Mc Donalds-Bias in Decision Making

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    McDonalds Beef Fries

    ControversyPresented By :

    Utkarsha Khamkar

    Heena Gupta

    Sunil Chand

    Debashish Nanda

    Omkar Warde

    Ankit

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    1937- Mc Donald's was started by two brothers,Richard and Maurice Mc Donald's in California.

    1954- Ray Kroc established a franchising companywith Mc Donald's under the name Mc Donald's

    System Inc.

    1965- Mc Donald's went public.

    1998- it had over 25000 restaurants in 116 countriesserving more than 1.5 billion customers.

    2001- it had 28 outlets in India spread across tier-A

    cities

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    TOOK PLACE IN 2000

    U.S BASED HINDU JAIN SOFTWARE ENGINEER Mr.

    SHAH READ AN ARTICLE ABOUT MC DONALDSFRENCH FRIES CONTAINING BEEF

    ON AN ENQUIRY MC DONALDS RESPONDED THATTHEY DO USE SMALL AMOUNT OF BEEF FLAVOUR

    AS A INGREDIENT

    THE COMPANY JUSTIFIED ITS ARGUMENT BYSAYING THAT THERE WAS NO LAW TO DISCLOSETHE INGREDIENTS INPUT

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    VARIOUS LAW SUITS WERE FILED AGAINSTCOMPANY

    FINALLY ENDED UP APPOLOGISING AND PAYING ACOMPENSATION OF 10 MILLION US DOLLARS

    ALSO IT PAID 4 MILLION US DOLLARS TO 12

    PEOPLE WHO HAD FIED THE LAW SUITS

    THEY GAVE ADVERTISEMENTS IN NEWS PAPERSADMITTING THEIR MISTAKE

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    LOT OF PROTEST BY VARIOUS POLITICAL ASWELL AS RELIGIOUS GROUPS SUCH AS SHIVSENA, BAJARANG DAL, VISHWA HINDU PARISHAD

    PETITION WAS FILED TO CLOSE DOWN ALL THE

    OUTLETS IN INDIA

    LOT OF CONFUSION WHETHER THE FRIES BEINGSUPPLIED IN INDIA HAD THE BEEF CONTENT ORNOT

    RUMUORS HAD IT THAT THESE FRIESINGRIDIENTS WERE THE SAME AS BEINGSOURCED FROM US

    WHEN BMC AND FDA CONDUCTED THE TEST IT

    GAVE NEGATIVE RESULTS FOR THE BEEFCONTENT

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    A Tendency to fixate on initial information, fromwhich one then fails to adequate adjust forsubsequent information.

    Eg. Opposition of Political Parties in Indiaagainst Mc Donalds.

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    The tendency to seek out the information thatreaffirms past choices and to discount information

    that contradicts past judegement.

    Eg. Mc Donalds released a statement saying it

    never claimed the fries sold in US were vegetarians

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    The tendency for people to base their judgements oninformation that is readily available to them.Things thathave occurred more recently tends to be more availablein our memory.

    For e.g. people in India came to know that fries containsbeef flavours and started protesting against Mcdonalds

    instead of official announcement.

    U.S Based Hindu Mr. Hitesh Shah read the articlesabout Mc Donalds French fries containing Beef.

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    The tendency to believe falsely, after anoutcome of an event is actually known, that onewould have accurately predicted the outcome.

    For e.g. Basically people in U.S assumed thefries were vegetarian simply because they werefried in vegetable oil.

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    Believing too much in our own ability to

    make good decision especially when

    outside of own expertise.

    For eg-mcdonald were serving coffee 20f

    hotter than standard temperature

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    Staying with a decision even when there is a

    clear evidence that its wrong.

    Eg.Mc Donalds High fat, low fibre food is cause ofvarious diseases, still there was no change in

    ingredient of food served.

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    Thank You