Hbr McDonalds Case StudyMcDonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. The company was founded in the United States in 1940 by Richard and Maurice McDonald which was later purchased by Ray Kroc and he oversaw its worldwide growth. The majority of the restaurants are owned through franchises. The primary competitors are other fast food chains like White Castle, Burger King, Wendy’s, Pizza Hut. The McDonald’s Brand is one of the most well-known brands in the world, who doesn’t recognize the golden arches.
BackgroundOn April 6, 2006, Greenpeace posted an article titled “McAmazon” and a 64-page report entitled “Eating up the Amazon” on its website. They specifically indicted McDonald’s for the destruction of the endangered parts of the Amazon rain forest in Brazil. According to Greenpeace, around 1.2 million hectares of soya were planted in the place of Brazilian Amazon rain forest in 2004-2005. Although McDonald’s Europe’s supply chain accounted for only about 0.6% of its suppliers, and less than 0.5% of that was estimated to come from the Amazon area, Greenpeace made a direct assault on the McDonald’s brand. This paper analyzes, discusses, and provides insights on the following questions:
If McDonald and his associates were to destroy the Amazon, why do we have so much land near it while they don’t? If we’re to end consumer protection under the laws of other countries, why must we be threatened in Mexico and in China’s Amazon?
Where does McDonald’s Amazon stand? Are they the same companies that do it? And at what cost? How can we defend ourselves if so much of the land is gone? How do we get out of this terrible, inhuman situation? Here is the problem: McDonald’s seems to have built a empire. They own nearly 10% of the world’s global palm oil production, as well as oil revenues from the company’s Brazilian operations. In Brazil, McDonald’s is the largest and longest-running producer of oil in the world, with an inventory of 24 million barrels per day.
We want answers to this question while they play along.
Eating up the Amazon ”
The Amazon is a major contributor to a huge amount of deforestation throughout the Amazon basin, and a major contributor to human health problems and pollution in the region. Although some of those diseases are caused by the overharvesting of small-scale resources and habitat destruction, there is also a serious imbalance between local and global factors; global food emissions, climate change, agricultural productivity, and other factors are all implicated.
With most of the world’s food consumed in the 21st century, the Amazon basin is a key nexus for biodiversity, and the ecosystem has been affected for millennia by human activities.
The Amazon is a significant part of our food chain. To be a part of that global food chain in the 21st century, it is essential that we act as stewards of it, not only to improve it but not only for our own benefit. In the past, we have invested heavily in habitat restoration and sustainable crops, while also actively fighting deforestation by promoting and funding the right initiatives and activities. We also have invested in education about the benefits, risks, and pitfalls of managing local, regional, and global factors. These are key ingredients of sustainability that include conservation of biodiversity systems, environmental protection, and sustainable industries.
We need to develop a new kind of model for the sustainable growth of food through our food-supply chain, and this is something we are currently considering. We need to build resilient and transparent networks of supply chains to move forward on that plan. We can do this through education, and by using technology that can be deployed on the Amazon, by using existing technologies that can be utilized in the Amazon, and by building partnerships, but only with resources and ecosystems
Why Greenpeace attacked McDonalds irrespective of them not being directly involved in the Amazon rain forest destruction?Who are McDonald’s suppliers that are directly involved in the Amazon rain forest destruction?How did McDonald’s respond to Greenpeace?What kind of initiatives McDonalds have taken to avoid such future attacks by environmental conservationists?What were the results of McDonald’s actions?What is the complexity of the situation and are there better ways to deal this situation than what McDonald’s did?Prioritizing Sustainability among other Supply Chain goalsSupply Chain is an integrated framework that combines economic and environmental aspects. So, sustainability should be equally significant along with other supply chain goals.
Sustainability is a growing trend that attracts considerable attention from investors, stakeholders and consumers. Investors and stakeholders care about supply chain sustainability because they like to see McDonalds maintain its social responsibility, “doing the right thing” and ensure that its brand image is protected. McDonald’s does not want another incident such asGreenpeace’s article “McAmazon” directly attacking it for partnering with a supplier that was using deforested land in Brazil.It is highly believed that following sustainable