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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高質量的
e.g. He has many sterling qualities. 他身上有許多優秀的品質。
2. menial 不體面的, 乏味的(工作、職業)
3. spruce up打扮整齊、漂亮、裝飾
4. mastermind指揮、謀劃(一個計劃或活動)
e.g. The police know who masterminded the robbery.警察知道是誰策劃了那次搶劫。
5. underperform表現不佳表現出低于標準的工作水平、企業出現虧本
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.
Selling Digital Music without Copy-protection Makes Sense
A. It was uncharacteristically low-key for the industry’s greatest showman.
But the essay published this week by Steve Jobs, the boss of Apple, on his
firm’s website under the unassuming title “Thoughts on Music” has nonetheless
provoked a vigorous debate about the future of digital music, which Apple
dominates with its iPod music-player and iTunes music-store. At issue is
“digital rights management” (DRM)—the technology guarding downloaded music
against theft. Since there is no common standard for DRM, it also has the
side-effect that songs purchased for one type of music-player may not work on
another. Apple’s DRM system, called FairPlay, is the most widespread. So it came
as a surprise when Mr. Jobs called for DRM for digital music to be
abolished.
B. This is a change of tack for Apple. It has come under fire from European
regulators who claim that its refusal to license FairPlay to other firms has
“locked in” customers. Since music from the iTunes store cannot be played on
non-iPod music-players (at least not without a lot of fiddling), any iTunes
buyer will be deterred from switching to a device made by a rival firm, such as
Sony or Microsoft. When French lawmakers drafted a bill last year compelling
Apple to open up FairPlay to rivals, the company warned of “state-sponsored
piracy”. Only DRM, it implied, could keep the pirates at bay.
C. This week Mr. Jobs gave another explanation for his former defence of DRM:
the record companies made him do it. They would make their music available to
the iTunes store only if Apple agreed to protect it using DRM. They can still
withdraw their catalogues if the DRM system is compromised. Apple cannot license
FairPlay to others, says Mr Jobs, because it would depend on them to produce
security fixes promptly. All DRM does is restrict consumer choice and provide a
barrier to entry, says Mr Jobs; without it there would be far more stores and
players, and far more innovation. So, he suggests, why not do away with DRM and
sell music unprotected? “This is clearly the best alternative for consumers,” he
declares, “and Apple would embrace it in a heartbeat.”
D. Why the sudden change of heart? Mr Jobs seems chiefly concerned with
getting Europe’s regulators off his back. Rather than complaining to Apple about
its use of DRM, he suggests, “those unhappy with the current situation should
redirect their energies towards persuading the music companies to sell their
music DRM-free.” Two and a half of the four big record companies, he helpfully
points out, are European-owned. Mr Jobs also hopes to paint himself as a
consumer champion. Apple resents accusations that it has become the Microsoft of
digital music.
E. Apple can afford to embrace open competition in music players and online
stores. Consumers would gravitate to the best player and the best store, and at
the moment that still means Apple’s. Mr Jobs is evidently unfazed by rivals to
the iPod. Since only 3% of the music in a typical iTunes library is protected,
most of it can already be used on other players today, he notes. (And even the
protected tracks can be burned onto a CD and then re-ripped.) So Apple’s
dominance evidently depends far more on branding and ease of use than
DRM-related “lock in”.
F. The music giants are trying DRM-free downloads. Lots of smaller labels
already sell music that way. Having seen which way the wind is blowing, Mr Jobs
now wants to be seen not as DRM’s defender, but as a consumer champion who
helped in its downfall. Wouldn’t it lead to a surge in piracy? No, because most
music is still sold unprotected on CDs, people wishing to steal music already
can do so. Indeed, scrapping DRM would probably increase online-music sales by
reducing confusion and incompatibility. With the leading online store, Apple
would benefit most. Mr Jobs’s argument, in short, is transparently self-serving.
It also happens to be right.
Notes to Reading Passage 1
1. low-key:
抑制的，受約束的，屈服的
2. showman:
開展覽會的人, 出風頭的人物
3. unassuming:
謙遜的, 不夸耀的, 不裝腔作勢的
4. iPod：
(蘋果公司出產的)音樂播放器
5. iTunes store：
(蘋果公司出產的)在線音樂商店
6. get off person’s back:
不再找某人的麻煩，擺脫某人的糾纏
7. gravitate:
受吸引，傾向于
8. unfazed:
不再擔憂，不被打擾
Questions 1-7
Do the following statemets reflect the claims of the writer in Reading
Passage 1?
Write your answer in Boxes 1-7 on your answer sheet.
TRUE if the statement reflets the claims of the writer
FALSE if the statement contradicts the claims of the writer
NOT GIVEN if it is impossbile to say what the writer thinks about this
1. Apple enjoys a controlling position in digital music market with its iPod
music-player and iTunes music-store.
2. DRM is a government decree issued with a purpose to protect downloaded
music from theft by consumers.
3. Lack of standardization in DRM makes songs bought for one kind of music
player may not function on another.
4. Apple has been criticized by European regulators since it has refused to
grant a license FairPlay to other firms.
5. All music can be easily played on non-iPod music devices from Sony or
Microsoft without too much fiddling.
6. Apple depends far more on DRM rather than branding for its dominance of
the digital music devices.
7. If DRM was cancelled, Sony would certainly dominate the international
digital music market.
Questions 8-10
Choose the appropriate letters A-D and write them in boxes 8-10 on your answe
sheet.
8. Which of the following statements about Mr. Jobs’ idea of DRM is NOT
TRUE?
A. DRM places restrictions on consumer’ choice of digital music products
available.
B. DRM comples iTunes buyers to switch to a device made by Sony or
Microsoft.
C. DRM constitutes a barrier for potential consumers to enter digital music
markets.
D. DRM hinders development of more stores and players and technical
innovation.
9. The word “unfazed” in line 3 of paragraph E, means___________.
A. refused
B. welcomed
C. not bothered
D. not well received
10. Which of the following statements is TRUE if DRM was scapped?
A. Sony would gain the most profit.
B. More customers would be “locked in”.
C. A sudden increase in piracy would occur.
D. Online-music sales would probably decrease.
Questions 11-14
Complete the notes below.
Choose NO MORE THAN THREE WORDS from Reading Passage 1 for each answer.
Write your answers in boxes 11-14 on your answer sheet.
Mr. Steve Jobs, the boss of Apple, explains the reason why he used to defend
DRM, saying that the company was forced to do so: the record companies would
make their music accessible to …11...only if they agreed to protect it using
DRM; they can still…12…if the DRM system is compromised. He also provides the
reason why Apple did not license FairPlay to others: the company relies on them
to …13….But now he changes his mind with a possible expectation that Europe’s
regulators would not trouble him any more in the future. He proposes that those
who are unsatisfactory with the current situation in digital music market should
…14… towards persuade the music companies to sell their music DRM-free.
