Introduction
McDonald’s Australia Limited, commonly known as Macca in the country, remains one of the most successful businesses with a stable operational model. The outlined core values focus on ethical practice, continuous improvement, commitment to customers, and giving back to societies. COVID-19 has led to numerous challenges that might disorient this organization’s future operations. For instance, the business environment is presently characterized by unprecedented dynamics and social developments. For instance, the notions revolving around COVID-19 protocols have triggered new ideas in different communities, such as remaining conscious of one’s health outcomes and avoiding fast foods.
At McDonald’s, a number of target audiences exist that support the company’s overall business model. Being a market leader, it becomes necessary for its leaders to identify some of the emerging issues ad consider how to develop a more practical strategy. The notable challenge that requires an evidence-based approach is that of changing consumer lifestyles and trends. Specifically, more people today prefer healthy foods to reduce the risk for certain diseases, such as diabetes, hypertension, and stroke. More people have become aware and conscious of the sustainability of the environment. The consideration of high-quality and healthier foods for the proposed menus will result in increased customer satisfaction and sales.
Client Opportunity
The changing business environment explains why McDonald’s should improve the acceptability and sustainability of its food products. COVID-19 has led to numerous challenges that continue to disorient business operations, such as lockdown measures, lifestyle changes, and increased expectations from customers. With such issues in place, companies need to consider practical solutions informed by the available resources and their respective business models. Based on these developments, it becomes quite clear that McDonald’s is a client with unique attributes capable of supporting the concept of sustainable food products (Shabbir, 2018). The outlined idea could be introduced and implemented with ease since it is straightforward and requires minimum resources.
The suggested food sustainability strategy is viable since it has been tested in a number of companies in different parts of the world, including Starbucks Coffee. This example could reveal how the model attracts more customers, reduces the risk for diseases, and supports the changing consumer demands and lifestyles. The proposed tactic remains practical since it presents a paradigm shift in the operations aimed at improving service delivery and addressing clients’ needs (Anaf et al., 2018). With the availability of adequate resources and a committed workforce, the proposed approach presents a unique opportunity for McDonald’s.
Preferred Scenario
The food sustainability model remains one of the priority options for McDonald’s if it is to remain competitive in the Australian market. This tactic is appropriate since it does not focus on the best ways to introduce improved menus to the people. Instead, it focuses on a unique procedure for supporting operations and ensuring that the changing expectations of more customers are met (Guo et al., 2021). With more people becoming conscious about their health outcomes, chances are high that the approach has the potential to deliver positive results. The idea of harnessing modern hydroponic harvesting, obtaining goods produced using eco-friendly methods, and relying on local goods would support the model.
The preferable scenario revolves around a new approach for delivering high-quality foods to more customers. To support the concept, McDonald’s will need to reduce greasiness and fat content in their fast foods through the use of air frying. This initiative will replace the current use of deep-frying food. Hydroponic harvesting will minimize the challenges associated with land farming which strains the surrounding environment (Khan et al., 2022). The method is practical and capable of being pursued in urban areas. This strategy will reduce the current logistical issues associated with the impacts of COVID-19.
With this approach, a new form of sustainability will emerge whereby materials for supporting different outlets would be easily accessible. The current staff members will be sensitized about the new model, its ability to meet customers’ demands, and how it will help improve organizational performance. Without resistance from workers, chances are high that the new strategy will become a norm at McDonald’s (Shabbir, 2018). With the successful implementation of the model, the company will consider how it will be replicated elsewhere across the globe. Such an achievement will guide McDonald’s to overcome most of the current problems.
Strategy Response
Strategic Recommendation
The proposed strategy is recommendable for McDonald’s to overcome most of the challenges affecting its food sustainability. The reasoning behind such a proposal is that the business environment is encountering numerous obstacles due to COVID-19, economic issues, and changing consumer expectations. The identified pandemic distorted a wide range of organizational processes, including logistics, identification and acquisition of raw materials, and overall customer service delivery (Guo et al., 2021). For McDonald’s, changing lifestyles, behaviors, and social norms have led to new problems that have led to the overall reduction in the recorded sales. Without proper solutions, chances are high that the current business model could become unsustainable or even obsolete.
The identified business strategy is not a new idea for McDonald’s. Since 2020, the company’s leadership has been focusing on revolutionary ideas to overcome most of the predicaments existing at the time. However, the emergence of COVID-19 triggered lockdown and cessation of movement guidelines that affected the rate at which farm produces are sourced and delivered to the selected outlets. Presently, most of the earlier challenges have continued to disorient most of the processes and initiatives at McDonald’s (Anaf et al., 2018). Most of the targeted customers have not been supported with some of the current practices. Consequently, a new strategic direction seems plausible to improve performance.
The supported strategy begins by presenting new farming techniques to maximize consistency in the delivery of raw materials. The idea of getting rid of deep frying will result in healthy foods. Through the acquisition of locally sourced and eco-friendly goods, the company will become more responsible while promoting environmental sustainability (Khan et al., 2022). Based on these suggestions, it is agreeable that McDonald’s will combine the proposed aspects to come up sustainable foods that resonate with the dynamics recorded in Australia’s fast foods sector.
Future Business Model Canvas
Feasibility
The outlined strategy is feasible due to various reasons. First, McDonald’s is a successful company with an online presence in different parts of the world. In the Australian market, more people have access to the Internet, thereby becoming possible targets for the identified initiative. Second, the suggested approach is practical and does not need additional resources apart from the ones supporting organizational performance currently (Lee & Lambert, 2017). Third, companies that have taken the concepts of health foods and sustainability have succeeded to record meaningful results in a timely manner. The move to choose this option means that McDonald’s will be in a position to tackle most of the existing challenges.
