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A Strategic Assessment and Recommendations for McDonald's

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Contents
I.Executive Summary...................................................................................................................................2

II.Introduction..............................................................................................................................................2

1.McDonald's Mission and Values...........................................................................................................3

III. Current Implementation of Social and Environmental Objectives..........................................................4

1.McDonald's Current Sustainability Marketing Strategy for Social Sustainability..................................4

2.McDonald's Current Sustainability Marketing Strategy: Environmental Sustainability........................5
3.Application of Theories and Frameworks: McDonald's Triple Bottom Line Concept............................6
4. McDonald's and Corporate Social Responsibility (CSR).......................................................................6
5.Consumption Behavior of McDonald's Customers...............................................................................7
6.An Analysis of McDonald's Sustainability Values and Ethics.................................................................8

IV. Suggestions to Enhance Sustainability Marketing Mix...........................................................................9

1. Product Recommendations.................................................................................................................9
2.Price Recommendations.....................................................................................................................10
3.Place Recommendations....................................................................................................................11
4.Promotion Recommendations............................................................................................................11
5.Application of Theories and Frameworks to Recommendations........................................................12

Conclusion.................................................................................................................................................14

REFERENCES..............................................................................................................................................15
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A Strategic Assessment and Recommendations for McDonald's

I.Executive Summary

McDonald's Corporation's incorporation of social and environmental objectives into its

marketing activities is extensively analyzed in this report. Sustainability is at the core of

McDonald's operations as they continue to show strong support for Corporate Social

Responsibility and incorporate the Triple Bottom Line approach in their business strategy

(Elkington & Rowlands 1999).More can still be done as per the report despite existing efforts

with a focus required on improving 4Ps (Product Price Place and Promotion) within marketing

mix. Ways in which they could potentially improve include expanding their array of products to

incorporate more sustainable food products.They might adopt a pricing policy that rewards

consumers who show an interest in environmentally friendly behaviour. Furthermore, they could

integrate practices aimed at improving environmental outcomes across every aspect of their

supply chain and make sure sustainability concerns are communicated effectively through

promotional activities.As consumers increasingly seek sustainable options from brands they trust

and value, McDonald's must continue to adapt its marketing mix accordingly. The

recommendations outlined in this report aim to support McDonald's on their journey towards

sustainability by fostering stronger relationships with consumers and encouraging long-term

financial success.
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II.Introduction

McDonald's Corporation, founded in 1940 and based out of Oak Brook, Illinois (Love & Miller

1995), is an iconic fast-food restaurant chain with 39,000 locations worldwide and one of the

world's most recognizable fast-food brands (McDonald's Corporation 2022).McDonald's, famous

for its iconic Golden Arches, offers an assortment of fast-food items such as its iconic

hamburgers, French fries, chicken sandwiches and breakfast items. Furthermore, in response to

changing consumer preferences and increased health consciousness (Schlosser 2012), the

company has introduced healthier options into their menu (Schlosser, 2012).McDonald's

operates under a franchise model, with most of its restaurants owned and managed by

independent local business owners. This structure enables it to achieve global expansion while

still remaining locally focused (Ritzer, 2011).Over time, McDonald's has come under increasing

pressure from consumers, regulatory bodies, and environmental activists to adopt more

sustainable practices in its operations. This report provides an analysis of McDonald's current

efforts towards sustainability marketing as well as suggestions for future enhancement.

1.McDonald's Mission and Values

McDonald's Mission and Values McDonald's mission statement emphasizes their customer-first

philosophy by emphasizing providing superior dining experiences while accommodating

changing consumer tastes and preferences. This mission statement can be found here

(McDonald's Corporation 2022).McDonald's values have been formalized into what they refer to

as their "Our Values". McDonald's holds five core values that guide its actions:
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"Our customer-centric approach underscores our dedication to providing high-quality food and

exceptional service" (McDonald's Corporation, 2022).

McDonald's Corporation (2022). We value our people. McDonald's recognizes their vital roles in

its success (McDonald's Corporation).

We Believe in the McDonald's System" is one of McDonald's Corporation's core values and

serves as an affirmation of their trust in its established operations and franchise model

(McDonald's Corporation, 2022).

