Case Study - McDonald's and the Disappearing Dodge Viper Game Pieces

Jeremy Rau
Nov 6, 2015
2 min read

1. Although an accounting firm was hired to supervise Jacobson and his distribution, apparently Jacobson operated without any checks. What does this factor and the case teach about internal control?

It tells us that internal oversight and external oversight are extremely important in keeping corruption to a minimum. It is clear that internal controls and regulations are very poor if something like this can happen without any prevention.

2. When the FBI approached Mcdonald’s, it knew its games and image would be tarnished. Why do you think Mcdonald’s cooperated?

Because Mcdonald’s would be breaking the law if they failed to comply with the FBI’s investigation. Furthermore, it would make Mcdonald’s look even more guilty if they didn’t cooperate with a federal law investigation organization. Cooperating with the FBI makes it seem more like they want to stop corruption inside their business which makes them more appealing to the general public.

3. Why did Mcdonald’s run the 10 million dollar Labour Day weekend game?

As their reputation was severely damaged from this scandal, Mcdonald’s attempted to regain their customer’s loyalty by offering a prize giveaway of over 10 million dollars over a mere 5 days. Not only did this restore the faith in previous Mcdonald’s customers but it also brought in more customers who wanted to have a chance of the large giveaways.

4. Mr. Jacobson met some of his recruiters when he worked as a police officer. Do you think that their skills in law enforcement helped them evade authorities and detection for as long as they did?

Yes I think that is would have helped them keep the scandal under the radar because they would know how they operate and find their information. Therefore they could use loopholes to hide, gain and transfer their money. But since they worked with the municipal police they knew their ways, but they were investigated but the FBI which are federal and did not encounter before or know their way of operating.