SUSTAINABILITY IS

NO LONGER ABOUT
DOING LESS HARM.

IT’S ABOUT DOING

MORE GOOD.

Jochen ZEITZ
GROUP 8
COMPANY DESCRIPTION
COMPANY DESCRIPTION
McDonald's is a global fast-food restaurant chain, and its operations span across various regions, markets, and
countries worldwide. The company was founded in the United States and has since expanded its presence globally.
McDonald's operates in numerous countries and regions, making it one of the most widely recognized and successful
fast-food chains internationally. In this report we focus on Mcdonalds France.

McDonald’s, founded in 1940 by brothers Richard and Maurice McDonald, is an American multinational
emblematic of the fast food sector. Product standardization is a key element of McDonald’s success,
enabling a consistent customer experience worldwide. The company is known for its classics such as
Big Mac, French fries and chicken nuggets. We’ll focus on McDonald’s France for this case study. To conclude, McDonald’s,
while a dominant player in the
In addition, in terms of human resources, McDonald’s employs a large number of people worldwide, fast food industry, with a
offering employment opportunities to a wide range of profiles. The company focuses on continuous global presence and a
learning, diversity and inclusion within its teams. In terms of marketing, McDonald’s is known for its iconic
successful franchise strategy,
advertising campaigns, and the company is present on many social networks around the world.
still faces sustainability and
However, despite its popularity and global impact, the company also faces criticism, particularly public perception challenges,
regarding the nutritional quality of its products and the environmental impact of its operations. To requiring constant adaptation
address these growing concerns, the company has expanded its offering to respond to changing to meet changing consumer
market trends, introducing healthier options and vegetarian alternatives for example. McDonald’s has expectations and
also implemented initiatives focused on sustainability, reducing greenhouse gas emissions and environmental imperatives.
promoting sustainable agricultural practices. Today, these commitments still face criticism or questions
from customers, because the company has often opted for greenwashing which does not facilitate
consumer confidence.
 SWOT DIAGRAM
STRENGTHS WEAKNESSES
Questioning quality, health standards and internal processes (quality standards
Brand recognition: McDonald's is a globally recognized brand, known for its
linked to product origin and traceability).
quality food and family-friendly atmosphere. This means that franchisees will have
Targeting a young, dynamic clientele accustomed to fast-paced consumption.
a built-in customer base.
Numerous legal problems in France and Europe in recent years, linked to several
Competitive price positioning, supported by frequent communication and
health scandals.
promotional campaigns.
Persistent association of McDonald's with an image of unhealthy food, despite
Internal development policy within the group, offering excellent integration and
efforts to offer healthier options.
career prospects.
High dependence on the franchise system, exposing the company to potential
Uniform marketing strategy applied to numerous franchises, ensuring consistency
disruptions in the operations of its many franchisees.
in setting, decoration, service and price positioning.
Negative perception of junk food, despite attempts to diversify the menu.
Leadership in the global fast-food market, present in over 94 countries.
High Franchise Cost: Starting a McDonald's franchise requires a significant amount
Proven business model: With over 38,000 locations worldwide, McDonald's has a
of capital, and the franchise fee can range from $500,000 to $2.3 million.
tried and tested franchise model that has been successful for decades. This
Dependence on Corporate Decision-Making: As a franchisee, you are bound by
makes it easy for franchisees to replicate the model in their own locations.
the company's rules and policies, limiting your creativity and ability to make
Training and support: McDonald's provides comprehensive training and support
independent decisions.
to franchisees, including guidance on how to start and operate a successful
Limited Menu Flexibility: While McDonald's offers a wide variety of menu options,
franchise, marketing, and ongoing operational support.
franchisees are limited in their ability to customize menus based on local tastes
Ability to diversify and adapt menus locally, demonstrated by the introduction of
and preferences.
products specific to each market, that appeals to customers with different dietary
Public Perception: McDonald's has faced criticism in the past for its menu
preferences and budgets.
offerings and handling of labor and environmental issues, which can negatively
Uniformity of product quality, service and prices across different regions.
impact public perception and customer loyalty.
Intense Competition: The fast-food industry is highly competitive, and
franchisees must compete with other established chains as well as new up-and-
coming businesses.
 SWOT DIAGRAM
OPPORTUNITIES THREATS
Emergence of new players in the fast-food market, leading to a revolution in the High price elasticity in the fast-food market, leading to a proliferation of
sector. promotional offers throughout the year.
Continued democratization of the popular fast-food concept. Opposition from doctors and major associations criticizing fast-food brands'
Growing global demand in developing countries. strategies and denouncing abuses.
Significant growth potential in the BRICS countries. Risk of brand image deterioration due to repeated health scandals.
Growing trend towards a healthy lifestyle, offering McDonald's the opportunity to Intense competitive rivalry in the fast-food sector. Potential entry of new
adapt its menus and be perceived as a healthier option than its competitors. competitors into the food market (Exki, Boogy Burger, independents, etc.).
Use of technology to create new services, such as the online ordering application Growing environmental pressures, including restrictions on single-use plastics,
and McDelivery. which may affect McDonald's packaging practices.
Adapting McDonald's image by introducing healthier products, such as salads, Health Concerns: The trend towards healthier eating and negative publicity about
vegetables, fruit and vegan menus. fast food restaurants can result in decreasing demand for McDonald's products.
Expansion: With a strong reputation and brand recognition, expand the franchise Rising Costs: The cost of supplies, ingredients, labor, and real estate can all
to other cities and towns across the country to attract more customers and impact the profitability of McDonald's franchisees.
increase revenue. Changing Consumer Preferences: A shift in customer preferences towards
Diversification: Offer a diverse range of products and services, including catering healthier, organic, or locally sourced foods can result in a decrease in demand for
and drive-thru options, to cater to different tastes and budgets of customers. McDonald's products.
Online Presence: Create a strong online presence to attract more customers, Regulations: The restaurant industry is subject to extensive government
promote special discounts and offers, and build regulations, which can result in increased costs and limitations on operations.
customer loyalty. Economic Downturns: In a struggling economy, consumers may be more
Menu Innovation: Continuously introduce new menu items and promotions to conscious of their spending and may choose to cut back on dining out at fast
keep customers engaged and coming back for more. food establishments.
Product Development: Experiment with new product development and different
cuisines to cater to changing tastes and preferences of customers.
SWOT CONCLUSION

