BUS7B27 Implementing Strategy Assignment Sample
Introduction
Implementation strategy is the plan, which allows an organisation to reach out to the company’s objective and goals. The success of the firm depends upon the capacity to implement sustainable decisions and execute it in an effective manner with accurate consistency. The following assignment is based on the implementation strategy on the basis of McDonald’s. In this context, a brief company background will be provided to understand the potential position of the organisation in the marketplace. Adding to this, the assignment will focus on the plastic reduction strategy proposition of the organisation. Excessive utilisation of plastic can lead to several challenges and issues for the environment, which will reflect a negative impact over the lives of every living being. In this relation, the organisation will be taken into consideration for highlighting all the existing approaches along with understanding the requirement of improvement. Moreover, the assignment will shed light upon McDonald’s plastic reduction strategy along with strategic goals as well. Adding to this, the strategic statement and risk will be highlighted along with the organisational resources and capabilities. Furthermore, the assignment will also provide the implementation of strategy, which will allow the organisation to get improved with its operation in the marketplace efficiently.
Company background
Figure 1: Company Logo
(Source: McDonalds, 2021)
McDonald’s is a fast food company, which was founded in 1940 as a restaurant by Maurice and Richard McDonald’s in San Bernardino, California. The headquarter of the company is in Chicago, US and serving several locations around the globe. The restaurant is present in more than 38,695 locations (McDonalds, 2021). The key people associated with the company are Chris Kempczinski as president and CEO along with Enrique Hernandez Jr. as chairman. Significant products, which are sold by the company, are hamburgers, French fries, chicken, soft drinks, salads, desserts, milkshakes, hotcake, breakfast, coffee and wraps. Total numbers of employees employed under the company are approximately 210,000 as of 2018 and about 1.9 million if all the franchises are included as of 2015 (McDonald’s, 2021). The revenue generated by the company as of 2019 is US$21.076 billion. Furthermore, by revenue, McDonald’s is the world’s largest chain of restaurants. On a daily basis, McDonald’s serves more than 69 million consumers in over 100 countries. Moreover, according to two reports published in 2018, McDonald’s is the world’s second largest private employer with around 1.7 million employees after Walmart with 2.3 million employee base (McDonald’s, 2021). McDonald’s has a brand valuation of ninth highest in the world as of 2020.
1. Plastic reduction strategy proposition
1.1 Plastic reduction strategy
By 2025, McDonald’s wants to substantially cut the amount of plastic in their Happy Meal toys around the entire globe. The fast-food powerhouse said Tuesday that it is collaborating with toy manufacturers on innovative concepts like three-dimensional origami characters that kids can construct or board games using plant-based or repurposed pieces (Outlook, 2021). McDonald’s also mentioned that they are looking into making new dining platters out of recycled plastic toys. The food chain claims that the revised objective will minimise conventional plastic use by 90% compared to the previous years. McDonald’s restaurants in the United Kingdom and Ireland currently solely sell paper-based toys, soft toys and books and similarly discarded plastic straws too (Outlook, 2021).
Figure 2: Straws discarded by McDonald’s
(Source: Love, 2018)
Their business’s needs to include improving manufacturing efficiency and working toward recycling and reuse. These techniques promote long-term company viability, environmental protection for future generations and community clean-up as well (McDonald’s, 2019). Their packaging is one of the most promising sectors. It helps companies reduce wastage while also allowing them to provide hot, freshly cooked food to consumers efficiently and reliably. Furthermore, the company understands that improper manufacturing and plastic waste extraction and processing can have a detrimental effect on the environment, resulting in pollution and contamination. Furthermore, the brand has found to be taking initiatives in this market segment as they realise about the impact and effect of plastic over the environment and stated “We realize the linear economic model – where we take, make and dispose of materials – can create waste that harms nature and impacts communities. That’s why we believe the future of materials needs to be circular wherever possible” (McDonald’s, 2019).
Proposed strategy – Reducing plastic usage to 100% by 2030 through eco designs, encouraging consumers to plant trees, reusable containers and cutlery, and others
In this context, McDonald’s have to strategize their eco design along creating certain programmes that will encourage the consumer to reduce the plastic wastage. Furthermore, the organisation needs to follow reusable cups, bottles, and straws along with looking to provide paper bags as well. Adding to this, the food chain organisation has to provide reusable containers and cutlery that will be an efficient move for the take out foods.
