McDonald’s Supply Chain Issues – a Case Study on Supply and Demand Analysis

Is there a more iconic symbol of American culture than McDonald’s?

The fast-food industry has shaped the modern lifestyle, not only in the USA. McDonald’s Corporation is present in over 100 countries and has more than 1.7 million employees. There are a lot of helpful business lessons a student can learn from doing the McDonald’s case study.

🍔5 Facts About McDonald’s Supply Chain

1. A new McDonald’s opens nearly every 14.5 hours. McDonald’s supply chain management made the company the number one fast-food chain globally.
2. McDonald’s has one of the best supply chains in the world. In 2016, it was ranked the second-best in the Top Supply Chains by Gartner.
3. McDonald’s uses The Three-Legged Stool approach for franchising. The company’s founder Ray Kroc designed this method: the first leg is McDonald’s employees, the second is the franchise owners, and the third is the suppliers.
4. Products are transported to McDonald’s restaurants by special cars. They are equipped with innovative temperature-control mechanisms. Check out our free essay samples to learn more about McDonald’s supply chain.

🥬 McDonald’s Case Study – Fresh Ideas

Various factors contribute to McDonald’s successful financial performance. Here’re some ideas to consider when doing the McDonald’s case study.

• Corporate culture.
• Vertical integration of the supply chain.
• International menu variations.
• McDonald’s inventory management system.
• Storage and distribution systems.
• Marketing principles.
• Recruitment practices at McDonald’s.
• Suppliers’ code.
• McDonald’s largest suppliers.
• The SWOT analysis.

🚚 McDonald’s Supply and Demand Analysis

1. McDonald’s supply chain overview
   McDonald’s outsources 100% of its supply needs. The company grows its products through contracted producers and transports its own goods. McDonald’s supply chain promotes growth not only for the restaurants but also for the suppliers.
2. McDonald’s consumers’ demands
   Most customers expect quick and simple ordering from McDonald’s restaurants. Having failed the experiment with pizza in the 1990s, McDonald’s has stuck to hamburgers, cheeseburgers, and French fries on the menu.
3. McDonald’s business strategy for supply and demand
   Here are some of the main McDonalds’s principles:
   • McDonald’s model is a win-win relationship between the company, the suppliers, and the customers.
   • Instead of looking for suppliers that offer the best price, McDonald’s maintains long-term relationships with existing ones.
   • McDonald’s does not micromanage business partners in its business model.

📈 McDonald’s Supply Chain Case Study

1. McDonald’s supply chain: sustainability
   McDonald’s aims to use natural resources to contribute to protecting the environment. One of the significant steps in this process is utilizing nature-positive supply chains. While trying to reduce their impact on nature, the company also develops a more sustainable global economy.
2. McDonald’s supply chain: economics
   McDonald’s works with its suppliers to research and share the best practices to increase productivity and financial performance. The company aims to reduce hunger and provide decent jobs to its suppliers worldwide.
3. McDonald’s supply chain: food safety
   Food safety is a serious responsibility of McDonald’s. To help with this, suppliers have special programs allowing them to track food in the supply chain. Moreover, McDonald’s approaches a Food Safety Advisory Council to educate its employees about food safety.

💊 McDonald’s Supply Chain Issues

1. McDonald’s switching from frozen to fresh burgers
   Since 2012, McDonald’s has lost 500 million restaurant visits as customers have chosen more fast-casual alternatives that provide fresh burgers. For that reason, in 2018, the company announced that it was switching to fresh patties instead of frozen in its burgers at 300 U.S. restaurants.
2. McDonald’s supply chain issues due to Covid-19
   In 2021, McDonald’s lacked some bottled drinks across its 1,250 restaurants in Great Britain. This happened because of a shortage of lorry drivers due to Covid-19 restrictions and self-isolation rules.
3. McDonald’s supply chain disruptions
   Supply chain disruptions can significantly impact McDonald’s financial performance and reputation. To reduce the negative impact, McDonald’s has multiple supply backup sources. McDonald’s has tested and trustworthy suppliers ready to help if a disruption occurs.