To conclude our SWOT analysis of the McDonald's franchise business, we can say that
it is one of the most successful and profitable companies in the world, known for its
burgers and fries.

McDonald's strengths include its first-rate marketing strategies, brand recognition and
strong global presence. Although the company has weaknesses such as low
employee wages, high staff turnover rates and a limited menu, it has several
opportunities to expand its services, such as cell phone ordering and online delivery.
However, it also faces threats such as growing competition from local fast-food
chains, increasing customer health concerns and negative publicity linked to food
quality controversies.

Overall, McDonald's remains one of the leading players in the fast-food sector,
offering quality food and service worldwide
COMPANY MISSION
COMPANY MISSION
According to Mcdonald’s “Our mission is to make delicious feel-good moments easy for everyone.
This is how we uniquely feed and foster communities. We serve delicious food people feel good
about eating, with convenient locations and hours and affordable prices, and by working hard to
offer the speed, choice and personalization our customers expect. At our best, we don’t just serve
community
food, we serve moments of feel-good, all with the lighthearted, unpretentious, welcoming,
dependable personality consumers know and love.”
family
service
CULTURE VALUES inclusion
McDonald's business culture prioritizes human Excellence is ingrained in McDonald's values, evident in strict
resource development and efficiency, fostering quality standards for food, ingredients, and service. Innovation is integrity
growth and success in the global fast-food a focal point, driving the introduction of new products like
market. Key characteristics include a people- McCafé menus and healthier options. Teamwork is deemed
centric approach, emphasis on individual and essential, with initiatives for a positive work environment,
organizational learning, and a commitment to employee training, and a culture of respect. Responsibility is a
diversity and inclusion. The culture promotes core value, demonstrated through sustainability efforts,
excellence, innovation, teamwork, and community support, and the promotion of healthy eating.
responsibility.
At McDonald's, their core strength lies in their commitment to
fundamental values. These values define who they are and guide
their choices, whether in managing the company or the
restaurants :
COMPANY MISSION
Furthermore, McDonald's adapts its menus to align with the diverse cultures and traditions of the
countries it operates.
McDonald's France has structured its sustainability efforts into distinct pillars showcased on its website:
"Du champ au restaurant," "Aux côtés des agriculteurs," "Notre exigence qualité," "Nos actions
environnementales," and "Au coeur des territoires."
In the journey from field to restaurant, the company emphasizes responsible ingredient sourcing, ensuring
stringent quality while reducing environmental impact throughout the supply chain. Collaborating with
local farmers goes beyond transactions, fostering enduring partnerships that encourage sustainable
agricultural practices, incorporating local products like bread, meat, french fries and other ingredients.

Stringent quality standards integrate sustainability, emphasizing

certifications for ethical sourcing and eco-friendly packaging.
McDonald's environmental actions aim at minimizing their
footprint, involving energy reduction, waste management, and
water optimization. Lastly, community engagement remains
central, with initiatives supporting education, local development,
and charitable causes, fostering positive impacts in the regions
where McDonald's operates in France.

These pillars collectively define McDonald's comprehensive sustainability approach, intertwining responsible sourcing, quality assurance, environmental consciousness, farmer
support, and community involvement within their operations in France. McDonald's France also champions social objectives within its sustainability framework, striving to create
inclusive opportunities, support local communities, and promote diversity and equality within its workforce and the regions it serves.
OUR COMMENTS
McDonald’s missions, values and objectives in France show that the company has a strong commitment to sustainability.
However, we can also take a critical view and show that the company can improve and increase its actions sustainably.

Overall, fast food includes a lot of packaging and food waste that could be
reduced.
In addition, even if McDonald’s is committed to local development and charitable In addition, although sustainability is well mentioned on McDonald’s
support, there is a real problem related to the nutritional quality of the products. website the company could be even more transparent by measuring
Indeed, in their paragraph on their mission we can question the phrase “we serve the impact of sustainable development initiatives by providing
delicious food” and wonder if the food is so good for health. Especially with concrete data on energy reduction, waste management and water
documentaries like "Super size me". optimization would enhance credibility.

