McDonald: Corporate Social Responsibility

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Systems

Training: McDonalds need to train its staff in depth on the promotion of their CSR initiative. Employees need to know where their products are grown and highlight the healthy components of their menu.

Purchasing: McDonalds has the ability to purchase products without the middleman. This allows for a superior product. McDonalds do not h

Skills

McDonalds need to improve the knowledge and friendlessness of their staff. McDonalds is a customer-focused environment that relies on its employees to maintain their competitive advantage. Customers do not often see management so it’s up to the staff to be knowledgeable and welcoming to customers.

McDonalds can capitalize on their strategic alliances. Being associated with other companies who have great CSR campaigns will help McDonalds increase their own. For example, Target has a great CSR with their paper or plastic campaigns compared to Wal-Mart. Wal-Mart has the foot traffic but Target is superior in social responsibility.

Staff

Customer Service: the employee is a direct representation of the brand. A good customer service representative can answer customer questions and need to serve at a high level capacity.

Turnover: Employees tend to perform better when they are happy. The retention of the best employees is important and strong environmentally and health CSR programs are a great substitute for compensation.

Style

Different styles are necessary to manage a diverse group of employees. There may times that call for team, individual, innovative, or even creative styles.

Internal Analysis

McDonald’s has the great strength of brand recognition. Market dominance and brand recognition make it much easier for the company to introduce new products having already gained the trust of their customers. In regards to McDonald’s Austria, there are multiple pressures that influence the sustainability pressures, identity, growth, new broom, integration and collaboration, and power and politics. Many others dominant players in the food, retail, and entertainment industries have done so as well international markets, but the golden arches are now arguably the most recognizable image in the world, therefore the community accepts the company undoubtedly. Also, the Rain Forest Alliance and McDonald’s Agricultural Assurance Program (MAAP) initiatives have McDonald’s Austria’s full commitment in addition to having a newly appointed CSR Manager.

Organizational Pressures

Strength

Weakness

Sustainability Pressures

Recycling cooking oil for fuel.

Missed opportunities for recycling.

Identity

Golden arches are the most recognizable image in the world.

Consumers are not identifying with the implemented environmental modifications.

Growth

Adapting and awareness of the environment make way for more consumers who are environmental and socially conscious.

Smaller market presence is not strong.

New broom

Newly appointed CSR Manager is the “new broom”, whose focus is the green design with emphasis on being environmentally committed.

Employees not understanding the environment commitment strategy.

Employees not adapting to the “new broom”

Integration and collaboration

Rain-forest alliance and MAAP initiatives.

Uninformed on environmental commitment awareness.

Power and politics

The newly appointed CSR has the position of authority over the matter.

Becoming undermined by other positions of power.

Table 1, Organizational Pressures

External Analysis

McDonald’s has worked very hard in recent times to take advantage of the opportunities that exist in the market. Market decline, competition, fashion, geopolitical and mandate are all factors of environmental pressures of McDonald’s Austria’s social responsibility. McDonald’s Austria can overcome this by informing employees, customers and all other external entities of the culture and mission of the company. This entails providing knowledge of not only their social stance but their efforts for being an environmentally friendly company. However, there are several opportunities that exist for continued growth. In order for McDonald’s Austria to continue holding their share they must take some risks when it comes to being innovative and adapting more to culture of the environment by adapting the food habits of the surrounding culture and continue hiring a diverse workforce.

Environmental Pressures

Opportunity

Threat

Market decline

Expand menu options to include local foods and habits.

The difference in food standards.

Competition

Locality is receptive to McDonald’s Austria

Multiple competitors.

Fashion

Innovation opportunities are high

Cultural diet.

Geopolitical

Economic impact benefits company and locality.

Local cultural food choices.

Mandate

Diverse workforce

Strict