Fourth, more people are cautious and unwilling to interact with others due to the issues revolving around COVID-19. With the pandemic claiming many lives, the modern customer is keen to avoid eating unhealthy foods that could result in medical complications or diseases. This reality creates a unique opportunity for introducing the proposed idea to meet the needs of most of the identified customers (Guo et al., 2021). Without the need to incur increased expenses and inputs, the described feasible strategic plan is capable of supporting the company’s future performance.
Viability
The global business environment has been changing within the past three decades. Technological innovations and breakthroughs have led to new trends that are becoming necessary for business operations. Such developments are compelling companies to adapt, reinvent their operations, and strategize if they are to remain profitable (Lee & Lambert, 2017). The proposed plan remains viable since it is founded on these recent trends in the world of entrepreneurship and customer consciousness. Similarly, customers are changing with the transformations recorded in the areas of culture, lifestyle, and economic goals.
The food sustainability approach remains viable since it revolves around the issues facing the global business community. It goes further to identify and solve customers’ problems directly. The identification of consumers based on their expectations for different servings become the best solution for providing personalized foods and services. The model goes further to introduce the aspect of timely deliveries. More individuals would, therefore, be willing to support the strategy in the Australian market and increase chances of making McDonald’s competitive, successful, and profitable (Khan et al., 2022). The involvement of all key stakeholders, such as staff members, community members, and leaders, could make it possible for McDonald’s to launch the project successfully.
Desirability
The desirability concept guides organizational leaders to consider whether a specific plan solves a common challenge affecting the identified customer or not. For the proposed model, it will be possible to help more individuals pursue their goals in life without experiencing or reporting various health complications. The company’s marketing team will arrange deliveries in a timely manner based on the needs of the identified individuals (Shabbir, 2018). Customers will be expected to offer timely insights and feedbacks that would support the notion of continuous improvement. The inclusion of all workers in the new strategic direction means that more individuals will start to prefer McDonald’s products and eventually take it closer to its goals.
Each of the aspects described in the sustainability food model appears to meet or fulfill the expectations of customers. For instance, the sourcing of local products means that the company will be taking the issue of environmental protection seriously. The hydroponic technology helps reduce the challenges associated with traditional farming while maximizing production (Khan et al., 2022). The idea of continuous analysis will present new approaches to improve the new initiative. The desirability of such initiatives, therefore, explains what the intended plan remains practical and appropriate for McDonald’s.
Social and Ethical Conclusions
While the outlined plan has the potential to transform the current operations of McDonald’s in Australia, it would still be necessary for the involved professionals to take ethical and social considerations seriously. First, the company needs to focus on the social implications of the continued use of modern technologies, such as hydroponic farming. Having accepted to use this approach, it would be necessary for McDonald’s to implement proper mechanisms to protect consumers from potential side effects (Anaf et al., 2018). The initiatives being undertaken should be pursued in such a way that they help conserve the natural environment and meet changing customers’ needs.
Second, ethical concerns need to inform the implementation of this model if more people are to find it practical. Specifically, informed consent is critical whenever seeking to use personal information. Customers need to be assured of privacy while engaging in online business with McDonald’s, an idea that is becoming common today. Continuous analysis and monitoring of all operations would be critical to maximize the overall ethical responsiveness of the proposed plan (Lee & Lambert, 2017). The initiative needs to empower and meet the demands of all workers if it is to meet the test for ethical and social requirements.
Conclusion
McDonald’s has managed to record positive gains in the Australian market due to the power of the implemented business model. Unfortunately, the economic challenges associated with COVID-19 have led to numerous issues capable of disorienting this company’s overall performance. The move to introduce new menus that offer healthy foods is plausible and resonates with the trends recorded in the global business environment. The strategy is informed by the expectations of more customers and the desire to integrate the idea of sustainability. The trends in people’s lifestyles, practices, and economic activities are aligned to the proposed new business strategy.
With the approach being feasible, viable, and desirable, needs to address most of the ethical and social issues that might emerge. The involvement of all key stakeholders remains instrumental to ensure that timely results are recorded. Through continuous analysis and improvement, chances are high that most of the involved leaders will be in a position monitor all operations. Such a tactic will ensure that they remain ethical and capable of adding value to both the workers and the customers. Such an approach will make it possible for McDonald’s to remain competitive and capable of maximizing its overall profits in the Australian market.
References
Anaf, J., Baum, F., & Fisher, M. (2018). A citizens’ jury on regulation of McDonald’s products and operations in Australia in response to a corporate health impact assessment. Australian and New Zealand Journal of Public Health, 42(2), 133-139.
Guo, Y., Lan, X., Shi, H., & Song, Y. (2021). Adolescent obesity: Case study of McDonald’s happy meal.Advances in Economics, Business and Management Research, 203, 1483-1488.
Khan, M. M., Akram, M. T., Janke, R., Qadri, R. W. K., Al-Sadi, A. M., & Farooque, A. A. (2022). Urban horticulture for food secure cities through and beyond COVID-19. Sustainability, 12(22), 9592-9612.
Lee, A., & Lambert, C. (2017). Corporate social responsibility in McDonald’s Australia. Asian Case Research Journal, 21(2), 393-430.
Shabbir, M. S. (2018). Innovation strategy at McDonald business from historical perspectives. Innovative Journal of Business and Management, 7(12), 30-41.