The company is involved in a societal problem because fast food contributes to the Today, even though McDonald’s provides employment
worsening of obesity. Indeed, the company’s high-fat and high-sugar menus are opportunities to millions of people worldwide, the company is
associated with a number of health problems, and restaurants have been accused criticized for its work practices. The company has been accused of
of contributing to food deserts. McDonald’s was also accused of contributing to exploiting its workers, and has been convicted of labor violations in
the decline of local food crops, and its standardized menu was criticized for its several countries. For example, in the United States, McDonald’s has
limited choice. been convicted of illegally employing minors.

To conclude, McDonald’s' CSR record is therefore mixed. The

company has made positive progress in recent years, but it still has a
long way to go to reach its full potential in the field of CSR.
FIELDWORK RESULTS
We went to Macdonald located right next to Noailles on the Canebière (Marseille).
When we entered the premises, we were surprised by all the communication made
on the brand's commitments and actions in favor of sustainability, CSR and
ecological transition.

We ordered at the kiosk and looked for our order at the counter. There is no table
service. Here are the elements in favor of sustainability that caught our attention:

recycling bins

recyclable and washable tableware

instructions for recycling on easels and on the tray

highlighting commitments on all walls

exhibition of frying oils recycled into biodiesel

OUR INTERVIEW WITH BASTIEN
"Hello Bastien, ready to answer a few questions?"
Here we go!

"How would you describe your mission at McDonald's?"

For us, it's all about offering burger- and fries-based menus, with fast, efficient service and 100% French products.

"What do you think McDonald's values are?"

I'd say sharing, customer satisfaction and commitment to the planet."

"Speaking of which, we've seen that there's a lot of communication being done on the subject of sustainability in this
restaurant. Do you think McDonald's is really moving towards a more sustainable mode of production?"
Honestly yes, I see it as a manager. There are real efforts being made. For example, this restaurant was built recently because
the reusable crockery we've introduced requires a large dishwasher. We want to build and introduce sustainability over the
long term, even if it requires us to invest.

"Apart from dishwashing, what do you do on a daily basis to promote sustainability?"

There's a big part of raising awareness and training teams. These training sessions are compulsory and help employees to
better understand our objectives over the next few years, particularly in terms of recycling and sustainability. As you can also
see in our restaurant, we use the oil from our used French fries to fuel our suppliers' vehicles with biodiesel. Nothing is lost,
almost everything is reused!

"Can you think of any other measures McDonald's could introduce?"

As a first step, it would be a good idea to do away with the happy meal boxes and replace them with washable boxes to
reduce our waste even further.

"In your opinion, is the company transparent with its employees?"

Quite yes, at least I am with my teams, and I wish it were with my superiors!

“How is it that this restaurant is so focused on sustainable development and not the one in the Vieux Port, for example? “
This restaurant is less than a year old, and meets the subsidiary's new standards. From now on, all new structures that open will
have very strong communication focused on our actions and commitments. It's a pity that this communication isn't
disseminated in the older outlets. This aspect is lacking, and I hope that this will change over the next few years, because our
commitments are part of our daily mission.
FIELDWORK RESULTS - ANOTHER MCDONALD’S
We also visited a second McDonald's near Aix-en-Provence to gain a better assessment of their Corporate
Social Responsibility (CSR) initiatives. This approach proved to be insightful as we were pleasantly surprised
by the noticeable differences in their communication.

Once you arrive in the restaurant area, the posters are entirely focused on the new products (maccaron,
mcrispy...).

What we noticed that was visible :

selective sort
wood and green decoration
plastic tableware
cardboard packaging

Moreover, to find out more we interviewed one of the Mcdonald's staff working for more than 2 years.

We asked the same questions and the speech was very different. Staff had little or no knowledge of the
definition of CSR or commitments. A manager joined us and gave me a little more information. She told me
that they were equipped with LED lighting, plastic dishes, sorting bins and that they reused their cooking oil.
However, no staff or managers have been trained on CSR initiatives.

It seems that the new McDonald's have guidelines and a communication strategy centered on ecology and
recycling, a more abstract concept for the old structures.
SUSTAINABILITY COMMUNICATION
SUSTAINABILITY COMMUNICATION
For the analysis of the communication, since McDonald’s adapts its communication according to the country
we decided for our part to focus only on France.
Macdonalds communicates through various channels:

McDonald's uses the newsletter for

people who have an account in their
SOCIAL MEDIA
TV and radio ads restaurants, so they can communicate YouTube communication is based on new products (mc
Mobile application their new offers directly to their crispy), but also on the democratization of head office
Special events and customers. processes thanks to the "France on the spot or to go" mini-
partnerships series, which show us the place and the actions carried out to
Public relations bring out a new product, for example.
Website
Emails and newsletters McDonald's attracts customers with regular posts on
social networks, featuring funny and original content.
For example, on Facebook, McDonald's shares daily
publications that appeal to a younger audience.
The same strategy is applied on Twitter, where
McDonald's draws inspiration from the memes used by
young people to promote its products.

