Content area
Full Text
In the not too distant past, people would grow a significant portion of their own food. But in much of today's developed economies, sustenance is simply bought at retail outlets. The supply chain management and its linkage to quality food production and innovation at McDonald's will be examined. Specific examples of modifications in supply chain strategy as they extend into new market areas globally (in India) will be discussed. The efforts of the company to satisfy the demands of the triple bottom line will be addressed, including some basics of corporate responsibility, successes, and where problems still exist for McDonald's.
INTRODUCTION
The basics of understanding how food is obtained, from farm to fork, is an interesting prospect. In the not too far distant past, many individuals would grow a significant portion of their own produce. Some might have even raised and maintained animals for their meat and other food products, such as milk. But in much of today's developed economies, food is simply bought at retail outlets and, to a much lesser extent, at local farmer's markets. These outlets include supermarkets, with an astounding variety of fresh food products readily at hand, and restaurant retail outlets such as McDonald's. The services provided, and standards enforced, in such an operation is worth of scholarly inquiry.
A variety of businesses operate in the supply end for these retailers, producing the food that will eventually be sold. Distributors often serve as middlemen in the process, acting as commodities agents between producers and retailers. Global industrialization has led to the concentration of the supply end of the food production/distribution business, much like what has been observed for other industries (e.g. automobile production, shipbuilding, and chemicals) (Lillford, 2008). In fact, it could be predicted that the immediate future will result in several general trends in the food supply chain business based on these previous events in other industries. For example, primary production will become further concentrated to areas with best practices, capital, climate and soils for best yields. Processers will move operations to regions with cheaper labor and better markets. Retailers will branch out into areas with the most growth potential. Global players will form strategic alliances with each other and potentially become less technically innovative, relying instead...