McDonald's Japan (A): The Shanghai Husi Debacle
In July 2014, the expatriate CEO of McDonald’s Japan (MDJ) faced a crisis after a video was broadcast accusing one of the company’s China-based food suppliers of serious health and sanitation violations. Although MDJ was the biggest brand in Japan’s fast food industry, the company’s sales had been falling since 2008, and its profitability had deteriorated dramatically since 2012. The CEO, who had recently taken over at MDJ, urgently needed to turn around the company’s situation and deal with the crisis at hand. How could she reassure Japanese consumers and put the company back on the road to growth?See supplement 9B15M084.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B15M083-E
Format: PDF
Number of pages: 17
Publication Date: Sep 11, 2015
Language: English
Review date: Aug 26, 2019
What material is included in this case:
Description
In July 2014, the expatriate CEO of McDonald’s Japan (MDJ) faced a crisis after a video was broadcast accusing one of the company’s China-based food suppliers of serious health and sanitation violations. Although MDJ was the biggest brand in Japan’s fast food industry, the company’s sales had been falling since 2008, and its profitability had deteriorated dramatically since 2012. The CEO, who had recently taken over at MDJ, urgently needed to turn around the company’s situation and deal with the crisis at hand. How could she reassure Japanese consumers and put the company back on the road to growth?See supplement 9B15M084.
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Year: 2014
Geographic Setting: Japan
Industry Setting: Accommodation & Food Services;
Learning Objective
This case is intended for use in an international management course or in an international segment of a strategic management course. It may also be used to teach crisis management and risk management in other courses. The objectives include the following:To gain appreciation for the differences in markets by studying a familiar market (fast food) in an unfamiliar national context (Japan).To observe and gain an appreciation for the tension between the adoption of global business practices and local adaptation.To consider what growth options firms have when they have a high market share in mature markets.To consider crisis management in international situations.
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"McDonald's Japan (A): The Shanghai Husi Debacle"
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