For the session long project, I will analyze one of the supply chain operations the McDonald's Corporation. I will discuss how the logistic operations enable the same quality in service no matter which restaurant you go to; and how that leads to the business strategy of this company.
Ray Kroc, the founder and owner of McDonald's, once stated once stated that “He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama.” To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into his vision, working not for McDonald痴, but for themselves, together with…show more content… The economic responsibility is to ensure that all suppliers comply with their standards for equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities that their supplier operates in. McDonald's environmental standards are that the design, manufacture, distribution, and use of their products minimizes life cycle impacts to the surrounding environment.
McDonald's has a very unique philosophy in its supply chain model. It is 100% outsourced, McDonald痴 believes that they should outsource everything to a company who are experts in their subject matter. They ensure that their suppliers guarantee extremely high quality standards all the way from processing to eventual customer consumption.
Before McDonald's commits to expanding into a new arena, they send teams into that area/country to research how effective their supply chain model could operate. They do massive amount of research into the effectiveness of the logistics industry, the reliability of its transport sector, etc. Much work is done to put together a simple and efficient supply-chain before any commitment is made. In 1996 McDonald痴 opened its first restaurants in India. They spent 6 years conducting studies and setting up suppliers before they opened the first store.
In conclusion, the McDonald痴 business model is to; ensure that no matter which one of the thousands of