Logistics and Supply Chain Management at McDonalds (2024)

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“Logistics management is an integrating function which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions, including marketing, sales, manufacturing, finance, and information technology.”(Jonsson, 2008, p 4)

Logistics Management or Supply Chain Solutions, both play a major role in determining the overall success of a company. Major consequences are found in supply chain if there is even small variance in inventory; to overcome such consequences an effective logistics is necessary for any organisation. Logistics management involves high level of competences and expert knowledge. Managing from raw material to final stage at right place on right time is handled by logistics management. To leverage opportunity in emerging markets, companies are focusing on consolidating and aligning their supply chain management infrastructure, processes and procedures to reduce costs and improve efficiency.

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A Supply chain consists of the series of activities and organisations that materials move through on their journey from initial suppliers to final customers. Every product has its own unique supply chain and these can be both long and complicated. (Waters; 2003; p.7) There is a series of steps involved from the origin of services or product and its consumption. The steps involved in this are known as supply chains. The report will provide operations of McDonalds in UK and will emphasis on its supply chain management.

Company Background and Introduction:

McDonald’s Corporation is the world’s leading food service organization. The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald. In addition, McDonald’s opens a new restaurant every three hours. ‘Big Mac’ is the biggest attraction and backbone of the corporation. Moreover, McDonald’s maintains its competitive advantage by constantly creating new items to add onto its menu. This shows us that McDonald’s practices an analyzer type of strategy, introducing new items and defending its existing ones. (McDonalds Website)

McDonald’s opened its first UK restaurant October 1974. In December 2004, there were over 1330 McDonald’s restaurants operating in the UK. Around 60% of these are owned and operated by the company. The remainders are operated by franchisees. Each McDonald’s restaurant is structured as an independent business, with restaurant management responsible for accounting, operations, inventory control, community relations, training and human resources. (The Times Website)

Nature and Operation of Organisation:

McDonalds Corporation is the world largest chain of fast food restaurant, serving more that 58millions customer every day. A McDonald’s restaurant is operated by either franchisee or the corporate itself. The corporation revenue generates from rent, royalties and fees paid by franchisees and also from sales in company operated McDonalds. The menu is consists hamburgers , cheeseburgers , chicken and fish products , French fries , breakfast menu , soft drinks ,shakes and desserts. The quick-service-restaurant (QSR) giant has built an entire process over the years for managing a sophisticated delivery system, starting on the live-animal production side and running all along the supply chain until products reach their final destination as McDonald’s customers’ favourite. (McDonalds Website n.d.)

Supply chain management strategy:

Supplier Relationship Management – Service Provider Relationship Management – Customer Relationship Management

Source: Tompkinsinc Website N.D.

The model explains Supply chain strategy is an integral part of a business: It really supports and feeds the overall company business strategy. The supply chain strategy must include plans for all elements of the chain: Buy, Make, Move, Store, Sell and Return. Partnerships can develop, and may even be required, between companies and individuals across the entire supply chain, or they can be focused in specific areas depending on a company’s competencies and philosophy. (Tompkins Associate Website N.D.)

Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Companies adopt supply chain management to ensure that supply chain is operating efficiently and providing high level of customer satisfaction with low cost. SCM integrates the demand and supply management within and across companies. (Jonsson; 2008; p .5)

The objective is to meet customers demand while keeping prices low and McDonalds works on lean strategy to serve its customers as McDonald’s doesn’t begin to cook its orders until a customer has placed a specific order. They stay on JIT (just in time) strategy which helps them to reduce or sometimes eliminate waste and efficiency within purpose of minimum cost. Benefit associated with this is the higher quality customer service; even placing special order does not bring McDonalds into panic situation that can cause delays. Also holding cost of burgers is fairly high so JIT strategy helps them to reduce the spoilage cost. JIT helps McDonalds to keep eye on Economic Order Quantity which determines how much to be ordered and there are two factors that drive economic order quantities down: low ordering costs and high holding costs.(Inventory Management Review Website: 8th.Nov.2005)

