Preview

OPM 300 Module 1 Session Long Project

Good Essays
Open Document
Open Document
636 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
OPM 300 Module 1 Session Long Project
OPM 300 Module 1
Session Long Project
Dr. Tu

For the session long project, I will analyze one of the supply chain operations the McDonald's Corporation. I will discuss how the logistic operations enable the same quality in service no matter which restaurant you go to; and how that leads to the business strategy of this company.

Ray Kroc, the founder and owner of McDonald's, once stated once stated that “He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama.” To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into his vision, working not for McDonald痴, but for themselves, together with McDonald痴. He promoted the slogan, 的n business for yourself, but not by yourself.His philosophy was based on the simple principle of a 3-legged stool: one leg was McDonald痴, the second, the franchisees, and the third, McDonald痴 suppliers. The stool was only as strong as the 3 legs.

In regards to the McDonald's suppliers, he managed to create the most integrated, efficient and innovative supply system in the food service industry. These supplier relationships have flourished over the decades: in fact, many McDonald痴 suppliers operating today first started business with a handshake from Ray Kroc.

The McDonald痴 supply chain is a complex web of direct and indirect suppliers. They manage this complex system by working with direct suppliers who share their values and vision for sustainable supply. Overall, McDonald痴 and their suppliers are collectively focused on three areas of responsibility: ethics, environment, and economics.

Their vision is a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging their leadership position to create a net benefit by improving ethical, environmental and economic outcomes. When they speak of the ethical responsibility they want to ensure that they



References: 1. The Ray Kroc Story, www.mcdonalds.com http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html 2. Focusing on the 3E 's: Ethics, Environment and Economics,, www.aboutmcdonalds.com. http://www.aboutmcdonalds.com/mcd/sustainability/our_focus_areas/sustainable_supply_chain.html 3. The Big Idea, McDonald 's Unravels it 's Supply Chain, Pamela Cheema, Logistics Weekly. Jul, 2011, http://logisticsweek.com/feature/2011/07/the-big-idea-mcdonalds-unravels-its-supply-chain/ 4.

You May Also Find These Documents Helpful

  • Better Essays

    Gb 570

    • 1311 Words
    • 6 Pages

    A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.…

    • 1311 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Tui Mgt 499 Module 1 Slp

    • 426 Words
    • 2 Pages

    The success of McDonalds continues to be truly global, with some of the highlights to include the U.S. Such balanced growth highlights the deeping connection with all of the customers as well as strengthen the ever increasing global economy. The McDonalds’ commitment to the stakeholders is in two folds, first the commitment to the Plan to Win, which has served as the operational roadmap for the past nine years. This plan focuses on the core drivers of the business, people, products, place, price and promotion. The second commitment to the stakeholders is continued success through listening to customers, and…

    • 426 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    One such person who invested considerable initiative and risk is Ray Kroc, king of the famous franchise chain, McDonald’s. Ray Kroc started as a salesman for the Lily-Tulip Cup Co. selling paper cups when he was 37 years old. He met Earl Prince, inventor of the first five-spindle milkshake mixing-machine called a Multimixer. Ray purchased the marketing rights for the Multimixer and sold it all across the country. When he came upon the first hamburger stand owned and operated by the McDonald brothers, Kroc was so impressed by the simplicity and originality of this new restaurant (a storefront with no seats which offered only burgers, fries, drinks and milkshakes) that he purchased the McDonald’s method from the brothers - and the rest is history. There are now more than 25,000 McDonald’s in operation worldwide. Ray’s reason for seeking this opportunity was to become profitable and at 61 years of age, he did become a millionaire.…

    • 880 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    In his book entitled ‘The McDonaldization of Society’, George Ritzer nicely encompasses concepts from sociology, management, and economics to provide a profound understanding of our modern society. According to George Ritzer, McDonaldization is defined as the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world. Toys “R”Us, Wal-Mart, Gap, Jiffy Lube, and Home Depot are all examples of companies that want to become the McDonald’s of their industry. The success of McDonald’s is also evident worldwide as over half of the company’s revenue comes from overseas operations serving 50 million customers a day. Indeed, this fast-food restaurant has become more than just a company. It has become a part of our culture.…

    • 2978 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    The seed of McDonald 's success was sown in 1990 - six years before it started its actual operations. Sanjeev Bhar traces its supply chain management that played a vital role in its growth.…

    • 1564 Words
    • 7 Pages
    Better Essays
  • Good Essays

    When confronted with the word, McDonald’s, most people think of the Whopper Meal, or a bright yellow M, famously known as the “Golden Arches” (Macionis 121), sitting on the side of the highway. Little do they know that over 33,000 McDonalds are operating worldwide, one of which holds fifteen hundred people. Not only a “symbol of U.S. Culture” (Macionis 121), but it has become a theory of sociology, unknown to most, conveniently named the “McDonaldization Theory”.…

    • 1360 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Supply Chain

    • 358 Words
    • 2 Pages

    Choose an organization delivering goods and/or services globally. Provide a background of the organization and fully describe six components of the organization's supply chain. Examine the potential problems related to each of the components described and explain the approaches of the organization for solving the problems.…

