McDonald’s – one of the biggest and unhealthiest fast food chains in the world. As of 2013, the “Golden Arches” alone make up 21.7% of the world’s fast food market. This enormous piece of pie, McDonald’s is just discovering, is enabling them to charge more for their burgers by introducing self-serve kiosks in their restaurants. By introducing these kiosks, customers can now customize their orders even further without increasing the risk of human, or staff, error, which will ultimately increase customer satisfaction. However, this customization does not come free – kiosk meals will be more expensive than simply ordering from a cashier. As we learned in class six from guest speaker Professor Mahesh Nagarajan, if you have a unique idea that your competitors have not yet discovered or are not using (self-serve kiosks in a fast food restaurant), then you can charge more for your product as there is no alternative for the customer to turn to. In this case, McDonald’s has realized that less error in orders and quicker delivery times are important to keep customers loyal and happy, which is why they are experimenting with the idea of kiosks, particularly if customers are willing to pay 30% more for their McDonald’s meal. Moreover, according to McDonalds Canada’s CEO, John Betts, customers are “less rushed than at the counter, often prompting them to order more”, which at an already increased 30% purchase price, can really boost McDonald’s overall revenue. McDonald’s also realizes they need an alternative to the rising labour costs in Canada – many speculate that kiosks may be used as an alternative to employees. Even though fast food chains have not experimented to the full extent with digital ordering, McDonald’s appears to be on the verge of a massive breakthrough towards lowering operating costs and keeping customers loyal.

Sources

1. Blank, Christine. Burgers By Design. N.p.: QSR Magazine, 2014. Web. 30 Sept. 2015. <http://www.qsrmagazine.com/exclusives/burgers-design>.

2. Peterson, Haley. McDonald’s shoots down fears it is planning to replace cashiers with kiosks. N.p.: Business Insider, 2015. Web. 30 Sept. 2015. <http://www.businessinsider.com/what-self-serve-kiosks-at-mcdonalds-mean-for-cashiers-2015-8>.

3. Strauss, Marina. McDonald’s rolls out upscale option. Toronto: The Globe and Mail, 2015. Web. 30 Sept. 2015. <http://www.theglobeandmail.com/report-on-business/mcdonalds-rolls-out-table-service-customized-burgers-in-upscale-shift/article26601464/>.

Gone are the days where companies undertake the act of doing business with integrity, honesty and honour when organizations like SNC-Lavalin can bribe high ranking Libyan government officials for profitable engineering contracts. SNC-Lavalin is one of the biggest engineering firms not only in Canada, but in the world. The company plays a dominant role in the infrastructure, mining, oil and gas, and power sectors around the world. Last February, SNC-Lavalin was charged with corruption and fraud. SNC-Lavalin has, according to Friedman in Corporate Ethics and Corporate Governance, a “social responsibility” to their stockholders, who are counting on them to make the right ethical and moral decisions with their invested capital to produce the greatest return. The fact that SNC-Lavalin is, according to its former CEO, Robert Card, “gearing up to avoid the full court process”, creates the suspicion that SNC-Lavalin has something to hide – an act that only creates more suspicion on whether they are truly guilty or not. In response to the potential impact on the economy that these charges on such a figurehead company may create, the Federation of Quebec Chambers of Commerce issued a statement saying, “the charges cannot be used to harm SNC’s business”. This is a case where the government is trying to step in to protect the economy from a setback, which only further supports the problem. As Friedman states, “the one and only social responsibility of a business (is that it) … engages in open and free competition without deception or fraud” – a principle that SNC-Lavalin has obviously forgotten.

 Sources

1. Hamilton, Gregory, ed. RCMP charges SNC-Lavalin with fraud and corruption linked to Libyan projects. N.p.: The Financial Post, 2015. Web. 17 Sept. 2015. <http://business.financialpost.com/news/rcmp-charges-snc-lavalin-with-fraud-and-corruption-linked-to-libyan-projects>.

2. Perreaux, Les, Jeff Gray, and Bertrand Marotte, eds. SNC-Lavalin faces rare corporate fraud and bribery charges. N.p.: The Globe and Mail, 2015. Web. 17 Sept. 2015. <http://www.theglobeandmail.com/report-on-business/snc-lavalin-faces-rare-corporate-fraud-and-bribery-charges/article23108284/>.

3. Van Praet, Nicolas, ed. SNC-Lavalin wants to avoid protracted court battle on corruption charges. N.p.: The Globe and Mail, 2015. Web. 17 Sept. 2015. <http://www.theglobeandmail.com/report-on-business/snc-lavalin-profit-beats-estimates-on-oil-contracts-cost-cuts/article24302270/>.

4. Zimmerly, Walther C., Klaus Richter, and Markus Holzinger. Corporate Ethics and Corporate Governance. N.p.: Springer, 2007. 173-78. Web. 17 Sept. 2015.