Question

Describe a International Global operations and supply chain for McDonald's

Answer 1

McDonald has a good operations management which builds the company's reputation in the world market. McDonald's global business involves a wide variety of strategic needs for its operations management. Let's discuss McDonald's operation management in the following areas:

1. Product Design: McDonald's main goal is to provide products at an affordable price. Therefore, its product size and prices are fixed on the basis of consumer expectations. McDonald's take necessary steps to make its product more affordable.

2) Quality Management: The company always tries its best to maximize its product quality with minimizing its cost. McDonald tries to maintain its product quality consistency by following a specific production line.

3) Location: McDonald's strategy in deciding location is to establish a business point which is accessible to maximum people. McDonald's business location includes restaurants, kiosks, online and mobile app as marketing point.

4) Supply Chain Management: McDonald has a strong global supply chain which distributes the company's products all over the world.

5) Inventory Management: McDonald's aim is to minimize inventory costs at the same time supporting restaurant operations. McDonald doesn't have direct sale of its products to its restaurants. It sells its products through various intermediaries.

Apart from all of its strategies McDonald maintains a transparency in its business which makes it popular in world wide.

McDonald has more than 36,000 restaurants which are independent and it is McDonald which works jointly with these restaurants to provide them necessary support in a timely manner. For each region where it has restaurants, McDonald has a supply chain strategy and logistic partners to support its franchisees. In the international markets, like Canada, Australia, UK and Germany where McDonald's brand is established, revenue from these countries is strong, but still they are expanding. McDonald employs its logistics providers & suppliers in all regions to determine the most efficient way to build a supply chain. McDonald sources as much product as possible in the market so that its suppliers would not find any difficulty in product supply. To balance the needs of franchisees McDonald stocks foods as per the demand. Moreover, it has a transparent supply chain which made more efficient by shipping desired goods to its customers.