Mcdonalds Procurement Stategy

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

Walmart claims that its mission is centered on helping people live better which not only applies to customers and associates, but also to the workers who make their products. Furthermore, all the products that Walmart offers to its customers are supposedly verified whether they are produced with dignity and respect for workers. In order to be accepted as Walmart’s supplier there are standards and obligations expected from suppliers. Following section examines closely what are the key standards that according to Walmart prevail within its global supply chain (Walmart, 2012).

A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.

McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

McDonald’s emphasizes cleanliness and food safety, in addition to quality and value service (QSC&V), through which it has succeeded in obtaining customer trust. The company also stresses ethical practices, dependability, and truthfulness in dealing with customers (McDonald’s, 2012, p. 1). Moreover, McDonald’s employs a coordinated marketing strategy that involves analyzing customer wants, creating products to satisfy his or her needs, setting the right prices and enhancing awareness of

Operation and Supply chain management (OSCM) is one of the foundations that successful businesses count on to provide a competitive advantage within their industry. The goal of OSCM is to develop and maintain a system that effectively and efficiently manages the flow of raw material resources into useful end products for consumer use (Chase, 2006). In the fast food industry this process takes center stage in maintaining competitive pricing. A review of the production process in two national chains, Whataburger and McDonald’s, showcases each chain’s approaches to OSCM.

In 2014, China and Japan markets were negatively affected due to food quality issues discovered in McDonald’s supplier, which resulted into loss of sales and profitability and also incurring expense to gain back customers confidence and trust. Any such future instance could negatively the affect business profitability, its reputation and overall brand image. Also,

Operation processes involves inputs which act as the core of businesses providing greater utility to customers through the addition of value. Businesses use a combination of transformed resources such as materials, customers and information. Materials are the basic elements used in the production process and are sourced from the supply chain which are divided into raw and intermediate materials. In Australia, McDonalds uses locally sourced materials such as beef from Australian farmers to produce over 400 million hamburgers. Large businesses such as McDonald’s requires efficiency in production, hence, a specialist material manager is recruited to control the flow of resources from the initial purchasing stage to final distribution. Customers become transformed resources when their desires and preferences shape inputs

McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply

McDonald’s development from its first drive-in restaurant in San Bernardino, California, to the famous fast

The organisation I have chosen to examine from an operations management and decision making standpoint is McDonald’s, a worldwide chain of fast food restaurants, which are run either by a franchise, an affiliate or by the corporation itself. There are over 31,000 branches of McDonald’s worldwide1. It is estimated these restaurants serve a collective 47 million customers daily2. The restaurants mainly sell customers traditional fast food fare such as burgers, cheeseburgers, French fries, fizzy drinks and milkshakes, in addition to breakfast, dessert items and (in response to growing health concerns in the consumer marketplace) healthier items such as salads and

In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San

McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonald's global business is operations management, which focuses on the careful control of processes that are used in manufacturing and distribution of goods and/or services.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.