1.2 Strategic goals
| Objectives/Goals | Specific | Measurable | Achievable | Relevance | Time bound |
| To improve sustainability in the organisation | Need efficient focus on sustainability measures | Proceeding towards being carbon neutral in the marketplace | To have a better and advanced sustainable practices in the business operation | It helps in enhancing the lifestyle and business operation | In next 2 years |
| To ensure reduction in plastic wastage | Undertaking certain initiatives like using paper toys, bags, cutleries instead to avoid plastic usage | Proceeding towards obtaining all the approaches like planting trees and rewarding shoots r small plants to consumer in return of bulk orders to save the environment as well the maintaining best practices in organisation | Utilizing less plastic along with spreading awareness as well and it will help in decreasing the amount of production and generation of greenhouse gas emission | As the company has already made progress in reducing plastic usage by 90% through this objective the company can achieve their goals of reducing plastic usage by 100% | In next 5 year |
| To reduce the carbon emission | Contributing in the reduction of carbon footprint by using electric vehicles in transport system | By the use of electric equipments and vehicles in their operation as well supply chain McDonald’s can proceed towards reducing the air pollution and its harmful implications over the living beings as the company | Saving the environment with better operational practices like following the 3R rule of reuse, recycle and reduce. | It will improves the climate and the atmosphere which will somehow ease up the burden of healthcare facilities | In next 5 years |
| To have an environmental friendly approach in the organisation | For attracting new customers along with being cost efficient | Attaining better position in the marketplace with sustainability practices which will eventually allow the business to retain most of the customers | To have a better brand across the marketplace along with attaining competitive advantages as well | Improves sustainability along with encouraging good practices in the marketplace | In next 9 months |
Table 1: Strategic goals SMART objectives
1.3 Strategic statements
The existing strategic statements of McDonald’s look forward to ensuring a plastic free environment due to which the company has focused on cutting down 90% plastic usage in Happy meal toys by 2025. A focus is also kept by McDonald’s towards recycling as an integral part of advertising waste materials along with 100% packaging source from recycled materials. With regards to this concern, the new strategy has been profoundly aligning with the organisational existing strategic statements. The existing strategic statement of McDonald’s highlighted ethical operations for achieving their mission of emerging as the favourite place for customers (McDonald’s, 2021). In this aspect, the new strategy highlights the conceptualisation of eco design branding along with the usage of recyclable cups and containers. The consequences of plastic bags will be avoided as per this new plastic reduction strategy, which eventually signifies the consequences of the plastic reduction target undertaken by McDonald’s previously.
However, the new strategy has been maintaining a profound integration with the overall strategic approach undertaken by McDonald’s for addressing plastic bags and plastic usage in their operations. Moreover, the new plastic reduction strategy might also add a greater value to enlarge the sustainability framework of McDonald’s with the consideration of eco-design branding.
1.4 Strategic risks
The increase in the plastic generation has severe implications on the environment along with the ocean life, therefore strict restrictions have been placed by the governments on the companies such as McDonald’s in respect to reduction of the usage of plastic. Companies need to adhere strictly by the rules and regulations placed, otherwise it can encounter several risks accompanied with major penalties and charges against the company which can result in huge loss in terms of revenue as well as goodwill. Furthermore, along with risks associated with the hampering of the surrounding environment, plastic can extensively hamper the health of consumers as the high temperature can tamper with the plastic and can impact negatively on the food which can eventually create issues in the health of consumers. Therefore, the concerns are rising with the plastic reduction in McDonald’s. In Britain, the drive for plastic reduction has increased to great extent. As per the British Government, more than 100,000 marine mammals die due to the plastic either by eating or by getting tangled in it each year (Tsang, 2018). The risks are not only limited to the company, but also are extensive to the outside world due to which various measures are being adopted such as switching from plastic to paper straws and many others in order to control such risks. Several broadcasting channels in the television are broadcasting to spread awareness about such damages. Recently, a documentary series by BBC referring as “Blue Planet Ⅱ” has contributed massively in spreading awareness by broadcasting certain scenes which entails travelling of birds several thousands of miles across the ocean in order to feed their children plastic accidentally (Tsang, 2018). As per the reports, it was seen that McDonald’s in Britain alone uses 1.8 million straws of plastic which has a huge contribution on damaging the planet (Tsang, 2018).
