Mcdonald's Operations and Supply Chain - a Sustainable Edge
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EXECUTIVE SUMARY:
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This report will address the constant striving of sustainability throughout the operations and supply chain used by McDonald’s, thus providing a competitive advantage in a dynamic and volatile environment. Consumption at the detriment to the environment - that which was once accepted by society as common practice, has since migrated to greener thinking, urging companies like McDonald’s to implement sustainable practices throughout their operations and supply chains, and working to align business needs to societal and environmental needs.
This shift of consumers to go green, has forced McDonald’s to include a sustainable edge as a pivotal focus in maintaining its competitiveness, however this can be viewed as only ‘buying time’ - delaying the eventual destruction of the environment. More needs to be done by the company and its competitors to ensure that theirs (and our) futures are not eaten up by practices done today.
Explaining graphs and figures will be provided in the appendices.
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McDonald’s Operations and Supply Chain - A “McSustainable” Edge
McDonald’s is one of the world’s largest food service retail chains, with just under 33,000 company-owned and franchised or licensed restaurants in 117 countries. The key to McDonald’s success is through the strength of its brand (Anonymous 1996) and System – the strong alignment between the Company, its franchisees and suppliers. The company views itself primarily as a franchisor and believe that franchising is critical to delivering great, locally-relevant customer experiences whilst driving profitability (McDonald’s Corporation 2011). This report explores the operations and supply chain of McDonald’s where it is apparent that this franchisor-like culture is embedded within them both, giving its
EXECUTIVE SUMARY:
-------------------------------------------------
This report will address the constant striving of sustainability throughout the operations and supply chain used by McDonald’s, thus providing a competitive advantage in a dynamic and volatile environment. Consumption at the detriment to the environment - that which was once accepted by society as common practice, has since migrated to greener thinking, urging companies like McDonald’s to implement sustainable practices throughout their operations and supply chains, and working to align business needs to societal and environmental needs.
This shift of consumers to go green, has forced McDonald’s to include a sustainable edge as a pivotal focus in maintaining its competitiveness, however this can be viewed as only ‘buying time’ - delaying the eventual destruction of the environment. More needs to be done by the company and its competitors to ensure that theirs (and our) futures are not eaten up by practices done today.
Explaining graphs and figures will be provided in the appendices.
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-------------------------------------------------
McDonald’s Operations and Supply Chain - A “McSustainable” Edge
McDonald’s is one of the world’s largest food service retail chains, with just under 33,000 company-owned and franchised or licensed restaurants in 117 countries. The key to McDonald’s success is through the strength of its brand (Anonymous 1996) and System – the strong alignment between the Company, its franchisees and suppliers. The company views itself primarily as a franchisor and believe that franchising is critical to delivering great, locally-relevant customer experiences whilst driving profitability (McDonald’s Corporation 2011). This report explores the operations and supply chain of McDonald’s where it is apparent that this franchisor-like culture is embedded within them both, giving its
References: 1. Anonymous. 1996, ‘Developing a truly international brand and company’, International Journal of Physical Distribution & Logistics Management, vol.26, no. 7, pp19-21 2 3. Cheema, P. 2011, The Big Idea; McDonald’s Unravels its Supply Chain, viewed 22 March 2012, <http://logisticsweek.com/feature/2011/07/the-big-idea-mcdonalds-unravels-its-supply-chain/> 4 5. Ferdows, K. 2006, ‘Transfer of Changing Production Know-How’, Production and Operations Management, vol.15, no.1, pp1-9 6 7. Ketchen, D.J., Hult, J.R., G Tomas M. 2011, ‘Building theory about supply chain management: Some tools from the organizational sciences’, Journal of Supply Chain Management, vol.47, no.2, pp12-18 8 14. Mentzer, J.T., Stank, T.P., Esper, T.L. 2008, ‘Supply Chain Management and its relationship to logistics, Marketing, Production, and Operations Management’, Journal of Business Logistics, vol.29, no.1, pp31-VII 15