The Relationship between

McDonald's Expired Meat Crisis and Fonterra's

Disposal of Eliminated CowsJiahui Zhang, Hill, Ann Marie, Director, Bloustein School Internship Program

Purpose

Significance

Method or Approach

Outcomes

Evaluation

Analyzed what strategies Fonterra should adopt to react to the expired meat that was

used by McDonald's in its restaurants.

•There were 18 tons of chicken needed by McDonald's thawing department, and most was substandard and expired more than half a month earlier.•McDonald's sales and reputation were severely impacted•Chinese customers were shocked at the conduct by McDonald’s conduct, especially when the food safety risks imposed by Chinese domestic food companies remain to be severe.•Fonterra has to comply with the government laws and regulations more carefully to increase Chinese customers' confidence in its brand.

This paper was analyzed by the manager of the government relations department and was discussed with other senior managers by the company. Recommendations are under consideration for adoption.

1

•Evaluations of this paper was based on the supervisor's opinion.

2

•Adoption of the recommendation to follow closely government regulations will demonstrate the paper's value

Acknowledgement

•Undertook a strategic position paper for review by management. •Used secondary sources

An overview of the case; reaction by McDonald's and other parties; the dilemma in food testing; the strategy Fonterra should adopt

Presented the position paper to senior

management for review.

•Thanks to Anyu Hou, Haiyan Wu, the Fonterra Government Relations Department, and Ann Marie Hill who helped make this project a success.

The Relationship between

McDonald's Expired Meat Crisis and Fonterra's

Disposal of Eliminated CowsJiahui Zhang, Hill, Ann Marie, Director, Bloustein School Internship Program

• Reference:

“Fonterra and China”. 1994-2014 China Academic Journal Electronic Publishing House. Dec, 25, 2013. Retrieved on Dec, 4, 2014.