Macdonald focuses its communications on goodies

bearing their logo (key rings, t-shirts, bobs, umbrellas,
etc.). It's become a way of life. There's no
communication about the sustainable actions they've
implemented. The aim of their communication is to make
Mcdonald's a habit, a first choice for all occasions (the
beach, Halloween, vacations...).
SUSTAINABILITY COMMUNICATION
To analyze Macdonald’s communication we also looked at the company’s activity reports.
Indeed, this communication is important to observe because it reflects the values that the
company wishes to convey formally. In general, in these activity reports the company
Macdonald’s has a rather well-developed communication in particular by trying to transmit
mainly the most transparent information on the performance of the company in key areas such
as the environment, social and economic responsibility.
SUSTAINABILITY COMMUNICATION - ANALYSIS
McDonald’s uses various channels to convey its message. There are similarities in communication, such
as a coherent visual identity and a global tone of communication.
The company has a unique account for each country on each platform to communicate according to
their culture.

Advertising campaigns often highlight flagship products, such as Big Macs, French fries and Happy
Meals, but can also offer more lifestyle publications to diverge and offer more regular content.
Thanks to these different communication media other than social networks, the company can
differentiate itself and adjust its communication according to cultural specificities and local
preferences (highlighting specific products adapted to local tastes) in different countries, for example
when sending newsletters.

The credibility of McDonald’s advertising depends on how the individual perceives the information
conveyed, but frequent criticism can be made, and people do not always believe what is done and
communicated by Macdonald’s.
An example of this is health and nutrition, with regard to the nutritional quality of McDonald’s products,
especially with regard to the high levels of fat, salt and sugar in some dishes. Discourses about
environmental practices that are sometimes similar to eco-laundering are also often criticized, for
example, agricultural practices associated with the food chain that are not transparent or reliable
SUSTAINABILITY COMMUNICATION - ANALYSIS
McDonald’s uses different ways of communicating with customers. Examples include television ads, online chats and their
phone app. The company is also present on platforms such as Facebook, Instagram, Twitter and YouTube. However, some
consumers find that online conversations look fake, and more like ads than real conversations with customers. So
consumers are concerned about privacy and too many ads on the app, even though many people are still using it. The
company sends a lot of emails about available offers and consumers get lost and finally miss the most important
information.
In addition, while Macdonald’s talks about healthy food and saving the planet on the website, some consumers think it’s
more about selling than really worrying about sustainability issues. On Instagram, the company doesn’t even mention
environmental issues. Finally, consumers increasingly want to be aware and seek transparency about where products come
from and how workers are treated. Being more honest and transparent could help Macdonald’s build trust in their
messages.

FIELDWORK RESULTS
McDonald's talks to customers in many ways like on TV, online, and with their app. They're on Facebook, Instagram, Twitter, and YouTube too. But some people
feel their online talks seem fake, more like ads than real chats. People worry about privacy and too many ads on the app, even if lots of folks still use it. The
company sends tons of emails about deals, but it's too much, and folks miss important stuff.

Even though McDonald's talks about healthy food and saving the planet on their website, some folks think it's more about selling than really caring about the
planet. On Instagram, they don't even talk about saving the environment. Now, folks want to know where stuff comes from and how workers are treated.
McDonald's could earn more trust by being more honest and clear in their messages.
CEO COMMUNICATION
The statement by the CEO of McDonald’s highlights several key messages.
Indeed, through this message McDonald’s affirms its commitment to meet the
expectations of today’s society while looking to the future by anticipating the
requirements to come. The CEO encourages readers to browse the new Impact
Report, where McDonald’s ambitions are costed and explained.
The company evokes the desire to reduce greenhouse gas emissions
contributing to France’s goal of carbon neutrality by 2050, and by implementing
concrete actions in its restaurants (sorting, recycling, reusable dishes...).
The theme of transparency is also addressed, as McDonald’s emphasizes the
importance of transparency by regularly taking stock of its societal and
environmental footprints and measuring progress and sharing this information in
official reports.
The declaration also highlights the mobilization of the entire McDonald’s
ecosystem (sectors, restaurants, franchisees, company headquarters and
partners), to initiate transitions in various areas (farming practices, restaurant
processes, team skills or diversity of products offered), and commit to more
sustainable agriculture.

In his message, the CEO says he trusts his restaurant teams to carry projects and
convey values. The idea is also to focus on continuous training and the
development of employee employability. The declaration also highlights the
commitment to inclusion and diversity.

Finally, the PGD expresses its willingness to continuously improve the quality of
products and the transparency of the offer, through certifications for ingredients,
and transparency at the heart of its strategy.
CEO COMMUNICATION - ANALYSIS
The declaration appears to be a proactive response to current societal concerns about the environment,
sustainability, transparency, diversity and corporate social responsibility.

However, the reader may wonder about Macdonald’s ability and willingness to actually implement these
commitments. Indeed, it would be interesting to have a precise idea of their real impact through concrete
figures examined independently to assess the credibility of communications in terms of sustainability and
social responsibility, which is not yet the case for the quantified results mentioned in the impact report.

Because of this, it is therefore quickly possible to evoke greenwashing, because some initiatives are perhaps
put forward excessively to improve the company’s image without there being a real commitment to
sustainability.

