Late July this year, McDonald’s Shanghai meat plant was found distributing expired meat to chain stores all over China. There were accusations that such distribution was done on purpose, all to maximize profits. To solve this problem, McDonald’s stated that it would implement surveillance cameras in the meat production plants, while replacing many of its suppliers in China.

I chose this issue because I lived in Beijing, China when this happened. I witnessed how McDonald’s dealt with its ethics crisis. For more than two weeks, McDonald’s only offered hash browns, fries, and soft drinks. Witnessing this made me think about the impacts of unethical operations.

First, stopping the sales of important items on the chain’s menu must have severely damaged revenue. Considering long term effects as well, McDonald’s is going to face severe consequences because its brand loyalty will drop, and will lead to increased competition.

On top of this, the Chinese market prefers KFC over McDonald’s, so this incident will make it even harder for McDonald’s to gain market share. Personally, I wouldn’t want to have McDonald’s back in Beijing ever again. Brand image is critical, especially in such highly competitive industry!

http://www.marketwatch.com/story/mcdonalds-overhauls-food-safety-strategy-in-china-2014-09-02?siteid=rss