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McDonald's Supply Chain Pros and Cons

McDonald's supply chain management system in India provides several benefits. It developed an effective "Cold Chain" supply chain system for its entry into India. McDonald's also offers a wide variety of affordable products. Its success in India is built on limited menus, fresh food, fast service, and affordable prices. McDonald's has strong brand equity and reputation globally. However, the franchising system initially failed and fast food is often unhealthy. There is also strong competition and demands for more menu options. While the benefits of McDonald's supply chain score slightly higher, the decision is to plan and implement the proposed change given the small margin.

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Jennifer Hernandez
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423 views2 pages

McDonald's Supply Chain Pros and Cons

McDonald's supply chain management system in India provides several benefits. It developed an effective "Cold Chain" supply chain system for its entry into India. McDonald's also offers a wide variety of affordable products. Its success in India is built on limited menus, fresh food, fast service, and affordable prices. McDonald's has strong brand equity and reputation globally. However, the franchising system initially failed and fast food is often unhealthy. There is also strong competition and demands for more menu options. While the benefits of McDonald's supply chain score slightly higher, the decision is to plan and implement the proposed change given the small margin.

Uploaded by

Jennifer Hernandez
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Case Study: McDonald's Food Chain in India
  • Decision-Making Exercise

College of Business Subject Student’s Name

and Technology
Philippine Christian DISTRIBUTION HERNANDEZ, ANGELICA Q.
University MANAGEMENT
Dasmarinas City

CASE 10: MCDONALD’S FOOD CHAIN


Goal or proposed change: To view and understand the benefits reaped by McDonald’s
because of its supply chain manage system in India.

# Driving forces (pros) Restraining forces (cons) #

Pro-A Develops a very well- The franchising system failed Con-A


orchestrated supply chain, because the McDonald brothers
called the ‘Cold Chain’ that observed very transparent
worked well of its formal entry business practices.
to India.

Pro-B McDonald serves a wide They sell fast food items that Con-B
variety of products, beginning contains a high measure of fat,
from burgers, smoothies, carbs, salt and sugar that cause
shakes, ice-cream and snacks negative publicity to consumer.
products differ from one spot
to another.

Pro-C McDonald’s success in India There has a strong competition Con-C


had been built on four pillars and demands in the market for a
such as limited menu, fresh wider menu, drive-through and
food, fast service and sit-down meals.
affordable price.

Pro-D McDonalds has built up huge Alongside the improvement of Con-D


brand equity, image, and the industry in the fast food
reputation that is recognized chains, there are numerous new
around the world. fast food brand enter to the
market.

Pro-E Effective marketing strategies Economic recession or down Con-E


among executives which leads turn in economy that may affect
an exceptionally careful
market analysis, bringing the retailer sales that negatively
about much accomplishment impacted the company.
all throughout the world.

Write in the central column the issue of which you want to make a decision. Write in the
boxed arrows the factors both for and against the issue. Give each factor a score. Compare
the scores for and against. What would be the decision? For or against change?
Goal or Proposed
DRIVING FORCES Change RESTRANING FORCES
For Against

Pro-A Con-A
Type of Issue:
Traditions

SCORE: 4 To view and


understand the
SCORE: 4
benefits reaped by
McDonald’s because of
its supply chain
Pro-B manage system in Con-B
India.

SCORE: 5 SCORE: 5

Pro-C Con-C

SCORE: 4 SCORE: 5

Pro-D Con-D

SCORE: 5 SCORE: 4

Pro-E Con-E

SCORE: 4 SCORE: 5
Total Score For Total Score Against

22 23
Pro>Cons, Cons<Pro ---- Proposed Change is Feasible (plan & implement)
Pro<Cons, Pro=Cons ---- Status Quo Preserved (live with the present condition)
Recommendation: Pro overwhelms Cons, the proposed change seems feasible, Plan and Implement.

College of Business and Technology Philippine Christian University Dasmarinas City Subject DISTRIBUTION MANAGEME
market analysis, bringing about much accomplishment all throughout the world. the retailer sales that negatively impact

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