In addition, it would be interesting to know the specific progress made in each area and each country, as well
as concrete plans to achieve the stated objectives.
The reader can also doubt and question the message of the CEO, because although the quality of the
ingredients is put forward, the sustainability of the products, especially in terms of the use of limited resources,
should be closely examined. Similarly for the sustainability of agricultural practices, as McDonald’s mentions its
commitment to more sustainable agriculture, but it would be important to get details on how this translates into
actual farming practices and whether the projects are viable and effective over the long term.

Finally, while the CEO’s message speaks to the commitment to diversity, it might be helpful to see specific
details on how McDonald’s measures and promotes diversity at all levels of the company. The reader can also
ask questions about continuous learning and how it is carried out in all restaurants.
STAKEHOLDERS
INTERNAL STAKEHOLDERS
The main internal stakeholders of McDonald’s include the leadership team, employees,
and shareholders.

The leadership team is led by the President and Chief Executive Officer who is supported
by several Executive Vice Presidents, and Senior Vice Presidents. They decide the future
directions of the company.

McDonald’s is one of the largest employers in the world. It employs a huge number of
people worldwide. Employees are at the forefront of its operations, and customer
satisfaction is heavily dependent on their friendly and professional service. They provide a
variety of services, including cooking, serving, cleaning and many more.

Shareholders are an important stakeholder of McDonald’s. They are a group of

people/organizations who invest in it and, in return, receive ownership rights. It is worth
mentioning organizational shareholders of McDonald’s have higher power over individual
ones as they own the majority of the shares.

Approximately 93% Of McDonald’s restaurants worldwide are owned and operated by

franchisees who are independent local business owners (McDonald’s, 2023). These
franchisees have invested millions of dollars into their restaurants, which means that they
want to see a good return on their investments. As such, they have a vested interest in
ensuring that McDonald’s is as profitable and secure as possible.
EXTERNAL STAKEHOLDERS
The main external stakeholders of McDonald’s include the customers, suppliers,
governments, and local communities.

Customers are extremely important as the company’s existence depends on every single
customer it serves. It serves over 69 million worldwide every day (McDonald’s, 2023).

McDonald’s works with a number of suppliers to procure both food and non-food items
to run its operations. Suppliers are very important because they help the business thrive
by providing it with much-needed materials.

McDonalds faces several competitors that challenge it every day in its global markets.
Burger King, KFC, Subway, Pizza Hut, Starbucks and Domino’s are some of those
competitors.

McDonald’s also engages with some other stakeholders. For example, it engages with
experts from different sectors, local communities, non-governmental organizations and so
on. For instance, World Wildlife Fund (WWF) experts led an independent analysis of the
supply chain of McDonald’s in the past to help it identify the raw materials that
represented the biggest sustainable sourcing opportunities for it to prioritize
(McDonald’s, 2023).
STAKEHOLDER MAP
Class Salience (priority) Attribute Type Names

LATENT LOW POWER Dormant stakeholder /

Customer’s rights defense

groups and experts like
LATENT LOW LEGITIMACY Discretionary stakeholder
associations, communities,
satisfied customers

LATENT LOW URGENCY Demanding stakeholder Dissatisfied Customers

POWER
EXPECTANT MED Dominant stakeholder Minority Shareholders
LEGITIMACY

POWER
EXPECTANT MED Dangerous stakeholder Competitors
URGENCY

URGENCY Suppliers, employees,

EXPECTANT MED Dependent stakeholder
LEGITIMACY franchisees

POWER Leadership Team, Major

DEFINITIVE HIGH URGENCY Definitive stakeholder shareholders, Boycott
LEGITIMACY Stakeholder
JUSTIFICATION
Demanding stakeholder (dissatisfied customers) :
Definitive stakeholder (leadership team):
For instance, if a customer is allergic to a specific sauce and an employee
The boycott has diverse impacts on McDonald's leadership team.
mistakenly includes it in their order, an urgent response is necessary.
Challenges include crisis management, strategic reassessment, reputation
Similarly, in the context of a boycott, customers may express
safeguarding, stakeholder relations, and financial implications. The team
dissatisfaction with McDonald's political choices. In the United States, a
must navigate these issues with swift, strategic responses to mitigate
change in packaging featuring the colors of the Israeli flag during an
negative effects on the company's reputation and financial performance.
Israeli-Palestinian conflict angered consumers, leading to a call for
boycott. In these situations, a swift response is crucial to address the
Dominant stakeholder (Minority shareholders) : Minority shareholders have a
issues and restore customer satisfaction.
significant influence on the company's strategic decisions.

