ASMs

Institute of Management and Computer Studies

Subject: International Business
Topic

: McDonald's Beef Controversy

Group Members:
Swapnil Gaikwad
Kshitij Mokashi
Azad Pandy
Yogesh Rathod
Sonali Salve
Tulsi Valecha
Sayali Waghapurkar
Priya Singh
Mangamma

MSS141519
MS141535
MS141540
MS141547
MS141549
MS141568
MS141569
MS141560
MS141501

About Company
The business began in 1940, with arestaurantopened by
brothersRichard and Maurice McDonaldat 1398 North E Street at
West 14th Street inSan Bernardino, California. Their introduction
of the "Speedee Service System" in 1948 furthered the principles of
the modernfast-food restaurantthat theWhite Castlehamburger
chain had already put into practice more than two decades earlier.
McDonald's is the world's largest chain of hamburger fast food restaurants,
serving around 68 million customers daily in 119 countries across 35,000
outlets. Headquartered in the United States, the company was founded in in
1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In
1948, they reorganized their business as a hamburger stand using production
line principles. Businessman Ray Kroc joined the company as a franchise
agent in 1955. He subsequently purchased the chain from the McDonald
brothers and oversaw its worldwide growth.

What was the issue?

The controversy was about the use of the beef in there products i.e. they
used beef fat to partly fry chips before they are sent to
restaurants. They are then frozen and refried on the premises
using vegetable oil.

The Impact
McDonald's faced a $100 million (70 million) lawsuit after apologizing to
customers for failing to admit that beef fat was used to fry its chips.

What actions required

To start the business in any different country the following points are
necessary
The eating habits
There religion
As per that they have to offer the products to those customers.
In this case the company used beef fat which is sacred or holy in Indian
religion. Such things are important factor in the business.

Thank You