The Bargaining Power of Supplier of Mcdonalds

Topics: Supply chain management, Supply chain, Demand chain management Pages: 16 (5763 words) Published: March 24, 2013
Supply Chain Management
ADM 4620
Group Project- McDonald's
Student's Name: Li Yi Yang (1006D3UBA002)
Zhang Heng (0901D3UBS008)
Li Bo (0706D1UBS003)
Li Jie (1006D4UBA002)
Due Date: 06th, September, 2010
Table of Context
Introduction 3
McDonald's Background 4
McDonald's Strategy 5
McDonald's Business Process 6
Customer service management 6
Procurement process 6
Product development and commercialization 7
Manufacturing flow management process 7
Physical distribution 8
Outsourcing/ partnerships 8
Performance measurement 8
Supply Chain 9
McDonald's Supply Chain 9
McDonald's Supply Chain in Indian 12
McDonald's Supply Chain Challenges and its Potential impacts 14 Even stronger focus on freshness and quality 14
On-going product innovations 15
Strong customer demand fluctuations based on promotions 16
Order- and inventory management restaurant – DC – supplier - raw material supplier 18 Bull Whip effect 19
Change Management in a de- centralized structure 20
Methods for Solve Problems 20
Build the quality supervised system 20
Build the detailed R&D process 22
Improve the level of marketing promotion and forecast 23
Build the direct supply system 25
Build the decentralized structure 26
Recommendation 27
Conclusion 28
References 29
In this report, our team chooses to delve into the success of the global company- McDonald's. McDonald's is one of the most well known brands in the world. The objective of this report is to understand how supply chain management applied into real business in McDonald's. We will through the problems mainly analysis supply chain in McDonald's and its significance in real life and also will explain the successful reason of McDonald's how to use supply chain in their business. McDonalds are a multinational firm and their subsidiary company throughout all over the world, so McDonald's should have a perfect supply chain. McDonald's Background

McDonald's is one of only a handful of brands that command instant recognition in virtually every country in the world. McDonald's is the world's largest chain of fast food restaurants, serving nearly 47 million customers visiting it per day through more than 31,000 restaurants in 119 countries worldwide. McDonald's sells various fast food items and soft drinks including hamburgers, cheeseburgers, chicken products, salads, fries, breakfast items and ice cream desserts. Many McDonald's restaurants have included a playground for children and advertising geared toward to children. Company has expansion of McDonald's into many international markets; the company has become a symbol of globalization and the spread of the American way of life. It also expanded the McDonald's menu in recent decades to include alternative meal options like salads and snack wraps in order to capitalize on growing consumer interest in health and wellness. Each McDonald's restaurants is operated by a franchisee, an affiliate or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company- operated restaurants. McDonald's Strategy

McDonald's marketing strategy is concerned with the internal resources, external environment and its basic competencies along with its share holders. McDonald's strategy to develop its global workforce is designed to be aligned with and support the execution of its over- arching strategic business goal, which is "to become everyone's favorite place and way to eat". McDonald's current strategy is to further promote the image of healthy food that can be found at "New or Re- modeled McDonald's." McDonald's new strategy of presenting its restaurants as the convenient place where healthy food can be found is in line with its recent attempts to create a healthier image for itself. The corporation is planning other menu changes, such as switching to a...

References: Holweg, M. and Pil, F. (2001), ‘Successful Build-to-Order Strategies start with the Customer ', MIT Sloan Management Review, Fall issue, Vol. 43, No. 1, p. 74-83
Holweg, M
Parry, G. and Graves, A., Eds. (2008), 'Build to Order: The Road to the 5-Day Car ', London: Springer Verlag.
Beamon, B.M (1996), "Performance measures in supply chain management", Proceedings of the 1996 Conference on Agile and Intelligent Manufacturing Systems, Rensselaer Polytechnic Institute, Troy, New York, NY
Christopher, M
Johnson, J.B. , Randolph, S (1995), "Brief: making alliances work – using a computer-based management system to integrate the supply chain", Journal of Petroleum Technology, Vol. 47 No. 6, pp.512-13
Maskell, B.H
Slack, N. (1991), The Manufacturing Advantage, Mercury Books, London
McDonald 's Corporation (2008)
McDonald 's Corporation UK (2008). Eat Smart/What 's On/Good News (online). Available at: Retrieve April 28, 2008
Lee, Hau L., and V
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