...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...mentioned with their case study in operations management. In spite of the fact that McDonalds provides a bank of successful studies in business, there exist several deficiencies in this giant fast-food company’s operations management strategy. This paper will discuss some deficiencies in the decisions of operations management i.e. product design and managing quality as detailed in McDonalds’ Hot Coffee Case. Products design: Among thousands of competitors on the increasingly saturate fast-food market, it is product strategy that mainly contributes to the competitive ability of a company like McDonalds. The core of product strategy is product development system. Therefore, it is reasonable to say: “The product development system may well determine not only product success but also the firm’s failure” (Heizer and Render, 2011, p.190). Going through product development stages figured as follows will help evaluate product options of McDonalds in developing the hot coffee product. Figure 1: Product development stages According to Figure 1 (adapted from Heizer and Render, 2011, Figure 5.3), initially ideas from many sources had been gathered and the ability of the company to carry out the ideas had been considered. The specific idea in McDonalds’ project was serving coffee at drive-thru windows. Then, the product development team started their work with identifying customer requirements i.e. quickly being served with no need to park the car, coffee with delicious taste...
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...Buy one coffee and get US $640,000 free Reported by: Violet Simbi, M984011056 Uyanga Purevjav, M984011053 Anh Le, M984011066 NSYSU Department of Management BRIEF CONTENTS Abstract 3 1. Introduction and issue identification of the case 4 2. Analysis 7 2.1. Stakeholder analysis 7 2.1.1. Consumers 8 2.1.2. Owners, executives, employee 8 2.1.3. Other groups of stakeholders 9 2.2. CSR Analysis 9 3. Evaluations 10 3.1. Who is to blame? 10 3.2. Root cause analysis 11 3.3. Recommendations 11 4. Implication of the case for future product related complaints 12 Conclusion 15 References 16 Appendix (Case: “The coffee spill heard round the world”) 17 Abstract The Stella Awards were inspired by the Stella Liebeck case in 1992. Stella purchases McDonald’s coffee from a drive through and later received US $ 640,000 for burning herself with this coffee. The lawsuit between Stella Liebeck and McDonald’s – a huge cooperation, was one of the most controversial court cases of its time. In this paper we defined the major ethical issues, analyzed who are the stakeholders and how the stakeholders influenced this case. Furthermore, we also mentioned other complain and lawsuits which McDonald’s had to face with before 2007, which means before and after Stella’s case. Finally, we have some references and comments form McDonalds in particularly. As well as general comments about how organizations and how they make final decisions in the future when...
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...a cup of coffee at McDonald’s, they would expect to have a hot full flavor cup of coffee. However, that was not a case. On February 27, 1992, one of the McDonald’s customers ordered a cup of coffee for herself. Yet, that cup of coffee was not just hot, but it was extremely hot. As of result, she was hospitalized for eight days and suffered third degree burns over her inner thighs, perineum, buttocks, genitals, and groin areas. How could she get burned that bad from a cup of coffee? What was the temperature of the coffee at the time of this incident happened? What kind of cups and lids McDonald’s served their coffee in? Both the lady and McDonald’s have strong reasoning behind their respective cases but ultimately who is responsible for the incident that occurred? Her name is Stella Liebeck, she was seventy-nine-year-old. She was sitting in the passenger seat when her grandson drove his car through a McDonald’s drive-thru window for her to order a cup of coffee. After receiving the order, the grandson pulled his car forward and stopped for his grandmother to add sugar and cream to her coffee. While parked, Ms. Liebeck placed the cup between her knees and attempted to remove the lid from the cup. As she tried to remove the lid, the contents of the cup spilled onto her lap. The coffee was at 185 degrees Fahrenheit at that time of the incident since McDonald’s served its coffee far higher than the temperature of typical home-brewed coffee. The coffee was hot enough to...
