Prelim EXAM TOTAL QUALITY MANAGEMENT

Case analysis

I.

POINT OF VIEW
This is a pollution prevention in corporate strategy case wherein mcdonalds company
has its environmental strategy in terms of their products and services. They provide
good, convenient and harmless techniques to accommodate the consumers and also
the environment around them. They study and release good quality services to be able
to attain the trust of the people in terms of food services.

II.

BRIEF SUMMARY
McDonald Company has its Environmental Strategy to provide safe, clean and good
services.
In the first place, McDonald is a food company or restaurant that provides quick,
clean and quality sevices. They emphasize to the costumers convenience that
McDonalds self-description as a leader in the quick-service industry, rather than the
fast-food industry. But, they still aim for much higher quality specially in helping the
environment and lessen the destruction of the earth. They have different strategies
like joint taskforce, source reduction, reuse, recycling and composting in addition to
their quality service.
All these things worked together and help the community and the consumers and also
in protecting the mother earth. Until now McDonald preserve their integrity as a
clean, safe and quick-service industry.
A summary of McDonalds environmental strategy is provided, including an excerpt
from the corporations policy statement declaring the importance of being an
environmental leader. Background information on the formation of the joint task force
with EDF and on EDF itself is covered.
The case then goes into more depth on environmental efforts proposed by the task
force relating to source reduction, reuse of materials, recycling, and composting
(presented in order of the U.S. EPA waste management hierarchy).The case concludes
with a discussion of the growing importance of environmental groups in terms of
public confidence. The joint task force was one of the first high-profile, collaborative
efforts between business and an environmental group. As such it posed opportunities
and challenges for both parties. EDF hoped it would become a model to be used by
other companies. but risked being accused by environmentalists of selling out.

McDonalds hoped it would give them needed credibility with their customers;
however, potential task force disputes could
further hurt their position. The case concludes by raising the issue that businesses
today face an increasing credibility gap with the public.
However, environmental groups are trusted by the public. As a result, environmental
organizations are rapidly adding members as individuals seek to understand and
monitor corporate environmental practices. Yet despite educational efforts and various
environmental initiatives, McDonalds reputation was eroding. The supplementary
note on the Trash Crisis gives the reader additional information on U.S. disposal
practices and issues relating to landfilling, incinerating, recycling, and composting
trash that will aid students analysis of the case.

III.

STATEMENT OF THE PROBLEM/OPPORTUNITY

The McDonalds case series is comprised of three cases, two supporting notes and a
video that lay the foundation for an active discussion of a broad range of
environmental management issues regarding how to develop partnerships between
businesses and environmental groups, how to use life cycle analysis (LCA) for
decision making, and how environmental issues impact corporate strategy. The series
was designed to be taught as an MBA elective corporate strategy course on
environmental management. However, it has been tested with both MBA and Natural
Resources students. It would also be appropriate for an executive education program.
This series of cases focuses on the work of a Joint Task Force of McDonalds Corp.
and the Environmental Defense Fund (EDF); first, as it addresses McDonalds solid
waste management strategy and second, as it poses the question of whether or not to
replace polystyrene packaging with paper wrap. This series allows students to
consider how environmental issues affect corporate strategy, how selecting
appropriate partners can build credibility, and how to frame decision making in
situations of limited information and conflicting perspectives.

IV.

OBJECTIVES

The purposes and objective of the organization is to provide clean, safe and
quick services to the community and consumers.

They are now on the stages of implementing the strategies of what data and
information they have gathered and correct the inconvenience that was made.

The organization exist in the external environment wherein there is a threat

and opportunity.

CONTRIBUTIONS OF THE INDUSTRY

A. Technological aspects
McDonald contribute an example of quick and clean services because of
their carefully designed equipment for its restaurant that shows how all
foods flow from the back of the kitchen to the front as it is prepared, and is
placed in a heated food bin awaiting costumer delivery.
B. Socio-Cultural
An important component of McDonalds operational strategy is to
anticipate costumer traffic patterns and food selection based on a detailed
analysis of sales history and trends to use this information to prepare
various menu items in the right quantities and at the right times in order to
have the food ready for their costumers when they arrive.
C. Economic
The case then goes into more depth on environmental efforts proposed by
the task force relating to source reduction, reuse of materials, recycling,
and composting (presented in order of the U.S. EPA waste management
hierarchy).
D. Political/Legal
The case concludes with a discussion of the growing importance of
environmental groups in terms of public confidence. The joint task force
was one of the first high-profile, collaborative efforts between business
and an environmental group. As such it posed opportunities and challenges
for both parties. EDF hoped it would become a
model to be used by other companies. but risked being accused by
environmentalists of selling out. McDonalds
hoped it would give them needed credibility with their customers;
however, potential task force disputes could further hurt their position.

V.

ALTERNATIVE COURSES OF ACTION

Alternative Course of Action 1 Joint Task Force Strategy
Pros
Cons
Potential high impact/good educational
Potential risk to reputation EDF could
opportunity McDonalds serves 18
be accused by other environmental
million customers/day plus suppliers
groups of selling out
worldwide
Alternative Course of Action 2 Citiznes Clearinghouse for Hazardous Waste
(CCHW)
Pros
Cons
McDonalds was under fire from
Opening the company up to
consumer and environmental
scrutiny could be potentially
groups McToxic/McPuff
embarrassing
Alternative Course of Action 3 conservation
Pros
They needed credibility as they

had already switched from paper

to polystyrene (clamshell) once
based on the SRI study; EDF had
expertise.

VI.

Cons
EDF may not be able to deliver
the environmental community,
that that community feels that
EDF has compromised their
position

CONCLUSION/RECOMMENDATION
McDonalds has seen many changes, good and bad during its creation and
duration of the business. Every issue and challenge the corporation faces, it has the

opportunity to improve itself and prove itself to the public, shareholders, and
stakeholders. With every battle conquered, another one rises and with a secure
mission and vision in mind, the corporation should never stray too far from the roots
and success of the company. The recommended strategy will strengthen this plan
because it is doing what McDonalds does best and more so. Despite the downturn the
company has seen, the general impression we receive from McDonalds financial
situation is that the company is slowly climbing out of a low period and making a
turn. The must never forget the key success factors of the business which really
makes the business is what it is today, including franchises that offer quick, efficient
service in a clean friendly environment.

VII.

PLAN OF ACTION
Action

Improvement for
operation of the business
firm

Proper waste disposal of

polysterine (clamshell)
Create an economical and
environmental recycling
process

Resource Allocation
Managing McDonalds
interaction with local
and national news
media as well as
providing
communications
counsel, support, and
training to the
companys corporate
and regional
management and local
owner-operators.
hazardous and solid
waste management
Recycling and
Incineration

Responsible Person

Time Frame

Tern K. Capatosto,
Director of
Communications,
McDonalds
Corporation.

6 months

Richard A. Denison,
Senior Scientist, EDF.
John F. Ruston,
Economic Analyst,
EDF.

3 months
7 months