Food Service Management: Sourcing, Procurement, and Ethical Practices in McDonald's

Food Service Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Overview of different food service context................................................................................1
Type of supply chain approaches and procurement strategies with different key stakeholders
in process.....................................................................................................................................1
Principles of effective procurement and sourcing process for food service operation...............3
The way food supply chain approaches and procurement strategies can enhance organisational
effectiveness................................................................................................................................3
LO 2.................................................................................................................................................3
Application of different analytical tools used in McDonald's for effective management
strategies......................................................................................................................................3
Different management practices for successful business operations in McDonald's..................5
Critical evaluation of management tools and practices that support business operations..........5
Recommendations to support management practices and strategies that enhance business
operations....................................................................................................................................6
LO 3.................................................................................................................................................6
Ethical practices in McDonald's and its impact on business success..........................................6
Critical analyses of various specific ethical practices in McDonald's and its impact on overall
business success .........................................................................................................................6
LO 4.................................................................................................................................................7
Current management practices and operational performance of McDonald's............................7
Alternative management strategies in order to resolve issues....................................................8
Management strategies in order to improve productivity and performance...............................8
Implementation Plan for putting solutions to practices within McDonald's...............................9
Metrics for monitoring and evaluating the plan........................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Food Service Management is basically daily operation of restaurants in order to prepare
and serve different food and beverages. There are different staff members that ensures that the
customers are satisfied in order to make business profitable. Present study is based on the fast
food restaurant McDonald's having its headquarter in Chicago, US. Report will investigate the
sourcing and procurement processes in McDonald's and will evaluate different operation
management strategies within McDonald's. Report will include the importance of ethical
management for success of McDonald's and at last report will present an improvement plan for
McDonald's organisational challenge.
LO 1
Overview of different food service context
There is a huge diversity with respect to food service context and basically there are two
types of food and beverages that are served to the customers that is commercial and non-
commercial food service(Schifferstein, 2017). Commercial food service is a market oriented
food service and it is the largest form of food service operation all over the world. The major
target of these services is to provide food and beverages to customers in order to have huge
profits. McDonald's is also giving commercial food service to all its respected customers.
Another type of food service is non-commercial food service that is cost oriented enterprises and
they serves meals as a secondary support service to many organisations including educational
institutions, military, schools or giving for some health facilities.
Type of supply chain approaches and procurement strategies with different key stakeholders in
process
Supply chain management is the management of flow of goods and services and contain all
steps that contain all stages from raw material transformation to production and transportation of
good to the final destination place. Varied sort of supply chain management approaches is given
below. Face to face short supply chain: Under face to face short food supply chain producer
and consumer meet face to face and exchange food items. This sort of food supply chain
is used when location is small and producer supplier as well as consumer operate in same
area (Short food supply chains as drivers of sustainable development., 2013). Hence, due
to small location all three entities meet each other in easy way.
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 Proximate short food supply chain: Proximate short supply food chain is one under
which producer and consumer does not have direct interaction with each other. However,
there is higher level of proximity between producer and consumer. Important point to
note is that in this supply chain good are produced and sold within specific region.
 Extended short food supply chain: Extended short food supply chain is one under which
firm customers live in distant places and due to this reason firm contact with retail stores
and make available its products (Christopher, 2016). This is the supply chain which is
commonly used by the business firms.
Varied sort of procurement strategies is followed by the business firms and under
this either they directly purchase raw items from the producers or through intermediary
they obtain items produced by the producers. Both approaches seem suitable for the firm.
In direct with producer major benefit is that firm can get raw material at cheaper price
(Monczka and et.al., 2015). Hence, it is better to eliminate intermediaries from supply
chain system.
Stakeholders refers to the entities that have interest in the firm business operations and
performance of business activities heavily affect them. Some of the stakeholders in the supply
chain system are given below. Agriculture product producer: These are one of the main stakeholders in the entire
supply chain management system because they provide raw item to the business firms. if
supply chain does not work well demand of raw items may decline which ultimately lead
to low earning. Moreover, because of presence of intermediary relevant stakeholders earn
less in supply chain. Intermediary: These are those who act as bridge between firm and agriculture product
producers (Fahimnia, Sarkis and Davarzani, 2015). If firm demand less raw material or
purchase same directly from producer’s intermediary earn less in business. Firm: It is one of the main stakeholder because if due to rain or any natural calamity
agriculture production reduced then cost of procurement increased in the business.
 Customers: These are those who make purchase of the firm product and if cost of supply
chain increased consistently they have to pay more to the business firm for purchasing a
product.
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