3.

What is the strategy / market of the business unit?

Driven by globalization, supply chains are rapidly evolving and gaining in complexity
across every industry sector, and the vendors in those supply chains are often a moving target as
multinational corporations like McDonalds search for low cost suppliers. Concerns also center
on how labor standards and working conditions can best be monitored and enforced throughout
the chain.
McDonalds claims that it has a sustainable supply chain in which it focuses on the three
Es: ethics, environment, and economics. However, the companys focus is probably in the
reverse order. Its supply chain is a complex web of direct and indirect suppliers that are held to
clear standards for quality and efficiency. Indirect suppliers operate facilities such as grain mills
and abattoirs. Farms and ranches raise cattle or grow wheat, lettuce, and other essential
ingredients. Distribution centers coordinate purchasing and distribution to restaurants. Finally,
processing facilities produce finished products like beverages, buns, and meat patties.
In addition, the company oversees the three Es at each level of its supply chain: raw
material production, processing, and distribution. Among other things, this means working with
suppliers to innovate and implement best practices for sustainable ingredients, requiring
McDonalds suppliers protect human rights in the workplace, and safeguarding food quality and
safety through best practices in animal health and welfare.
Traditional supply chains can crack under the pressure of unforeseen political,
environmental, or competitive changes, but the McDonalds three-legged stool philosophy and
cooperative approach can absorb the shocks produced by the unforeseen while quickly adapting
to frequently changing demands, specifications, and volumes. Mr. Fazli, McDonalds manager at
Kangar said McDonalds flexibility and resilience based on trust.