Day 041 - 28 Oct 94 - Page 38

     
     1
     2   Q.   Yes.
     3        A.  The approach is very much open to the different
     4        countries concerned because we have different challenges
     5        that we have to face in the UK.  In terms of, like, for
     6        instance, quality service, cleanliness and value is
     7        something which is the bedrock of McDonald's.  In terms of
     8        our marketing of that, it is fairly common throughout the
     9        system but there is nothing imposed on us in that sense.
    10
    11   Q.   If you did things which were contrary to the corporation's
    12        overall strategy, would you get sanctioned against or
    13        criticised -----
    14
    15   MR. JUSTICE BELL:  Keep your voice up, Mr. Hawkes, that is what
    16        I was going to say.
    17        A.  The corporation's overall strategies are not something
    18        that would be at odds with what we would be doing in the UK
    19        and, indeed, our UK strategies would be long known by the
    20        corporation.  It is really highly unlikely that we would
         ever be in that situation.
    22
    23   MR. MORRIS:  What is your understanding of the philosophy of the
    24        McDonald's Corporation and your part of it as to the
    25        usefulness of advertising?
    26        A.  "Usefulness"?
    27
    28   Q.   Usefulness in generating sales?
    29        A.  I would believe that the Corporation feels it is very
    30        useful in generating sales; in fact, it is vital to our
    31        business.
    32
    33   Q.   I am going to quote from the autobiography of Ray Kroc who
    34        is the founder of McDonald's.  Was he also President up
    35        until 1984, I believe?
    36        A.  I think he had that title.  He certainly was one of the
    37        key players.
    38
    39   Q.   Yes, to put it mildly, yes.  Just tell me if there is
    40        anything you disagree with or think is irresponsible, or
         whatever, in what I am going to say:  "In our business
    42        there are two kinds of attitudes towards advertising and
    43        public relations".  This is from page 113.  It is not a
    44        large quote.  I will quote it all so people do not need to
    45        necessarily to find the document.  It was quoted before
    46        last week.  "In our business there are two kinds of
    47        attitudes towards advertising and public relations.  One
    48        is" -----
    49
    50   MR. JUSTICE BELL:  Do not hurry, just read it steadily so that 
    51        Mr. Hawkes can take it all in.  If you can break it up into 
    52        parts, if you are going to ask him if he agrees or not, 
    53        then do that.
    54
    55   MR. MORRIS:  Yes.  "In our business there are two kinds of
    56        attitudes towards advertising and public relations.  One is
    57        the outlook of the begrudger who treats every cent paid for
    58        ad programs or publicity campaigns as if they were strictly
    59        expenditures.  My own viewpoint is that of the promoter.
    60        I never hesitate to spend money in this area because I can