Dangerous stakeholder (competitors):

Discretionary stakeholder (Customer’s rights defense groups and experts
Regarding competitors, McDonald's must be cautious, especially during a
like associations, communities, satisfied customers) : The McDonald's
boycott. Consumers accustomed to McDonald's may shift to competitors
boycott has implications for Customer’s rights defense groups and experts,
during this period of protest. It is crucial for McDonald's to closely monitor
such as associations, communities, and satisfied customers, who fall under
customer reactions, understand the reasons for the boycott, and respond
the category of discretionary stakeholders. These groups may act as
proactively to mitigate dissatisfaction. This vigilance will enable
advocates or critics, influencing public opinion and corporate reputation.
McDonald's to maintain customer loyalty and minimize potential impact on
The impact can vary, involving support from those aligned with the cause or
its market share in the face of competition.
potential criticism from those dissatisfied with the boycott. The
discretionary nature of these stakeholders means McDonald's may need to
Dependent stakeholder (employees/ franchisees):
engage in dialogue, address concerns, and consider their perspectives to
Due to the boycott, some franchises have had to close permanently,
maintain positive relationships and corporate standing.
resulting in job losses. Employees have found themselves unemployed.
This situation underscores the economic and social consequences of the
boycott, with direct repercussions on local employment and worker
stability
VALUE
PRODUCT CHAIN DIAGRAM
PRODUCT CHAIN DIAGRAM - ADDED VALUE
PERFORMANCE + INDICATORS
CURRENT PERFORMANCE MEASURES
McDonald's is a company whose financial analyses are transparent. Here is an analysis of
the group's balance sheet and income statement. These are quantitative financial data:

Results are stable, with strong profitability each year.

McDonald's bases its performance measurement on several aspects :
Here we present a list of the seven most important KPIs for McDonald's
franchises.

Average Customer Satisfaction Rating (qualitative/non financial)

The Average Customer Satisfaction Rating (ACSR) is a metric used to
measure the overall customer satisfaction of a McDonalds franchise. It is a
numerical score based on customer feedback surveys, interviews, or
other methods of collecting customer feedback.

Tracking the ACSR is important for McDonalds franchises, as it provides

insight into how customers perceive the quality of the service and food
they receive. Additionally, tracking the ACS helps to identify areas of
improvement, and allows McDonalds to adjust their operations and
customer service to ensure customer satisfaction.
CURRENT PERFORMANCE MEASURES
Cost of Goods Sold (COGS) (quantitative/ financial)
Cost of Goods Sold (COGS) is a metric used to measure the cost of producing and selling goods or services. It is an
important metric for McDonalds Franchisees as it indicates the cost of running their business and ultimately affects their
bottom line. COGS is an essential KPl for understanding the overall profitability of a business.

Tracking COGS provides Franchisees with valuable insights into their business operations. By understanding their COGS,
Franchisees can identify areas for improvement, such as reducing labor costs, or increasing efficiency. Additionally,
tracking COGS can provide Franchisees with an understanding of their pricing structure and the associated costs, which
can help them to develop a competitive pricing strategy.

Sales Conversion Rate (quantitative/non financial)

Sales Conversion Rate is a KPI that measures the percentage of customers who take an action that is desired by a
business. For McDonald's, this could be the percentage of customers who purchase a product after visiting the franchise.

Tracking this KPI can help McDonald's franchises to gain a better understanding of the effectiveness of their marketing
campaigns. It can also provide insight into how well each store is performing in terms of customer service and product
offerings.

Customer Order Accuracy Rate (quantitative/non financial)

Customer Order Accuracy Rate (COAR) is a metric used to measure the accuracy of orders placed by customers at
McDonalds locations. The metric is calculated as the number of orders that are correctly fulfilled, divided by the total
number of orders placed.

Tracking the accuracy of customer orders is beneficial for McDonalds franchises. It helps to ensure that customers are
receiving the orders that they requested, and that they are satisfied with the quality of service they are receiving.
Additionally, tracking COAR can help to identify any errors or areas of improvement in the ordering process, allowing
McDonalds franchises to make necessary changes to ensure a higher level of customer satisfaction.
CURRENT PERFORMANCE MEASURES
Inventory Turnover Ratio (quantitative/ financial)
Inventory turnover ratio is a key performance indicator (KPI) used to measure how efficiently a McDonalds franchise is managing its inventory. This
is important because having too much inventory can lead to spoilage, while not having enough inventory can lead to lost sales.

Tracking the inventory turnover ratio can help McDonalds franchise owners to: Keep track of the capital tied up in inventory.Ensure that inventory
is being managed in an efficient manner. Analyze the effectiveness of the ordering process. Identify areas where inventory levels need to be
adjusted.

Employee Retention Rate (qualitative/non financial)

Employee Retention Rate is a key performance indicator (KPI) that measures the percentage of employees that remain in an organization over a
given period of time. It is a measure of how well the organization is retaining its employees and helps employers determine whether they are
offering competitive salaries and benefits packages.

Tracking employee retention rate for a McDonald's franchise can help the business identify areas for improvement in employee engagement, job
satisfaction, and work-life balance. It also helps employers keep track of staff turnover, which can indicate whether their recruitment strategies
are effective. By understanding the employee retention rate, employers can take proactive steps to improve it by making changes to their
recruitment and retention policies.

Average Order Value (quantitative/ financial)

Average Order Value (AOV) is a KPI for McDonalds franchisees that measures the average amount spent on each order. It is used to determine
the amount of revenue generated from each sale and the overall success of the franchise.

