Mc DonalD’s Hot coffee case

By
Lavika Kakkar Madhupa Bain Rakesh Kumar Pradeep Kumar Naseerudin Abid Hussain

 Largest chain of hamburger fast food restaurant.  History.  Serves to around 64 million customers daily.  Primary products. .  Company’s revenues.  Founded by businessman Ray Kroc in 1955.

Legal Issue McDonalds history with Legal Issues .

Stella Liebeck spilled coffee on her lap Suffered third-degree burns on six percent of her skin and lesser burns over sixteen percent 1994 product liability lawsuit "the poster child of excessive lawsuits." .

 Wrong instruction from McDonald to its franchisees. .  McDonald’s attitude towards its customers suffering similarly.  Extent of Liebeck’s injuries.  The Judge in the case described McDonald's conduct as reckless.  McDonalds has since lowered the temperature on their coffee.  Arrogance towards Consumer and Safety Organizations.  PR and Monetary damage. callous and willful.  McDonald provided wrong customer research during the case.

 Proper settlements to Ms Stella Liebeck .  Redesigned their cups/holders to minimize tipping. .  Better Conduct. Lower holding temperature of coffee.  Proper warning labels.

.Strength:  Strong Global presence.  Aggressive market planning.  Well placed in international markets .  Strong real estate portfolio.  Exceptional brand recognition.  Benefits from cost reduction through economies of scale .

 Increase in price competition.  Lack of product innovation. .Weakness:  Saturated food industry.

 More international expansion.  Changing trends in eating habits toward healthy eating.  Slow expansion to refurbish and change the image of current restaurants . .Opportunities:  Focus on Chipotle Grill.

Threats:  Exposed to changes in the global economy.  The Fast food industry is becoming an increasingly competitive sector.  Top Competitors.  Bad press because of its link obesity. .

HBO Documentary Reuters The case that launched a thousand jokes. .

4941100./0483.809. #0:9078 %0.:/39 24.9.:3.9.0/. 4.708.3/408 .7  4.:2039..:2039.94:8.

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