Day 008 - 07 Jul 94 - Page 04

     
     1        use it.
 
     2        That is the full life cycle perspective.  We want to make
              as an informed and intelligent a decision as possible
     3        related to all of our packaging decisions based on the
              best facts and information related to this perspective.
     4        We then take the environmental information or the profile
              of a possible option for McDonald's.
     5
              Then we put that against three other criteria.  We use
     6        four criteria to evaluate changes in our business related
              to packaging.  One, I already spoke about, the
     7        environmental profile; second, we take a look at the
              customer impact.  What does it mean to our customer?  Does
     8        it satisfy them?  That implies a lot of quality aspects,
              like the food, is it hot, is it cold, whatever the food
     9        product is.  We also take a look at what we call the
              operational impact.  In general, that means how it impacts
    10        on the McDonald's crew?  What happens when it is delivered
              to the restaurant?  How does the crew interface with the
         packaging we use?
 
    12        Lastly, we take a look at the cost and availability of
              that product.  We call that a decision matrix.  What we do
    13        in any decision making process is we try to fill in this
              matrix to the best of our ability and then look at all the
    14        pros and cons of all trade-offs and then make an informed
              decision.
    15
         Q.   Of the four elements or criteria that go to make up that
    16        matrix, as you have described it, is any one or more of
              those criteria dominant?
    17        A.  No.  It is a very complex decision making process with
              no black and white answer.  There is no option that we
    18        have ever looked at, at least, that comes across as either
              all pluses or all minuses.  So, therefore, there are so
    19        many trade-offs that you have to just weigh them all and
              then make a decision.
    20
         Q.   Mr. Langert, some of these next few questions are going to
         seem to you to be rather childish and banal, perhaps, but
              perhaps they are important:  McDonald's is a business, is
    22        it not?
              A.  Yes.
    23
         Q.   It is in business to make money?
    24        A.  Yes.
 
    25   Q.   And, in so far as it can, to make profits?
              A.  Yes. 
    26 
         Q.   As much profits as it reasonably can? 
    27        A.  Yes.
 
    28   Q.   One can understand, therefore, why user friendliness for
              customer and for crew and why costs are important in your
    29        four element matrix?
              A.  Correct.
    30
         Q.   They are all part of the business, are they not?