McDonald’s

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Research Assignment
McDonald’s
6/22/2019

McDonald’s
Executive Summary
The report covers the details of the business and products of McDonald have and include the
supply chain details for the organization. The supply chain strategy and network is covered in
the report.
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McDonald’s
Introduction
McDonald’s is an American multi-national fast food organization that was established in the
year 1940. The company was found by Richard and Maurice McDonald and it was set up in
San Bernardino, California. The company is currently world’s fourth largest employer in
terms of the number of employees associated with the organization. There are over 36000
restaurants all across the world in over 100 countries (Mcdonalds, 2019).
The company has been able to establish itself as a leader in its industry and one of the factors
behind the success of the organization is its ability to manage the supply chains. The
company outsources 100% of its supply chains (Boxaroundtheworld, 2019). The supply chain
model of the organization is based on the unique mix of operating principles that can create
long-term wealth.
Supply Chain
The supply chain model in the organization has succeeded in providing enhanced customer
value and has been able to maintain better brand health. The overall business performance
also improves with the aid of unique supply chain model.
The vertical integrated supply chain model is the one that is followed by the organization.
The company has been able to manage vertical integration to reduce the costs and enhance
the profits. For instance, the company grows beef with the associated with the contracted
producers and process the meat on their own. The spices and mixes are created in the
factories that are contracted and produce the vegetables with their contractors. There is
enhanced form of control that is applied to manage such vertical supply chain in the
organization (Boxaroundtheworld, 2019).
There have been certain issues around the profits and revenues earned by the organization.
However, one of the positive aspects associated with the organization is its supply chain. The
company was listed at the second spot in Gartner’s Supply Chain top 25 (Mcdonalds, 2019).
The company maintained its position at the sport for four years in a row and has been able to
maintain its position in the top 10 since past six years (Mcdonalds, 2019).
The long-term supply chain for the organization was set up by the founder Ray Kroc
(Boxaroundtheworld, 2019). The strategy made sure that it was beneficial for the
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