Tracking the Average Order Value is an important metric for McDonalds franchisees because it provides insight into the profitability of the
franchise. By tracking the AOV, franchisees can determine the effectiveness of their marketing and promotional efforts, as well as identify areas
of improvement when it comes to pricing and customer satisfaction.
KPI’S
Next, we provide a list of six qualitaties and quantitative, social and environmental KPIs:

McDonald's has developed a set of key performance indicators (KPIs) to measure progress in crucial areas such as animal welfare, environmental
sustainability, social inclusion, and other essential initiatives. Here is a summary highlighting significant advancements in each of these key areas:

Sustainability and Environment

Diversity, Equity, and Inclusion
Animal Welfare and Responsible Antibiotic Use
In the realm of sustainability, McDonald's has
McDonald's is firmly committed to diversity, set ambitious goals for reducing
McDonald's is committed to improving the
equity, and inclusion. The company has made greenhouse gas emissions, aiming for a 36%
welfare of chickens in its global supply chains,
significant strides in achieving pay equality, reduction by the end of 2030 from a 2015
with specific goals expected to be fully
with a 2022 analysis indicating substantial baseline. Ongoing initiatives, such as large-
implemented by the end of 2024. These
parity. Furthermore, McDonald's is actively scale virtual power purchase agreements in
commitments apply to multiple markets,
pursuing ambitious goals for women's the U.S., contribute to achieving this goal.
representing more than 58% of the global
representation in leadership roles globally, Additionally, the company is actively working
chicken supply. Concurrently, the company is
targeting 45% by the end of 2025. While to eliminate deforestation from its supply
working to ensure the responsible use of
achieving 43% representation by the end of chains by the end of 2030, with over 99% of
antibiotics in its chicken and beef supply chains,
2022, McDonald's remains committed to major commodities supporting
with notable progress in several target markets.
progressing toward gender parity. deforestation-free supply chains in 2022.
KPI’S
Nutrition and Marketing
In the realm of nutrition and marketing, McDonald's aims to provide balanced
meals through its Happy Meal program. In 2022, 56% of Happy Meal offerings,
on average, met global nutrition criteria, up from 36% in 2018. Additionally, the
company is working to simplify ingredients by removing artificial flavors and
colors from Happy Meal offerings.

Packaging, Toys, and Waste

McDonald's has set ambitious goals to reduce its environmental impact, aiming
to source 100% of primary guest packaging from renewable, recycled, or
certified materials by the end of 2025. By the end of 2022, approximately 81%
of primary guest packaging met these criteria. The company is also working to
reduce plastics in Happy Meal toys, achieving a 47.8% reduction in fossil fuel-
based plastic by the end of 2022.

Community Impact and Philanthropy

McDonald's is engaged in social initiatives, aiming to reduce barriers to
employment for 2 million young people by the end of 2025. From July 2018 to
December 2022, approximately 1.7 million young people participated in training
programs or were hired in McDonald's or participating franchisee restaurants.

In summary, the key performance indicators demonstrate McDonald's unwavering commitment to sustainable practices, responsible governance and the
promotion of diversity and inclusion in all aspects of its global operations. This progress underlines the company's focus on positive social and environmental
impact. However, the ESG score shows the Group's difficulty in achieving its sustainability objectives and the sustainability of the resources it uses.
ANALYSIS
McDonald's has made significant progress in some areas of sustainability and corporate responsibility,
but there is still room for improvement.

POSITIVE ASPECTS NEGATIVE ASPECTS

McDonald's has not met all of its sustainability goals. For example, the
company is currently only meeting about 65% of its goal for reducing
Animal welfare: McDonald's has made commitments to greenhouse gas emissions.
improving the welfare of chickens in its supply chains. The McDonald's still uses a lot of packaging that is not recyclable or
company has also made progress in reducing the use of compostable. The company has made some progress in this area, but it still
antibiotics in its chicken and beef supply chains. has a long way to go.
McDonald's is still a large contributor to deforestation. The company has
Environmental sustainability: McDonald's has set ambitious made some progress in this area, but it is not clear if it will meet its goal of
goals for reducing greenhouse gas emissions, eliminating eliminating deforestation from its supply chains by 2030.
deforestation from its supply chains, and sourcing 100% of its Overall, McDonald's is making some progress in sustainability and corporate
primary guest packaging from renewable, recycled, or certified responsibility, but there is still a lot of room for improvement. The company
materials. The company has also made progress in reducing needs to be more ambitious in its goals and more transparent in its reporting
plastics in its packaging and in developing new packaging on its progress.
solutions. Here are some specific recommendations for McDonald's:
Set more ambitious goals for reducing greenhouse gas emissions,
Diversity, equity, and inclusion: McDonald's has made progress eliminating deforestation from its supply chains, and sourcing 100% of its
in achieving pay equality and increasing the representation of packaging from renewable, recycled, or certified materials.
women in leadership roles. The company is also working to Be more transparent in its reporting on its progress towards these goals.
improve diversity in its workforce. Invest in research and development to develop new packaging solutions
that are more sustainable.
Work with suppliers to improve the sustainability of its supply chains.
STRATEGY AND TRANSFORMATION
BENCHMARK SUSTAINABILITY POSITION AGAINST BURGER KING AND KFC
McDonald's has made significant progress in some areas of sustainability and corporate responsibility, but there is still room for improvement.

