Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. McDonalds owns 82 of their locations and can rent them out to franchisees. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Web. No plagiarism guarantee. They are the leaders of the industry and provide training to their franchisees. Similar to McDonalds, the organisation also follows the franchising model of operation. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. McDonalds may have to reconsider its product quality as customers become more health-conscious. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. Therefore, the business will increase. People prefer to go out to a McDonalds or Wendys grab some food and eat that instead of eating a home cooked meal at the dinner table. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. A strong supply chain is the backbone of a large and global business. Additionally, McDonalds customer service standards are among the highest in the fast food industry. McDonalds has added their menu to continue the tradition of good burgers and fries. 394-415. In contrast, Wendys has superior products with higher prices. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? Higher price of the products in KFC compared to McDonalds and there are also cheap alternatives available due to less economical meal sets offered in KFC compared to its biggest competitor McDonalds, which they more focusing on strategy of seasonal induction of tempting deals. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. The QSR industry has grown and is populated by a very large number In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus However, Texas Chicken company was not listed in the rank in the analysis. 40 no.15, pp. McDonalds is famous for the consistency and quality of its products. 68 no. (2021, August 2). McDonalds is one of the largest fast food companies in the world. Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. The joint venture that has been going on for over fifty years. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. The company has kept their marketing messages simple and consistent. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. I., 2000, Marketing Theory and Practice, lecture 6). The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. However, it leads to added costs, which attract low profitability. McDonalds serves over 69 million customers each day. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. Differentiation. Several brands like Starbucks have become famous by focusing exclusively on customer service. McDonalds customers have a lot of power if the restaurant wants to keep its customers. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. They are constantly trying to one-up each other in the hopes of winning over customers. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. It has quality centers around the globe which ensure that the high standards company has set are consistently met. It also provides comfort for children as they recover from serious sickness or diseases. In the fast-food industry, such risks include changing the attitude and sensitisation on the sustainability of fast-food organisations and sourcing strategies from consumers and communities in which the organisations operate. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. 1, pp. They use four steps of training for each employee. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). The most preferred direction is the one that will ensure that supply chain approaches become cost effective to the extent of making an organisation experience competitive advantage. Burger King, which competes with McDonalds, provides high-quality food and memorable service. McDonalds and KFC managers remain susceptible to challenges of enhancing sustainability in their supply chains while doing their businesses in a modern globalised business arena. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. I believe were going to see a new chapter in the Burger Wars in the coming years. McDonalds has a large selection of meals for both children and adults at a low cost. They have also developed a very effective marketing strategy. 25 no. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Analyzing other companies who provide the same products or who can meet the same needs in various ways is one way to look at other companies. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. An important thing to realize is that the success of an icon is not limited to the business. By continuing, well assume you agree with our Cookies policy. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). job in Hastings, MI. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. Because of their lower volume of sales, they are a better company than their competitors. McDonalds is very committed to keeping their restaurants clean. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. This is IvyPanda's free database of academic paper samples. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. student. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. 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