"McDonald's Operates its Business Ethically." McDonald's is committed to operating its business

ethically, in accordance with legal requirements and social norms (Carroll 1991).

"McDonald's gives back to its communities." McDonald's strives to have a positive effect in each

community where it operates through CSR initiatives and charitable giving (McDonald's

Corporation, 2022).

McDonald's mission and value statements provide guidance for its operations and provide a

framework for their efforts in sustainability and social responsibility. As this report will show,

these principles can also help strengthen McDonald's sustainability marketing initiatives.

III. Current Implementation of Social and Environmental Objectives

1.McDonald's Current Sustainability Marketing Strategy for Social Sustainability

McDonald's recognizes the value of social sustainability and has implemented strategies to

demonstrate this commitment. Their focus on "commitment to our people" and "giving back to
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our communities" serves as evidence of this approach (McDonald's Corporation,

2022).McDonald's social sustainability strategy places great emphasis on employee welfare. To

this end, they invest heavily in training and development programs designed to equip their

workforce with essential skills needed for career progression - for instance through Archways to

Opportunity which offers tuition assistance as well as educational resources (McDonald's

Corporation 2022).

McDonald's places an immense emphasis on diversity and inclusion. Through initiatives such as

its Global Women's Leadership Network, this company endeavors to promote gender equality

within its ranks (McDonald's Corporation, 2022).McDonald's also engages in numerous

philanthropic efforts. McDonald's supports Ronald McDonald House Charities, an organization

providing resources and care for children during difficult times (Rosenheck, 2008).McDonald's

has made strides toward improving customer health, offering healthier food options and

providing nutritional information that allows informed decision-making by customers (Schlosser,

2012).However, these social sustainability initiatives must be integrated into their marketing

strategies in order to take an holistic approach towards sustainability marketing.

2.McDonald's Current Sustainability Marketing Strategy: Environmental Sustainability

McDonald's has made significant efforts in incorporating environmental sustainability into its

marketing strategy, setting specific goals to reduce greenhouse gas emissions in line with the

Paris Agreement and show their proactive response to climate change (McDonald's Corporation,

2022).McDonald's has pledged to source all food and packaging sustainably within their supply

chains. By 2020, 100% of its seafood will come from Marine Stewardship Council certified

fisheries while all coffee will come from responsible sources (McDonald's Corporation

2022).McDonald's Corporation has pledged its commitment to animal welfare by selecting

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suppliers who meet Animal Health and Welfare Guideline requirements (McDonald's

Corporation, 2022). Furthermore, McDonald's is actively working towards reducing packaging

footprint and increasing recycling in its restaurants (McDonald's Corporation, 2022).

McDonald's has also made significant strides in energy efficiency, striving to decrease its usage

by installing energy-saving measures such as LED lighting and energy-efficient kitchen

equipment (McDonald's Corporation, 2022).McDonald's continues to work hard at improving its

environmental sustainability marketing strategy and this report suggests they innovate and

expand environmentally friendly initiatives further to reduce their environmental footprint.

3.Application of Theories and Frameworks: McDonald's Triple Bottom Line Concept

According to (Elkington & Rowlands ,1999) the Triple Bottom Line (TBL) concept, suggesting

that businesses should consider three separate bottom lines when making business decisions:

profit (economic performance), people (social responsibility), and planet (environmental

responsibility).McDonald's has long been considered an industry leader when it comes to profit.

Generating billions annually (McDonald's Corporation, 2022), its franchise model contributes

significantly to local economies by creating employment and entrepreneurial opportunities

(Ritzer, 2011).McDonald's commitment to its employees, consumers and communities is

evidenced through its focus on employee training, diversity and inclusion efforts and outreach

programs, consumer health improvement strategies as well as investing in improved nutrition

practices (McDonald's Corporation 2022).McDonald's Sustainability efforts reflect their 'Planet'

Bottom Line commitment. By reducing greenhouse gas emissions, promoting sustainable

sourcing practices, decreasing packaging waste and improving energy efficiency they

demonstrate their environmental responsibility (McDonald's Corporation 2022).Though

McDonald's efforts already align with the TBL concept, integrating it more explicitly into their
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marketing strategy would underscore their dedication to sustainable business practices and help

increase brand image as an environmentally-friendly corporation. This would promote long-term

profitability and sustainability.

