McDonalds India: Optimizing the French fries supply chain Harvard Case Solution & Analysis

Primary Strategy:

Basic marketing strategy of the company was based on maintaining equilibrium between the external resources along with internal resources of the company. In addition to this, the marketing people in McDonalds know that following the primary competencies is the best way to increase shareholder value. Moreover, the strategy of the company is being one of the famous and leading brands across the world and making McDonalds as a place where people would love to come and enjoy their meals. Moreover, another strategy of the company includes decreasing the negative concept of junk food that has been associated with the concept of fast food restaurants. Currently, the company is pursuing a strategy of promoting McDonald as a healthy place to eat. Besides that, the company is also making continuous changes in the menu of the restaurant as well, and these changes comprised of adding healthy items in the menu to give balance and mouthwatering life style to their customers.

Difference between supply chain in India and USA:

Supply Chain management:

Smooth supply chain is the most critical aspect for the company’s operations to be successful. With the help of supply chain management, companies can analyze the sources through which their components are coming. The overall procedure of supply chain management is based on various factors out of which, the most important one is the acquisition of raw materials that are used in the manufacturing of the final product. Moreover, the company attempts to enhance the value of the product with the help of numerous steps involved in the supply chain process.

The value can be injected by providing proficient facilities that are not even anticipated by the clienteles. Along with raw materials, alternative significant feature of supply chain is determined by the customers of the enterprise. As of now, individuals have so numerous varieties in terms of choosing fast food restaurants and determination is the single way towards encouraging clienteles to leave the opponent’s product and make them eat at their restaurants.

Supply Chain at McDonalds:

The supply chain of McDonald’s is known to be one of the most efficient supply chains in the world and is counted as a major factor for the company’s business. The supply chain of the company is multifaceted and wide-ranging as well. It is proficient and well organized, and that is why it is successful in delivering top quality food at an affordable price with no compromise on quality. Price and quality are not the only prominent factor in the supply chain success; there is more into it. The company is engaged in providing safety, good quality product and availability that can positively make its impact on its overall development in the economy.

The company promotes the production in a way that promotes sustainable manufacturing and farming practices. The company works with both direct and indirect suppliers that can deliver the final product directly to McDonalds, or they can grow products and deliver it to middle suppliers and then finally to McDonalds.

Supply Chain in USA by McDonald’s:

McDonalds supply chain in USA primarily consists of three basic concepts that includes Suppliers, Company and Franchises. A significant part of the company’s value chain is also based on the concept of cold chain. The company has spent years to set the unique concept of cold chain. The idea is mandatory to continue the reliability of food products and keep their cleanliness and nutritive value. The steps involve in the McDonalds supply chain is based on procurement, warehousing, transportation, retailing and food product. In addition to this, the supply chain of the company in USA is based on dealing with two types of suppliers known as major and minor suppliers.

Supply Chain in India by McDonald’s:

It has been mentioned above that the supply chain procedure used by the company was known to be the best supply chain around the world. The supply chain procedure in India has been changed completely because of the increasing level of efficiency in the overall process in addition to this, McDonalds in India was making many efforts to improve the quality and thus raised the level of performance on an international level. The local management at McDonalds makes sure that the quality of the products has never been compromised because of the local production. Additionally, the management at McDonald’s has made a devoted group for supply chain that makes sureof the ingredients necessary as raw materials should be bought from the locals to lift the homegrown expansion.

The supply chain procedure in India is based on four major factors that are also the major contributor of the company’s success. These four pillars include limited menu, fast service, fresh food, affordable price with having no compromise on the quality factor...................................

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