The report is based on the given case study of McDonalds Corporation which shows how the corporation was founded and became the number 1 fast food chain in the world. The case depicts about the history behind the success of the brand and the popularity of its logo. It also shows how the company is dedicated towards corporate social responsibility which is interacting with people in a socially responsible way and is an important element for deriving success in the future. The company is engaged in several CSR activities like Environmental Defence Fund for the protection of environment, animal welfare programs and more. But in spite of its involvement in the CSR activities, it has been criticised a lot in United States of America and in other countries. It has been criticised for contributing to increasing obesity in the world. McDonald’s on the other hand, justifies itself by saying that it is because the people are lacking in physical activities and not the brand.
The report focuses on providing valuable insights on the questions related to case study. The discussions about the ethics followed by the company, its marketing strategies, and its successful practices in the industry will be carried out which makes it a leader in the fast food industry.
According to Singh (2010), McDonalds has been under a constant fire for its products. The critics claim that the products sold by the company lack in nutrition and do not work for the benefits of social issues. But as per McDonalds (2017), McDonald’s is dealing with corporate social responsibility in an ethical way. It had big issues in the past like child exploitation and usage of ingredients in its products which contributes fats. The organisation was criticised for encouraging children for fast food and non-nutritious food which may lead to many diseases and is contributing to higher obesity in the people.
The company dealt with it ethically. It focussed on ethics and launched a CSR focussed marketing strategy which featured a series of activities related to ethics taken up by the company. For e.g. it ran an advertisement in which the focus was shown on the environmental initiatives of the company and the investments it makes on the employees. It also gave good food quality messages in these advertisements. This campaign ran through social media and also appeared on the food delivery trucks of the company along with the advertisements in the outlets of the restaurant at different places to grab attention of people (Reynolds, 2011).
The company also showed its dedicated work in other fields and featured in its advertisements that how it is engaged in good work and other areas of business. It advertises the brand by involving its efforts made on reduction of environmental pollution and how it reduces negative impact on the environment through its supply chain (Talpau and Boscor, 2011). The organisation took so many initiatives for its staff, customers and for the benefits of the environment which turned the focus of people towards the brand and this helped McDonald’s in dealing with its Corporate Social Responsibility (McDonalds, 2014).
The company also adopt a model for CSR. The company claims that it has been committed towards right activities from the start by putting its people first and making quality as its foremost priority. The company makes a difference by developing a Global Sustainability Framework where its main focus areas are food, sourcing, planet, people and community. All the read are served and it is together called ‘A journey Together for Good’. It also publishes a good business report in which it shows how the company contributed towards environment, society, staff and stakeholders (McDonalds, 2017). Sustainability is its main focus where the company claims that it takes care of fulfilling the present generations without compromising the needs of future generations. It says that it uses good food with great taste and real ingredients. It aims at reducing the fat ingredients, calories and harmful substances and provides healthy offerings to the present and future generations as well.
As per the given case study, Bilson (2010) has given a three step framework for Corporate Social Responsibility which divides CSR into the three subcategories. The framework suggests that first of all, a value proposition should be developed and then sustainability should be built by involving the communities and then the CSR activities should be measured through its efforts and results.
Developing a value proposition refers to tangible benefits received by the customers for which the management has to sell its ideas which make the company socially and financially responsible. Building sustainability refers to the series of activities which makes the core business strategies strong and benefits the society as well. The company identifies the areas where it can bring competitiveness and can show the social responsibility. The third step is important for the companies who are into the Corporate Social Responsibility and the companies develop the tools for measuring their expenses and benefits (Malhotra, 2008).
McDonalds’ being a global company has major responsibilities towards society and it need to enhance the corporate image. The company is following the three step framework by Bilson (2010). It can be seen that the company is claiming that its products are safe and healthy for the customers. The offerings of the company are providing tangible benefits to the customers by providing gifts and nutritious benefits to them. The company is also trying to build up its value chain activities which benefit the society (Lawlor and Prothero, 2008). The company has an Environmental Defence Fund (EDF) in which it cooperates to reduce the wastage and recycle the materials which are generated by the restaurant, suppliers and distribution systems. The company has a sourcing system with its directs suppliers for the items of its menu. The company makes sure that the work with the suppliers which meet its requirements of ethics and environment and economic responsibility. The last one is measurement of the corporate social responsibility and the efforts and results which is done by the company with the help of pilot programs to verify its activities so that it can make progress to improve continuously (Jay Polonsky, 2008).