Variability in demand and variability in lead times from suppliers put pressure on organisation to maintain certain safety stock in case of McDonalds; the supplier is internal production process but problem associated with JIT is it reduces your safety stock which can actually be a big problem, also with lean strategy organisation lack in capacity to respond to fluctuation in consumer demand. (Inventory Management Review Website: 8th.Nov.2005)

Ordering Process:

The ordering process involves holding a small buffer stock. This is extra amount of inventory held to meet any unexpected higher demand. Inventory manager uses a web based communication software called ‘Weblog’ to view and amend store order proposals. Each time of ordering weblog creates a proposed order to analyse and amend if necessary. Weblog helps managers to view what quantity have been ordered, how much is the current stock level and how much stock is due to be delivered at a particular time. The system automatically generates a delivery note that gives the exact quantities and descriptions of the delivery. The manager has to click confirm on weblog when they finishes selecting amount of inventory they needed to use. (McDonalds Website: December 2009) Without safety stock customer will suffer. Other reasons for maintaining safety stock include providing safeguard against issues such as poor quality, production problem and transportation, delivery charges. Also, if organisation maintains too much inventory would incur significant holding cost. This is because they will need more staff, equipment and storage space to handle high inventory levels. However, holding small stock can be dangerous as it may cause problem in some uncertain demand and lead business to stop its operation. (Mangan; 2008; p.5-6)

Logistics Service Providers:

Many organisations do not perform many of their own logistics activities. They arrange logistics service providers to take advantage of efficient and experienced specialists to look after the transport, while the organisation can concentrate on its core operations. An organisation mainly forms a partnership with other company to look after warehousing, purchase of material, material handling and many of the other functions of logistics. When one company uses other companies to run its logistics are known as third party or 3PL or contract logistics. For McDonalds Keystone distribution works as a 3PL. (Waters; 2003; p.90) However, responsibilities of 3PL is discussed in Appendix B under Supply chain frameworks.

Keystone Distribution UK is a subsidiary of Keystone Foods LLC, which provides food manufacturing and distribution services to quite a large amount of customers in America, Asia, and Europe. Keystone distribution was formed in 1977 in partnership with McDonalds for its UK baker of hamburger bun and since then company is progressing along with McDonalds. Keystone distributor has been efficiently supplying everything to its existing client need to run the business successfully. Keystones manages a large part of McDonalds UK supply chain and replenishing its 1200 UK stores from mops and ketchup to the essential ambient , fresh , frozen foods that makes up the McDonalds menu. (Logistic Business IT Website; 09.Nov.2009) A big organisation like McDonalds need some partner to work with them to look after sourcing, warehousing, procurement, and distribution to run its business but there can be certain issues associated with this that by hiring 3PL, that company can loss control over its logistics activities, difference of opinion and perception can bring problem in service level, also it increase dependency at certain time and end up disturbing operations of business.

Structure of Supply Chain:

Structuring the supply chain requires an understanding of the demand patterns, service level requirements, distance considerations, cost elements and other related factors. (Rock ford Consulting Website N.D.) Moving of material inward is upstream and outward is downward. The upward activities are divided into tiers of suppliers. A supplier that sends materials directly to the operations is first tier supplier; one that send materials to a first tier supplier is a second tier supplier; one that sends material to a second tier supplier is a third tier supplier and so on to the original source. Customers are also divided into tier. One that gets product directly from the operations is first tier customer and so on to final customers. (Waters; 2003; p.8)

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McDonalds deals with different suppliers for its different products and ultimately which aims to provide customers great taste and on affordable price. McDonalds has been working in partnership with household brand such as with Coca cola, Tropicana and Buxton who act as second tier supplier because they supply its products to keystone distribution who works for McDonalds as first tier supplier. Also there are number of other suppliers such as Sun Valley and Moy Park who supply McDonalds with Chicken product all these works as second tier supplier for McDonalds. Also Ecsa, the makers of the beef patties who are key for success of supply chain also supplies its product to McDonalds first tier supplier (i.e…Keystone Distributors). All the different supplier deals with Keystone Distributor, who then sends material directly to McDonalds to run the business smoothly by providing on affordable prices, delivering products on time and helps in outward movement of orders and receiving payments from customers. Overall, keystone is a important player in structure of supply chain for making upward and downward activity successful. The demerits of managing chain of supplier at McDonalds is to incur heavy investment of time, money, and also it resources needed to implement and has to overlook the supply chain as well and increase dependency. (Make up your own mind Website; March 2009)

