Founded May 

15, 1940 in San Bernardino, California

Founders Richard and Maurice McDonald (1st restaurant)

Ray Kroc (Founder of the McDonald's Corporation)

Headquarters Chicago, Illinois, U.S.
Total Restaurant's 39,198 restaurants worldwide in 2020
Products • Hamburgers
• chicken
• French fries
• soft drinks
• milkshakes
• salads
• desserts
• pancake
• coffee
• breakfast
• wraps

The Mascot Clown Ronald McDonald

 122 Countries Ninth-Highest
Serving 68 Million Customers each day
Employing more than 210,000 Global Brand Evaluation
 PRODUCT DESIGN
• Permanent Product Strategy

• Temporary Product Strategy

• Local Product Development Strategy

• Local Adaptation Strategy

• Frequent changes in product design

• McDonald’s restaurants usually conduct both quantitative and qualitative studies

• McDonald’s has several departments inside ensure products development and marketing is successful

• The sales and marketing department gets involved in decision making at the final stages of new product
development

• Development of marketing and sales strategies targeting the market is done

• New products go through specific stages

 PROCESS SELECTION
• Make-to-stock strategy

• produce a standardized product in larger volumes

• strategy is seen in repetitive operations

• short Delivery lead time

• customer has no involvement in product design

As a customer you gain speed of delivery, but lose the ability to customize the product.
• McDonald’s has chosen the repetitive focus strategy for its business model

• McDonald’s to use the assembly line process for its operations

• correct kitchen is easily mastered by its employees due to the repetitive nature of the business

• requires less skilled employees

• McDonald’s has product distribution centers all over the countries they are located in

• These distribution centers are the lifeline of the business ensuring that each restaurant has ample
product on hand.
Substitute Technology for People Substituting

Examples:
• Buzzers and lights are used to signal cooking time for frying perfect French fries
• The size of the French fryer is designed to produce the correct amount of fries
• The French fry scoop is the perfect size to fill an order
• Raw materials are received in usable form (e.g., hamburger patties are premade; pickles and tomatoes are
presliced; French fries are precut).
• There are 49 steps for producing perfect French fries
• Steps for producing the perfect hamburger are detailed and specific
• Products have different colored wrappings for easy identification

For example, the production process at McDonald’s is not left to the discretion of the workers. Rather, their
job is to follow the technology and preset processes.
 SUPPLY CHAIN MANAGEMENT
• The real staggering fact is that McDonalds outsources 100% of their supply needs

• McDonald’s supply chain is a complex web of direct and indirect suppliers.

• The company uses direct suppliers that coordinate purchasing and distributing to restaurants.

• In comparison, indirect suppliers operate facilities such as grain mills and abattoirs

• Farms and ranches raise cattle or grow wheat, lettuce, and other essential ingredients

• Similarly, distribution centers coordinate purchasing and distribution to restaurants

• Products are transported to restaurants by special vehicles equipped with temperature-control mechanisms

• Finally, processing facilities produce finished products like beverages, buns, and meat patties
Three E’s: Ethics, Environment, and Economics

ETHICS AND SUPPLY CHAIN

• health and welfare of the animals in its supply chain
• McDonald’s endorses animal production practices
• 100% of the chickens used for meat in its global supply chain are raised only in cage-free systems.
• reduce pre-slaughter transport times

ENVIRONMENT IN SUPPLY CHAIN

• McDonald’s aims to reduce climate impact, including greenhouse gas emissions
• It also works with its suppliers to reduce food and packaging waste
• protection of water and conservation of forests
• reduce the water footprints of its supply chain

ECONOMICS IN SUPPLY CHAIN

• ensuring the long-term livelihoods of farmers and suppliers
• aims to protect land, livestock, and livelihoods
• aims to reduce hunger and provide decent work and economic growth
• Its Flagship Farmers program aims to highlight best practices with respect to suppliers of farm
produce. 
• Consistency in McDonald’s supplies

• Food safety

• Cost efficiency

• Disruptions in the supply chain

McDonalds Inventory Management

• Constant communication between the regional planner and restaurants

• Reliable inventory management system
• Accurate demand forecasting 
• Storage and distribution
 CONCLUSION
• McDonald’s is an American Fast Food Company

• Design of goods and services is an important aspect of an organization as it determines productivity and organizational
competitiveness

• McDonald’s has chosen the repetitive focus strategy for its business model. This strategy allows McDonald’s to use the assembly
line process for its operations

• The real staggering fact is that McDonalds outsources 100% of their supply needs

• McDonald’s supply chain is a complex web of direct and indirect suppliers that are held to clear standards for quality and efficiency

• The company states that it has a sustainable supply chain that focuses on its three E’s: ethics, environment, and economics
QUESTIONS?
THANK YOU

-Ritika Chugh
2110488