Mc donald’s
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Transcript of Mc donald’s
Mc Donald's in India
• 1996- First restaurant opens in India, in New Delhi.• JV between Mc D (USA) and 2 Indian
Businessmen- Amit Jatia (Hardcastle Restaurants Pvt. Ltd., Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Pvt. Ltd., Delhi)
• Management Teams trained extensively in Indonesia & The USA.
• Menu customised according to Indian Tastes and Preferences.
• Vision – To be the best & leading fast food providers around the
globe.• Mission– To be the world’s best quick service restaurant
experience.
• ValuesSummarised as Q, S, C & V.
– Quality– Service– Cleanliness– Value
Supply Chain Management
• Collaboration with Indian businesses, to get highest quality products.
• Better infrastructures and facilities created to satisfy Mc D’s high demands.
• Distributions centres (DC) were created to serve the restaurants.
• DC’s are responsible for – Procurement– Quality inspection– Inventory management– Timely deliveries– Data collection, recording and reporting.
Geographically Dispersed Suppliers: Ensuring stringent Quality
Suppliers• Trikaya Agriculture: Suppliers of Iceberg
Lettuce
• Vista Processed Foods Pvt. Ltd.: Supplier of chicken and vegetable range of products
• Dynamix Diary: Supplier cheese
• Amrit Food: Supplier of long life UHT Milk and Milk Products for Frozen Desserts
Distribution• Radhakrishna Foodland– Distribution centres and Cold storages
• Completely dedicated distribution and supply chain.• Matching supplier production with deliveries using
ERP.• Quality inspection program, quality check at 20
different points in supply chain.• HACCP (Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.
• Contractual Vertical Marketing System– Franchisee organisations
• Functions of channel members–Potato Farming in Gujarat– Ensure freshness, crispness, and nutritional– value of vegetables and processed
products
Mc Donald’s - Vertical Marketing system
Channel Cooperation and Conflict Management
• Channel Cooperation occurs when channel members are brought together to advance goals of the channel as opposed to their own potentially incompatible goals.
• Channel conflict is generated when one channel member’s action prevent another channel from achieving its goals.
Managing Channel Conflict
• Various Mechanisms of managing conflicts are:– Adoption of superordinate goal– Exchange of employees– Joint memberships in Trade Association– Co-option– Diplomacy, Mediation or Arbitration– Legal Recourse
Profitability AnalysisMcDonald’s return on capital employed stands at 9%, 23% less than Diageo’s and 11% less than that of the Yum Brands.
McD Diageo
Sales per Employee £9,774 -£233,405
Profits per Employee £1,106 -£45,791
McDonalds is quite efficient at using its assets to generate profit.
THIRD PARTY LOGISTICS (3PL)
McDonald's provides an excellent example of outsourcing as a business
practice.
McDonald's focuses on its core competencies
Radhakrishna Foodland Private Limited 1993
RFPL - Distribution Centres
Specially designed trucks (refrigerated vans)
DC to McDonald's outlets on a daily basis
Drivers were instructed specifically
McDonald's introduced Foodland to F. J. Walkers of Australia
New systems were adopted to satisfy McD demands
DC is responsible for • Procurement• quality inspection programme• Storage• inventory management• deliveries to the restaurants• data collection• Recording• reporting.
In most cost- effective
manner
Managing logistics for McDonald's is as complicated and demanding as rocket science. - Director, RFPL
McDonald's terminated the technical support from F. J.
Foodland became a members of McDonald's Asia Pacific Logistics and Distribution Team
Thank you