Sustainable Beef

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FACULTY BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) OPERATIONS


MANAGEMENT

QUALITY MANAGEMENT (OPM 658)

TITLE: The Story of McDonald’s 10-year quest for sustainable beef

LINK: https://www.greenbiz.com/article/story-mcdonalds-10-year-quest-
sustainable-beef

PREPARED BY: FARAH ZULAIKHA ABDUL HADI

PREPARED FOR: DR. MOHD ZAMRI BIN ABU BAKAR

SUBMISSION DATE: 20RD MAY 202


1.0 INTRODUCTION

McDonald's has been working towards sustainable beef for the past decade,
aiming to transform its beef sourcing practices and drive sustainability
initiatives. However, the complexities of the global beef industry,
environmental impacts, and the need for collaboration with stakeholders
have presented challenges. The company has established the Global
Roundtable for Sustainable Beef and pilot projects, but the transition has
been slow and nuanced. Interviews with key stakeholders reveal the
importance of regenerative agriculture practices, stakeholder engagement,
and industry-wide collaboration in driving sustainable practices. The insights
gained can be used to inform other industries' sustainability initiatives.

2.0 SUMMARY OF ARTICLE

Provide a concise summary of the article, outlining the main points,


methodology and findings.

McDonald's 10-year quest for sustainable beef sourcing has been a complex
and challenging journey. Despite the company's commitment to sourcing
"verifiable, sustainable beef" for its hamburgers, challenges remain in defining
sustainability metrics and goals. The company has shifted its focus from
"sustainable beef" to "beef sustainability" as a long-term journey, focusing on
principles and criteria for sustainability. The Global Roundtable for Sustainable
Beef and regional initiatives aim to drive sector-wide progress in beef
sustainability. McDonald's has engaged in pilot projects and collaboration
with suppliers to source sustainable beef, focusing on principles and criteria
for sustainability. Challenges in the beef supply chain include deforestation,
water consumption, pollution, and climate impacts. Regenerative agriculture
practices, such as AMP grazing, are being explored to reduce greenhouse
gas emissions and improve biodiversity. McDonald's sustainability efforts may
be hindered by plans for restaurant expansion and lack of reduced beef
consumption. The article provides a nuanced understanding of McDonald's
sustainability journey and the ongoing challenges and opportunities in
achieving beef sustainability.
3.0 Critically evaluate the quality improvement initiative discussed in the
article. Consider the following:

3.1 Effectiveness of the quality improvement strategies used.

McDonald's initiative aims to transition towards sustainable beef sourcing,


focusing on regenerative agriculture practices and reducing environmental
impacts. The company's engagement with stakeholders, such as farmers,
suppliers, NGOs, and industry partners, has led to the development of
sustainable beef criteria and principles. However, the impact on global beef
sustainability remains limited due to the industry's scale. McDonald's focus on
regenerative agriculture practices, such as AMP grazing and soil health
improvement, has shown promise but remains uncertain. Setting clear goals
and metrics for beef sustainability is crucial, but the lack of specific,
measurable goals and timelines hinders assessment. Supply chain
transparency is also essential, but challenges remain in verifying the integrity
of the entire supply chain. McDonald's should focus on continuous
improvement, including ongoing research, innovation, and adaptation of
best practices. Engaging with experts, environmental organizations, and
industry partners can provide valuable insights and guidance on
implementing sustainable practices.

3.2 Challenges faced during the implementation.

McDonald's has been working on a 10-year sustainability initiative aimed at


beef sourcing. However, the initiative faces several challenges, including the
lack of clear definitions and metrics for sustainability, the complexity of the
supply chain, scaling sustainable practices, fostering industry-wide adoption,
addressing consumer demand and behavior, reducing environmental
impacts, and setting clear goals. These challenges require strategic planning,
collaboration, innovation, and a commitment to driving meaningful change
in the beef industry.

Regulatory compliance and certification are also significant challenges, as


they require additional resources and efforts to meet diverse regulatory
requirements. Transparency and supply chain traceability are crucial for
verifying sustainable practices and building trust with consumers. Effective
communication and collaboration with stakeholders are essential for building
partnerships and driving sustainability efforts forward.

Cost and investment are also significant considerations for McDonald's in its
sustainability efforts. Despite these challenges, McDonald's has made strides
in promoting sustainable beef practices, but more work is needed to ensure
its sustainability efforts are successful and sustainable.

