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Mcdonald's Corporation Case Analysis

899 words - 4 pages

McDonald’s Corporation Case Analysis

McDonald’s has made great strides in the sustainability of its supply chain over the past few decades. From a moratorium on soya coming from farms where Amazon rain forests have been destroyed, to developing sustainable fishery guidelines to manage fish quality and quantity, McDonald’s has taken great efforts to “do the right thing” [1]. This commitment to environmental sustainability has impacted how they source from suppliers and manage supply chain management initiatives.
With all that McDonald’s has done, there is still room for improvement. Engagement in sustainability efforts with suppliers has generally resulted from a call for change ...view middle of the document...

Furthermore, it leverages the resources of NGOs and interest groups, allowing them to conduct scientifically-based research and propose solutions, collaborating with McDonald’s as partners instead of launching damaging attacks.
By acting in an anticipatory manner, McDonald’s also has the best opportunity to save resources, costs, and reduce risk. Avoiding the public outcry and external calls for change allows McDonald’s to protect its brand image and mitigate risks to its revenue stream. Anticipatory action can also save costs, resolving problems prior to any major impact to the supply chain. Figure 1 illustrates how the benefits of being proactive and anticipatory in handling emerging issues.

Figure 1 [2]
The second alternative to consider is for McDonald’s to increase its campaigning efforts to raise public awareness of McDonald’s sustainable supply chain efforts. By doing so, McDonald’s can continue to be the front-runner in implementing its “three E’s” – Ethical, Environmental, and Economic – vision. As can be seen in Appendix 1, consumers expect companies to be socially responsible while also providing a quality product at the lowest price. From this campaign, McDonald’s can benefit from the first-order effects, expecting to see a better educated consumer base that has increased demand for the products McDonald’s offers.
There are beneficial second-order effects as well: consumer preference can lead to pressure being placed on other corporations to follow suit with McDonald’s efforts, providing greater leverage to implement change on a global scale. This can range from governmental legislation efforts being put in place to influence the sourcing of materials, to how farms and ranches impact the environment.

With these considerations, it is more beneficial for McDonald’s to pursue a more proactive approach to anticipate and manage emerging sustainability issues. McDonald’s has...

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