individual assignment

1.Summary of Mc.Donald''''s Company- McDonald''''s group is the world''''s largest chain of hamburger restaurants, serving 68 million daily customers in 119 different countries with 1,700 employe

TABLE OF CONTENTS

1.Summary of Mc.Donald's Company

1.1.About Mc.Donald's

1.2.History of formation and development

1.3 McDonald's logos and slogans through the ages

2.Mc.Donald's supply chain

2.1 Suppliers2.2 Production2.3 Shipping2.4 Sales

3.Highlights of Mc.Donald's activities

3.1.Mc.Donald's sustainable supply chain3.2.Inventory control system

3.2.1.Inventory management3.2.2.Ordering process3.2.3.Inventory Control System

3.3 Packing

3.4 Customer Service

REFERENCES

1.Summary of Mc.Donald's Company

- McDonald's group is the world's largest chain of hamburger restaurants, serving 68 million daily customers in 119 different countries with 1,700 employees in 35,000 stores McDonald's headquarters are located in Oak Brook, Illinois, USA It was founded by Patrick McDonald and later taken over by his two children, Richard and Maurice.

- In 1955, McDonald's was completely acquired by Ray Kroc.

- McDonald's revenue comes primarily from restaurant rentals, royalties and a portion of sales at restaurants that McDonald's franchisees In 2012, McDonald's reported revenue of $27.5 billion and profit of $5.5 billion.- In terms of product menus, McDonald's mainly serves hamburgers,

cheeseburgers, chicken products, French fries, breakfasts, soft drinks, milkshakes, and desserts In response to consumers' ever-changing tastes, the company has expanded its menu to include lettuce, fish, salad sandwiches and juices.

- Business model: McDonald's Corporation earns revenue as a real estate investor, restaurant franchise, and restaurant operator Only about 15% of McDonald's restaurants are directly owned and operated by

McDonald's The rest is run by others through a series of franchise agreements and joint ventures.

- The formation and development of Mc'Donal was formed in the 1940s and lasted until now It is possible to divide that process according to the expansion process, Mc'Donal's field and this process are divided into 3 stages:

- Phase 1: U.S market (1954-1970):

+ In 1952, the McDonald's brothers began to make their restaurant franchises And the first McDonald's franchise owner was Neil Fox.

+ In 1954, businessman and saleman Ray Kroc became fascinated by McDonald's He saw its potential and popularity After reviewing the system of operations at McDonald's, he approached the Two McDonald's brothers to convince him of the franchise.

+ In 1955, Kroc founded the mcdonald's system in February, creating thelegal structure of its franchise Kroc opened his ninth McDonald's restaurant in Des Plaines, Illinois on April 15.

+ In 1960, Kroc's company changed to McDonald's.

+ In 1961, the McDonald's brothers agreed to sell the entire McDonald's business rights to Kroc for $2.7 million.

+ In 1970, as the U.S parent company's business declined, Ray Kroc began a new campaign with determination and succeeded in promotingthe mc'donal brand's presence worldwide.

- Phase 2: Expand to the European market ( 1970 – 1999):

+ In 1971, Mc'Donal began selling fast food sandwiches in London, England, with 3,000 stores opening in London.

+ In the meantime, thousands of restaurants opened around the world, giving McDonald's an extra 27% of its revenue each year Restaurants with the symbol Golden Arches are opened on many continents of Asia,Europe, South America The McDonald's restaurant system is so well known globally that it is considered a symbol of American business.- Phase 3: from 2000 to now: focusing on developing Asian markets

+ By 2000, M'doanl had earned $21 billion from 28,707 restaurants located in outside markets, accounting for 53 percent of the company's $40 billion in revenue According to them, Mc'Donal's level of market penetration has stopped at just one restaurant for 500,000 people In addition, Mc'Donal serves less than 1% of the global population With the success, the company's management outlined a strategy to quickly expand the market in the coming time and the direction of development is in all three major markets: Europe, East Asia and Latin

America Currently, Mc'Donal has about 31,000 stores in 119 countries and territories.