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...Consumers Injured by Hot Coffee Can Seek Recovery Zachary Rami Follow this and additional works at: http://lawecommons.luc.edu/lclr Part of the Consumer Protection Law Commons Recommended Citation Zachary Rami Courts Split as to Whether Consumers Injured by Hot Coffee Can Seek Recovery, 10 Loy. Consumer L. Rev. 310 (1998). Available at: http://lawecommons.luc.edu/lclr/vol10/iss4/6 This Case Note is brought to you for free and open access by LAW eCommons. It has been accepted for inclusion in Loyola Consumer Law Review by an authorized administrator of LAW eCommons. For more information, please contact cklink@luc.edu. CASE NOTES Courts split as to whether consumers injured by hot coffee can seek recovery by Zachary Rami Common sense, coffee and consumers clashed recently in McMahon v. Bunn-O-Matic,l wherein the Seventh Circuit Court of Appeals held that a coffee maker manufacturer did not have a duty to warn consumers that its coffee would be served at 180 degrees, and that the coffee maker was not defectively designed. The decision, which affirmed a lower court's entry of summary judgment in favor of the coffee maker manufacturer, is consistent with a majority of courts, which have held in recent years that such claims leave no issue of material fact for trial.' However, not every jurisdiction has routinely dismissed these "coffee" cases. In fact, McMahon referred to Nadel v. Burger King,3 which held that a products liability claim for excessively hot coffee was appropriate for...
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...litigation. In an adversarial court system, the stronger the defense (lawyers) is, the stronger the case. One extreme case in the American court system that deflects corporate giants’ upper hand in the United States’ adversarial system, is a 1994 “frivolous lawsuit,” Liebeck v. McDonald’s Restaurant. McDonald’s is known for its fast-food and joy that it brings to children with its Happy Meals. However, in the Liebeck v. McDonald’s Restaurant case, McDonald’s was known as an inconsiderate corporate giant whose nonchalance cost McDonald’s nearly $3 million. Liebeck v. McDonald’s Restaurant is a case that was a media train in the 1990s and misconceptions about the case filled the airways. Case Overview Why should your favorite quick service restaurant be responsible for serving your favorite breakfast beverage, coffee, just how you like it? Liebeck v. McDonald’s Restaurant involved a then 79 year-old, Stella Liebeck, who purchased a cup of coffee from a McDonald’s located in Albuquerque, New Mexico, in 1992 (“McDonald’s,” 2002). “Liebeck tried to hold the cup of coffee between her knees while removing the lid; however, the cup tipped over and the hot coffee burned her.” While there has been speculation that Mrs. Liebeck was driving the car at the time the coffee spilled on her; however, that was not true at all (“Actual Facts,” 1995 - 2013). These reports were used to dramatize the case and deem it as a frivolous lawsuit. Mrs. Liebeck’s grandson was the driver on the day of this incident...
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...citation of the case (5 points); McMahon v. Bunn-O-Matic Corp., (7th Cir. Ind. 1998) 150 F. 3d 651, 1998 U.S. App. LEXIS 14926, CCH Prod. Liab. Rep. P15298 150 F. 3d 651 p.654 B. The name of the court which decided the case (3 points); United States Court of Appeals C. The year of the decision (2 points); Decided on July 2, 1998 D. The facts of the case (5 points); McMahon (plaintiff) bought a cup of hot coffee from a gas station and spilled it on herself, causing second- and third-degree burns. McMahon sued Bunn-O-Matic Corp. (Bunn) (defendant), claiming that Bunn failed to warn consumers about the severity of hot coffee burns and that Bunn’s machine produced coffee that was defective because it was too hot for humans to drink. McMahon claimed that she knew hot coffee could burn, but that she was unaware of the potential severity of such burns. The district court awarded summary judgment to Bunn. McMahon appealed. E. The issue of the case (5 points); The issue is does the failure of a manufacturer of a coffeemaker to inform consumer that the maker brews coffee which is extremely hot constitute a failure to warn or make the coffee a defective product unfit for human consumption? F. The “decision” of the case (5 points); The decision of the case according to Easterbrook, J. no failure of a manufacturer of a coffeemaker to inform consumers that the maker brews coffee that is extremely hot does not constitute a failure to warn nor make the coffee a defective...
