Supply Chain Management Assignment : McDonalds
Added on 2021-04-21
17 Pages8088 Words239 Views
Business DevelopmentLeadership ManagementData Science and Big DataPolitical Science
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Analysis of McDonalds SupplyChain in AucklandContentsExecutive Summary...............................................................................................................................2Introduction...........................................................................................................................................2Company Background........................................................................................................................2Significance........................................................................................................................................2Aims & Objectives..............................................................................................................................3Research Scope..................................................................................................................................3Methodology.........................................................................................................................................3Interview...........................................................................................................................................3Case Study.........................................................................................................................................4Data Analysis.....................................................................................................................................4Interview Data Analysis.................................................................................................................4Case Study Analysis...........................................................................................................................5Findings.................................................................................................................................................6Interview Findings.............................................................................................................................6Case Study Findings...........................................................................................................................6Supply Chain of McDonalds...........................................................................................................6Supply Chain Challenges....................................................................................................................7Analysis & Interpretation.......................................................................................................................8Case Study Analysis...........................................................................................................................8Thematic Analysis..............................................................................................................................9Interpretation..................................................................................................................................11Change Process....................................................................................................................................12Conclusions..........................................................................................................................................12Recommendations...............................................................................................................................12References...........................................................................................................................................13Appendices..........................................................................................................................................13Interview Questions & Responses:..................................................................................................13Restaurant Manager Reponses:...................................................................................................13Assistant Manager Responses.....................................................................................................14
Executive SummaryThis report is prepared to explore the current supply chain systems used by McDonalds in itsAuckland based fast food joint. The supply chain system has been analysed using a mixedmethodology involving primary and secondary data. The primary data involved interviews with 5personnel from the restaurant while the secondary data is collected from the secondary sources likebooks, journals and research reports and the same was analysed using case study analysis approach.The aim of the research is to the identify the causes behind the effectiveness of the company’ssupply chain and exploring application of supply chain theories to test if they can be used as afoundation for understanding the causes behind success of a supply chain. The data collected fromthe secondary sources are explored using case study analyses in which researcher has explored thebest practices of the company used for achieving efficiencies in supply chain and for overcomingchallenges. A primary interview data was used to conduct a thematic analysis in which some themesare identified and then explored in depth each based on the combined insights obtained from thestudy of both primary and secondary data available on the subject. IntroductionThe aim of this research is to explore the supply chain system of McDonalds to see how effective it isand use the application of theories to analyse if they can be used for determining the reasons ofsuccess of a supply chain considering the case of McDonalds. The case of McDonalds has been takenas the company is famous all over the world for its effective supply chain network. In this case, theMcDonald Company’s supply chain systems would be explored using a secondary case study analysisand a primary interview data gathering and interpretation. Company BackgroundMcDonald was initially started a drive in restaurant by two brothers including Maurice and RichardMcDonald in US in 1937. During 1940s, the restaurant generated a business of $200,000 per year forthem but with the introduction of self-service concept, the business saw a major boost and by mid1950s, its revenues increased to $350,000 and franchisees started to appear showing interesting inusing their brand and investing in return. However, as the company had too transparent businesspractices unlike the franchise system that was much complicated, the initial idea of franchise failedtill Ray Kroc, a milkshake machines distributer signed a deal with McDonald brothers in 1954. Sincethen, the company has been appointing franchises and entered into some major agreements withmalls and major companies like Disney with which the company got into a 10 year agreement of $1billion , The had been expanding since then and by 2001, had 30,093 restaurants in its name withrecorded sales of $36 billion. In the same time, the company owned 85% of the global fast foodrestaurants. McDonald’s has nearly 36,899 franchised stores across 120 countries as per the data of 2016. Thesemake 85% of the stores of the fast food chain while it also has 15% of its stores owned byMcDonalds. In the franchisee arrangement, the land and building is owned or taken on a long termlease by the company while the franchise owner provides initial investment which includesexpenditures on equipment’s, décor, seating, and signs.SignificanceThis research would help identification of the best practices in supply chain based on whichrecommendations would be made for any retail organization such that these recommendations
would help the organization attain efficiencies in their supply chains gaining the lessons fromMcDonald’s case.Aims & ObjectivesAim of this research is to explore the supply chain practice of McDonald to understand the causesbehind their success. The objectives of this research include:Exploration of the supply chain systems of McDonaldsExploration of supply chain theories with their application to the case of McDonaldsInterpretation of the case to come up with reasons contributing to the success of supplychainComing up with the recommendations for the effective supply chain network in a food retailchainResearch ScopeThe scope of this research includes the identification of methodology, conducting of interview withMcDonald representatives, case study analysis of its supply chain, analysis based on integration ofthe insights from both type of data and application of supply chain theories for effectiveness testing,and recommendations for change management and application of supply chain best practices. Thetopics that would be covered in this research include introduction, methodology, findings, analysisand discussion, change area, conclusions and recommendations. MethodologyResearch methodology defines methods that are used for collecting and analysing data. Quantitativedata involves measurement of data through the use of variables that are created to test a hypothesisfor testing existing theories using statistical procedures. However, this data is not always sufficient tounderstand the perspectives, meanings and experiences. Thus, there can be a need for subjectiveassessment through the use of qualitative data. Analysis of the qualitative data can help in understanding meanings, ideas, values, beliefs,experiences and other intangible elements in a research. A commonly taken approach to research istriangulation which involves creation of a backup for one method of data collection through anothermethod. These methods can include survey questionnaire, or interviews. Interviews can beconducted using a fixed set of open questions that can get short answers to the questions covered.Use of open ended questions allow respondents to think deep about the ideas. The resultingresponses can either be used to identify categories or report them through general statements.InterviewInterview process involved formation of a set of open ended questions that were to be asked to thestore manager. For testing the questions on their relevance, validity, and appropriateness, thequestions were initially asked to fellow students who provided feedback for improvement on thebasis of which the questions were refined.
Figure 1: McDonald’s Company HierarchyA sample of 5 employees of the organization from its Auckland store was taken based on theorganizational structure of the organization at the restaurant level. The restaurant level executivesworking in the Auckland store included General Manager, Restaurant Manager, Assistant Managers,Floor Manager, Training Crew, Crew members, supporting staff, cleaners, servers, cooks, and bakers.In order to understand the supply chain of the company, the chosen 5 people included RestaurantManager, Assistant Manager, Floor Manager, Crew Member, and Cook.This research makes use of a mixed methodology of research in which a primary interview isconducted involving the 5 staff members and a secondary qualitative case study analysis is used forexploring the available data on McDonalds supply chain systems that is through exploration ofsecondary sources like books, journals, websites, and research reports. Case StudyCase Studies can be focused on testing a theory, building a theory or exploring the phenomenonthrough practice. In a case study where a theory is to be tested, theories are applied to a businesssituation and interpretations are made. In this research, the same approach would be used forwhich the data collected from secondary resources including journals, research reports, books, andwebsites was analysed using case approach. As the aim of this research is to test the effectivenessand efficiency of the supply chain of McDonalds’s in Auckland, the case would involve exploration ofthe supply chain theories that would be applied to the case and explored to understand if they arerelevant and could be used as a foundation for understanding the cause behind the success of supplychain systems of McDonalds.Data AnalysisInterview Data AnalysisA qualitative thematic analysis was used for the analysis of the interview responses that wereobtained from the 5 staff members of the restaurant. Thematic analysis a very popular qualitative
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