📚 McDonald’s Demand Analysis

1. Menu and burgers at McDonald’s
   McDonald’s used to make the tastiest hamburgers in America. However, this award today goes to other fast-food restaurants, such as Shake Shack. To win back customers, McDonald’s needs to focus on improving the quality of its core products.
2. Lower prices at McDonald’s
   McDonald’s customers are unwilling to spend more than $5 on a hamburger. McDonald’s has a simplified menu and self-serve ordering system to lower its prices. It is important to notice that organic food and high quality are not the first things consumers want from McDonald’s.
3. Customer service at McDonald’s
   McDonald’s employees’ essential quality is having a passion for people. McDonald’s adopts a multi-channel communication system to ensure that all its messages from the customers are delivered to staff. McDonald’s collects feedback and complaints on its website to identify factors affecting the demand.

👍 McDonald’s Case Study – 21 Best Examples

McDonald’s Supply Chain Issues

1. Food industry: McDonald’s company.
   This essay investigates McDonald’s price elasticity of demand for its goods and services and its supply chain.
2. McDonald’s organization: operation management.
   This report focuses on the key concepts of McDonald’s operations management, including supply chain management.
3. Mcdonald’s entering Estonia case analysis.
   This study investigates how McDonald’s can enter the Estonian market successfully and build a trustworthy relationship with local suppliers.
4. An external and internal analysis of McDonald’s Corporation.
   This paper conducts an external and internal analysis of McDonald’s Corporation and evaluates its supply chain management.
5. Quality management in McDonald’s restaurant.
   This essay analyses the measures McDonald’s uses to ensure that all supply chain operations occur safely.
6. Business strategy analysis of Mcdonald’s.
   This paper explores how McDonald’s supply chain supports its operations worldwide.
7. McDonald’s and Wendy’s International Inc.
   This report focuses on the management, suppliers, and customers of the two competing companies— McDonald’s and Wendy’s.

McDonald’s Marketing Strategies & Advertisement Campaign

8. McDonald’s marketing strategies in the UAE.
   The report analyzes the marketing strategies of McDonald’s, as well as market descriptions and segments of the company in the UAE.
9. McDonald’s company’s marketing strategies.
   This report presents an analysis of the internal and external environments of McDonald’s and reviews its marketing mix.
10. McDonald’s company marketing practices and strategies.
    This paper looks at the most suitable market entry strategies McDonald’s can use to continue expanding to the international market.
11. Business ethics and Social Corporate Responsibility for McDonald’s.
    This essay investigates how McDonald’s CRS policy contributes to the company’s marketing success.

McDonald’s Human Resource Management & Employment

12. McDonald’s strategic management of human resources & innovation.
    This research contains an overview of McDonald’s human resource management and suggests how it can be improved.
13. McDonald’s human resources management practice.
    This paper explores McDonald’s human resource management and its strengths and weaknesses.
14. McDonald’s company: human resource functions.
    This research focuses on McDonald’s human resource issues.
15. McDonald’s company H.R. management practices.
    This essay aims to demonstrate how McDonald’s efficient H.R. management practices benefit the company’s financial performance.
16. McDonald’s Corporation’s talent management program.
    This paper provides details on McDonald’s successful talent management program.

Mcdonald’s Financial Performance & Market Influence

17. McDonald’s company case analysis.
    This paper aims to assess the effects of McDonald’s operations strategy and its different perspectives on the company’s financial success.
18. McDonald’s Corporation’s five forces analysis.
    This essay focuses on the five internal and external factors influencing McDonald’s performance.
19. McDonald’s accounting information system.
    This paper examines the accounting information systems at McDonald’s.
20. McDonald’s company’s strategic management.
    This essay investigates how McDonald’s strategic decisions influence the company’s financial performance.
21. Comparative financial statements of McDonald’s.
    This writing analyzes the financial aspects of McDonald’s over the recent years.

🔗 References

1. Best Items on McDonald’s All Day Breakfast Menu – Business Insider
2. The Supply Chain: From Raw Materials to Order Fulfillment – Investopedia
3. 2022: Supply chains will face many challenges this year | World Economic Forum
4. McDonald’s Is Using AI and Data to Optimize Its Supply Chain
5. Demand and Supply Planning for a Large Fast Food Chain – AnyLogic Simulation Software