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Supply Chain Management - Essay Example

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Supply Chain Management

As per the franchise agreement, the Corporation owns most properties where McDonald's is located. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. Nearly one in eight workers in the US has worked with McDonald's at one point in their lives. [1] Eric Schlosser's. McDonald's is also the largest private operator of playgrounds in the country, apart from being the single biggest purchaser of pork, beef, potatoes, and apples. The meats that the company deploys vary with the culture of the country. McDonald's is unique in several ways to its competitors as regards the way it runs its business.
It has not always been smooth sailing though, for the most famous fast food joint in the world. McDonald's has been targeted by criticism for allegations of manipulation of entry-level workers, , ecological damage generated by industrial processing of its products, selling far from healthy food, producing packaging waste, exploitative and controversial advertising and partaking in the suffering of livestock. McDonald's' tendency towards promoting high-calorie foods like French fries has not helped either. Also, several McDonald's restaurants are alleged to have used substitute meats, like wildebeest and horse. While these allegations are serious, some argue that it is simply paying the price for being famous.

McDonald's Food supply chain
McDonald's puts food safety at the very top of their agenda. This is not surprising for a company that does billions of sales revenue annually. This kind of ethics promotes good business as well. At the heart of the McDonald's operation is a quality assurance and supplier food safety programs and is seen as top corporate priority. Suppliers and franchisees have to follow meticulous quality and safety guidelines if they want to sustain their association with McDonald's. It is a high-profile business whose success is founded on good customer experience. Thus, setting clear food safety and quality expectations is the best way to make the business work. [2] Sarah Fister Gale

"Food safety is a never-ending process for McDonald's, from raw materials, through the facilities and distribution centers, and all the way to the restaurants. It's a top priority at McDonald's. It's a fundamental standard of our business and our heritage, and will never be compromised." - Lamont Rumbers, director of quality systems for McDonald's USA. [2]

For sandwich buns alone McDonald's has tie-ups with more than 20 bakeries all ...Show more

Summary

McDonald restaurants can be found in 118 countries and territories worldwide. They claim to serve 50 million customers every day. Revenues for 2004 were a whooping US$19.1 billion, with net income valued at $2.75 billion. Most detached McDonald's restaurants have drive-through service and in-counter services, with indoor seating generally…
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