McDonald's formed a task force with the Environmental Defense Fund to reduce solid waste from its operations. The task force designed a comprehensive action plan that identified initiatives across McDonald's operations to reduce, reuse, and recycle materials according to their impact on customers, suppliers, franchisees, and the environment. Lessons from the collaboration, such as considering multiple stakeholders and a holistic approach, could help McDonald's develop continuing competitive advantages through environmental solutions.

1. Submitted By: Group No-9
● Abhinav Kumar
● Vishal Raj
● Saurabh Sandilya
● Amritanshu
● Gaurav Vats
● Abhishek Sinha
Submitted To: Prof. Vijaya Bandyopadhyaya
McDonald’s Cooperation Case

2. Q.1) What attracts you to McDonald’s? Explain McDonalds Value
proposition. How does McDonald’s operating system deliver the
value proposition?
• What attract me:- the product and a strong brand. McDonald’s is incredibly easy to want and to
get that’s all it is. And the price is not too high. The drinks make people hungry so they buy more
food. It’s urge people see the golden arches and get a feeling to some. It’s almost on par with the
feeling a drug addict has when they see a drug dealer.
McDonald’s value proposition :-
 Convenient location
 Comfortable seating and in-store facilities
 Fast and efficient service
 Distinct food
 Good value offering and pricing
 A broad range of food choices- suitable for verity of ages.
• McDonald’s operating system deliver the value proposition by quality of their product, the speed
and quality of their services, and the cleanliness of the restaurant, that they would be gladly
tossing you their money. Fast service and tasty inexpensive food.

3. Q.2) Which characteristics of McDonalds production system
have been most important in building its record of success and
growth in the industry?
• The uniform operating system, taste and service in every McDonald’s
outlets at every time.
• McDonald’s was very particular in quality of the raw material they
used and very concerned with their suppliers.
• Their concern over the franchises and make them to feel as one of
their partner and to work towards prospective.

4. Qno 3) Explain how McDonald's developed its supplier base. How did the
relationship with supplier help the organization achieve growth?
• A simple handshake secured every arrangement between McDonald's and a
supplier and it symbolized the way McDonald's revolutionized the entire
relationship.
• The established supplier refused to accept McDonald's concepts and specification
and continued to concentrate solely on the retail market.
• Only small fledging suppliers were willing to gamble on McDonald's and in turn
McDonald's created a whole new set of major institution vendors.
• Each McDonald's restaurant ordered 1800 pounds of hamburger meat per week
and 3000 pounds of potatoes. By meeting McDonald's strict standards and price
requests, supplier were guaranteed future volume from a burgeoning restaurant
chain.

5. Qno 4) Compare McDonald's operation strategy with a typical restaurant
specifically with respect to how it grows over the years?
• McDonald's had built its success on a legendary operating system that amazed
competitors and the financial community by generating an average annual return on
equity of 25.2% from 1965 through 1991 and on average annual growth of 24.1%.
• Consumers were changing in addition to an increasing yet variable concern for healthy
food there was growing concern for the environment among consumers. Aware of the
growing importance of environment stewardship, McDonald's had recently undertaken a
bold collaboration with the Environment defense fund which seemed to offer some
concrete methods by which operations could adapt to the benefit to the environment.
• McDonald's designed its operating system to ensure consistency and uniformity across
all outlets. Operating procedures guaranteed the same quality food and service visit after
visit ,store after store.
• McDonald's operating system concentrated on four areas :improving the product
;developing outstanding supplier relationship; improving equipment; and training
franchises.

