What Is Frito Lay Supply Chain Management

Supply chain management plays an important role in the success of this business model, for example the limited number of items (around 4,000 per store compared to 10,000 for competitors) which are selected and decided upon how much to stock based on an analysis of each item’s ability to sell, allows Costco to have higher sales volumes for each item, thus enabling Costco to gain more bulk discounts from suppliers. This strategy enabled Costco to be the number one warehouse retailer in market share ahead of Wal-Mart’s Sam’s Club (Cascio 2013).

McDonald's Corporation is considered to be the largest fast-food operator in the entire World and was initially formed in 1955 after Ray Kroc had pitched the idea of opening up numerous restaurants founded on the original which was owned by Mac and Dick Mac McDonald. McDonald's in 1965 decided to go public and then introduced its flagship product, which was the Big Mac, sometime in 1968 (Botterill, 2007). Today, McDonald's functions beyond 40,000 restaurants in over 200 nations and have one of the world's most extensively recognized brand names. McDonald's sales started hitting around the mark of $58 billion corporation -wide and over $30 billion in the United States alone in 2012 (S&P).

McDonalds functional strategies focus on the product and support process strategies more so than people. McDonalds is always attempting to be innovative and develop new exciting products, as well as, more efficient and effective processes to make its product. McDonalds also is one of the most intense marketers among its competitors. These two factors can help to show how McDonalds focuses on its product strategies over other functional strategies. McDonalds employees strive to meet time and production quotas based on historical data as well as current data that is captured on information systems throughout the restaurant.

To be a franchisee, Good Day Hospitality Co. has to follow strictly rules, regulations or procedures of McDonald’s and at the same time this company is also responsible for adjusting or changing some features of its products or service to fit the tastes and needs of local customers. Therefore, McDonald’s is easy to utilize the local human resource who have both abilities to operate the restaurant and understand about the market in this

McDonalds has become such a well know brand and has expanded internationally with over 36,000 stores and this any new/potential business will have to spend a large amount of advertising as well as developing their stores to get to the same level of this brand.

They are enhancing the customer’s experience. “Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thru to the increasingly mobile populations in China and Russia, while in the U.S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly” (McDonald's, 2008, 13). In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonald’s has already renovated about 10,000 restaurants worldwide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. “By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety” (McDonald's, 15).

McDonald’s has been a staple in the restaurant business for as long as most of us can remember. It has achieve around the globe, but not without overcoming a fair amount of challenges in its pursuit of the title “King of Fast Food”.

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

“The process by which the company seeks new markets for its current products is defined as Market development”

Frito-Lay 's net sales of over 8 billion dollars in 1985 amounted to a 190% increase in sales growth from 1981 (Kerin, Peterson, pg.131). This success leads the company to a major issue of how the company can be further developed. The company 's

McDonalds (McD’s) and Burger King (BK) are key players in the fast food industry and have been competing for many years. They both provide similar food that is prepared quickly for a low price. So what sets them apart? The difference between McD’s and BK is their corporate culture – operational management. The manufacturing method at McD’s follows the “Doing It All For You” versus “Having It Your Way” at BK.

Frito-Lay uses Product focused process strategy for its food manufacturing operations in terms of process.

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its

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.