes by and a car is not rented, the opportunity to generate revenues from that unrented time is lost forever. Perishability is a critical factor in the rental industry given the generally high fixed cost associated with the service i. All industry players must cope with this perishability and different companies will have somewhat different strategies for dealing with it.
Heterogeneity Car rental is not a particularly heterogeneous service, as compared, for example, to the services provided by a doctor, an architect, a lawyer or a hairdresser. While customers may request different vehicles or different extras e.
Further, the basic interaction or contact that employees of the rental car company have with customers is going to be very similar. Simultaneity The issue of simultaneity is not a major issue for the car rental industry.
The service being provided by the car rental industry is the use of a vehicle in a location where the customer both needs one and does not have one i. While there is simultaneity in the sense that the customer and the vehicle are together during the time that the service is consumed, most of the process of creating the service. EasyCar obviously competes on the basis of low price. What does it do in operations to support this strategy? Once the student understands the characteristics of the car rental industry from a service design perspective, the discussion can move to how easyCar's operational design allows it to compete on the basis of price.
The key point to drive home is the extent that easyCar has gone to align its operations strategy and process design with its business strategy. Clearly the order winning criteria in this case is low price. Perhaps the best way to make this point is to explicitly compare easyCar's operations with the operations of a traditional car rental company. Exhibit TN-1 shows this comparison.
After having gone through this comparison, the instructor can ask students why all rental car companies don't follow easyCar's lead and reduce their costs in this manner. Doing this drives home the link between the operations design and the business strategy--that is, the traditional car rental companies have strategies focused more on flexibility and service, and as such have different order winning criteria and different operational designs to support these criteria.
Finally, once the components of the easyCar operations systems have been brought out, they can be used to make the point that many of the methods that easyCar uses can be thought about as applications of production line approaches applied to a service context.
This point is particularly worth making if students have been assigned to read Levitt's "Production-line approach to service". The easyCar situation clearly illustrates the ideas of service standardization, reducing the discretionary action of employees and using technology to support or substitute for people in the process. How would you characterize the level of quality that easyCar provides? Asking students about quality is a logical follow-up to the previous question focused on cost.
Discussing quality is important so students see that low cost does not necessarily imply low quality in the minds of the customer. The discussion can also be used to illustrate several important service quality concepts. One way to begin this discussion is to ask what quality is in this case in the mind of the consumer. Clearly easyCar is targeting a particular segment of the market that is very price conscious, but the students should recognize that "quality" in the consumers' minds is more than simply a low price or alternatively, the needs of this segment is more than simply low price.
The idea of value as a concept relating both quality and price can be introduced here, with value equating to the benefit of the service provided relative to the price paid. This discussion can also be used to introduce Garvin's eight dimensions of quality as a way to better understand the multidimensional nature of quality. Garvin's dimensions are: EasyCar's customers would likely define quality in terms of the basic functionality i.
The instructor can next ask students why easyCar started with a fleet of Mercedes A- class vehicles or students may raise the issue in the context of aesthetics from the discussion of Garvin's dimensions.
This choice seems inconsistent with easyCar's positioning as a low cost provider, and indeed the company has recently switched and is now using more Vauxhall Corsas and similar vehicles.
The key to understanding the launch of easyCar with the more expensive Mercedes is that easyCar did not want to be perceived as a low quality service provider this comes through in the quote in the case from Stelios about not compromising on the hardware.
The importance of the Mercedes A-class is not just for the current customer. EasyCar does not want customers to be surprised by any of the features of its service that are different than traditional car rental companies, as such surprises would have a negative impact on the customer's perceptions of service quality.
Is easyCar a viable competitor to taxis, buses and trains as Stelios claims? How does the design of its operations currently support this form of competition? How not? EasyCar sees itself as a potential competitor to taxis and buses because it allows customers to rent a vehicle for as little as one hour.
From easyCar's position, this makes sense as part of their effort to achieve maximum utilization of their fleet. If they can rent out a car for even an extra one or two hours when the vehicle would otherwise sit in a garage unused, then it adds to their bottom line. Further, it is possible that such very short term rentals seem most likely to come during the work week, a traditionally slower period for easyCar given its primary appeal is to leisure travelers who demand vehicles more on weekends than on weekdays.
In this way, the very short-term rentals may help balance out demand on a weekly basis. The question is whether these forms of flexibility are sufficient to make rentals of a couple of hours appealing to customers. The fast food retail chain has separate production lines and processes for its vegetarian and non-vegetarian offerings.
High Real-Estate costs in India: This is known as a revolving door concept. But an Indian customer believes in a dine-in culture. This adds to the real estate costs which goes as high as per cent as compared to per cent globally. Quick service restaurants sold 80 per cent of the over 12 billion morning meals served at US restaurants for the year ending in March OOH Branding: Employees and Customers: New business channels include home delivery, kiosks, breakfast, extended hours and drive-throughs.
Spending on food: The U. CBS News. Mathur, S. Chaturvedi, P. Ganapati, P. Vaish, N. Taste of growth. Jain, V. Affordable meals drive sales at fast-food chains. Punjab Newsline , December Nandita B. Personalised recommendations. Cite chapter How to cite? ENW EndNote. Buy options.
Case Study 11: Marketing of Services: The McDonald’s Way
(McDonald's Philippines) have decided to move to natural refrigerants, The actual case study involves one of many pilot projects carried out on behalf of. Managing stock to meet customer needs: A McDonald's Restaurants case study This case study looks at how McDonald's manages its stock through its. truly inspired by these case studies and I hope you will be too. What is 1 | Brand Revitalisation | McDonald's | Learning to love the brand again .. This PDF edition is for the personal use of the purchaser who may print from it a single copy.