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...1. The court that decided the case Nadel vs. Burger King was The Court of Appeals of Ohio, First District, Hamilton County. 2. Summary judgment is a way to avoid unnecessary trial, and a party must establish two things. First there should be no genuine issue of material facts, and second the party who makes the motion must be entitled to judgment as a matter of law, and that it can be noted from the evidence that when viewed from a perspective that is strongly in favor of the nonmoving party that it can reasonably come to one conclusion which is adverse to the nonmoving party. The summary judgment was granted because the injuries were a result of causes attributable to Paul and Evelyn rather than Burger King. 3. The facts of this case are that Paul Nadal was driving his son Christopher and his two daughters to school. Paul’s mother Evelyn was in the passenger seat, while Christopher sat in the front between Evelyn and Paul. On the way to school they visited the drive-through window of a Burger King owned by Emil. One of the orders was two cups of coffee, which were served with fitted lids and served through the car window. Evelyn claims to have tasted one cup of coffee and found it to be too hot and that the lid jiggled a bit causing some coffee to spill and burn her leg. She closed the coffee lid’s flap and either placed the tray of coffee on the floor or on the dashboard. As Paul was driving away and made a left turn Christopher exclaimed that his foot was burned...
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...If you’re from the United States, then you have probably heard of the fast food restaurant McDonald’s getting sued for their extremely hot coffee. In 1992, a 79-year-old women named Stella Liebeck spilled McDonald’s coffee on herself, causing her to be in the hospital for a week. After Stella wrote a letter to corporate, McDonald’s only wanted to give her $800 for her medical expenses. She took them to court and the jury ended up holding McDonald’s liable. The case received extensive media coverage. As a juror, I would have ruled in favor of Stella Liebeck. There were two main points on why I would have ruled in favor of Stella. They are because of the severity of her injuries and the claim that the coffee was too hot. Stella Liebeck’s...
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...A Frivolous Lawsuit is a case where people sue big corporations in the hopes of making a large sum of money. Many of these stories sound like absurd urban legends. Surprisingly, many of these ridiculous stories are true. In many cases, the person who is suing a corporation gets overly creative with their allegations and they create lawsuits which get thrown out. However, other cases such as Liebeck v. McDonald's go further. In February 1992, an 80 year old woman named Stella Liebeck ordered a cup of coffee from McDonald’s to go. When the incident occurred, she was sitting in her nephew's car, that was pulled over so she could add sugar to her coffee. When Liebeck removed the lid of the cup she spilled her hot coffee on herself. She suffered...
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...the same submission. Failure to submit your shepardized case will result in a loss of 10 points. You will not be able to submit it after your assignment has been graded. Your assignment is due by Sunday, end of Week 3, 11:59 p.m. (MT). (Note: You will not submit anything to the Homework CASE Dropbox. Questions 1-6: Week 3 Homework answers (there are 6 questions total). While viewing the Nadel v. Burger King & Emil case answer the following questions: 1. What court decided the case in the assignment? (2 points) Answer: Court of Appeals Ohio, First District, Hamilton County 2. What must a party establish to prevail on a motion for summary judgment? (3 points) Answer: In order to prevail on a motion for summary judgment, a movant has the burden to demonstrate that no genuine issue of material fact remains to be litigated; that is entitled to judgment as a matter of law, and that it appears from the evidence, when viewed most strongly in favor of the nonmoving party, that reasonable minds can come to but tone conclusion and that conclusion is adverse to the non-moving party. The movant in this case would be the Nadel family. Nadel v. Burger King Corp., 1997 WL 266762 (Ct. App, 1st Dist., Ohio) 3. Briefly – state the facts of this case, using the information found in the case in LexisNexis. (5 points) Answer: The Christopher Nadel, the child was suffered severe burns by the hot coffee; spilled coffee is a forseeable circumstance from going through a drive...