These risks can be further mitigated by implementing several measures by the Government on McDonald’s. Last year, authorities of Britain have forced the company to charge for plastic bags and along with that have banned the production of certain items which have plastic microbeads. Alongside Britain, other countries such as China and others have taken this matter extensively seriously and therefore have taken various measures together for diminishing the production of plastic. Furthermore, in the recent few years, the company has aimed to cut on the plastic toys of Happy Meal by more sustainable toys made from recycled materials and cardboards (Aldana et al., 2019).
1.5 Organisational resources and capabilities
In order to recognise probable development of McDonald’s resources and capabilities to support the new strategy, tabular representation is provided below concerning the value chain analysis by highlighting the area of improvements.
| Value chain segment | Changes |
| Operation, Marketing and sales, services, logistics | The existing operations related to McDonald’s packaging concern are required to be modified with the provision of reusable containers, paper bags, and others. In this regard, McDonald’s needs to focus on considering green marketing strategy as an integral part of supporting eco-design branding (Popescu, 2020). Moreover, both the inbound and outbound logistics attributes of McDonald’s are required to be modified with the conceptualization of green logistics, which is also renowned as eco logistics. |
| Infrastructure, HRM, technology development, procurement | The organisational infrastructure should be modified by appointing a sustainability manager for addressing plastic usage. The company usually obtains sustainable procurement under the shape of responsible sourcing of materials for their product packaging (McDonald’s, 2021). However, McDonald’s needs to consider plastic waste for 3D printer filament, plastic fuel and others that can play a supportive role to cut down the usage of plastics in the operations of McDonald’s. The HRM approach of McDonald’s needs to comply with spreading awareness in reducing plastic usage in the workplace. |
Table 2: Development of resources and capabilities via value chain modification
2. Implementing the strategy
In order to highlight strategic implementation, a tabular presentation is provided below.
| Strategic goals | Action steps | Responsible person | Resources | Time frame | Impact on the organisation |
| Improvement of sustainability | Abiding by the United Nations (UN)sustainable development goals (SDG) | Organisational leadership, board of directors, top management and others | Technological advancement for reducing plastic waste, supply chain digitisation | 8 months | Improved sustainability concerns can benefit McDonald’s with a prolific focus on reducing carbon emission and plastic usage. The company might also be able to ensure profound reduction of plastic waste generation as a sequential part of ensuring sustainability (Kiseľáková et al., 2019). In the case of following the UN SDG, McDonald’s can also be able to improve their brand value and recognition over the current market concerning sustainable operations. |
| Reduction of plastic usage | Provision of paper bags instead of plastic bags and containers | Organisational leaders, operation manager, CEO | Paper bags, recyclable containers | 4 months | It can highly benefit McDonald’s with a profound reduction in the generation of plastic waste materials (Horvath et al., 2018). As a result of this, McDonald’s can improve their market position with the measure of reduced plastic usage. |
| Cutting down the rate of carbon emission | Eco-friendly branding, reduced plastic waste generation, setting 100% carbon neutral targets | Operation manager, marketing and sales manager | Strict policy for achieving net-zero carbon emission within 10 years | 3 months | McDonald’s might be able to improve their carbon footprint with this action step where the organisational operations might be deducted under sustainable concerns. For example, it can be stated that McDonald’s can play a leading role to the welfare of the environment by reducing the consequences of air pollution (Kwilinski et al., 2019). |
| Configuration of eco-friendly approach | Sustainable procurement, extended focus to reduce plastic waste | Operation manager, HR manager | Measurement of environmental impact of the company operations | 6 months | The consequences of eco-friendly branding can add a greater value to enlarge the brand value of McDonald’s within the measure of sustainability. Moreover, improved credibility for sustainable operations can eventually impact McDonald’s in a positive manner regarding the usage of recyclable materials and products along with energy reduction, improvement of carbon footprint and others. |
Table 3: Strategic implementation
With the consideration of the aforementioned strategic goals and action steps, McDonald’s might obtain adequate opportunities to improve their market position concerning the maintenance of a sustainable operational framework.
