Assignment on Management - McDonald

Added on - 21 Jul 2020

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Management
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Analysis of China's Mc D in aspect of meat scandal...................................................................1TASK 2............................................................................................................................................2Challenges to maintain a reliable supply chain in China.............................................................2TASK 3............................................................................................................................................4Previous measures that are taken by McDonald' s China to strengthen its supply chain............4TASK 4............................................................................................................................................6Steps to improve supply chain management...............................................................................6TASK 5............................................................................................................................................7Adoption of vertical integration...................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONIn this modern era, management is considered as a vital part for development of societyand business organizations. In this light, strategic management is a part of management, whichsignifies effective management which is applicable with the help of diffident kinds of strategiesthrough which goals and objectives of a company will be achieved. In this light, this presentreport will be demonstrating about Case of China: The Expired Meat Scandal (Meredith Belbin,2011). Considering this, various aspects and concept related to supply chain management and itschallenges will be discussed. In addition to this, various measures, by which supply chain inChina can be made more effective will also be given effect. Furthermore, idea of verticalintegration is also discussed in a view to outsource for Mc D china. Along with this, its benefitsand disadvantages will also be discussed, in this present report.TASK 1Analysis of China's Mc D in aspect of meat scandalIn China, there are many cases which are involved in scandals related to food. There aremany companies which supply wrong and expired food items. In this regard Mc Donald was alsooccupied in case of Expired meat scandal.With reference to the given case scenario of Mc Donald's China, in relation to expiredmeat scandal, it was given that US owned supplier has its subsidiary in China named as ShanghaiHusi, who was authorised to supply meat to Mc Donald's was producing lower and substandardquality meat items and products. Mc D was considered as one of the biggest food client, so itresulted in hampering of image of Mc D among its customers. So, in this regards, authorities ofChina ordered Shanghai Husi to be shut down (Keller, Parameswaran and Jacob, 2011). So, inthis regards, question arises, what could Mc D perform in regard to gain its effectiveness andefficiency in order to retain its customers. It can also be noted that Mc Donald’s in China has itsown significance. it conducted its operation on the basis of Foreign owned enterprises approach.It always aims at cost leadership approach.As per case scenario of expired meat scandal, it was found in an undercover video, thatworkers of Shanghai Husi were picking up the meat products, dropped on floor and packing thesame product in a processing machine. A worker told undercover agent that he was asked by topmanagement to do so. So, after getting knowledge regarding this gesture done by Shanghai Husi,1
Chinese Authorities took corrective actions against supplier. The major effect of this scandal isthat many companies like Starbucks, Burger King and Yum! Had cut down all their ties fromShanghai Husi.Afterwards, its scandal with Shanghai Husi, it can be noted that Mc Donald’ s is a victimin the case of expired meat scandal. It is due to reason that it was a mistake of supplier who didnot render quality meat products to cited organization. Also, they have argued in regard to thiscase that supplier company has deceived them (Kerzner, 2013). Also, it created a negativeimpact on business of Mc Donald’s in Japan, Korea and Hong Kong. Also, it had also creatednegative impact on customers.In this aspect, various mistakes done by Chinese Mc Donald’s are evaluated as under:The first and major mistake committed by Mc Donald’s in China is that the managementwas not aware of effective management skills in respect of supply of goods and services.Along with this, the top management also, did not maintain effective relationship with itssuppliers.In addition to this, it has been evaluated that Mc Donald’s had relied on audit, conductedby third party, in relation to compliance with food safety rules and regulations at facilitiesof suppliers (Burke, 2013).They did not follow franchise model for purpose of expansion its area of operationsoutside China, rather than, the management of cited organization operated its activities ofbusiness under an approach of Wholly foreign owned enterprises.Moreover, they customers have also criticised Mc Donald’s China by claiming that theyhad not taken proper care and attention in regard to their supply chain mechanism. Theyalso lacked behind in respect of oversight.In addition to this, one of major mistake attempted by cited organization is lack ofeffective strategic management.TASK 2Challenges to maintain a reliable supply chain in ChinaSupply chain is a concept in which there is a presence of scheme of organizations,people’s, activities and resources involved in transmission of a product or services from supplierto respective customers of a company. In other words, it can be said that activities of supply2
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