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article imageMcDonalds China food scare puts business sales at risk

By Carol Ruth Weber     Aug 8, 2014 in Business
The McDonalds China issue proves how business scandals cause a domino effect involving other companies, their employees and society. It is important to have a capable sales team in cases when an emergency recovery is needed.
McDonalds has always been known as a leader in sales for the fast-food franchises but now their sales may be at risk after the recent expired meat scandal in China. As reported by Reuters, McDonald's Corp stated on Aug. 8 that the China scandal caused diners to go elsewhere, driving down their sales while they regrouped in the search for new suppliers to replenish the beef, pork and chicken taken out of Chinese restaurants last week.
McDonalds will need to go full force to counter the detriment to sales caused by the China scandal.
Bloomberg Businessweek reported on July 28, 2014 that the only sandwiches available at the China McDonalds were the fish burgers. Accused of taking expired meat and packaging it to sell as new, the supplier of the recalled meat, OSI Group LLC has made several statements. The OSI Aug. 7 stated "While there have been no reported illnesses linked to any Shanghai Husi products, recovering this production is an important step in facilitating the investigations and rebuilding the respect and trust of our customers, the government and the people of China."
Although OSI is cooperating, McDonalds has been hit hard in a year of flat sales and battling the other fast-food giants, Burger King and Wendy's. A McDonalds statement reported in Reuters detailed "As a result of the China supplier issue, the company's global comparable sales forecast for 2014 is now at risk." According to Reuters the McDonald's meat scandal have been causing their sales in China to drop daily 15 to 20 percent a day.
The example of what has happened to McDonald's shows how important the need is to have an effective sales team ready to fight in order to recover. Businesses should heed the warning from the McDonald's scandal by being proactive and measuring the effectiveness of your sales team. Unknown problems can occur at any moment and companies must be able to attain a quick and successful plan in order to rebound before major damage is caused to the business and trickled down to its employees and society.
More about Mcdonalds, China McDonalds, McDonalds scandal, Business, World economy
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