4. McDonald's and Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is defined as any business practice which supports

sustainable development by creating economic, social, and environmental benefits to all

stakeholders (Carroll 1991). McDonald's has demonstrated its dedication to CSR through various

initiatives.McDonald's makes significant economic contributions through job creation and local

sourcing, with most McDonald's restaurants owned and run independently (Ritzer,

2011).Socially, McDonald's invests in its employees through training and development programs

such as Archways to Opportunity. Furthermore, it supports diversity and inclusion initiatives for

fair opportunities for all its employees (McDonald's Corporation 2022). Furthermore,

McDonald's displays its social commitment through supporting Ronald McDonald House

Charities which provide resources and assistance during tough times (Rosenheck

2008).Environmentally, McDonald's shows its dedication to sustainable practices through its

goals to reduce greenhouse gas emissions, source more sustainably-produced food and packaging

materials and enhance energy efficiency (McDonald's Corporation 2022).McDonald's has made

impressive strides towards implementing Corporate Social Responsibility practices; these

initiatives could be further integrated into its marketing strategies to further build its brand

reputation and customer loyalty.

5.Consumption Behavior of McDonald's Customers

Understanding consumer behavior is vital for the success of any business, and especially

McDonald's given shifting consumer preferences towards healthier and more eco-friendly foods
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(Schlosser 2012).McDonald's customers have long been attracted to its food products due to their

convenience, affordability and taste; however, recently there has been a noticeable shift in

consumption behavior among younger consumers who are becoming increasingly concerned

with healthiness and sustainability of food (Rosenheck 1999).These consumers are demanding

greater transparency regarding ingredients, nutritional content, and the source of food items. In

response to this shift in consumer consumption behavior, McDonald's introduced healthier food

items like salads, fruits and wraps as well as committed to providing extensive nutritional data

(McDonald's Corporation 2022).

Consumer awareness regarding environmental sustainability has encouraged McDonald's to

implement more eco-friendly practices within its operations, such as reducing greenhouse gas

emissions, supporting sustainable sourcing practices and decreasing packaging (McDonald's

Corporation 2022).McDonald's has taken steps to adapt its marketing strategy and align itself

with shifting consumer habits and preferences, and therefore is gradually altering its marketing

approach accordingly. Monitoring these trends closely ensures McDonald's marketing plans

match emerging consumer preferences and expectations.

6.An Analysis of McDonald's Sustainability Values and Ethics

McDonald's values and ethics demonstrate its dedication to both social and environmental

sustainability. One of its core values is operating ethically (McDonald's Corporation, 2022); this

extends into its approach towards sustainability; following legal requirements as well as social

norms to maintain ethical operations is also part of this practice.McDonald's sustainability values

can be seen through its "Scale for Good" commitment, which seeks to use McDonald's size and

reach to drive positive change (McDonald's Corporation, 2022). Under this initiative, the
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corporation focuses on various areas such as responsible sourcing, packaging and waste

reduction, climate action plans and employee experience.

McDonald's takes ethical sourcing seriously as part of its sustainability values, with an aim of

procuring all food and packaging sustainably and supporting environmental protection measures

with fair labor conditions in their supply chains (McDonald's Corporation 2022).McDonald's

commitment to ethical marketing is also remarkable. They have implemented a set of rules and

guidelines designed to promote responsible child advertising (McDonald's Corporation,

2022).McDonald's has faced considerable scrutiny over environmental and health issues

(Schlosser, 2012). To maintain success, McDonald's must constantly reevaluate its sustainability

values and ethics so they remain aligned with societal expectations and regulatory standards.

IV. Suggestions to Enhance Sustainability Marketing Mix

1. Product Recommendations

McDonald's product offerings are an integral component of its sustainable marketing mix.

