For many years, McDonalds used frozen beef patties to make its hamburgers. It recently began market testing

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For many years, McDonald’s used frozen beef patties to make its hamburgers. It recently began market testing how consumers in the United States would respond to hamburgers made of fresh beef that had never been frozen. In early 2017, McDonald’s expanded the market test from only 55 restaurants to more than 300. The switch to fresh, never frozen beef patties would be a huge undertaking involving “how [the beef] is transported to the restaurants, how it is stored when it arrives and how much it affects employees’ process of making burgers.” If you were a manager at McDonald’s, how would you go about analyzing whether to switch to fresh, never-frozen beef patties? In your answer, consider whether your decision would have to be all or nothing—all fresh, never-frozen beef patties in all McDonald’s hamburgers—and whether you would have to switch in all McDonald’s locations around the world (in 119 countries) or just in certain countries.

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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