Logistics and Supply Chain Management of McDonald's Corporation

Running head: Logistics and supply chain management
Logistics and supply chain
management
2018

Logistics and supply chain management
Table of Contents
Introduction.................................................................................................................................................3
Supply chain and logistics management of McDonalds..............................................................................5
Approach adopted by McDonalds to implement supply chain and logistics activities.................................7
Issue impacting the decision, rationale for implementation and strategies..................................................8
Benefits and limitations.............................................................................................................................10
Future trends and direction........................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Appendices................................................................................................................................................16
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Logistics and supply chain management
Introduction
The primary motive of this task is to discuss about the supply chain and logistics management
activities of McDonald’s Corporation. Supply chain management is an essential and integrating
function which optimizes and coordinates all logistics activities including sales, marketing,
finance, manufacturing and technology. McDonald’s is the major player in fast food industry
who is maintaining effective supply chain management at the workplace. An approach which
helps in identifying and analyzing the supply chain activities in McDonald’s has been explained
in the task. Without supply chain activities, the company cannot flourish the business at
international level. Issues impacting the decision to initiate the supply chain activities, benefits,
limitations and future trends also have been drawn in the task briefly.
Mcdonald’s is an American fast food Company which is incorporated in 1940 in United States
by Richard and Maurice Mcdonald (McDonalds, 2018). The company serves approx 68 million
in more than 119 countries on daily basis. In today’s modern world, the company has grown to
have approx 36,000 restaurant across the globe (McDonalds, 2018). The main vision of
McDonalds is to respond to the quick changing demands, requirements and expectations of the
Filipino family. The mission of the firm is to serve the Filipino society by rendering great and
delicious food at reasonable prices. The core values of McDonalds include customer driven,
Malasakit, integrity, teamwork and excellence. All these core values help the organization to
meet the expectations and requirements of the business. The company serves the people by
providing various food items such as Big Mac, Big n’ tasty, Quarter pounder with cheese, French
fries, cheeseburger, Egg McMuffin, Sundae and Apple Pie. At McDonalds, excellent and
effective standards and code of conducts are in place for cleanliness, service and quality
(McDonalds, 2018).
The size of the company is unique and wider as it also helps the firm to be a player in the
competitive market. McDonalds has become the leader in the fast food industry with their strong
and constant focus on the customer service, use of marketing tool for development, and response
to competition in the global market. By monitoring and analyzing the choices, needs and wants
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Logistics and supply chain management
of key target auidence, the company has been able to make a dynamic and strong position in the
global market. The firm starts with rendering great and unique restaurant experience every time.
The company’s suppliers, employees, and operators work together to fulfill the needs and
requirements of target audience internationally.
In today’s modern world, McDonalds is expanding and exploring its business actions and
activities internationally. The statistics indicates the brand value of the precious and effective fast
food brands across the globe in 2018. The company is most valuable and significant brand
around the world with predicated brand value approx 126.04 billion U.S. dollars (Statista, 2018).
The market share of McDonald’s has been discussed below.
(Source: Statista, 2018)
It is stated that McDonalds which is one of the biggest and well known fast food chain network
across the world uses porter five forces analysis to compete with rivals. The porter five forces
analysis of McDonalds Corporation has been discussed below.
Competitive rivalry: It is noted that fast food restaurant is significant and leading competitive
business today. Thus, there is high and intense competition in the global market. The competitors
of McDonalds include burger king, Johnny Rockets and Wendy’s. Each player is spending
money on advertisement, promotion, innovation and menus to maximize the profitability and
outcomes (Adamkasi, 2017).
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