McDonald – Supply Chain Management and Promotional Strategies
To: Melissa Wagner (manager)From: Stephen Norman (Assistant Marketing Manager)Date: November 23, 2015Subject: Supply Chain Management and Promotional StrategiesCurrent Challenges:Recently, McDonalds has been under fire from media. Poor performance and poor supply chain management has led to the departure of its CEO. McDonalds has been taken to civil court by environmental groups. Movies such as Super-Size Me and Fast Food Nation have created views that the corporation is promoting bad health, bad environmental practices, and is serving bad tasting food. McDonalds has not taken the way side to all of these claims. It has taken on its critics and is making substantial changes to both its practices and its communication. McDonalds has gone as far as creating a documentary film showing the sourcing and production processes. The trouble with bad reputations is that they aren’t easily forgotten and that’s what McDonalds need to focus on.What can McDonalds do to improve:The biggest challenge McDonalds is facing right now is how to get the middle class customers back in there stores. The problem is that there are so many other competitors that are known for their great supply chain management and healthy options that it’s hard to get them back. Below is a few things that McDonalds can do to rejuvenate sales and profits:
Create a new healthy food options. Increase supplier relationsCreate a new order menu and increase customer servicePest Analysis:PoliticalEconomicalIncrease new healthy brand awarenessWant high standardsCreating new sales and regaining sales from the competitionSocialTechnology Becoming more environmentally friendlyCreating sustainable cultureMcDonalds can set a new industry standard for supply chain managementSWOT AnalysisStrengthsWeaknessMcDonalds already has convenient locationsStill has the biggest revenue of any restaurant It is hard to incorporate new products to over 36,000 storesGathering fresh vegetables year roundOpportunitiesThreatsNew menu layoutCreate new healthy optionsStart new promotions and brand imageryGetting the majority of store to implement the technology in a timely manorIt could be a bust and not drive businessAlternative Pro’s and Con’sCreating a new menu and increase customer serviceCreate new health food optionsIncrease supplier relationsPros:        Will allow for new productsCreate an easier/ less stressful environmentCons:Can complicate the day to day operationsCustomers will have to learn the new menuPros:Will drive sales with new products and promotionsCreate healthier choicesCons:Will add to the already large menuThe availability of fresh producePros:Will help the brand imageMake sure no future incidents will occurCons:Will take timeStakeholder’s impact Stakeholders:Creating a new menu and increase customer serviceCreate new health food optionsIncrease supplier relationsEmployees:Will reduce time taking customers’ ordersIncrease in revenueWill create a new and clean work environmentCustomers:Won’t be confused by overcrowded and complicated menuOffer healthier optionsNew itemsWill create a environmentally friendly imageRecommended Strategy:After looking at the pros and cons of each alternative and after looking at how it affects the employees and consumers, I believe that McDonalds marketing strategy should be increasing supplier relations. McDonalds has been attacked by numerous environmental groups and people calling out McDonalds for their poor supply chain. So having yet another incident with their suppliers would be detrimental to the company. If they create a high level of quality and in a environmentally sustainable way it would create a fresh new look for the company.