Day 046 - 04 Nov 94 - Page 57


     
     1        beginning of the paragraph.
     2
     3   MS. STEEL:  It is exactly the same as the one I read out
     4        before.  It mentions supermarkets.  It is Mr. Rampton that
     5        is wasting time.
     6
     7   MR. JUSTICE BELL:  Read the whole of that column under
     8        Competition; from "Competition" to the bottom of the page
     9        and then Ms. Steel will ask you a question.
    10        A.  Yes, I have read it.
    11
    12   MS. STEEL:  "McDonald's views any establishment serving or
    13        selling food as competition".  What were you saying about
    14        that?
    15        A.  I think that if you read the entire context, it says
    16        pretty much what I said the other day, that is:  "The
    17        McDonald's System is the largest food service organisation
    18        in the world.  McDonald's restaurants compete with
    19        international, national and regional restaurants and
    20        carry-out operations and with locally-owned restaurants,
    21        drive-ins and other establishments who compete for
    22        eating-out dollars.
    23
    24   Q.   Carry on.
    25        A.  That is exactly the perspective that I indicated is the
    26        marketing target.
    27
    28   Q.   Carry on.
    29        A.  "McDonald's competes on the basis of price and by
    30        offering quality food products with speed and courtesy in
    31        contemporary restaurants", and now this is getting a bit
    32        fuzzy, "where cleanliness is emphasised.  We view our
    33        competition in the broadest perspective - quick service
    34        eating establishments, mom and pops, take-outs, pizza
    35        parlours, coffee shops, convenient food stores, delis,
    36        supermarket freezers and microwave ovens.  In fact,
    37        McDonald's" ------
    38
    39   MR. JUSTICE BELL:  "... views any establishment serving or
    40        selling food as competition".
    41
    42   MS. STEEL:   It is clear, is it not, that you view any
    43        establishment serving or selling food as competition?
    44        A.  It is clear that the priority is exactly as described
    45        in the first paragraph, and then you can go on to say that
    46        it can be looked at very broadly.  But I am specifically
    47        responsible for marketing and the marketing is very clear
    48        in the first paragraph.
    49
    50   Q.   You do not think this reflects the thing in its entirety 
    51        that --- 
    52        A.  You can establish ----- 
    53
    54   Q.   -- "viewing any establishment serving or selling food as
    55        competition", you do not think that reflects the marketing
    56        position?
    57        A.  You can interpret it any way you desire to interpret
    58        it.  The way that I have interpreted it is, essentially,
    59        exactly what the first paragraph says.
    60

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