McDonalds

If you were the CEO of McDonalds , how would you prioritize sustainability relative to other supply chain goals such as food safety and cost management

2 . In what ways are these goals compatible and in what ways do they conflict

3 . How can McDonalds plan for and mitigate the negative effects of sustainability failures that are not due to its direct actions

4 . How well is McDonald 's supply chain sustainability vision aligned with their business strategy

As CEO of McDonald 's , I would prioritize sustainability relative to other supply

chain goals such as food safety and cost management by taking into consideration consumer concerns

The company 's vision for sustainability is one that profitably yields high quality , safe products without supply interruption while creating a net benefit for employees , their communities , biodiversity and the environment

In to make this vision a reality , McDonald 's VP of Worldwide Supply Chain (Frank Muschetto ) in 2007 approved forming a committee called the Sustainable Supply Chain Working Group (SSCWG . It is the duty of the SSCWG to develop strategies and tools to accomplish McDonald 's vision of sustainable sourcing . One of the goals of the committee is to influence its suppliers to improve their social environmental and animal welfare impacts . This goal is being achieved already

Prioritization becomes necessary because the company also has other supply chain goals like ensuring food safety and minimizing costs

As CEO Jim Skinner confirms , customers will let the company know if there are issues with product or services , or whether they get the impression that McDonalds is socially responsible or otherwise

As a secondary measure , the company also depends on expert opinions when deciding on how to prioritize . This is because there are too many interest groups with valid opposing interests . The opinions of advisory groups like the Animal Welfare Council and International Scientific Advisory Councils are sought on animal welfare and other issues

The goals are compatible because they reinforce trust in the McDonald 's brand . And trust is the most valuable asset of the company . However the goals could conflict . An example is where the company stood in support of organized efforts against overfishing , in the short term , to ensure sustainability of fish supply for the Fish-o-Fillet product in the long run . Even though overfishing may support McDonald 's goal in the short term , in the long run it will be a threat to marine biodiversity and fisheries and this will lead to lack of fish for the Fish-o-Fillet product . Some sustainability initiatives could benefit the company financially . For example , by reducing the use of energy or by removing the need of packaging , the company could save money . However , some other initiatives could cost the company in the short term but will deliver long term results like better trust in the brand (which will ultimately lead to more profits . However , considering that this company exists in an industry that competes on low price , high value , these decisions are taken with careful consideration by balancing...