1.3.McDonald's logos and slogans through the ages

1968-20061975-2006

2.Mc.Donald's supply chain

- McDonald acts as a producer in the fast food industry.- McDonald's supply chain:

inspections McDonald's also designed the program so that suppliers couldapply to become input suppliers to McDonald's McDonald's will send employees directly to inspect and monitor the quality and farming process To draw conclusions and choose the best supplier for yourself.- Most of McDonald's inputs have to be imported from abroad McDonald's

only imports 2 ingredients: tomatoes and lettuce of Da lat, 100% beef imported from Australia, pork and potatoes imported from the US, paper cups, food containers are also being imported from neighboring countries such as China and Malaysia Thus, it can be seen that most of the raw materials of the system are imported from the outside This makes the transportation and warehousing cp by water or air at ports and airports increase, making the price of CP for a fast meal serving customers also become much more expensive McDonald's is also looking for and coordinating with local and global companies to develop on-site supply chains, providing not only mcdonald's restaurants in the country but also, once involved in the global supply chain, also for systemic restaurants around the world.

2.2 Production

- McDonald's manufacturing activities are very important Their secret is not that the traditional thought is what is poisonous, delicious new feats but thechoice of extremely elaborate ingredients to make very ordinary dishes such as french fries McDonald's spent millions of dollars to import a machine that makes bagels for its hamburger from the U.S to Vietnam From the source of input materials, McDonald's plans and implements solutions to optimally establish the flow of production from the stage of receiving elements for production to the release of the finished SP To be clear, let's take a look at mcdonald's chicken mcnuggets:- First, the chickens are shipped to the company's processing plant The

processing process is started from the process of withdrawing chicken bones, peeling the meat into pieces and filtering the breast meat.- The workers filtered the fatty meat and put it into the processing line.- Selected meat is put into the barrel and transferred to the mixing

- The chicken pieces are partially fried.

- If we split it in half, we'll see inside the chicken that's still alive Next the chicken pieces will be frozen and shipped to McDonald's stores.

- Packing shipping packaging for preparation is brought to the store system in the region and around the world.

The SX process is done quite well, using high technology, modernizing to minimize SX time, maximize machine productivity.

2.3 Shipping

- After the SP has been processed and frozen and packaged according to the standards of the SX stage, these SP will be transported via air to other countries Sources of raw materials or SP after preliminary processing, after being docked or airport will be carried out customs procedures by logistics companies, transported to warehousing Each SP will be stored in an area with different temperatures then transferred to McDonald's stores as required by them Distributors must have a cold and dry storage systemthat ensures SP storage at a temperature of 22ºC The truck system must be specially designed to ensure a stable temperature during transportation from the warehouse to the McDonald's store.

2.4 Sales

- At each McDonald's store, when the dishes are served, they are officially cooked and served in just 5-10 minutes McDonald's also developed a door-to-door delivery system: Customers just need to call the store and ask for their favorite food, only about 15-30 minutes later, the food they request will be delivered by the staff for free to the house.

3.Highlights of Mc.Donald's activities

McDonald's sustainable supply chain is key to the success of the world's leading fast food group Building a sustainable supply chain tied to corporate social responsibility is something McDonald's has focused on developing in recent years.

- Establishing sustainable supply supply, achieving certification based on widely recognized standards is a strategy that has achieved many positive results; it benefits not only McDonald's but also spreads to many businesses, organizations and communities To achieve that, McDonald's sets out a strategy to create effective partnerships with suppliers and organizations working in the fields of environment, agriculture and sustainable development.- McDonald's has developed its own set of standards that apply to the input

materials it requires suppliers to meet as "The Supplier Code of Conduct" which is a prerequisite for anyone who wants to become a supplier partner of McDonald's, including those that apply to the working environment impacts on the environment, business ethics and, most recently, human rights.- According to McDonald's, "The Supplier Code of Conduct" is one of the

cornerstones of its commitment to sustainability A year the supplier will be "visited" twice by McDonald's for inspection, not to mention many unscheduled inspections.

