Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
China’s Big Mac Attack (infiltration of American consumerism)

China’s Big Mac Attack (infiltration of American consumerism)



|Views: 251|Likes:
Published by Sam Boustani
The McDonald’s fast-food chain has grown into America’s best-known stop for hamburgers, fries, milkshakes, and other fast foods. Its aggressive global marketing has made it one of the most recognizable global brands too (BookRags, 2003).
The McDonald’s fast-food chain has grown into America’s best-known stop for hamburgers, fries, milkshakes, and other fast foods. Its aggressive global marketing has made it one of the most recognizable global brands too (BookRags, 2003).

More info:

Published by: Sam Boustani on Jun 24, 2008
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as RTF, PDF, TXT or read online from Scribd
See more
See less





BoustaniChina’s Big Mac Attack (infiltration of American consumerism)The McDonald’s fast-food chain has grown into America’s best-known stop for hamburgers, fries, milkshakes, and other fast foods. Its aggressive global marketing has made itone of the most recognizable global brands too (BookRags, 2003). The first McDonald’s openedin the United States in 1954. Shortly after, Ray Kroc bought all rights to the McDonald’sconcept from the McDonald’s brothers for $2.7 million. Hamburger University was establishedto train future franchise owners, and in 1965 the McDonald’s Corporation went public, making tothe New York Stock Exchange in 1966; followed by the Frankfurt, Munich, Paris and Tokyostock exchanges in 1986 (McSpotlight, 2002).Global expansion started by opening a location in Canada and Puerto Rico in 1967, withmore countries shortly thereafter. In 1974, McDonald’s sold its locations in Puerto Rico after employees were unionized; re-opening locations in 1980 with non-union labor. The first drive-thru opened in 1975, with the breakfast menu being introduced in 1977. In 1982, McDonald’swas found responsible for an E. Coli bacteria outbreak which affected 47 people. In 1983,McDonald’s took full ownership of assets in the UK; also introducing Chicken McNuggets to themenu. Founder Ray Kroc died in 1984, triggering the creation of the Ronald McDonaldChildren's Charities (McSpotlight, 2002).By 1984 and subsequent years, health, labor rights, and environmental issues are raised by activists who introduce protests and anti-McDonald’s literature, especially in the UK. In1988, McDonald’s stops using CFCs in its packaging. In 1991, several customers in the UK arehospitalized after being infected by undercooked McDonald’s burgers contaminated with E. Coli1
Boustani bacteria. The first McDonald’s at sea opens in 1993 on the world’s largest ferry sailing betweenStockholm and Helsinki. The same year brought the 11
Worldwide Day of Action Against McDonald’s
, with protests in at least 20 countries. In 1996, Disney gives McDonald’sexclusive rights to use characters from its films in global promotions for 10 years; it also opens astore in Belarus, its 100
country. In 1999, the McLibel trial, a libel case started in 1994 againstLondon Greenpeace, becomes the longest running trial in English legal history, 314 days(McSpotlight, 2002). McDonald’s is now the largest food service company in the world withmore than 30,000 restaurants serving more than 47 million people each day in 121 countries(Biz/ ed, 2006). Numerous American food service competitors follow it into most of the samecountries.According to McDonald’s, its mission is to promote diversity and inclusion among itsemployees, owner/operators and suppliers who represent the diverse customers served around theglobe. Its vision is to leverage the unique talents, strengths and assets of its diversity around theglobe in order to be its customers’ favorite place and way to eat (McDonald’s Corp., 2006).McDonald’s goals are to obtain and retain a quality workforce, improve taste and service, be agood corporate citizen, understand and cater to local customers’ tastes and preferences, buyingsupplies and boosting employment from local communities, and continue to value diversity(Diversity Australia, 2002).McDonald’s strategy is to provide excellent and personalized customer service, providequick service in clean and convenient locations, provide quality and consistent products, exploreinnovations in food processing to maintain efficiency and quality, and to design and construct2
Boustanioperations that will increase profits globally (NPPC, 2006). In 2003, McDonald’s introducednew strategies to increase same-store customers, and to grow smarter instead of just bigger. Itreduced spending by 37% or $1.2B and closed underperforming stores (Weil, 2005). Althoughthe company operates a research and development facility, independent suppliers and franchiseesalso conduct research activities to benefit the McDonald’s system (Buckmaster, 2006).Restaurants are mostly franchised to independent entrepreneurs under arrangements withMcDonald’s. Disputes about various subjects often result between franchisees, independentsuppliers, franchise employees, customers, and those denied a business opportunity with thecompany. McDonald’s Corporation operates other brands such as Boston Market, Chipotle,Donatos Pizzeria, Aroma Café, and a minority ownership in Pret a Manger. It has since disposedof its Aroma Café business in the U.K., and has sold Donatos Pizzeria back to its founder in2003. With all its diversification, the company has limited its operation to one core business;food service (Buckmaster, 2001).McDonald’s has been known to find every way possible to lower labor costs. They dothis by finding new automated machinery for food preparation and point-of-sale processing, tohiring mostly young school kids that will more readily accept minimum wages. This has raisedsome skepticism about the company’s mission to promote diversity, with some accusing it of using minority workers to its advantage, since it can pay them lower wages. There is of courselittle evidence of this and one can argue that keeping costs down also keeps product pricingdown. The company instead chooses to reward employees with promotions, benefits, education,and training. McDonald’s does provide a clean and safe place to work and eat, which it will3

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->