PurchasingMidterm study guide

Mcdonalds corporation case through the middle of page

This preview shows page 8 - 10 out of 16 pages.

McDonald’s Corporation case (through the middle of page 10): How does McDonald’s operating system deliver? What makes is scalable? Is this their core competence? The operating system was created so that there would be consistency and uniformity throughout all McDonald’s locations. The customer was guaranteed the exact same quality and service regardless of which location it went to. They achieved this through standardization of their preparation methods and made food with exact product specifications. There was also customized equipment that helped to maintain uniformity. This was one of their core competencies. Their operating system consisted on four areas: improving the product, developing outstanding supplier relationships, improving equipment, and training and monitoring franchisees. How would you characterize the apparent relationship McDonald’s had with suppliers and vendors? McDonalds treated their suppliers and vendors extremely well. “Other chains would walk away from you for half a cent. McDonalds’ was more concerned with getting quality. They didn’t’ chisel on price and were always concerned with suppliers making a fair profit. “You’ve got to be deaf, dumb, and ignorant to lose McDonald’s business once you have it.”
Image of page 8

Subscribe to view the full document.

Can existing companies create such relationships, or is the fact that McDonald’s started in the beginning and grew the vendors with them too key a factor? Companies can create those kinds of relationships, but it’s something that is rare and takes a lot of time. It really helped McDonald’s to be able to grow with their vendors in the beginning. If a company wanted to try to create something similar to what McDonald’s had, how should they begin? McDonalds discovered where their competitive advantage lies and how they were going to maximize the benefits from their competitive advantage. By doing so they were able to focus on suppliers that were able to coordinate with their competitive advantage and add value to something that McDonalds already had an advantage in. This was able to happen because they took a proactive approach in dealing with their suppliers. A company should begin by identifying where their competitive advantages are and once they identify that they should work with their suppliers intimately to identify what it is the company wants and then how the supplier is able to deliver to their needs. Like McDonalds, the company should give the supplier opportunities to add value to the product, process, or operation through the suppliers own means. Similar to how Simplot experimented until they were able to find the correct process in freeze drying french fries. By doing this the company is actively engaged with the supplier while giving the supplier room to learn, develop, and contribute to the company’s competitive advantage and making a stronger buyer or focal firm overall. The result would be similar to McDonald’s three legged stool as the supplier is a critical player.
Image of page 9
Image of page 10
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern