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How a Frenchman is reviving McDonald’s in Europe
A. When Denis Hennequin took over as the European boss of McDonald’s in
January 2004, the world’s biggest restaurant chain was showing signs of recovery
in America and Australia, but sales in Europe were sluggish or declining. One
exception was France, where Mr Hennequin had done a sterling job as head of the
group’s French subsidiary to sell more Big Macs to his compatriots. His task was
to replicate this success in all 41 of the European countries where
anti-globalisers’ favourite enemy operates.
B. So far Mr Hennequin is doing well. Last year European sales increased by
5.8% and the number of customers by 3.4%, the best annual results in nearly 15
years. Europe accounted for 36% of the group’s profits and for 28% of its sales.
December was an especially good month as customers took to seasonal menu
offerings in France and Britain, and to a promotion in Germany based on the game
of Monopoly.
C. Mr Hennequin’s recipe for revival is to be more open about his company’s
operations, to be “locally relevant”, and to improve the experience of visiting
his 6,400 restaurants. McDonald’s is blamed for making people fat, exploiting
workers, treating animals cruelly, polluting the environment and simply for
being American. Mr Hennequin says he wants to engage in a dialogue with the
public to address these concerns.
D. He introduced “open door” visitor days in each country which became hugely
popular. In Poland alone some 50,000 visitors came to McDonald’s through the
visitors’ programme last year. The Nutrition Information Initiative, launched
last year, put detailed labels on McDonald’s packaging with data on calories,
protein, fat, carbohydrates and salt content. The details are also printed on
tray-liners.
E. Mr Hennequin also wants people to know that “McJobs”, the low-paid menial
jobs at McDonald’s restaurants, are much better than people think. But some of
his efforts have backfired: last year he sparked a controversy with the
introduction of a “McPassport” that allows McDonald’s employees to work anywhere
in the European Union. Politicians accused the firm of a ploy to make cheap
labour from eastern Europe more easily available to McDonald’s managers across
the continent.
F. To stay in touch with local needs and preferences, McDonald’s employs
local bosses as much as possible. A Russian is running McDonald’s in Russia,
though a Serb is in charge of Germany. The group buys mainly from local
suppliers. Four-fifths of its supplies in France come from local farmers, for
example. (Some of the French farmers who campaigned against the company in the
late 1990s subsequently discovered that it was, in fact, buying their produce.)
And it hires celebrities such as Heidi Klum, a German model, as local brand
ambassadors.
G. In his previous job Mr Hennequin established a “design studio” in France
to spruce up his company’s drab restaurants and adapt the interior to local
tastes. The studio is now masterminding improvements everywhere in Europe. He
also set up a “food studio”, where cooks devise new recipes in response to local
trends.
H. Given France’s reputation as the most anti-American country in Europe, it
seems odd that McDonald’s revival in Europe is being led by a Frenchman, using
ideas cooked up in the French market. But France is in fact the company’s most
profitable market after America. The market where McDonald’s is weakest in
Europe is not France, but Britain.
I. “Fixing Britain should be his priority,” says David Palmer, a restaurant
analyst at UBS. Almost two-thirds of the 1,214 McDonald’s restaurants in Britain
are company-owned, compared with 40% in Europe and 15% in America. The company
suffers from the volatility of sales at its own restaurants, but can rely on
steady income from franchisees. So it should sell as many underperforming
outlets as possible, says Mr Palmer.
J. M.Mark Wiltamuth, an analyst at Morgan Stanley, estimates that European
company-owned restaurants’ margins will increase slightly to 16.4% in 2007. This
is still less than in the late 1990s and below America’s 18-19% today. But it is
much better than before Mr Hennequin’s reign. He is already being tipped as the
first European candidate for the group’s top job in Illinois. Nobody would call
that a McJob.
Notes to Reading Passage 1
1.sterling高质量的
e.g. He has many sterling qualities. 他身上有许多优秀的品质。
2. menial 不体面的, 乏味的(工作、职业)
3. spruce up打扮整齐、漂亮、装饰
4. mastermind指挥、谋划(一个计划或活动)
e.g. The police know who masterminded the robbery.警察知道是谁策划了那次抢劫。
5. underperform表现不佳表现出低于标准的工作水平、企业出现亏本
Questions 1-6
Do the following statements reflect the claims of the writer in Reading
Passage 1?
Write your answer in Boxes 1-6 on your answer sheet.
TRUE if the statement reflects the claims of the writer
FALSE if the statement contradicts the claims of the writer
NOT GIVEN if it is impossible to say what the writer thinks about this
1. McDonald was showing the sign of recovery in all European countries except
France after Denis Hennequin took office as the boss of Euro-markets.
2. Starting from last year, detailed labels are put on McDonald’s packaging
and detailed information is also printed on tray-liners.
3. France is said to be the most anti-American country in Europe, but the
ideas of the “open door” visiting days and “McPassport” are invented in the
French market.
4. Britain possesses the weakest McDonald market among European countries and
approximately 1214 McDonald’s restaurants are company-owned.
5. According to David Palmer, a restaurant analyst at UBS, David Hennequin
should treat the problem about McDonald in Britain as the most important
thing.
6. David Palmer suggested that the management of McDonalod in Italy should
sell as many its outlets which lose money in business as possible for
revival.
Questions 7-10
Choose the appropriate letters A-D and write them in boxes 7-10 on your answe
sheet.
7. The word “sterling” in line 3 of Paragraph A means__________.
A. difficult
B. menial
C. terrible
D. excellent
8. Which of the following statements on the accusation of MacDonald is NOT
TRUE?
A. It tends to make people fat.
B. Its operations are very vague.
C. It tends to exploit workers.
D. It tends to treat animals cruelly.
9. Which of the following measures taken by Denis Hennequin produced
undesired result?
A. “Food Studio” scheme.
B. “Open Door” visitor days.
C. The “McPassport” scheme.
D. The Nutrition Information Initiative.
10. What did Denis Hennequin do so as to respond to local trends?
A. set up a “Food Studio” .
B. established a “Design Studio”.
C. hired celebrities as local brand ambassadors.
D. employed local bosses as much as possible.
Questions 11-14
Complete each of the following statements (Questions 11-14) with words or
number taken from Reading Passage 1.
Write NO MORE THAN THREE WORDS for each answer.
Write your answers in boxes 11-14 on your answer sheet.
11. After January 2004, McDonald was making improvement following a period of
slump in America and Australia, but sales in Europe were ………………………….
12. Business of McDonald in France and Britain was particularly good in
December since customers took to ……………………………..
13. Compared with other countries, France is McDonald’s ………………………. next to
America.
14. ……………………. of McDonald’s restaurants in America are companied–owned and
the figure is much lower than that in Britain.
Asian economies will continue to expand rapidly in the next two years on the
back of foreign investments, exports and domestic demand, but will not be free
of worries, according to a recent securities company economic report. Massive
infrastructure spending, the benefits of past investments and deregulation and
growing regional trade will push along regional growth.
The report tipped China’s gross domestic product to grow by 9.5 per cent in
1996 and 10.5 per cent in 1997, and Hong Kong’s to grow by 4.3 and 5.0 per cent.
Singapore’s real GDP was forecast to grow by 7.6 and 7.4 per cent, Malaysia’s by
8.6 and 8.1 per cent, Thailand’s by 8.8 and 8.4 per cent, Indonesia’s by 7.3 and
7.1 per cent and Philippines’ by 5.6 and 5.8 per cent.
“However, all is not rosy,” cautioned the report, which listed overheating as
the region’s biggest challenge in the short term and skilled-labor shortages in
the long run.
It cited strains from rapid growth that had begun to stretch current account
deficits and spur inflation in some regional economies, which could prevent
their central banks from lowering interest rates.
“This implies that economic vulnerability to unexpected shocks will remain
high,” the report said, forecasting a further tightening of monetary policy in
countries such as the Philippines and Malaysia, and no significant easing in
Thailand, Indonesia and China.
Crosby Securities also cited massive new investment programs generated by
demands on infrastructure such as power, telecommunications and transport which
had fuelled over-heating.
It said Asia would also face a bigger challenge from newly deregulating
economies in Eastern Europe which offered lower costs and better-educated
workers to foreign investors.
Asia’s main foreign investors should, however, continue to expand their
presence in the region, the securities house said, noting new trends of
intra-Asian investment.
Singapore is shifting its lower value-added disc drive and electronics
industry to Malaysia, which in turn is moving some of its garment-making and
consumer electronics manufacturing to Indonesia and Thailand. Thailand, Malaysia
and Singapore are increasingly investing in Viet Nam, Myanmar and Laos.
“Asia will benefit from this trend in several ways,” the report said.
( )1Asia economy will continue to grow because of _____________.
A. foreign investment B. demands in Asian countries.
C. export D. all of the above
( )2 In the next 2 years, the highest economic growth will appear in
____________.
A. Singapore B. Thailand
C. Hong Kong D. China
( )3 Years later, the problem in Asian economy may be _________________.
A. too little investment B. too much investment
C. not enough qualified labors D. monetary instability
( )4 According to this report, economic changes in East Europe are
___________.
A. harmful B. challenging
C. helpful D. useless
( )5 The report is about the prospect of Asian economy.
A. optimistic B. pessimistic
C. more optimistic than pessimistic D. more pessimistic than optimistic
