2. 1. Introduction
2. Justification of our choice
3. Current CSR performance
4. Changes to strategy
5. Resources required for implementation of new
strategy
6. Conclusion
3. McDonald’s is the world-wide known fast food chain, which
entered Belarus in 1996 and since then has established and
maintained a strong position in the market.
4. Justification of the Company’s Choice
• The market is rather saturated with both direct and indirect
competitors, that is why some benchmarking is needed.
McDonald’s Burger King Texas Chicken KFC
Diversity of
products
Fish, chicken and beef
options; Plenty of desserts;
Breakfast menu.
Fish, chicken and beef
options; Plenty of
desserts; Breakfast menu.
Chicken options;
Desserts;
Alcohol drinks (beer).
Chicken options;
Desserts; Breakfast
menu; Alcohol drinks
(beer).
CSR Paper package; Charity
events (helping children)
Paper package Plastic package usage; Paper package;
Giving away stationary for
1st September
Location Inside options
Take-away options
Drive-in options
Inside options
Take-away options
Drive-in
Delivery
Inside options
Take-away options
Inside options
Take-away options
Drive-in
Number of
restaurants
15 restaurants 17 restaurants 3 restaurants 13 restaurants
Prices Higher than average Higher than average Lower than average Average
Main
advantage
Leading market position
and the highest awareness
Grill instead of using fried
oil
Low prices Highest variety of chicken
options
Promotional
offers
McMenu options with a
discount
“Menus” options with a
discount; Coupons
Combos options with a
discount; Lunch meals
at a reduced price
Combos with a discount;
Coupons; Presents for
holidays
Best option offered is marked in green
5. Justification of the Company’s Choice [2]
We see that the competition is quite severe now and McDonalds
has much space for improvement. There are two ways of how
McDonald’s can gain more competitive advantages:
1) Reach the level of its competitors in the characteristics
where McDonald’s underperforms: it can be promotional offers,
price, number of restaurants
2) To become outstanding by developing the features which
differ McDonald’s from its competitors.
We choose the second option!
We think that outstanding CSR policies can help McDonald’s to
achieve its strategic objectives, improve reputation and retain
clients. That is why the company has been chosen.
6. Current CSR performance
McDonald’s CSR strategy is rather strong in comparison with its
competitors. It is always looking for ways to reduce, reuse and recycle in
our restaurants and across our whole business. They:
• Use low energy LED light bulbs;
• Use energy and water saving equipment;
• Recycle the cardboard boxes used in more than 89% of our
restaurants, and more than 85% of our packaging is made from
renewable resources;
• Support both world and local sporting events (In its history
McDonalds in Belarus supported more than 15 organizations for
the development of sports and sport clubs in the country worth
over 1,5 million US dollars.)
7. Current CSR performance [2]
• Collaborate with the Belarusian Children's Hospice since 2012 (During this
time, within the framework of McDonald’s charitable initiatives, over half a
million US dollars were collected to support the Belarusian Children's Hospice,
the Vitebsk Specialized Children's Home and 13 other children's organizations
in the country.)
• McDonald’s permanently acquires vital equipment, in particular, sponsored
the construction of an elevator for wheelchairs, the construction of a house
for volunteers and other projects. The construction of a hotel for parents at
the Belarusian Children's Hospice, which opened its doors in 2015, became
the most important stage in the charitable activities of the company. And
McDonald’s not only built and equipped it with everything necessary, but
continues to maintain it.
• In the summer of 2018, McDonald’s fulfilled the dream of one of the wards of
the Belarusian Children's Hospice (It accompanied a member of the finalist
team to the field at FIFA World Cup 2018)
8. Organizational objectives: to strengthen and maintain leading
position in the market (through the highest market share).
This will be achieved with the help of strengthened CSR policy.
Environment
protection
Planting trees next
to the McDonald’s
building.
Purchase more pieces
of energy efficient
equipment for
kitchen
Cans and plastic
bottles recycling
Tesla car for
food delivery
Bicycles
usage
• Provide a facility,
where people will put
their used cans and
plastic bottles for
recycling purposes.
• By doing this they will
get a receipt with the
amount of 40 kopecks
per bottle and they
can use this receipt
while eating at
McDonald’s .
• During summertime get 10% discount
for McDrive purchase if you come to
McDonald’s by bike instead of a car.
9. Education
Scholarship funds
Employees
education fund
• Provide scholarships for 3
Belarusian students for
studying in either
Netherlands or Germany or
Sweden (provide a case
study connected with
further development of
McDonald’s and reward
those who provide the most
creative solution)
• Extra funds provision
for education of
those working for a
long time
Aim: to attract youth’s interest to the company and to provide higher level of employees
commitment and loyalty
10. Education
More healthy
choices for happy
meal’s options
Other activities
• Yogurts and more
fruit and vegetables
can be offered.
Contribution to
disaster relief
Financing eco-projects/
projects for disabled
people of Belarusian
students on the basis
of competition
• Gathering funds
from beverages
sale and sending
them to the areas
suffered from
disasters
• To provide a grant
of $1000 for the
implementation of
the best initiative.
8 hours per month
devoted to employees’
volunteering in the
spheres they like
Aim: to attract new customers with the help of highly socially
responsible activities and healthier children options
11. Resources
Tesla car for food delivery $ 80,000
Purchase more pieces of energy
efficient equipment $ 15,000
Bicycle usage 10% from the order can be sacrificed
Planting trees Trees seedlings: $ 30 for 1, approximately $900 for placing 5 trees
next to each restaurant with the free space for it
Cans and plastic bottles recycling Reverse vending machine purchase
Education fund 7% of the company’s profit
Scholarship fund $120 000 for three students
Projects financing $1 000
Contribution to disaster relief 10 cents from every drink purchased should be sacrificed
More healthy choices for the
McMenu
Extra supply costs for new menu options
+ time + people (good marketers (primary through social media), reliable suppliers,
willing to change the world employees)
12. • As we can see McDonald’s in Belarus has rather good CSR strategy,
which allows it be called it really socially responsible.
• Market is really saturated and some improvements should be made by
McDonald’s to maintain leading market position.
• New CSR strategy can be a good way to accomplish McDonald’s strategic
goals
• Much attention should be placed to environmental and educational
issues.