McDonald’s Corporation: Managing a Sustainable Supply Chain

Presented By Group K

Ankita Shah 2011PGP063

Aritra Nayak 2011PGP066

Keshav S 2011PGP075

Mayur Jain 2011PGP078

Shantanu Mital 2011PGP095

Smriti Nandakumar 2011PGP100

Case AnalysisOrganizations Involved: Mc Donald Cargill Greenpeace Governments

Market: Europe Asia Latin America Islamic States USA and Canada

AGENDA OF THE CASE Terms Used Overview of the Case Green Supply Chain Mc Donalds Supply Chain Previous Attempts Challenges in Implementation Opportunities in Implementation Mc Donalds Europe Long Term Impact Indian Supply Chain

People Involved: Frank Muschetto, VP Worlwide

Supply Chain, Mc Donalds Bob Langert, VP CSR, Mc Donalds

Terms

Overview of The Case

A Green Supply Chain

Mc Donalds Supply Chain

Previous Attempts

Challenges in Implementation

Complex supply chain: Many suppliers have grown with McDonald’s and can sense its needs, while many others are large in their own right and serve other big customers as well

Cultural Differences: ‘Freedom within a framework approach’ might lead to locally implemented decisions reverberating across the globe and affecting the global brand

Prioritization: Is a sustainable supply chain more preferred over the cultural practices of a local community that may not be sustainable? Where and how to make the trade off

Cost Constraints: For a company competing in a low-price, value driven market, such a heavy investment in sustainability is a tough decision to make

Opportunities in Implementation

Leadership Position: Already earned a leadership position in sustainable supply chain efforts and has earned credibility with suppliers, this position can be utilized to bring in further changes

Supplier Relationships: Closeness with suppliers and their approach of working together with suppliers rather than dictating to them, puts them in a very good position to solve issues collaboratively

Partnerships: McDonald’s knows the art of partnering with NGO’S, suppliers, other retailers, government and other stakeholders in order to collaboratively solve environmental problems

European Leadership: The leadership in Europe has more experience with sustainability efforts due to the high awareness level of the European consumers and the knowledge of these managers can be replicated elsewhere in McDonald’s supply chain

Mc Donald : Europe McDonald’s in Europe is ahead of its counterparts across the world in terms

of sustainable supply chain efforts and is very responsive to concerns of consumers, legislators and employees

Introduced the McDonald’s Agricultural Assurance Program in 2001stipulating production standards to suppliers

Made a commitment in 2007 to introduce sustainable coffee from certified sources such as Rainforest Allianz and Utz Kapeh

In 2006, they made a complete reassessment of its supply chain sustainability impacts and policies

Conducted an internal research, met with key suppliers and stakeholders for their feedback resulting in a goal for 2007, fully mapping key supply chains and assessing carbon footprints for beef, chicken and potatoes

Long Term Impact

Indian Supply Chain