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...McDonald’s Restaurants law case Introduction The famous 1994 Liebeck v. McDonald’s Restaurants law case, popularly known as “the hot coffee lawsuit” sparked a debate in the U.S on product liability. The case resulted from the severe burns Mrs. Liebeck got from her coffee spill. Having bought coffee from McDonald’s, Liebeck told her grandson to stop the car so that she could add sugar to her coffee. She placed the cup on her lap but it got spilled causing a third degree burn to six percent of her body and less serious burn to sixteen percent. She was hospitalized for eight days and had to undergo skin grafting. She also spent the next two years on medication. Liebeck filed a lawsuit against the fast food restaurant and was awarded $640,000 by the trial judges. The parties however, decided to settle for a confidential amount before an appeal could be decided. Many people saw the case as worthy as many people before had received burns from McDonald’s coffee but not much was done toward it. Laws and ethical principles violated The serving of very hot coffee by the McDonalds violates the product liability law (Allee 1984). Coffee at temperatures between 180-190 degrees is well known to burn when spilt. The fast food chain knew this very well and it still continued serving this very hot coffee even after over 700 previous cases of burnt reported to it. This demonstrated very well that the food chain was not ready to take any responsibility for any health effect its product...
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...conclusion is adverse to the nonmoving party. 2. What court decided the case in the assignment? (2 points) COURT OF APPEALS OF OHIO, FIRST APPELLATE DISTRICT, HAMILTON COUNTY Supreme Court 3. Briefly state the facts of this case, using the information found in the case in LexisNexis. (5 points) The plaintiff’s child was burned by coffee received at a restaurant, the coffee was placed in a holder that spilled causing a burn on the foot of one of the children. Nadel was driving his kids to school. His son Christopher was in the front seat next to him; Nadel's mother, Evelyn, was a passenger on the other side. They stopped at Burger King (BK) and received two cups of coffee fitted with lids and placed in a cardboard drink container, which was handed to Evelyn. Somehow, as Nadel drove away, the coffee got spilled on Christopher, who suffered second degree burns on his right foot. Nadel sued for breach of a warranty of merchantability, breach of a warranty of fitness for a particular purpose, the coffee was too hot (design defect), and there was a failure to warn. BK moved for summary judgment because Nadel admitted he knew the coffee was hot. Nadel replied that 175 degrees is known to be too hot to be safe. BK was granted summary judgment; Nadel appealed. 4. According to the case, why was the...
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...Case Analysis Liebeck v. McDonald’s Restaurants Pearson v. Chung Introduction Liebeck v. McDonald’s Restaurant, also referred to as the “McDonald coffee case”, was a well known case in the United States of America in 1994 because it was considered frivolous. The case involved a woman Stella Lieback, who spilled the hot coffee she purchased from McDonald onto her lap and sustained a series of third degree burns, and was awarded millions of dollars from her lawsuit against McDonalds. The coffee was not only hot, but it was scalding, capable of immediate damage to the skin, flesh and muscle (Letric Law, 2011). In addition to the above case, the Pearson v. Chung case, also known as the “pants lawsuit”, was also a well known case in America in 2005 (Lexis-Nexis, 2008). This is a case where an administrative law judge in the District of Columbia had taken a pair of pants to the cleaners for alteration and dry cleaning; and sued the cleaners for $67 million dollars for the loss of his pants. The case was considered frivolous and became a flashpoint in the debate in the United States over tort reform (Lexis-Nexis, 2008). The major focus of this paper will be to critically analyze these two cases on the stated facts, the issues, the applicable laws, and the decision of the judge and the jury. What are the facts? There are some facts associated with Liebeck v. McDonald’s case. The woman involved in this case was 79-year old Stella Liebeck of Albuquerque, New Mexico,...
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...CASE STUDY ITC 12 Using Applets Create a program that accepts orders from customers and display the total amount and change. Requirements: 1. Name the Coffee Shop (include a picture of your coffee shop) 2. Include pictures of coffee enumerated 3. Input all the necessary information about the coffee products |Category |Type of Order |Description |Size |Price in pesos | |HOT |Coffee Americano |Style of coffee prepared by adding hot water |Small |120 | | | |to espresso, giving a similar strength to but| | | | | |different flavor from regular drip coffee. | | | | | | |Medium |145 | | | | |Large |178 | | |Decaf |Beverage made with decaffeinated beans. |Medium |88 | | | | |Large |120 ...
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