Managing the supply chain:

As the McDonalds UK distributor, it’s the responsibility of keystone to provide the perfect service and product every time they need and also to coordinate the requirement of hundreds of McDonalds around UK. They work along the supply chain pipeline ensuring the quality and reliability is kept while passing delivery to restaurant. In order to achieve this Keystone uses the latest technology and software to work closely with McDonalds marketing and business plan. Keystones ensures managing peak and troughs as they come along for keeping smooth supply chain and ensures there are no out of stocks. On an average Keystone carries five days inventory in their store and delivers three to four times per week inventory in each restaurant. To meet that delivery they have 300 vehicles, tractors and trailers which help them to run these logistic operations within UK and including the Isle of Man and channels Island by delivering around one million cases each week. Their biggest challenge is ensure those vehicles arrive at the restaurants on time and containing everything being ordered and meeting 100 percent quality of product including frozen, chilled or dry. However running those vehicle cause heavy amount of pollution and damage to environment the challenge here is to make sure eco-friendly tool to be used. (Business Review Europe website 10th.July.2010)

Inventory Management:

The process of making sure there is enough stock at all times to meet customer demand whilst minimising expensive waste is known as stock management. High cost is involved in holding too much stock so McDonalds uses lean stock control method to save money. (Refer Appendix A for further explanation of Inventory Control)

Inventory ordering manager work with the new stock control system, Manugistics, to ensure sufficient raw stock is available. This helps restaurant to produce the meals required according to the forecasted demand. Forecast is done on the basis of restaurant historic product-mix data from last year, store-specific and national causal factors such as national promotions and school holidays, information from store managers about factors that might affect demand .e.g. road closure or local events and new promotions. (McDonalds Website: December 2009)

Restaurant manager need to ensure that the data they enter into the system is as accurate possible. Every day restaurant manager record opening and closing stock of key food items. Other items are recorded weekly and monthly basis. The store computers system identifies any stock count deviations from last stock count so it gives opportunity to manager to investigate missing product. For example, the manager may have missed off a box of regular meat while counting them earlier on the shift. (McDonald’s website: December 2009)

Serving Customer:

Competition and increasing consumer preference for variety and healthier food makes McDonalds to expand the range of menu. Customers entering into McDonalds are divided into those who know about menu and those who are new and coming to restaurant first time and are not familiar with menu. Apart from selling food items by itself McDonalds also sell Extra Value meals which consist of a burger, fries and a drink. When customers reaches the front counter and place their order, the till person applies two selling technique. The ‘selling up’ technique where order is changed by asking customer by suggesting larger portion and also by adding extra item such as drink and another one is ‘suggestive selling’ technique where any item extra is being asked to sell each and every customer. For example if customers comes and buys two three adults meal and one two children meal and they are being asked if they wanted to buy two apple pies for £1.50. (Hill; 2005; p.671)

Logistics and Supply Chain Management at McDonalds (1)

Source: Word Press Website: 09.August 2010

As shown in figure above the service time is 45sec which is quite low in McDonalds. The till person punches the order on to their till. There are some standard food items which are meant to be held in production bin, the counter person pick the food what is being ordered in a specific sequence which involves cold drinks first, and then hot drinks second, then fries and at last burgers. But some time in the availability of food varies like breakfast time they apply food cooked on order nothing is held in production bin. (Hill; 2005; p.671)

If a particular food item is not available in the production bin, then the counter person calls the order to the production person who then calls the food order to the grill area as shown in figure. Certain food products in slack period are cooked to order due to their less demand and to avoid waste. (Hill; 2005; p.672)

