2.

) Discuss the French Fries Controversy & Critically Comment on the companys stand that it had never claimed the fries were vegetarian. Do you think the company handled the situation effectively from the point of management rumor? French Fries Controversy McDonalds French Fries controversy began in May 2001, as a class of action lawsuit was filed against it in US. The Law Suit alleged that the company had duped vegetarian customers into eating French Fries that contained beef extracts. The matter seemed to be settling down, when to McDonalds horror, some of its restaurants in India were destroyed. Activists like, the Shiv Sena, The Vishwa Hindu Parishad & The Bajrang Dal-staged a demonstration in front of McDonalds office in Delhi, protesting the alleged use of beef flavoring. They were demanding the closure of all McDonald outlets in the country. Activists also staged protest in front of McDonalds restaurant in south Mumbai & thane. Mob destroyed outlet at thane, about 30people were arrested. Company estimated loss of 20million rupees due to destruction caused to its outlets. Companys Stand that it never claimed the fries were Vegetarian When McDonald was facing controversy in India, officials at McDonalds India quickly announced that the vegetarian products served in India did not content any beef extracts to just neutralize the controversy. The officials did not have any specific proof to prove that fries were vegetarian. A Hindu Jain Software Engineer Hitesh Shah, based in US, read a news article, which mentioned that the French fries at McDonalds contained beef. Shah sent an email to McDonalds customer service whether the fries contained beef or not & if they did why its not mentioned in ingredient list. Shah soon got a reply from companys Home Office Customer Satisfaction Department that for flavor enhancement McDonalds use miniscule amount of beef flavoring as an ingredient. The reason the beef is not listed as an ingredient is because McDonalds voluntarily for labeling its products. This news created wide spread outraged among Hindus & Vegetarians in US. Seeing to this McDonalds immediately released a statement saying It never claimed the fries sold in the US were vegetarian. McDonalds spokesperson said its up to the customer to ask about the flavor & ingredients of the product & the company is not responsible, this comment made by spokesperson was not appropriate. McDonalds statement that it never claimed its French fries were vegetarian was proved completely wrong when a letter sent by companys corporate headquarters to a consumer in response to an inquiry about vegetarian menu items was found, the letter clearly mentioned fries along

with garden salads, whole grain cereals & English muffins as a completely vegetarian item. The letter also mentioned McDonalds serve many items that vegetarians can enjoy

which again included French Fries. McDonalds employees repeatedly told customers that there was absolutely no meat product in fries. According to author of the bestselling book Fast Food Nation-The Dark Side of All American Meal, stated that For decades, McDonalds cooked its French Fries in a mixture of about 7% cotton seed oil & 93% beef tallow". McDonalds was doing business unethically by keeping their customers uninformed by not disclosing product ingredients which contained beef extracts. To avoid controversy the company also said before ordering anything the customer should always ask the product ingredients which was not feasible for customers to do. The comment made by McDonalds that it never claimed the fries where vegetarian was completely baseless as there were many proofs which can be proved that McDonalds was selling fries as vegetarian item. Handling the Controversy Effectively

We dont think the company was able to manage the situation effectively as they were not firm on their decisions. The McDonalds official said that French Fries only contained miniscule amount of beef flavoring ingredient & at the same time McDonalds employees repeatedly told customers that there was absolutely no meat ingredient in fries. There was lack of communication between McDonalds employees & its officials. The McDonalds officials should have communicated with employees & would have informed them proper ingredient list in the products, which would have helped employees to know the product, falls in vegetarian or nonvegetarian category. If there would have been effective communication in McDonalds hierarchy the controversy would have not been emerged as the employees would have been able to give proper details of the ingredients in the product to its customers. If the company was able to successfully manage the controversy the question would have not been raised for negotiation & compensation. By negotiating & compensating to customers, it was proved that the McDonalds were wrong & to clear all charges it needed to negotiate. If McDonalds was able to manage the controversy the case would have been in its favor & there would have been no need for negotiation.