Issue in Mcdonalds

BY- NAFEES ZEHRA ANKITA SRIVASTAVA AMI SAH

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HISTORY

1948: The first McDonald’s restaurant is opened in San

Bernardino, California by brothers Richard and Maurice

McDonald.

1954: Ray Kroc, a milkshake machine salesman, suggests

nationwide franchising and acts as a franchising agent for the

brothers.

1959: Kroc opens 67 new restaurants, bringing the total to 100

franchises. They begin advertising on billboards.

1967: The first restaurants outside the US open in Canada and

Puerto Rico.

1996: Mc Donald’s opened it’s first restaurant in India.

COMPANY PROFILE

Headquartered in Oak Brook, Illinois (US).

World’s largest foodservice retailing chain.

Known for its burgers and fries.

Operates over 31,370 fast food restaurants in over 118 countries, employing 390,000 people.

The company also operates restaurants under the brand name 'The Boston Market‘, acquired in May of 2000.

ISSUES

Obesity is a pervasive problem in America, and as

people increasingly becoming overweight, their health

suffers.

Health risks: heart disease, Type II diabetes, high

cholesterol, high blood pressure.

In terms of Mc Donald’s the nutritional content of fast food-

high in fat, sugar, and calories--is linked to weight gain and

consequent health problems.

Cont…

o McDonald’s bears the brunt of criticism because::

o There are organizations, associations, government

agencies, consumer groups, activists, bloggers, etc. critical

of McDonald’s on the issue of health and nutrition.

o Group of obese teenagers who ate at McDonald’s 3-5 times

per week sued McDonald’s for causing their weight

problems. They alleged that:

METHOD OF DATA COLLECTION

Direct observation

Interviews

Organization and industry data

Survey and questionnaire

DIAGNOSIS

Listen for threats through issue/environmental scanning

Determine whether the issue will affect the

organization/corporation

If yes, give the issue priority in proactive, timely

strategizing

ACTION PLAN & IMPLEMENTATION

McDonald’s promised in 2002 to change its trans fat

cooking oil to a healthier alternative.

Collaboration with Scripps Research Institute for fighting

childhood obesity and Type 2 diabetes.

McDonald’s adopted strategic communication responses to

those who disapprove of what they see as McDonald’s role

in promoting obesity and health problems.

Cont..

Positive: McDonald’s has expanded healthy menu choices

McDonald’s has instituted several marketing programs

addressing the need for balanced, active lifestyles

Nutritional labeling on products (in most restaurants within

one year period).

Menu choice: premium salads, bottled water, low fat/skim

milk, white meat chicken.

OLD MEAL NEW MEAL

Calories 520 410

Total fat 26 gm 91 gm

Saturated fat 5 gm 4.5 gm

sugars 12 gm 15 gm

sodium 690 mg 560 mg

RESULTS AFTER MONITERING

McDonald’s promised in 2002 to change its trans fat

cooking oil to a healthier alternative but it failed to deliver

the action.

McDonald’s said it would have nutritional information

available to customers but it wasn’t.

McDonald’s has instituted several marketing programs

addressing the need for balanced, active lifestyles.

McDonald’s has expanded healthy menu choices.

CONCLUSION

The main question facing McDonald’s is whether they can

continue their world dominance in the fast food industry by

promoting active, healthy lifestyles when their mainstay products

continue to be linked to obesity and related health problems.

However in the U.S. at least, McDonald’s has not reduced

advertising to children, reformulated its trans fat cooking oil, or

lowered fat, salt, and/or calorie counts on its core products.