The company measures its progress so that it can establish a better and holistic management for achieving the goals of year 2020. For e.g. the company is working on waste management activities in order to identify the recycling methods and measure results so that it can make impartments in future.
The case study clearly shows that McDonalds is gaining negative attention for increasing obesity in America and across the globe. McDonalds has been frequently accused of contributing in obesity of people but the company refuse the allegations. As per Leith (2010), the food of McDonalds is high on fat and so not a healthy one. The fries are made totally of starch and turns into glucose when goes into the blood. The salt used can raise blood pressure and calories. The meat is also not healthy as it is not organic. But the author says that McDonalds is not to be blamed. Obesity is increasing because people are consuming it with their own will.
According to O’Brien (2012), the doctors in America have warned McDonalds on its menu and its marketing. The fast food is affecting children and youth even worse than the adults. It is because most of the population of this age group have developed habits of eating out. As per the studies, the calorie content of the out of home meals is 55% more than in home meals. Some of critics are blaming McDonalds for its mis-advertisements. The brand was blamed when a man Morgan Spurlock started experimenting by taking 30 days trial of food of McDonalds. This experiment had a negative effect of the health of Spurlock. He made a documentary to show this to everyone and to prove that McDonald offered super-sized meals. In answer, McDonald responded that it was Spurlock’s decision to eat irresponsibly and not the food by McDonalds. The brand blamed the American Lifestyle in return that it is contributing to the obesity (Ludwig and Nestle, 2008).
McDonalds claim that national obesity is a big issue and it is shared responsibility of all. That is why, McDonalds is continuously trying to use the ingredients which are nutritional and are providing low fats. McDonalds is trying to lower down its salt contents, fat levels and other ingredients which can contribute to obesity (Powell, 2013). The brand mentions the ingredients on packaging and in the trayliners in the restaurants. It follows the regulations in UK and looks for spreading positive messages for food and health through its advertisements (Frith and Mueller, 2010).
It can be understood that McDonald’s is not the wholly responsible for obesity in America but it is definitely a contributor. Obesity in America is increasing because of the changed lifestyle, over eating, no work out and exercises. People are getting attracted towards having fast food due to advertisements and marketing efforts by the company. Fast food is the a major reason why the calories intake of people have increased and the unbalanced lifestyle does not given enough time to people to exercise and workout (Hill & Langan, 2014). According to Renee (2016), the scientists found that when a person takes fast food three times per week it increases the risk of obesity by 33 per cent. Overeating and inactivity are also the main reasons why obesity is becoming a widespread problem in the country and across the globe.
McDonald’s is a fast food company and its offerings are blamed to be the biggest contributor of obesity in America. The brand claims that it is not the one but the changed lifestyle has definitely did the same. McDonald’s could use marketing efforts in improve its own image and to minimise the link between McDonalds and Obesity (Munshi, 2013).
Under a pressure to provide healthier meals, the company can announce changes in its menu by adding healthy snacks and salads and this can be promoted worldwide by using social media channels or digital media which includes televisions, radio, etc. The company could take a pledge of doing responsible marketing in which it can make collaborations with different health agencies for creating a healthier generations for future. The brand should start including salads in the value meal. The company could use the packed materials by printing the nutritious dishes on the boxes or packets like reduced fat juices or other options in happy meal for children. McDonalds can also run campaigns where it can show that the brand is clearly against obesity and does not contribute towards it. The ingredients of the food items should be well mentioned on the packages which could make clear that what is being used in the items. The nutrition and physical excises messages should be communicated with the world through social media. Social marketing is nowadays used by most of the young population and have sarong impact on this age group. Social media marketing modifies the lifestyle choices of youth which could also put an impact on the minimisation of obesity. McDonalds should use social marketing channels for having a larger impact on the young population. The company could get engaged in the CSR activities so that it can improve the image of the company in public. For e.g. it can serve charities and can use organic ingredients for making food items. This would create a good image of McDonalds among people (Lutz, 2017).
There are some food marketing regulations which are to be followed by the giant fast food brand and it will definitely make an impact on reducing the obesity. Nutritional standards should be maintained in marketing of food items which could limit the effect of junk on people.
