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McDonald - Supply Chain Management and Promotional Strategies

Autor:   •  February 8, 2016  •  Case Study  •  606 Words (3 Pages)  •  499 Views

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To: Melissa Wagner (manager)

From: Stephen Norman (Assistant Marketing Manager)

Date: November 23, 2015

Subject: Supply Chain Management and Promotional Strategies

Current Challenges:

Recently, McDonalds has been under fire from media. Poor performance and poor supply chain management has led to the departure of its CEO. McDonalds has been taken to civil court by environmental groups. Movies such as Super-Size Me and Fast Food Nation have created views that the corporation is promoting bad health, bad environmental practices, and is serving bad tasting food.

McDonalds has not taken the way side to all of these claims. It has taken on its critics and is making substantial changes to both its practices and its communication. McDonalds has gone as far as creating a documentary film showing the sourcing and production processes. The trouble with bad reputations is that they aren’t easily forgotten and that’s what McDonalds need to focus on.

What can McDonalds do to improve:

The biggest challenge McDonalds is facing right now is how to get the middle class customers back in there stores. The problem is that there are so many other competitors that are known for their great supply chain management and healthy options that it’s hard to get them back. Below is a few things that McDonalds can do to rejuvenate sales and profits:

  1. Create a new healthy food options.
  2.  Increase supplier relations
  3. Create a new order menu and increase customer service

Pest Analysis:

Political

Economical

  • Increase new healthy brand awareness
  • Want high standards
  • Creating new sales and regaining sales from the competition

Social

Technology

  • Becoming more environmentally friendly
  • Creating sustainable culture
  • McDonalds can set a new industry standard for supply chain management

SWOT Analysis

Strengths

Weakness

  • McDonalds already has convenient locations
  • Still has the biggest revenue of any restaurant
  • It is hard to incorporate new products to over 36,000 stores
  • Gathering fresh vegetables year round

Opportunities

Threats

  • New menu layout
  • Create new healthy options
  • Start new promotions and brand imagery
  • Getting the majority of store to implement the technology in a timely manor
  • It could be a bust and not drive business

Alternative Pro’s and Con’s

Creating a new menu and increase customer service

Create new health food options

Increase supplier relations

Pros:        

  • Will allow for new products
  • Create an easier/ less stressful environment

Cons:

  • Can complicate the day to day operations
  • Customers will have to learn the new menu

Pros:

  • Will drive sales with new products and promotions
  • Create healthier choices

Cons:

  • Will add to the already large menu
  • The availability of fresh produce

Pros:

  • Will help the brand image
  • Make sure no future incidents will occur

Cons:

  • Will take time

Stakeholder’s impact

Stakeholders:

Creating a new menu and increase customer service

Create new health food options

Increase supplier relations

Employees:

  • Will reduce time taking customers’ orders
  • Increase in revenue

  • Will create a new and clean work environment

Customers:

  • Won’t be confused by overcrowded and complicated menu
  • Offer healthier options
  • New items
  • Will create a environmentally friendly image

Recommended Strategy:

After looking at the pros and cons of each alternative and after looking at how it affects the employees and consumers, I believe that McDonalds marketing strategy should be increasing supplier relations. McDonalds has been attacked by numerous environmental groups and people calling out McDonalds for their poor supply chain. So having yet another incident with their suppliers would be detrimental to the company. If they create a high level of quality and in a environmentally sustainable way it would create a fresh new look for the company.

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