Instruct
McDonald’s Holdings (Japan) Limited is located at Nishi-Shinjuku, Tokyo. It was established in the year 1971 specifically on 1st May. The major business that is does is planning and executing consolidated group management strategies as a holding company. They produce manufactured hamburgers and sell them across Japan. The company’s introduction of products, marketing strategies on large-scale through large-scale and drive-thru restaurant for enhancement of corporate and customer values is based on the QSC (trusted quality, speedy and friendly service, clean and comfortable environment).
Currently it has a total of about two thousand seven hundred consolidated employees and about fourteen directors and auditors, including the external auditors. The company with the manufacture of a single burger and by 2000s the prices was $12, by the end of 2011 this had gone up to $100. It is alarming however that the market share has reduced considerably since July 2013. The report given on 24th February 2016 indicates that the corporation closed at 117.06 below its 52-week high of 124.83which indicates a fall of 6.22%. (Financial Times Limited 2016). Some of the major rivals of The McDonald Company include Domino’s, KFC, and sub ways. Among these competing food industries in China, KFC remains the leader in market shares with a total of 4,600 outlets which is more than double McDonalds clear market share of 2000.
Given that McDonald is a food manufacturing company it’s of it key purpose to ensure food safety for the consumers. This implies that the products ought not to be exposed to any hazardous environmental effects or chemicals; the food should also be stored in a suitable way and at recommended temperatures (Motarjemi 2014). Spoilt and expired food products should be properly disposed to avoid food poisoning when consumed (Norton, 2013, 45). It is also important that the preparation of the food such as cooking be done in the right way and in a clean environment. It is also important that the food product being produced be notorious (Schmidt & Rodrick, 2005, 34).
Some of the factors that have contributed to McDonald’s growth in Market shares include issues pertaining to food safety. For example in the year in July 2015 McDonald was accused for selling expired meet in China. This raised a lot of concerns and consequently led to reduced customers in China (FT Reporters 2015).
McDonald has also faced been sued for many other cases relating to the safety of food products. There are court complaints relating to McDonald’s lack of centralized Laundromat for the uniforms of employees. There have also been a lot of complaints leading to suing of McDonald due to lack of a clear separation of food products and poor packaging of chickens. McDonald’s response to this accusation was that the required Rospotrebnadzor is not reflective of the modern food industry (Norton et al, 2013, 45).
Mislabeling of food products has also been one of McDonald’s accusations. This has caused a lot of negative implications to the company especially given the fact that customers have preferences and when the select an item only to find out later on that it is not what they paid for they are most likely to refrain from purchasing products from the same company (Sekhar).
Consumers in China are now looking for food alternatives that add nutrients and are healthy to their bodies. This could be due to the fact of the global increasing level of chronic diseases mainly caused by consuming junk foods. This has led to McDonalds facing a lot of pressure as the customers are now opting to take healthier, safer and cheaper food products (FAO Expert).
Bibliography
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FAO EXPERT TECHNICAL MEETING ON THE USE OF HAZARD ANALYSIS CRITICAL CONTROL POINT (HACCP) PRINCIPLES IN FOOD CONTROL. (1995).The use of hazard analysis critical control point (HACCP) principles in food control: report of an FAO Expert Technical Meeting, Vancouver, Canada, 12-16 December 1994. Rome, Food and Agriculture Organization of the United Nations.
FINANCIAL TIMES LIMITED (2016) Equities, McDonald Corporation http://markets.ft.com/research/Markets/Tearsheets/Summary?s=MCD:NYQ. Retrieved 25th Feb 2016
FT REPORTERS (2015).McDonald’s and its challenges worldwide: A market by market look. (2015) http://www.ft.com/cms/s/0/f8ac22fc-a7c1-11e4-8e78-00144feab7de.html#slide0. Retrieved 25th Feb 2016
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