6. 5. Explain how McDonald’s effectively linked its operations to its
competitive strategy?
• McDonald's major operational practices include:
a) Delivering goods to customers' homes and offices
b) Operating its branches 24 hours a day
c) Seven days a week
d) Commitment to environmental protection.
e) Persistently working on the item.
f) Reusing
g) Making breakfast accessible during the entire day is an
instance of best practices

7. 6. Explain McDonalds approach to innovation (in terms of
bringing new products to market) with examples.
 The Egg McMuffin-When a slice of cheese and bacon were added, Mcdonald`s
had developed the cornerstone product of its breakfast menu.
 McDonalds`s rolled out a complete breakfast menu in 1976 that includes Egg
McMuffin,hotcakes,scrambled eggs,sausage and Canadian style bacon which
distinguished them from its competitors.
 New products like Filet-o-Fish sandwich and Chicken McNuggets a modified
hamburger was a result of collaborative effort b/w suppliers and McDonald`s
which further results in deriving 7.5% of domestic sales and hamburger business
became 2nd largest chicken retailer in the food service industry.
 To address concerns about nutrition, McDonald`s had introduced
Salads,chicken,Muffins, 91% fat-free burger-McLean Deluxe and chicken fajitas.
 Complete Children`s meals include Sandwich,fries,drink and toy in colorful box.

8. Q 7) What are the primary new challenges McDonald’s faced in
the 1990s? How have competitors been able to successfully
enter McDonald’s marketplace?
• McDonald’s the long time leader in the fast food wars, faced a crossroads
in the early 1990s. Domestically sales and revenues were flattening as
competitors like on its domain.
• In addition to its traditional rivals burger king Wendy’s, and taco bell the
firm encountered new challenges. Sonic and rally’s competed using a back
to basics approach of quickly serving up burgers, just burgers for time less
consumers.
• On the higher end olive garden and chili’s had become potent competitors
in the quick service field taking dollars away from McDonald’s which was
firmly entrenched in the fast food arena and hadn’t done anything with its
dinner menus to accommodate families looking for a more upscale dining
experience.

9. Q8). What are McDonald’s choices for the future? What options
should it consider to return to the growth of the past? Should it
introduce family dining?
• McDonald`s choices for the future will the company could rely on its
traditional recipe based on consistency and quality through
standardization, one which had made it the beauty of success in the
quick-service business.
• To return to growth of the past by allowing even more franchisee
autonomy and continuing to provide a good variety of offerings and
services in its restaurants.
• McDonald`s should try to develop a connect with the society so as to
reappear and regain its position as a family restaurant in the Indian
community. Simple initiatives like joining hands with orphanages, and
highlighting the power of nostalgia by bringing back the toys are of all
ages kids of campaign should be undertaken.

10. Q9.Why do you think McDonalds went in for collaboration with the EDF when
it was already having the McRecycle USA program? Do you think the
collaboration increased the challenges for the company
• McRecycle USA program called for McDonald`s to spend $100 million using recycled product
when constructing, renovating, and equipping the outlets in the United States.
• But it went in for collaboration with the EDF. EDF is basically environmental defense Fund
founded in 1967 in long island, New York to stop the spraying of DDT, a pesticide which
threatened birds by causing their eggshells to thin.
• EDF is one of the most nation`s respected and effective public interest organizations
working to protect the environment.
• McDonalds collaboration with EDF to help assess the company`s solid waste stream and
explore ways to reduce it.
• The collaboration increased the challenges for the company despite all the risks the
company felt that collaboration with EDF is worth it. They have to explore a variety of
different strategic alternatives and look for approaches which will find solutions and
produce result for environment.

11. Q10. Explain the activities of the waste reduction task force
for reduction of solid waste. Can the lessons learnt in the
recent collaboration with EDF help McDonald’s as it sought
solutions to continuing competitive advantage?
• McDonald`s joined two staff scientists and an economist from the Environmental
Defense Fund to form the Waste Reduction Task Force.
• The task force designed an action plan that met three criteria
 The first plan was comprehensive, covering all materials and all aspects of
McDonald`s operations.
 The task force identified an array of solutions and each complementing others.
 The task force distinct initiatives revolving around the environmental hierarchy of
reduction, reuse and recycling.
 The task force evaluated possible actions according to their effects on four parties
each consider equal importance for customers, suppliers, franchisees, and the
environment.
• The McDonald's-EDF partnership was at once constrained by this discursive
struggle over the environment and a constitutive element in the struggle itself.