When the order in not ready the till person ask the first customer to pay and wait aside if its take away order and if its eat in they ask customer to take a sit and order will be brought to your table, and start dealing with the next person in the line. Every time till person completes the order there is a button ‘served’ which is to be punched in order to let computer know that the order is finished. As if it not done the computer will not allow taking eleventh order. So every time order is done it’s necessary to serve it off. (Hill; 2005; p.672)

Performance Improvement:

Integrating the pipeline of supply chain and choosing the correct suppliers is much more difficult than one can imagine. Not only do companies have to strongly consider price and quality, but they also have to make sure that all the organizations are willing to cooperate to benefit the group. Keystone manages the supply chain to ensure that there is always sufficient stock to fulfill demand when orders are received. Efficient stock management is essential to kind of business. Keystone is working on an initiative that it hopes will further advance the efficiency of the company’s operations.”We’re reviewing the whole of the delivery schedule as well as the entire delivery system in conjunction with McDonald’s to try and find a more cost effective and equally eco-friendly delivery schedule with them,” says Ramsay Assal, the Keystone Distribution’s Logistics Director. (Business Review Europe website 10th.July.2010)

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Logistics and Supply Chain Management at McDonalds (2024)

FAQs

Why is operations management important to McDonalds? ›

McDonald's goal for this strategic decision area of operations management is to minimize inventory costs while supporting restaurant operations. The company does not directly sell products and ingredients to its restaurants.

What is McDonald's management strategy? ›

In McDonald's the business strategy for the company is to make food fast available to its customers at a very low competitive price but to get profit as well by reducing the cost of the product and expanding the business world wide.

What type of inventory does McDonalds use? ›

Reliable inventory management system. McDonald's inventory is managed by using the stock control system to ensure constant availability of raw materials.

How does supply and demand affect McDonalds? ›

There will be a decrease in the supply of McDonald's burgers if the price of meat increases (cost of production). There will be a decrease in the demand for McDonald's if unemployment goes up because more people buy cheap fast food.

What are the most important performance objectives for McDonald's? ›

The performance objective of customer service is to provide quality service in the least time possible. Being a service-based business, customer satisfaction is important for McDonald's. The business has to be efficient in delivery of services such that customer wait time should be minimized to the least time possible.

How do McDonalds attract customers? ›

McDonald's runs a very successful series of marketing and advertising campaigns to make sure all of our customers are aware of our offers, promotions and good work that McDonald's is involved in. This includes TV, print, display, radio, and online advertising.

What business strategies were used in McDonalds food supply chain? ›

E-Procurement System:

McDonalds uses an e-procurement system under the name of Emac Digital Company which is owned by McDonalds and Accel-KKR Internet Co. E-Procurement is a website that allows McDonald's franchises to buy everything needed to run their restaurants.

What makes McDonalds successful? ›

“Quality, Service, Cleanliness and Value” was Kroc's motto.

These efforts towards process repetition and efficiency not only set the basis for McDonald's success from the standpoint of customers' expectations, but also help McDonald's stay on top in a culture where producing at a quick pace is commonly expected.

What makes McDonalds different from others? ›

True to 'fast food' format of its restaurants, McDonald's is famous for the speed of customer service without compromising the quality of the service. Universality of the taste to a great extent represents another base of McDonald's competitive advantage.

How many suppliers does McDonalds have? ›

McDonald's said it would spend $3.5 billion with diverse-owned suppliers by 2025, nearly a quarter of its annual supply chain spending and up from 23% now. The company said it currently works with more than 385 diverse-owned suppliers in the U.S.

How did McDonalds overcome the challenges? ›

McDonalds found the solution to most of its problems;they went Local. They promised that there would be no beef or pork on the menu. Nearly half of Indians are vegetarian so choosing a vegetarian to run their outlets here makes sense.

How does McDonalds use just in time? ›

McDonalds uses JIT system in which it doesn't begin to cook (reheat and assemble) its orders until the order is being placed. Initially it used to preheat a batch of hamburgers and let them be under heat lamps for as long as possible. And eventually the burgers that were not sold were discarded.