McDonalds is a leader in the world of fast food chains. The company has millions of customers across the world. The company has excellent contribution in world’s economy and because of its excellent marketing techniques; the company is successful despite its issues in health and CSR responsibilities. The company is focussed for its stakeholders and keeps them on priority. It provides wide menu choices and food quality. Its marketing practices are so well designed that it attracts people towards it.
The brand is favourite among children and it tries to communicate with children and families in a responsible way. The company is promoting its nutritional food among children and also provides them toys to gain their attraction (Mourdoukoutas, 2012). The success behind marketing strategies of McDonalds is that it adopts the culture and language of every country so well. The people could connect with the ideas and emotions shared in the advertisement of the brand. It reacts to the changes in the marketplace. For e.g. when its food ingredients were criticised, it made major development in its menu and included the healthier options for kids and adults. It started involving in the charity and for society improvement activities. The brand understands its customers and advertises its products as per the mindset of the customers. The brand localise its menu as per the taste of different nations and use their strengths to capture larger share of the market. The brand is making its stores much more attractive to let people use their products. The menu items are reasonable and can be affordable by every class of product (Bhasin, 2011).
The marketing efforts of the brand are exceptional. McDonalds knows how to adapt to the changing business environment and how to meet tough competition in the market. The advertisement campaigns and other marketing efforts of the organisation are relative and innovative. They are designed keeping in view the potential customers. McDonalds ensures that its marketing activities are tightly controlled and within a budget which is the main reason for its success in the market.
Conclusion
It can be concluded that McDonald’s being the leader in its own industry has excelling marketing tactics which helps the company not only in gaining customers but in facing the extreme complex situations. The brand has capability to adapt itself to the business environment and that is why it so successful in market despite having health issues and issues related to corporate social responsibility.
The report is based on the case study of McDonald and how it deals with the markets situations ethically. It also includes the discussions about the CSR practices of the company and its responsibility towards society. It includes the discussions about its criticism and the allegations which says that McDonald’s is the reason for increasing obesity of children and adults in United States of America McDonalds has successfully cleaned its image by including healthy food items and thus it can be said that it is not the sole reason but a contributor to increasing obesity of children in America.
References
Bhasin, K 2011, ‘This Is How McDonald’s Plans To Take Over The World’, Business Insider.
Elks, J 2014, ‘McDonald’s Reveals CSR/Sustainability Framework and Host of 2020 Goals’, Sustainable Brands.
Frith, K T and Mueller, B 2010, Advertising and societies: Global issues, Peter Lang.
Hill, R P & Langan, R 2014, Handbook of Research on Marketing and Corporate Social Responsbility, Edward Elgar Publishing.
Jay Polonsky, M 2008, An introduction to green marketing, Global Environment: Problems and Policies, 2, p.1.
Lawlor, M A and Prothero, A 2008, ‘Exploring children’s understanding of television advertising–beyond the advertiser’s perspective’, European Journal of Marketing, 42(11/12), pp.1203-1223.
Leith, W 2010, ‘It’s not McDonald’s making us fat’, theguardian.
Ludwig, D S and Nestle, M 2008, ‘Can the food industry play a constructive role in the obesity epidemic?’, Jama, 300(15), pp.1808-1811.
Lutz, A 2017, ‘McDonald’s CEO: I’m A Parent and I Know What My Kids Eat’, Business Insider.
Malhotra, N K, 2008, Marketing research: An applied orientation, 5/e. Pearson Education India.
McDonalds, 2014, ‘The Good Business Report’, Retrieved from https://corporate.mcdonalds.com/content/dam/AboutMcDonalds/2.0/pdfs/2014_sustainability_report.pdf?.html .
McDonalds, 2017, ‘Ethics of McDonald’s’, Weebly. Retrieved from https://mcdonaldsethics.weebly.com/mcdonalds-ethical-issues.html.
Mourdoukoutas , P 2012, ‘McDonald’s Winning Strategy, At Home And Abroad’, Forbes.
Munshi, N 2013, ‘McDonald’s defends on obesity concerns’, Financial Times.
O’Brien, K 2012, ‘How McDonald’s Came Back Bigger Than Ever’, The New York Times.
Powell, A 2013, ‘The whys of rising obesity’, Harvard Gazette.
Renee, J 2014, ‘Leading Causes of Obesity in America’, Livestrong.com.
Reynolds, J 2011, ‘McDonald’s activity to promote ‘ethical’ focus’, Campaign.
Singh, A 2010, ‘At McDonald’s, CSR Is Everybody’s Business’, Forbes.
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