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The study aims to explore the expectations and perceptions of corporate social responsibility (CSR) strategies among Chinese fast-food diners, and to investigate the relationships among CSR strategies, consumer satisfaction and customer loyalty behaviors. Chinese diners’ knowledge about a real world brand’s CSR activities was also investigated.

Setting the research context on the fast food industry in China and selecting McDonald’s as the subject brand, a survey study was conducted in a Southern Chinese mid-scale city. A convenience sample of 320 was withdrawn, and the data were analyzed with SPSS 18.0.

Results from the study show that the Chinese fast food diners expect restaurant companies to attach more importance to “(product) nutrition and well-being (of customers)” and “environment sustainability” to be considered socially responsible. CSR performance was found to be the most influential factor in the consumers’ loyalty behaviors compared to customer satisfaction with service, product and the total visit experience. The study also found that many of McDonald’s CSR activities were unknown to the Chinese respondents.

China is an attractive market to most global companies including fast food chain companies. Understanding Chinese diners’ expectations and perceptions toward companies’ CSR strategies will contribute to the success rate of companies operating in China. In addition, by using a real-world brands as the research context, the study tries to avoid perception bias of respondents due to the different interpretations of CSR in different organizations and industries.

The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges.

McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term.

MBA, Executive MBA and executive development programs.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

The story of McDonald's has become almost legendary, from a small, family‐owned restaurant to a multi‐billion dollar global giant with more than 30,000 restaurants. Between incorporation and the millennium, McDonald's saw profits increase in every consecutive quarter. McDonald's currently accounts for 43 per cent of total US burger sales, and earns four times that of its nearest competitor. To become such a player in global business, the marketing and PR departments must have been doing a great job, surely? Well, maybe not. McDonald's have had their ups and downs in the public eye, yet each time seems to escape unscathed. This article details exactly how McDonald's have responded during four notable PR crises.

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.