    • 358 Words
    • 2 Pages
    Good Essays
  • Good Essays

    McDonaldization’s main focus is effectiveness, speed, and effort. For example, when eating at home you have to go to H-E-B to buy all the ingredients, come home and prepare them to be cooked, cook everything, wait the amount of time for everything to be done, set the table, eat, and finally pick everything up. McDonaldization played its part and made a restaurant so that the previous process would not take up so much time. Yes, a restaurant was a success but it had its defects. You had to drive there, decide on what you wanted to eat, and wait for the chef to complete everyone’s order. This used too much effort. Consequentially, McDonaldization took part in bringing up fast food restaurants like McDonalds, which reached its highest accomplishment. McDonald’s acquired the criteria of McDonaldization, effectiveness, speed, and most importantly minor effort (George Ritzer 1996)…

    • 573 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    McDonalds has been a leading fast-food chain in the restaurant industry since 1955. Not only have they created some of America’s favorite pastime foods, but also they’ve been a leading force in creating global change with innovative additions such as drive-thru restaurants, college credits from their Hamburger University to chicken McNuggets and more!…

    • 1715 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    George Ritzer’s book The McDonaldization of Society is based on his theory and social criticism on rationalization of society as a whole through the growth and principles of McDonald’s fast-food model of business. The book begins with an introduction chapter that describes the background of McDonalds and outlines the different chapters of the book. Chapter Two gives a history of socioeconomic developments that lead up to the creation of McDonalds including theories of F.W. Taylor, Henry Ford and Max Weber, McDonalds in the present day, and what is predicted for the future of the McDonald system. The next four chapters break up the McDonaldization principles and how each one can be applied to society outside of McDonalds – big business, education and health care as a few examples. Efficiency is the first principle introduced. The chapter talks about how McDonald’s fast-food model encourages efficiency, similar to that of the assembly line developed by Henry Ford, in creating a fast-paced environment. The next chapter discusses calculability and how McDonalds emphasizes quantitative processes over qualitative products; everything must be measurable. Predictability is covered in the fifth chapter, which refers to the idea of gaining customer comfort in the stability of product offerings. The final principle chapter deals with control; particularly those of customer habits and employee work styles. The seventh chapter addresses the drawbacks and problems associated with having a McDonaldized society. Globalization is covered in Chapter 8 with a solid definition of globalization; the something/nothing principles and how the fast-food model has affected foreign societies. The last two chapters in the book discuss options and alternatives for dealing with living in a McDonaldized society and how Starbucks is now taking over the role as an international mega-chain influencer on society in comparison to McDonalds.…

    • 1533 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Sample Bibliography

    • 885 Words
    • 4 Pages

    MacArthur, Kate. Article titled “McDonald’s secret marketing sauce; Three-pronged strategy of national, co-op & local propels chain to global powerhouse.” Released on July 25, 2005 http://www.kellogg.northwestern.edu/news/hits/050725aa.htm.…

    • 885 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    In the novel “The McDonaldization of Society,” George Ritzer defines McDonaldization as “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world” (Ritzer 1) and explains how this concept not only affects people who eat at fast food restaurants but basically every citizen of the United States. Since the beginning of Ray Kroc’s revolutionary idea to bring the franchise concept to the McDonald brothers’ small hamburger restaurant in 1940, McDonald’s has dominated the fast food industry in sales as well as their conception of how to run their restaurants. The idea of McDonaldization has been applied to many other areas of society…

    • 2294 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Management Macdonald

    • 999 Words
    • 4 Pages

    Many people start to come through Macdonald every day and trust in Macdonald’s integrity that keeps them coming back. Macdonald earns that trust by respecting their customers and employees, and delivering outstanding quality, service, cleanliness and value. Macdonald’s Australia limited is an unlisted Australian public company limited by shares. It is a franchise business with more than two thirds of Australian restaurants owned and operated by individual businessman and women. The remainders of the restaurants are run by company staff. Their corporate values appear in everyday working life and guide their strategic direction and corporate planning. Their vision and values are placing the customer experience at the core of all they do, committing to their people, believing in the McDonald’s system, operating their business ethically, giving back to our communities, growing their business profitably, and striving continually to improve. In 1954 in the UAS there was a milkshake machine salesman named Ray Kroc. Ray received an order from the McDonald brothers’ hamburger outlet in California, and impressed by their company, the menu was simple and cheap but the hamburgers were good, the fries were made in-store and the shakes were thicker than usual. Ray made them an offer that let him open new McDonald’s stores. The MacDonald’s brothers accepted and ray opened his first store and he began to build the business by granting franchises to local entrepreneurs.…

    • 999 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Ray Kroc

    • 307 Words
    • 2 Pages

    To further accomplish this goal, Kroc built and maintained relationships with suppliers who could supply ingredients to ensure that all McDonald’s stores would have quality, similar tasting burgers. If individual stores utilized different suppliers, burgers would be of varying qualities.…

    • 307 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Self Evaluation

    • 1114 Words
    • 5 Pages

    He bought the idea of restaurant chain in 1955 and grew it into the largest, most influential fast food chain in the world. Ray kroc was very hard working, good observer and innovative. Before opening his restaurant, he used to sell paper cups and has worked as a pianist. He worked as a salesman of milk shakes machines and travelled around to sell milk shakes machines to different cafes and restaurant. He observed that most of the restaurants were not successful because of poor management. During this period he met McDonald brothers in San Bernardino, California and convinced the brothers to sell him the rights to the McDonald's…

    • 1114 Words
    • 5 Pages
    Good Essays