3.3 Outcomes and how they were measured.

McDonald's 10-year quest for sustainable beef sourcing has made progress,
but there are challenges in measuring the outcomes effectively. The lack of
clear metrics and goals for measuring the outcomes is a key challenge.
McDonald's engaged in pilot projects to test the feasibility of sustainable
sourcing practices, but these represented only a small fraction of the
company's overall beef consumption. Collaboration with industry
stakeholders, such as NGOs, trade associations, ranchers, and retailers, was
measured through sustainability goals like reducing greenhouse gas emissions
and improving animal welfare. However, these goals may not be ambitious
enough to offset the projected increase in beef consumption. The impact on
environmental and social factors, such as deforestation, water pollution, and
greenhouse gas emissions, remains a challenge. McDonald's has yet to set
any company wide sustainability goals for beef sourcing, indicating a lack of
clear direction and targets for their sustainability efforts. To improve the
measurement of outcomes, McDonald's should define clear metrics aligned
with their sustainability goals, establish baseline data on key environmental
and social factors related to beef production, and implement robust
monitoring and reporting systems.

3.4 Relevance and applicability of the findings to other industries or sector.

The article discusses McDonald's 10-year journey towards sustainable beef,


highlighting its relevance and applicability to other industries with complex
global supply chains. It highlights the challenges faced by companies in
aligning sustainability goals with diverse stakeholders and the need for
industry-wide collaboration. The case study can serve as a valuable learning
experience for other companies looking to improve their supply chains.
However, the article also highlights the slow pace of progress and the need
for more concrete actions. The article also underscores the broader
environmental impacts of beef production, such as deforestation, water
consumption, and greenhouse gas emissions. The complexities of the beef
supply chain highlight the complexity of sustainability efforts in a globalized
market. The lessons learned can inspire similar initiatives in other industries,
underscoring the importance of collaboration, transparency, and
commitment to sustainability goals.
4.0 Discuss how the insights gained from the article can be applied to another
sector (if applicable).

McDonald's 10-year journey towards sustainable beef can be applied to the


fashion industry, which faces similar environmental and social sustainability
issues in its supply chain. Fashion brands can work towards greater
transparency in their supply chains by identifying and disclosing the origins of
materials, production processes, and labor practices. McDonald's partnership
with NGOs and industry stakeholders can serve as a model for the fashion
industry, driving sector-wide change towards sustainability goals. Setting clear
goals and metrics, embracing regenerative practices, and educating
consumers about the environmental and social impacts of their clothing
choices can also help drive market transformation towards sustainability. By
applying similar strategies and initiatives, industries can create positive
environmental and social impacts throughout their supply chains.

5.0 Highlight specific tools, techniques, or strategies that can be adopted or


adapted

McDonald's 10-year journey towards sustainable beef offers valuable


insights for other industries looking to improve sustainability in their supply
chains. Key strategies include supply chain transparency, collaborative
initiatives, setting clear goals and metrics, regenerative agriculture practices,
consumer education and engagement, continuous improvement and
innovation, regulatory compliance and certification, and data-driven
decision making. Transparency in the supply chain is crucial for
understanding product origin and impact, and tools like blockchain
technology can help track sustainable sourcing practices. Collaborative
initiatives can drive collective action towards sustainability goals, while setting
SMART goals and metrics can track environmental and social impacts.
Regenerative agriculture practices can reduce carbon emissions and
enhance ecosystem resilience. Consumer education and engagement can
drive demand for sustainable options and foster responsible consumption
behaviors. Continuous improvement and innovation are essential for staying
ahead in sustainability efforts, and adhering to regulatory requirements and
certifications can demonstrate a commitment to responsible practices.
Additionally, embracing circular economy principles can minimize resource
consumption and waste generation. Supply chain resilience and risk
management are also essential for addressing climate change impacts,
natural disasters, and social disruptions.
6.0 CONCLUSION

McDonald's has been working on sustainable beef for a decade, despite


facing challenges in defining metrics and setting goals. The company's
transition from "sustainable beef" to "beef sustainability" reflects the evolving
nature of sustainability efforts in the beef supply chain. Despite the
incremental progress, challenges like lack of clear measures and
environmental impacts highlight the need for continuous improvement. The
journey towards sustainability will require collaboration, transparency, and
innovation across the beef value chain. Lessons learned from McDonald's
can inform future sustainability efforts and contribute to a more sustainable
and resilient food system for generations to come.

7.0 REFERENCES

Johar, R. (2024). COUNTRY SPECIFIC MARKETING STRATEGY FOR


MULTINATIONAL CORPORATIONS; CASE STUDY OF MCDONALDS AND COCA-
COLA: AN IN-DEPTH STUDY. International Journal of Social Science and
Economic Research, 09(04), 1247–1261.
https://doi.org/10.46609/ijsser.2024.v09i04.025

McDonald’s Corporation. (n.d.). The New York Times.


https://www.nytimes.com/topic/company/mcdonalds-corporation

Kannan, S. (2014, November 19). How McDonald’s conquered India. BBC News.
https://www.bbc.com/news/business-30115555

S. (n.d.). mc donald.doc. Scribd. https://www.scribd.com/document/143411056/mc-donald-


doc

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