How can McDonalds improve customer service? ›

Use these five tips to improve customer service at your restaurant.
  1. Set Clear Standards for Staff. Good restaurant customer service starts and ends with your staff. ...
  2. Be Quick to Respond to Complaints. ...
  3. Do Table Touches. ...
  4. Don't Make Customers Wait. ...
  5. Incorporate Technology.
16 Jan 2019

What affects McDonalds demand? ›

The demand for McDonald's products is elastic. Changes in price, caused by the company's decision or regulatory influences such as tax and subsidy policies, can lead to fluctuations in demand in the short term. Customers do not have to invest in the brand for long for them to be able to derive value.

How can we improve McDonalds? ›

McDonald's should consider making these six changes if it wants to get back on top.
  1. Embrace Junk Food And Novelty Items. ...
  2. Stay Affordable. ...
  3. Put More Focus On Breakfast. ...
  4. Spruce Up The Interior Of The Restaurants. ...
  5. Pay Employees A Living Wage. ...
  6. Get Some Good Press.
23 Apr 2015

What was unique about McDonalds Operation why was it so unique effective? ›

McDonalds have a well planned cost control strategy. The restaurant has a well established low cost supply chain. They adopted Just-In-time strategy that reduces the cost of unnecessary storage and waste. Food can be sold at a lower price because the price does not absorb the costs of unsold food.

What are the 5 performance objectives in operations management? ›

The performance objectives are quality, speed, dependability, flexibility and cost. Each one of these objectives will be discussed in terms of how they are measured and their significance to organisational competitiveness.

What are the 5 main business objectives? ›

The five key business performance objectives for any organization include quality, speed, dependability, flexibility, and cost. When it comes to business performance objectives you're likely aware that efficiency and productivity are crucial.

What are McDonalds weaknesses? ›

McDonald's weaknesses are linked to market focus, products, and processes.
...
McDonald's weaknesses are as follows:
  • Insignificant degree of vertical integration.
  • Imitable characteristics of processes, and food and beverage products.
  • Limited product design flexibility that comes with standardization.
25 Sept 2022

What products and services does McDonalds provide? ›

  • Breakfast.
  • Burgers.
  • Chicken & Fish Sandwiches.
  • McNuggets® and Meals.
  • Fries® & Sides.
  • Happy Meal®
  • McCafé® Coffees.
  • McCafé® Bakery.

How has McDonalds changed the food industry? ›

The predominance of fast food restaurants changed the food supply chain all the way down to the farmer. McDonald's quickly became the single largest buyer of beef, pork, potatoes and apples in the U.S. That gave them tremendous economic clout.

Why is McDonald's supply chain good? ›

McDonalds is integrated in every stage of the supply chain through partnerships with contracted suppliers. This means that the fast-food chain processes the meat themselves, grows its potatoes and transports its own materials.

Does McDonald's have supply chain? ›

McDonald's has a complex global supply chain with thousands of direct suppliers employing thousands of people in over 100 countries. We believe a supply chain of this scale gives us an important responsibility to do business with suppliers that respect the fundamental rights of their employees and partners.

Why is supply chain management important? ›

Supply chain management is important because it can help achieve several business objectives. For instance, controlling manufacturing processes can improve product quality, reducing the risk of recalls and lawsuits while helping to build a strong consumer brand.

How McDonalds became the biggest fast food chain in the world? ›

McDonald's grew thanks to its 'Speedee Service System'

According to Love, they simplified their menu to just nine items—hamburgers, cheeseburgers, three soft drink flavors in one 12-ounce size, milk, coffee, potato chips and pie. “Our whole concept was based on speed, lower prices and volume,” Richard McDonald said.

How does McDonalds improve productivity? ›

Through enhancing job satisfaction among its employees, McDonald's develops the competence to decrease costs that interfere with its financial performance, such as turnover expenses, absenteeism, overheads, and task-associated errors. These costs lower any company's productivity.

Why are you looking for a job at McDonalds? ›

You enjoy working with people, and hope to work in a challenging, fast-paced environment like McDonald's. You feel McDonald's offers exceptional value to its customers, and you would be proud to represent them.

