Macdonal Case Study

LE HANG LUU

DBA 7035

STUDENT ID # 244703

UNIT 1: CASE STUDY- The Nonmarket Environment of McDonald’s

Like other business field, McDonald’s, the world largest fast food chain faced with market and nonmarket issues. During the early of 2000s, the number of obesity dramatically increased and McDonald’s was blamed on that matter by some of media, economists, and activists. Some trial lawyer found this issue as a chance to make profit by inviting numerous litigations against McDonald’s as Professor John Banzhaf (2003), a law professor at George Washington University, who advised trial lawyers in obesity lawsuits against McDonald’s, said, “A fast-food company like McDonald’s may not be responsible for the entire obesity epidemic, but let’s say they’re 5 percent responsible. Five percent of $117 billion is still an enormous amount of money.” (Baron, 2010, Business and Its Environment, 6th edition, p. 21) Let look at its issues occurred in year 2000s by answering four questions below.

1. Characterize the four I’s.

The first I’s related with McDonald’s is issues. The issue of the case is the increasing number of obesity and its effect after the fact. The second I’s related with this case called interests. The public activists and nutritionists who demanded McDonald’s to provide nutrition information on its menu, the Lawyers who involved in the obesity lawsuits, and the filmmakers who used media to turmoil the company were recognized the interests. The third I’s called institutions. In this case, institutions involved with organizations such as Food and Drug Administration, Center for Science in the Public Interest, People for the Ethical Treatment of Animals, and Animal Liberation Front. The four I’s called Information. The process of collecting chemical acryl amide in various foods, the effect of McDonald’s advertisement, and the statistics of body mass index were considered as information.

2. What is the time frame of each issue?...