Summary
McDonald’s is planning to reduce the carbon footprint by avoiding the usage of plastic in their products. In recent times, the plastic disposal has caused serious environmental issues. Plastic cannot be decayed naturally and thus stays in the environment. According to reports, a huge number of animals died due to plastic, especially sea animals. McDonald’s plans to change their packaging system by introducing paper products that can be easily recycled. The company is facing serious threats in terms of plastic production in the form of toys and food packaging, which can lead to a legal case against the company. The legal case can result in the loss of revenue for the company as well as demolition of its brand images. Thus, in order to mitigate the threats severe strategies are formed keeping in mind its sustainability aspect. The organisational leaders need to take effective decisions, which need to assess the purpose specifically. In this research the strategic goals, statements, risks and the role of McDonald’s are analysed in detail. From this information, it can be learnt that the company is performing in an effective manner in order to reduce carbon emission. The risk management department needs to analyse the risks in an effective manner.
References
Aldana, M., Anselmi, P.D.S., Ayala, M., Burns, J., Cogdell, R., Dilallo, C., Drane, L., Estevane, E., Ethridge, B., Fenn, K. and Gomez, F., (2019). Boosting Just-in-Time Supply Chain Innovation through Additive Manufacturing: A Transdisciplinary Educational Experience. https://scholar.archive.org/work/wehwg2zmq5dvjl5uvrkfzupto4/access/wayback/https://www.atlas-tjes.org/index.php/tjes/article/download/140/133
Horvath, B., Mallinguh, E. and Fogarassy, C., (2018). Designing business solutions for plastic waste management to enhance circular transitions in Kenya. Sustainability, 10(5), p.1664. https://www.mdpi.com/2071-1050/10/5/1664/pdf
Kiseľáková, D., Šofranková, B., Gombár, M., Čabinová, V. and Onuferová, E., (2019). Competitiveness and its impact on sustainability, business environment, and human development of EU (28) countries in terms of global multi-criteria indices. Sustainability, 11(12), p.3365. https://www.mdpi.com/2071-1050/11/12/3365/pdf
Kwilinski, A., Ruzhytskyi, I., Patlachuk, V., Patlachuk, O. and Kaminska, B., (2019). Environmental taxes as a condition of business responsibility in the conditions of sustainable development. Journal of Legal, Ethical and Regulatory Issues, 22, pp.1-6. https://search.proquest.com/openview/2d2525630e2439da8de19163a306fbee/1?pq-origsite=gscholar&cbl=38868
McDonald’s, (2021). About Us. https://www.mcdonalds.com/us/en-us/about-us.htmlMcDonald’s,(2021).Mission&Vision. https://www.mcdonalds.com.my/company/mission-vision
McDonald’s,(2021).ResponsibleSourcing. https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/food-quality-and-sourcing/responsible-sourcing.html
McDonald’s, (2019).Waste. https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/our-planet/packaging-and-waste.html
Outlook, (2021). McDonald’s Plans To Go Green By ‘Drastically’ Reducing Plastic In Happy Meal Toys. https://www.outlookindia.com/website/story/business-news-mcdonalds-plans-to-go-green-by-drastically-reducing-plastic-in-happy-meal-toys/395316
Popescu, C.R.G., (2020). Analyzing the impact of green marketing strategies on the financial and non-financial performance of organizations: the intellectual capital factor. Green Marketing as a Positive Driver Toward Business Sustainability, pp.186-218. https://www.igi-global.com/chapter/analyzing-the-impact-of-green-marketing-strategies-on-the-financial-and-non-financial-performance-of-organizations/232654
Tsang, A., (2018). McDonald’s to Switch to Paper Straws in Britain as Country TurnsAgainstPlastic. https://www.nytimes.com/2018/06/15/business/mcdonalds-plastic-straws-britain.html
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