What makes McDonald's better than its competitors? ›

Quality Experience -It is impossible to become a leading sustainable brand if the company's quality is associated with only the products. McDonald brothers not only focused on the quality of products, services, and processes but also on the quality of infrastructure for enabling awesome experiences.

What is McDonald's biggest competitor? ›

Privately-owned Burger King is McDonald's closest competitor. Yum Brands operates Taco Bell, KFC, and Pizza Hut. Subway is the largest restaurant chain in the world in terms of size, but sales have been sliding since 2012.

How does McDonald's promote their products? ›

Advertisements are the most notable among McDonald's promotion tactics. The corporation uses TV, radio, print media, and online media for its advertisements. On the other hand, sales promotions are used to draw more customers to the company's restaurants.

What are the raw materials of McDonalds? ›

Raw materials for the fast food chain include meat, raw vegetables, ketchup, mayonnaise, napkins etc. Economies of scale are the main source of value creation in McDonald's inbound logistics.

Who supplies McDonalds meat? ›

Today, Keystone's US operations are proud to produce and deliver the highest quality beef, chicken and fish products to McDonald's, including more than 150 million pounds of beef, 300 million pounds of chicken and 15 million pounds of fish each year.

What is supply chain in simple words? ›

A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.

What are the strategic issues of McDonalds? ›

23 The strategic focus for McDonald's is to be a low-cost convenient provider. The value of McDonald's proposition is the fact that they can offer a good value, convenience, and consistency at a low price.

What are the issues and challenges faced by McDonalds in maintaining its information systems? ›

CHALLENGES. Analysts felt that erratic electric power supply would pose a challenge to the functioning of the McDonald's restaurants as the total information systems relied on power supply. Another challenge was the staff lacking technical knowledge in case of information system failure. ...

What are the most important strengths of McDonalds and how do they contribute to its successful operations? ›

Strong brand loyalty. Consumers have loyalty for McDonalds because of their product variety, quality and strong brand presence globally. Large product range. McDonalds have a large product range from, burgers, fries, drinks and desserts.

Is McDonalds a push or pull system? ›

The basic difference between pull and push is that a pull system initiates production as a reaction to present demand, while push initiates production in anticipation of future demand. Thus a fast food restaurant like McDonald's runs on a pull system, while a catering service operates a push system.

What do you mean by inventory management? ›

Inventory management is responsible for ordering and tracking stock as it arrives at the warehouse. Order management is the process of receiving and tracking customer orders. Software often combines both tasks. Inventory management plays an important role in order management.

What is JIT pull system? ›

When the just-in-time concept is applied to an industrial material management system, it is called a pull system, which means that the amount and time of material flow are determined by the rate and time of the actual stock consumption.

What type of marketing strategy does Mcdonalds use? ›

McDonald's uses a value-based pricing strategy and strives to provide value to its customers across the menu, and also offers a $1-3 menu. In essence, their goal is to keep prices as low as possible.

What are the 3 pillars of growth strategy for McDonald's? ›

To improve drive-thru service times, the company has invested in staffing, positioning and order assembly. “While each pillar will further extend our leadership, what's especially powerful is the exponential impact when all three pillars come together,” Mr. Kempczinski said.

What kind of service does Mcdonalds have? ›

24/7 Restaurant and Delivery Service.

How do McDonalds attract customers? ›

McDonald's runs a very successful series of marketing and advertising campaigns to make sure all of our customers are aware of our offers, promotions and good work that McDonald's is involved in. This includes TV, print, display, radio, and online advertising.

Why is McDonalds losing customers? ›

Currently, McDonald's major competitive advantage in the restaurant business is its low-priced menu items. Since people go to McDonald's for its quick and cheap offerings, a price increase might result in a decline in customers visiting the fast-food chain.

What is McDonalds business model? ›

The company makes money by leveraging its product, fast food, to franchisees who have to lease properties, often at large markups, that are owned by McDonald's. Franchisees are lured by the impressive margins that make McDonald's franchises an almost guaranteed moneymaker.

