Case ID 17-1131
Published 2017
Industry Code 769
Subject Operations management

Abstract This case with McDonald’s Japan shows and vividly explains about how McDonald’s executed their strategy in Japan and increases their business while neglecting quality. As a result of this, their performance dropped significantly and damaged their brand image. Therefore, this case can be the great example to learn about competitive advantage. Based on analyses of the Shanghai Husi Crisis and McDonald’s Response, four main recommendations for McDonald’s Corporation’s future crisis management plans is described; (1) sharing crisis management plans with other countries’ franchisees , (2) continuing to be transparent about mistakes and Corporate Social Responsibility, (3) inspect all of McDonald’s suppliers around the world and publishing the results and (4) establish supply chain management system for food suppliers. Because McDonald’s is an international company that is responsible for food safety around the world, these recommendations will improve McDonald’s food quality and how the public perceives that quality on a global scale. They are also aimed to improve McDonald’s profits, which have declined 7% in Asia after the scandal. By focusing on quality-driven approach and establishing sophisticated supply chain, McDonald’s Japan should try to balance between quality and cost. Ms. Casanova, CEO of McDonald’s Japan, stated strong implication that McDonald’s Japan is committed to enhance their operation management and quality management system while providing the customers with “happy smile.” Instead some modification has to be considered and implemented. The law regulations do not have to concern only the type of entry mode and the form of operation. In some cases, the food restriction can be applied. The feature concerns about the recognition and respond to the law regulation. This case concludes by making recommendations on how McDonald’s Japan can show its commitment to making life better for nationwide communities. These analyses and recommendations will help McDonald’s as it develops and adds onto future crisis management plans.
Pages 25
Teaching Note Yes