Although progress has been made with respect to offering healthier options and nutritional

information (McDonald's Corporation 2022), further development may be possible by aligning

its menu more closely with sustainability principles.First, McDonald's could expand their menu

by including more plant-based options, which would help significantly reduce their

environmental footprint by way of lower resource inputs and greenhouse gas emissions

associated with them compared with animal-based ones (Gerber et al. 2013). Furthermore, plant-

based offerings could draw in customers such as vegetarians, vegans and those concerned with

sustainability alike.McDonald's can take steps to ensure all ingredients are sourced sustainably.

By prioritizing free-range eggs and sustainably caught fish as ingredients, McDonald's can
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demonstrate its commitment to animal welfare and sustainable fisheries while at the same time

cutting food miles thereby lowering carbon emissions (Weber & Matthews 2008).McDonald's

can demonstrate its dedication to food safety and quality by increasing transparency about

ingredients, nutritional content and sustainability initiatives associated with each product. By

including sustainability initiatives into its product offerings, McDonald's not only increases

brand image but can meet changing consumer consumption habits while driving both

sustainability and profitability simultaneously.

2.Price Recommendations

Price recommendations are another essential aspect of sustainable marketing mix. McDonald's,

known for its affordability, should consider how best to incorporate environmental principles

into its pricing strategy while upholding customer value.McDonald's could employ a premium

pricing strategy when offering environmentally sustainable and healthy product offerings, as

consumers increasingly demand them (Schallehn et al, 2017). Such an approach could help offset

any higher costs associated with such initiatives without jeopardizing overall

profitability.McDonald's must effectively communicate to consumers the reasons for these price

premiums and demonstrate why these offerings justify an increase in price, such as sustainability

credentials or health benefits (Lusk & Briggeman 2009). Doing so may strengthen consumer

perception of value and their willingness to pay (Lusk & Briggeman, 2009).

McDonald's could use value-based pricing strategies for certain items. This involves pricing

products based on how customers perceive them rather than solely the cost of production - for

instance, plant-based burgers may be priced higher due to perceived environmental benefits and
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healthiness.McDonald's should explore dynamic pricing models. Offering discounts for

sustainable product combinations or during off-peak hours could help manage demand and

minimize food waste.These sustainable pricing strategies can improve McDonald's brand image

while meeting consumer preferences while simultaneously contributing to its economic bottom

line.

3.Place Recommendations

The "place" element of marketing mix refers to how products reach consumers. McDonald's

global reach provides significant opportunities for sustainable practices to be integrated into its

distribution strategies.McDonald's could embrace local sourcing whenever possible to reduce

environmental impacts associated with long-distance transportation and strengthen local

economies, while meeting customer preferences for locally sourced food (Martinez et al.,

2010).Second, McDonald's can further its physical locations' sustainability by employing energy-

saving technologies and practices in its restaurants, such as LED lighting, energy-saving kitchen

equipment, and solar panels - helping to lower its environmental footprint (McDonald's

Corporation 2022).

McDonald's could also consider adopting green logistics into its supply chain, which includes

optimizing routes for delivery vehicles to reduce fuel consumption and emissions, using vehicles

powered by renewable energy, and adopting practices to minimize waste (McKinnon,

2010).McDonald's can utilize digital channels to further its sustainability efforts. By offering

mobile ordering and delivery services, they can improve consumer convenience while potentially

decreasing energy usage and waste in-store.Integrating sustainability into its distribution

channels allows McDonald's to not only reduce environmental impact but also strengthen brand

reputation for sustainability - increasing customer loyalty and satisfaction in turn.

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4.Promotion Recommendations

Promotion is a critical element of marketing mix that communicates a brand's values and

offerings to its target audience. McDonald's can utilize various promotional strategies to

highlight its sustainable initiatives while more efficiently engaging its consumers.McDonald's

could use storytelling as an effective means of communicating its sustainability journey.

Engaging, candid tales about its efforts such as sustainable sourcing, waste reduction or energy-

efficient restaurants could create an emotional bond with consumers while strengthening

McDonald's brand image (González Herrera et al.2019).McDonald's can use its social media

platforms and website to effectively convey its sustainability efforts, engaging customers through

regular updates, infographics, videos and interactive content (Kietzmann et al. 2011). By keeping

its audiences abreast of these initiatives while showing its dedication to sustainability.

