Analyzing McDonald's Supply Chain Management Strategy in Australia

This report provides a comprehensive analysis of McDonald's supply chain management strategy in Australia, focusing on its partnership and collaboration model. It examines the company's business objectives, operational strategies, and the role of its supply chain in achieving organizational goals. The report identifies key supply chain partners, such as Turosi and Martin Brower, and discusses the 'three-legged stool' philosophy that guides McDonald's supply chain decisions. It also explores the responsibilities McDonald's assumes within its supply chain, the impact of the supply chain on organizational strategies, and potential opportunities for sustainable development and increased customer loyalty. Furthermore, the report includes a situational analysis, encompassing environmental scanning, stakeholder analysis, Porter’s five forces model, and a SWOT analysis. The demand-driven approach of the supply chain is discussed, along with the aim and objectives of the supplier contracts. The document concludes by addressing potential challenges, such as competition and supplier selection.

Supply chain management

Table of Contents
PART-A...........................................................................................................................................3
Q1................................................................................................................................................3
Q2................................................................................................................................................9
PART-B...........................................................................................................................................9
Q1................................................................................................................................................9
Q2..............................................................................................................................................14
H)...............................................................................................................................................17
I).................................................................................................................................................17
J)................................................................................................................................................18
k)................................................................................................................................................18
L)................................................................................................................................................19
M)..............................................................................................................................................19
N)...............................................................................................................................................19
4. Develop an Implementation/Action Plan/ Workplace Difficulties Action Plan Template for
the supply chain strategy using the template provided here:.....................................................20
REFERENCES................................................................................................................................1

PART-A
Q1
a)
Business objectives of McDonald to increase the customer satisfaction and being social
responsible for the company's welfare. Company is using cost leadership strategy to achieve
the goal and objectives of organization. The four organizational strategies include
androcracy, clan, market and hierarchy. The objectives of the business is to increase the
engagement and sale of the products and services across the world. Various strategies are
prepared by the organization to increase the sales. The effective supply chain of the
organization plays an important role in the success of the organizational objective of the
company. Effective supply chin in the business is the core competency of McDonald.
b)
McDonald is a food manufacturing company that provides various food products such as
pizza, burger, French fries, chicken products and desserts. Operations of McDonald include
the better service, quality of product process and capacity design, job design and human
resource, inventory management and maintenance. These operations are effectively
managed by the organisation to increase the customers' satisfaction by providing them good
quality service and products. Scheduling also plays an important role in the Mcdonald
operational management. Strategies are prepared by the company to keep the operations
effective.

global organisational chart of McDonald
c)
Supply chain management of the company s based on culture of partnership and
collaboration that help the organization to serve consistently safe ad high quality food
products to the customer. Company focus on the supply chain management and its
effectiveness in the market. Better relationship with partner companies allows the
organization to creates better supply chain management in the country of Australia. In order
to create an effective supply chain management system company source its products in a
responsible and ethical manner that contribute to the sustainable supply chain of the
business. Supply partners of McDonald are Turosi, Martin Brower, Tyson and Inghams
Enterprises.
d)
McDonald strategy based on culture of partnership and collaboration is local as the
organisation do not have partnership outside the domestic area of the Australia. Other brands
that are engaged in the partnership with McDonald are not operating worldwide at large
scale. So the organisation has this supply chain strategy only in the country of Australia.

e)
three legged stool philosophy in the supply chain management include quality, price and
service. It shows the effective price of the products, better quality of the product and the
service that satisfy the customer are the major point for the success of the organisation, the
McDonald has major rules in its supply chain management that is inspired by the three
legged philosophy. The rules of McDonald are focus on outcomes, focus on what instead of
how and pricing model of the organisation (Armstrong, 2017).
f)
McDonald plays an important role in the supply chain as the supply chain as various
responsibilities are taken by the organisation in order to create the effective impact of supply
chain management. As the culture and partnership model of supply chain of the organization
is majorly depended on the relationship with the partners of the organisation. In order to
increase the sustainable development company need to take various responsibilities such as
negotiation of contract with suppliers, control manufacturing and delivery process,
monitoring the effectiveness of the supply chain in the organisation.
g)
The supply chain management strategy of McDonald delivers against the company's
organisational strategies in several ways. The impact on the image of the partners of the
organisation also affect the image of McDonald and the operational activities of the
organization works along with the plan and activities are affected by the changes in the
supply chain management in the business. Supply chain of McDonald is affect the
organisational strategies in of the business as the changes in the supply chain also enforce
the changes in the organisational strategy in order to bring the coordination between the
supply chain and operational activities of the business.
h)
The right person at right position strategies if supply chain is one of the most important
because this help in keeping the effectiveness in the place. This strategy supply chain
management is beneficial because this allow person to manage the supply chain of the
company for example if the person have experience in management of supply chain then
they can fit well in the process.