Similarities: Differences:

When examining McDonald's, Burger King, and However, nuanced differences exist in the sustainability approaches of these fast-food giants.
KFC in the context of sustainability, some McDonald's stands out with its comprehensive Sustainable Sourcing Commitment, covering a wide
common threads emerge. All three major fast- array of ingredients like beef, chicken, coffee, fish, and palm oil. The company actively collaborates
food chains have undertaken substantial efforts with external organizations and participates in industry initiatives to bolster supply chain
to enhance their environmental practices, supply transparency. Burger King, on the other hand, distinguishes itself by providing detailed public
chain transparency, and waste reduction information about its palm oil suppliers and engaging in global efforts to combat deforestation. KFC,
initiatives. Energy efficiency measures, such as while making strides in energy efficiency and sustainable ingredient sourcing, may have a relatively
the use of LED lighting and energy-efficient lower profile in terms of publicly available detailed sustainability commitments and goals.
equipment, are prevalent across their operations.
Additionally, each company has committed to In the realm of waste reduction, all three companies are taking steps to minimize their environmental
sustainable ingredient sourcing, with a particular footprint, but the specific initiatives and targets may differ. McDonald's ambitious goal to recycle
focus on beef and palm oil. The commitment to guest packaging in 100% of its restaurants by 2025 sets it apart in waste reduction efforts.
reducing single-use plastics and exploring Meanwhile, Burger King focuses on making all guest-facing packaging recyclable, compostable, or
alternative packaging materials is another shared reusable by the same year. KFC, while actively exploring alternatives for sustainable packaging
goal. materials, may not have as explicit and detailed targets as its counterparts.

In packaging sustainability, McDonald's and Burger King share a commitment to making packaging
from renewable, recycled, or certified sources. McDonald's emphasizes a holistic approach, aiming
for all packaging to meet these criteria by 2025. In contrast, Burger King is actively working towards
making guest-facing packaging from renewable, recycled, or certified sources by the same year.
In conclusion, while McDonald's, Burger King, and KFC share common ground in their pursuit of
sustainability, the distinctions lie in the depth of their commitments, the transparency of their supply
chains, and the specific targets set for waste reduction and packaging sustainability. Each
company's approach reflects its unique priorities and strategies within the broader context of
environmental responsibility in the fast-food industry.
CRITICALLY COMMENTS ON THE PREVIOUS TRANSFORMATION

McDonald's has been actively engaged in transformative sustainability initiatives. Over the
years, the company has demonstrated a commitment to addressing environmental challenges
and improving its social responsibility.

In examining the historical evolution of McDonald's sustainability transformations over the past
2 and 4 years, it is evident that the company has made commendable strides. The
implementation speed of sustainability initiatives has been noteworthy, with a focused effort on
turning goals into tangible actions within a reasonable timeframe.

Assessing progress toward sustainability goals reveals a commitment to quantitative

achievements, considering the specific targets outlined in reports from both 2 and 4 years
ago. Challenges faced during the execution of these sustainability transformations, whether
internal or external, have been met with adaptive strategies, showcasing the company's ability
to navigate obstacles.

Effectiveness in achieving sustainability goals is a key aspect of this evolution, requiring a

detailed analysis of the impact of implemented strategies. A critical reflection on the
company's strategies over time is essential for understanding its learning curve and
adaptability.

Furthermore, examining the comprehensiveness of McDonald's sustainability strategy is crucial.

This involves identifying whether the company has adopted a holistic approach that
encompasses a broad spectrum of environmental and social considerations. A thoughtful
reflection should also explore potential areas that may benefit from further attention or
improvement.
EXISTING BUSINESS MODEL
SUSTAINABLE BUSINESS MODEL
NEW COMPANY MISSION

Do we want to change the company mission ?

Yes, adapting the mission is crucial. We want to modify the mission to explicitly integrate sustainability practices into
all facets of operations, from sourcing ingredients to waste management.
We also want to emphasize responsible practices in communication to align with consumer expectations regarding
transparency and ethical commitments. It enables McDonald's to demonstrate a proactive stance in addressing
these issues.

Our new statement

"Our mission is to create moments of joy that are not only delightful but also responsible for everyone. This is how we
uniquely nourish and empower communities. We are dedicated to providing delicious, responsibly sourced food
that people cherish, sourced from verified sustainable suppliers. We commit to minimizing environmental impact by
reducing packaging waste, implementing recycling programs, and exploring biodegradable packaging options.
Furthermore, we aim to enhance transparency by sharing information about sourcing origins and environmental
initiatives openly. At our core, we don't just serve meals; we provide responsible and enjoyable experiences,
maintaining our friendly, approachable, and dependable persona that consumers value and trust."
SOURCES
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metrics
STUDY CASE
MCDONALD’S

GROUP 8
 Purchase of surplus energy
HOW TO TRANSFORM ?
ONG, ESAT
allows to invest

CSR training
Knowledge from CSR training

Solar panels on parking and restaurants

Rainwater harvesting

Environmentally conscious consumer Healthier menus and ingredients Over production given to associations
Improve reputation

AND SO ON - CONTINUOUS IMPROVEMENT AND

ADAPTATION TO STAKEHOLDERS’ EXPECTATIONS

Intern electric delivery servic to match customer’s expectations