McDonald's could also consider partnering with environmental organizations or participating in

sustainability events to add credibility and co-promotion opportunities for its sustainability

claims. Hosting community clean-up events or sponsoring local environmental initiatives would

clearly demonstrate McDonald's dedication (Austin & Seitanidi, 2012).Educational marketing

can also be an effective strategy. By informing consumers about the environmental and social

effects of their food choices, McDonald's can position itself as a brand that cares about both

customers and planet. For instance, this could include providing information on benefits of plant-

based foods or importance of sustainable packaging (Kotler et al. 2019).McDonald's could also

consider running sustainability-themed campaigns to build awareness around its efforts and

motivate consumers to support its initiatives.McDonald's can enhance its brand image and

customer loyalty while potentially opening itself up to new audiences that value sustainability by

successfully publicizing its sustainability efforts.

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5.Application of Theories and Frameworks to Recommendations

McDonald's sustainability marketing mix recommendations are informed by various theories and

frameworks.The Triple Bottom Line (TBL) theory serves as the foundation of these

recommendations. According to this theory, businesses should prioritize not just economic

returns, but also their social and environmental impacts (Elkington & Rowlands 1999).

Following suit with this concept, recommendations such as local sourcing, energy efficient

technologies, green logistics systems and ethical sourcing practices help McDonald's enhance its

environmental performance, while actions such as providing plant-based food options or ethical

sourcing practices contribute positively to social wellbeing.Corporate Social Responsibility

(CSR) theory also informs these recommendations. According to CSR theory, businesses have a

responsibility to act in the best interests of society and the environment (Carroll, 1991). When

McDonald's engages in initiatives like sustainable sourcing, waste reduction or educational

marketing initiatives it demonstrates its responsibility towards stakeholders thereby reinforcing

its CSR image.

The recommendations also draw upon consumption behavior theory, acknowledging that

consumers' buying decisions are increasingly driven by sustainable considerations (Carrington et

al., 2010). Promoting plant-based options, offering transparent pricing structures, and

emphasizing their sustainability credentials are all designed to cater to this developing consumer

behavior.(Kotler & Armstrong ,2010)'s 4Ps framework is evident in McDonald's tailored

recommendations that target each area of their marketing mix (4Ps: Product, Price, Placement

and Promotion). These recommendations aim to align McDonald's marketing mix with

sustainability objectives while simultaneously increasing consumer appeal and increasing

business performance.Last, these recommendations align with the sustainability values and
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ethical considerations businesses are increasingly expected to uphold (Jamali et al., 2017). By

integrating sustainability into its product offerings, pricing strategies, distribution channels and

promotional efforts, McDonald's can demonstrate its dedication to these values and ethics.

Conclusion

In conclusion,the existing methodology used by McDonald's for marketing sustainable practices

is analyzed in this report along with suggestions on how improvements can be made. The

incorporation of social and environmental goals into McDonald's marketing strategy is apparent

from the analysis.The company is dedicated to sustaining sourcing practices that reduce waste

while simultaneously supporting energy conservation efforts, and such commitments promote

both Triple Bottom Line principles as well as those of Corporate Social Responsibility.Yet there

is scope for McDonald's to take its sustainability advertising initiatives up a notch. Adopting

green practices in logistics as well as local sourcing can help create a sustainable business model

for the company with healthier product options. Besides that, in order for McDonald's to

communicate effectively about its sustainability efforts, it must capitalize on promotional

strategies that help educate consumers on the environmental and social impacts of their food

preferences.It is probable that going forward McDonald's will maintain the importance of

sustainability marketing as a critical component in their overall strategy. Maintaining brand

reputation and customer loyalty for McDonald's necessitates a commitment towards integrating

sustainability into their marketing strategy as consumers become more conscious about the

environment. To improve upon and contribute towards creating a more environmentally sound

future through ethical practices that promote both social consciousness as well as financial

stability, McDonald's must continually evolve their approach to sustainability marketing.In

essence , by embracing greener marketing strategies which are both ethical and strategic choices
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can be made by corporations like McDonald's that will ensure their long-term survival and

growth amidst the rapidly changing marketplace.

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