I)
following is the complete detailed diagram of McDonald supply chain in Australia.
Suppliers of McDonald
Turosi Chicken products, fish and beef
Martin Browner Distribution
Tyson Beef
Inghams Enterprises Chicken products
Simplot Fries and hash browns
McCain Fries and hash browns
ARYZTA Buns, English muffins, hotcakes, McCafe
cakes
Fonterra Signature cheese
Lactalis Australia Pty Ltd Shake and sundae mixes
Raw material
Chicken products
Fish
beef
Supplier
Simplot
ARYZTA
Fonterra
Manufacture
Distributor
Martin Browner
Customer

j)
From the study of the supply chain model of McDonald in Australia, company has various
opportunities as the customers of the other partnership brands are also attracted towards the
company. Other opportunities can be utilized such as it creates the opportunity to create a
sustainable base of development that contribute at a large scale in the economy of Australia.
It will lead to the increase in the loyalty of customers towards the organization as people are
more likely to purchase products from the organisation that is creating sustainable impact on
the society an environment. Benefit from such opportunities will lead to the increase in the
growth of the organisation.
k)
Opportunities of sustainable development, increase the customer base and increase in loyalty
are the three opportunities that can assess in terms of adding value to the organization.
Increase in the sustainable development will lead the great contribution to the economy and
development of the surrounding. It will also lead to the r better recognition of McDonald.
Increased customer base for the organisation will help the company to increase the sale of
the business. The interaction with new customer provide an opportunity to increase the
customer engagement of the company.
l)
The challenge the company may face is related with the presence of large number of
competitors and the number of substitutes in the market. The company may also face the
challenge in terms of finding the most appropriate supplier in the context of the company
and its strategy of collaboration and partnership.
m)
Situational analysis:
(i) Environmental scan:

While scanning the environment it can be analysed that there are various competitors
across the external environment that may impact the McDonalds. This will lead to have a direct
and negative impact towards environment which make it important to have it analysed.
(ii) Stakeholder analysis
Stakeholders are those group of people who have an interest in the company and may
impact the decision of the company (Boaz and et.al., 2018). internal stakeholders may include
the employees, owners, shareholders and various other while the external stakeholders may
include the customers, investors, government.
(iii) Porter’s five force model
As per this model the company can make an analysis of the extent of competition in the
market. With this model it can be analysed that what is the intensity of market competition
towards the company.
Competitive rivalry:
As per this force the competition in eth market will be analysed (Bruijl, 2018). It is
related with competitors which is high because of the existence of large number of competitors.
Bargaining power of buyer:
This is related with the power of buyers in which they make bargaining in terms of lower
down the prices (Almeida and Santos, 2018). This force is also strong because of the large
number of customers and presence of substitutes.
Bargaining power of suppliers:
This power is low because of the presence of large number of suppliers and their size
(GREGORY, 2018).
Threat of substitutes:
As the market contain a large number of competitive companies that will lead to raise the
number of substitutes of product in the market (Hole, Snehal and Bhaskar, 2019). With the
presence of large number of substitute items this force is high.
Threat of new entry:
This force is related with the entry of new companies in the market. This force is
moderate for the McDonald because of the presence of entry barriers.
(iv) SWOT analysis
Strength:

It includes the capabilities of the company that make it advantageous while making it
compared with other (GURL, 2017). High brand value, Innovation, variety in food, quick
service.
Weakness:
This include the loopholes and weak aspect of the company (Teoli, Sanvictores and An,
2019). High employee’s turnover, franchisee business model
Opportunity:
These are the opportunities that can be grabbed by the company with the use of its
strength. Growth of fast food industry, low cost, home delivery.
Threats:
This includes the negative impact which may affect the company (Vlados, 2019). High
competition, cultural preferences.
Q2
To: [e-mail]
From: [e-mail]
Subject: Established responsibilities
Respected sir,
As per the strategy of partnership and collaboration with regard to the supply chain management
all the responsibilities that is associated with the concerned personnel including the
managers, employees, suppliers have been establish. This will ensure that the concerned
steps along with the role and responsibilities of the personnel will be made performed in a
desired manner. in the same way a set of responsibility that is related with the controlling is
also established so that the supply chain process will be made performed in a desired and
controlled manner.
Thanks and regards
Alfered Jonas
PART-B
Q1
a)