What is McDonalds target market? ›

The McDonald's target audience is mainly lower to middle class consumers, who are interested in fast, cheap and convenient food. During the pandemic, the famous McDonald's drive-thru became even more popular.

What are the objectives of McDonalds? ›

Simply put, our mission is to provide people with great food and great service at great value for money.

What was unique about McDonalds Operation why was it so unique effective? ›

McDonalds have a well planned cost control strategy. The restaurant has a well established low cost supply chain. They adopted Just-In-time strategy that reduces the cost of unnecessary storage and waste. Food can be sold at a lower price because the price does not absorb the costs of unsold food.

What strategies can McDonald use to increase its sales? ›

McDonald's marketing strategy in the digital medium includes customer interactions through social media like Facebook and Instagram. The customers interact with the brand and with each other on social media. Also, the company offers various discounts and coupons through their social media pages and the company app.

What business strategy McDonald has been adopting? ›

Franchising form of new market entry is utilized within McDonald's business strategy to a great extent. The fast food chain has one of the largest property portfolios on the world and it is a giant real estate company.

What do you think are the benefits of the new stock ordering system to McDonald's and its customers? ›

Less waste means food costs are reduced. This cost saving is then passed on in better value for money for customers. The amount of stock ordered for promotions is more accurate, being based on past performance. There is a reduction in the need for emergency deliveries, saving money.

How did McDonalds overcome the challenges? ›

McDonalds found the solution to most of its problems;they went Local. They promised that there would be no beef or pork on the menu. Nearly half of Indians are vegetarian so choosing a vegetarian to run their outlets here makes sense.

What are the most important strengths of McDonalds and how do they contribute to its successful operations? ›

Strong brand loyalty. Consumers have loyalty for McDonalds because of their product variety, quality and strong brand presence globally. Large product range. McDonalds have a large product range from, burgers, fries, drinks and desserts.

Why is McDonalds so successful internationally? ›

The first key to McDonald's success is their uniformity. Whatever country you visit a McDonald's in, you are assured the same quality, experience, and food. Consumers rely on consistency, admiring the equal value regardless of the location. The second key to McDonald's global success is their cultural awareness.

What are the 3 pillars of growth strategy for McDonalds? ›

To improve drive-thru service times, the company has invested in staffing, positioning and order assembly. “While each pillar will further extend our leadership, what's especially powerful is the exponential impact when all three pillars come together,” Mr. Kempczinski said.

How can McDonalds improve customer service? ›

Use these five tips to improve customer service at your restaurant.
  1. Set Clear Standards for Staff. Good restaurant customer service starts and ends with your staff. ...
  2. Be Quick to Respond to Complaints. ...
  3. Do Table Touches. ...
  4. Don't Make Customers Wait. ...
  5. Incorporate Technology.
16 Jan 2019

Who is McDonalds target customer? ›

The McDonald's target audience is mainly lower to middle class consumers, who are interested in fast, cheap and convenient food. During the pandemic, the famous McDonald's drive-thru became even more popular.

Which of the 3 international strategies do you think best describes the strategy of McDonalds? ›

Transnational Strategy

For example, large fast-food chains such as McDonald's and Kentucky Fried Chicken (KFC) rely on the same brand names and the same core menu items around the world.

How many suppliers does McDonalds have? ›

McDonald's said it would spend $3.5 billion with diverse-owned suppliers by 2025, nearly a quarter of its annual supply chain spending and up from 23% now. The company said it currently works with more than 385 diverse-owned suppliers in the U.S.

How does McDonalds create value for the consumer how do they communicate this value? ›

Communicating the value

McDonald's develops its offering following the value proposition of providing steady quality with decent value pricing that is served quickly and consistently across the globe.

How McDonalds just in time system helps to improve productivity? ›

When customer need,the product can be made follow taste,size,quantity of item because in a MTO process . The MTO process's cycle is of production and order fulfillment begins with the customer order and after receiving the order with customer satisfaction with the food.

How does McDonalds apply the value of customer service as a competitive tool? ›

Its focus on quality and customer service has resulted in strong brand equity. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers.

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