McDonald’s Sustainable Supply Chain Harvard Case Solution & Analysis

McDonald’s Sustainable Supply Chain Case Solution 

1.     Problem

McDonald’s performs many environmental, social and animal welfare activities that influence its customers. However, despite that McDonald’s had to secure Amazon rain forests, which were located in Brazil by the cultivation of soya and for that purpose it faced the issue as how it could attain the sustainability by providing food safety insurance and minimizing its cost. Moreover, another issue that McDonald’s faced was that how it could settle sustainability and priorities locally and globally.And lastly, the issue was how the activists, suppliers and stakeholders could engage in the process of McDonalds’s sustainability of supply chain.

2.     Analysis of the Dilemma

The major problem started with the supplier of the McDonald’s which supplied McNuggets to McDonald’s. Cargill, the owner of Sun Valley Foods, was among the buyers of soya from Brazil. Not only Cargill, but two more financers were involved to finance the farmers of Soya in Brazil, which contributed to the 60% of investment of Soya near the Amazon forest.Nonetheless, Grupo Andre Maggi, a massive soya company also contributed to the investment in Soya cultivation near the forest. However, it was financed by different international banks i.e., International Finance Corporation (IFC).

McDonald’s Success

Kroc, McDonald’s founder, made the supply chain effective by visiting its suppliers without informing them. As a result, this practice ensured the quality supply of the materials.

The total sales of McDonald’s in 2005 reached to $54.3 due to which McDonald’s is ranked the highest among the food service retailers. The owner, employees and the suppliers of McDonald’s are the three successful pillars of McDonald’s with which McDonald’s maintain its balance.

McDonalds with its Stakeholders

McDonald’s has to keep an eye on its consumers. Moreover, the company reported that it wanted to do more for its customers, however it is price sensitive. Due to this reason, it has to balance the price of consumers and their activities.

The government and NGOs also provided the credibility to McDonald’s such as McDonald’s aim to provide quality and sustainable food to its customers with almost “affordable” price.

McDonald’s has the advantage of getting along with its stakeholders as well. In addition, McDonald’s has a sustainable relationship with its suppliers as well and as a result this provided the solution to its suppliers when they needed it in critical situations. McDonald’s even sorted out the fish industry critics when one of its suppliers Espersen, a Danish Supplier, called a meeting for getting sustainable quality of material. As a result of the meeting, McDonald’s listened to their critic and provided them with a solution.

2.     Alternative

  • McDonald’s approach toward Cargill is a good option. The company needs to develop strategies in order to implement its policy on Amazon forest. It could be said that this practice can bring more options along with the legislation of Soya cultivation.

3.     Conclusion

1.     Supply Chain Sustainability by McDonald’s

McDonald’s, with its effort, built a team for sustainable supply chain, which is named as Sustainable Supply Chain Working Group (SSCWG); this team has to contribute to its vision of ethical, environmental and economic issues from McDonald’s perspective. Based on its vision, McDonald’s provides healthy food with the help of ethical activities implemented toward supplier. Furthermore, based on the economic perspective,the company will ensure affordable delivery of the material. These factors persuade McDonald’s to attain the sustainability of the customers easily as well as, it would be helpful in getting enrichment of healthy food at the minimum cost incur by the organization...............

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