The supply chain management strategy that is followed by the McDonald is demand
driven wherein as per the demand of the customer and the market analysis the company will
make production of the items. Here making an improvisation of items is also included in this. It
will include an analysis of the market and the external environment. In short it can be right to
said that as per this supply chain the entire chain is depended upon the demand signal. This
means as per the demand of the product the supply chain will initiate.
b)
The philosophy that the McDonalds follow is that it serves the best. It serves moments of
feel good with all dependable personality consumers, welcoming and various other aspect as per
the demand of the customers. This means as per the McDonalds the main philosophy is to deliver
the best quality products to its customers so that they feel good in terms of good serve.
c)
McDonald uses a complex and combined approach with its suppliers in which it makes
an inclusion of both the direct and indirect suppliers. It would be right to said that the strategy
that is followed by the McDonalds includes the partnership and collaborative strategy under
which the company make collaboration with the suppliers and make fulfil the supply contract
(Herczeg, Akkerman and Hauschild, 2018). This means that through the help of direct suppliers
the company maintain quality and efficiency in terms of distributing and purchasing with the
restaurants. In the same way through indirect supplier the company operate various facilities
including abattoirs and grain mills.
d)
The aim of the supplier contract is to ensure the availability of concerned products in the
store by keeping a close contact with the suppliers. In the same way its objective is to have
arrangement of the items and the purchase of items at the nominal rate. Its objectives would also
include the maintaining of relationship with the suppliers.
It is to be noted that the aim and objectives are made as per the procedures and policies of
the McDonalds in terms of accomplishment of its aim of serving best quality food at all the time.
e)
The policy and procedure that is being followed by McDonalds is making an arrangement
of suppliers as per the objectives of the company. In the same way the company also follows a
well-defined structure that includes rules and regulations related with the supplier and the

contract of the supply. It also includes the rights and the obligation of the company and the
suppliers.
f)
The process that involves in contracting by the McDonalds include the selection of
contractor followed with the collection of required information. Making a negotiation along with
reviewing the contract with the signing of the contract.
However, the steps that is followed inn tendering involve the steps of prequalification
followed with the issue of tender documents. This will later perform the step of receipt and
review of tender and lastly the tender will be awarded. However, in case of McDonalds the most
acceptable approach is contracting.
g)
The main aim of developing a win win situation with supplier involve making an analysis
of all the available suppliers that will include the selection of those who are giving the most
affordable quotation. In the same way it is noted that the win win situation will be grabbed if the
purchased item will be sold at high prices.
H
Supply chain plays strong role for technical work expansion variedly, and to enhance new raised
up goals for management teams to develop wider new extended goals for technical business
expansion effectively. The MC Donald's has been prioritizing the best techniques, to bring on
working synergies within longer time period goals for intricate expansion specifcially for
connective working diversification. Supply chain has been also expanding to bring on keen new
vision oriented rise on extended channels for primitive enhanced determined rise, where wider
focus is evolved to bring on best determined targets.
I
The responsibilities for managing various roles within supply chain for bakery products are
correlated to prepare various product and services, can be found to be highly important for
extended quality enrichment (Pournader and et.al, 2021). Responsibility to provide decoration
enhanced up in bakery products, improvises new range of keen fundamental competent abilities
worked on for extended channelized growth rise variedly. In order to ensure company serves the

best fresh produce to all customers, the management is being highly precise of bringing best
working expertise technically on extended domains within longer time period.
J
Six sigma and just in inventory supply chain management are some of the best control and
management systems which enhances further extended improvement on varied levels, which
determines MC Donald's to promote management actively among new customer targets. This can
be also analysed that brand has been heading on towards primitive diversification in the latest
innovative goals, uses the best technologies for determined extended wellness. This can be also
analysed that maintaining prior functional expansion diversely, evolves on new technical
expansion diversely for strengthened vision innovatively which also determines keen
productivity to diversify (Pournader and et.al, 2021).
K
The supply chain manager will be responsible for managing and coordinating logistics of
contract aspects for further synchronizing functional operative rise based on key fucntional long
term goals explosion. Also, services of MC Donald's can be furthered also improvised based on
extended working scenarios for longer time period goals which plays keen role to determine new
targets variedly on longer time periods. Monitoring and controlling of achievement in supply
chain objectives against cost, timescales plays keen role for evolving on contingency planning.
The manager has to be also determined of best supply chain goals, by evolving on best technical
vision oriented expansion diversely which enhances quest rise functionally on longer time period
goals.
H
M Supply chain management information sharing will promote collaborative partnership with
supplies, ensuring Mc Donald's uses the best expertise for ensuring competitive advantage in
business scenarios within functional paradigms (Asamoah and et.al, 2021). To ensure the best
quality services are being primitively focused on, where harnessing collaborative partnership will
develop brand engagement variedly based on fundamental horizons. The brand has been also
witnessing huge specific rise on best quality scenarios, where determined extended channels hold
huge scope to evolve on new paradigms actively.
N