Sustainable Product Strategy at McDonald's: An In-depth Analysis

This essay explores McDonald's sustainable product strategy, focusing on its alignment with the triple bottom line (planet, people, profit). It discusses initiatives such as sustainable beef sourcing, eco-friendly packaging, and nutritional improvements in menu items like Happy Meals and salad bars. The analysis covers how McDonald's addresses environmental concerns by reducing waste and using recycled materials, meets social responsibilities through employee support and community activities, and maintains profitability through innovative product offerings and co-branding strategies. The essay also highlights McDonald's efforts to engage with suppliers, franchisees, and environmental agencies to achieve its sustainability goals.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational behavior
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Sustainable product strategy of McDonald’s
McDonald’s follows sustainable product strategy in order to adhere with the triple bottom
line strategy of them (Hansen, McDonald and Mitchell 2013). The following sections will
discuss about the product portfolio of McDonald’s through which, they initiate the sustainable
strategy.
Mcdonald’s continues to find innovative and new techniques to strengthen its nutritional
profile of their menu items as well as retaining its potential customers. Here, good food includes
real ingredients, great taste and modern choices (Mcdonalds.com. 2018). McDonalds has
recently initiated its improved and sustainability measures. The new goal for social responsibility
and sustainability made a positive mode by consisting sustainable beef production. The
company is now focused on making a difference by changing its core business strategies. The
current trend of families for choosing milk and juices has led to the removal of soft drinks from
company’s Happy Meal menu selection (Carrig 2018). McDonalds also has set to increase its
energy efficiency in the majority of their company-owned restaurant. It has also reduced sodium,
salt, calories, sugar and saturated fat across its entire menu.
McDonald's supports sustainable production of beef. Since the year 2016, it started
purchasing beef only from the verified and sustainable sources. The company has implemented
proper monitoring and assurance to ascertain the effort made across supply chain. The company
is now sourcing 100% of its palm oil, coffee and fish only from the verified sources that
completely support sustainable productions (Horovitz 2014). The great tasting espresso and
coffee are brewed from high quality coffee beans. Moreover, proper scrutiny of the coffee
sourcing is done as it affects the long term growth of the company. McDonalds is now set to

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purchase 100% of their fiber-based packaging that is done through recycled and certified sources
(Gunther 2018). The fast food giant is now all set to achieve the environmental goals by suing
renewable and recycled sources for its customer packaging. All the restaurants are having the
recycling facilities. It serves 100% more vegetable, fruits, whole grains and low-fat dairy in nine
of its leading market. McDonalds has increased its in-restaurant recycling by 50%.
McDonalds is recently working with environmental agencies and local governments and
associations for improved or better packaging designs (Carrig 2018). Moreover initiated
customers and employees educations plans for achieving the sustainability goals. The company
has created the Global best related Sustainable supply and green environment McDonald’s
journey for sustainable products and sourcing starts from their suppliers directly. Moreover, at
McDonalds people are the face of their brands. The company is also ensuring social
responsibility by supporting their employees. Suppliers and franchisees also support various
community activities in all the areas, where it serves.
Recently, McDonalds also took active participation in the Global Roundtable held for the
use of sustainable beef. According to the officials, McDonalds beef value chain proved to be
environmental sound, economically viable as well as socially responsible (Mcdonalds.com.
2018). McDonalds is set to explore more efficient and balanced options across its menu. The
organization is continually seeking new ways of providing tasty food involving nutrition
characteristics and healthy ingredients for its target customers.
Happy meals
Happy meals are one of the most popular and well known products of McDonald’s. This
is also one of the products, which are being available in all of their stores around the world. The

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prime target customers of this product are the children. Thus, in accordance to the preference
pattern of the target customers, toys from various movie and other franchises are being offered
with the happy meals (Boyland, Kavanagh-Safran and Halford 2015). According to concept of
triple bottom line, the first factor is the planet. With the initiation of the happy meal, McDonald’s
use paper boxes for serving the happy meals. The paper used for the packaging is recycled and
reused and they are suitable for use in food products. Thus, the amount of generation of waste
from the serving of happy meals is less compare to other products.
The next factor is the people. The target customers of happy meals are the children and
thus, the food served in the happy meals is having mainly healthy products. For instance, in some
countries, McDonald’s serves apple slices fruit juice and grilled cheese as side items in the happy
meals. Thus, the consideration of people is also being effectively met. The last factor is the
profit. With the initiation of the happy meal along with offering toys from famous franchises, it
is one of the cash cows for McDonald’s. Moreover, co-branding with other companies in
offering toys also creates more value for McDonald’s.
Salad bar and festive offerings
McDonald’s introduced the concept of salad bar in some of their restaurants around the
world. The key objective of this salad bar is to provide and offer some healthier choices to the
customers (Swinburn et al. 2015). On the other hand, they are also modifying their existing
product portfolio and introducing new products in different festive seasons. For instance, they
have introduced festive pie and curding in the United Kingdom in last Christmas season. This
strategy helps them to target more customers at the time of festival with offering new products.

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According to the first factor of triple bottom line, salad bar is offered to the customers as
buffet and thus there is no need of packaging. This is helping them in reducing the generation of
cost and waste of packaging (Opara 2013). On the other hand, the next factor of people is being
met by offering the exact products to the customers at the time of festival. Moreover, the
products are being designed according to the festive mood. In the case of salad bar, healthier
options are offered to the customers. The last factor of profit is being met by innovative product
strategy of them. Expenditure of the customers at the time of festival gets high and thus, it helps
McDonald’s to gain more revenue by offering newer products in the market.

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Reference
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Gunther, Marc. 2018. "Can Mcdonald's Mainstream Sustainability?". The Guardian.
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