- According to McDonald's, the fast-food chain is creating a successful term supply chain based on a "system" where everyone wins.

long-McDonald's System

- McDonald's deeply ingrained culture in creating long-term, mutually beneficialrelationships with suppliers dates back to its inception, when founder Ray Kroc built a precedent of trust and loyalty to his business

partners Kroc's "system" philosophy is often described as a tripod One foot is a McDonald's employee, the second leg is the owner/operator of the restaurant, and the third leg is the supplier partner of McDonald's.- The brace is only strong with all three legs This means that franchisees,

suppliers, and company employees each weigh the same for

McDonald's What's fascinating is that McDonald's has achieved success froma 100% outsourced supply chain Kroc decided to use an outsourced model toits operating plan from the early days of McDonald's This decision is very simple First, he didn't have the money to build his own vertical supply chain But lack of capital is not the only reason As a salesperson who has

worked with other restaurant chains, he has seen numerous instances of companies forcing their franchise restaurants to make purchases from the original company.

- Kroc is determined to work with suppliers with long-term thoughts This means that all three "chair legs," owners/operators, suppliers and employees of McDonald's, must have the same view of the question "what's best for the system?" as a major concern The spirit of cooperation and commitment to thecommon goal is more important than the lowest price.

- It's the long-term thinking that really drives providers to innovate And innovation ultimately makes McDonald's cost structure significantly better thanthat of its competitors While Kroc established this spirit more than 50 years ago, his legacy remains to this day.

- "Our unique supply chain model is based on a special set of executive principles that create long-term wealth and competitive advantage for everyone involved by minimizing costs, preventing safety issues, and producing quality and innovative products that delight customers in a unique way McDonald's As a result, customer value is increased, brands are better, and business performance is stronger."

- As customer tastes change , McDonald's needs to diversify its products to meet customer needs, so the challenge of cutting waste is even greater

- The ordering process involves retaining a small amount of reserved raw materials This is the amount of raw materials in stock to meet any higher

demand Warehouse management uses a communication software website called "webblog" to view and edit order suggestions

for reserves The use of Weblog will help McDonald's restaurants save money and time in ordering.

- McDonald's restaurant managers use Weblog to review and better make orders to the store

- Weblog says: "The amount is set, the current inventory level, and exactly how many goods will be shipped at a specific time The system

automatically gives orders in the correct quantity and describes the specificdelivery The manager just clicks "Confy" in the weblog

There are three inventory control techniques used by McDonald's:- Just-In-Time (JIT): for perishable ingredients Fresh ingredients are

provided with JIT for inclusion in the product, and the product is completed JIT when serving customers This helps the restaurant reduce costs, storage space while ensuring better product quality.

- Re-order point (ROP): for non-perishable raw materials ROP is the point

at which restaurants need to place new orders to ensure that they do not run out of stock, avoiding making customers unhappy.

- First In First Out (FIFO): for all ingredients

+ At McDonald's, all materials, processing processes, and finished products are processed according to the FIFO method This means thatthe material is used in the order of pre-import before export Therefore, the inventory is always fresh because the product is sold in the order of import.

+ Minimize the reduction of product quality, minimize damage and pollution,maintain the temperature of the product

3.3 Packing

- The packaging of McDonald's products always ensures food: Fresh, hot, convenient and safe

- At the same time, McDonald's is committed to packaging associated with environmental protection

- Use less cardboard: McDonald's has reduced the amount of paper lining trays, saving 127 tons of paper per year 72% of the hard paper covers used are made from recycled paper

- Reduce plastics: Plastic containers containing salads have been replacedwith paper boxes

- Use restored resources

+ In April 2008, McDonald's dropped the styrofoam box and switched to a paper box

+ In 2012, 89% of McDonald's UK packaging was made from resources restored.

- Recyclable: The glass of water and napkins used at McDonald's are all made from recycled ingredients

Thanks to packaging changes :, McDonald's has saved $6 million annually , eliminating more than 300 million pounds of packaging materials, recycling 1 million tons of cardboard boxes, and reducing restaurant waste by 30 percent.

- They recognize that complaints, questions, or positive feedback from customers are valuable information When complaints are used properly can help them refine their business and meet the needs of their customers This will help the company grow It is equally important for listening to and effectively answering questions from customers If the company fails to address these questions, unhappy customers will leave and they will lose that number of customers.