A Comparative Analysis Of Mcdonald's And Dominos

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Introduction:

McDonalds and Dominos have implemented different strategies in their supply chain management with the former having a transparent structure and not owning any factories and the latter being vertically integrated and owns franchised stores. The purpose of this comparative study is to compare and contrast these two supply chains by analyzing why and how they are different, whilst discussing challenges imposed to their overall strategies and brands are affected. A series of questions will be researched to aid this discussion (see Appendix 1 ). Managing their supply chains correctly and effectively is a significant part of operations as it affects the firm as well as customer satisfaction and therefore future business.

Methodology:

In this essay study the following theories are applicable: the bullwhip effect, purchasing – sourcing and customer relationship management. The data collected will be mostly secondary and qualitative with reference to quantitative figures. Company websites were consulted to assess the scope of the information provided to their consumers. It was evident that McDonald’s had significantly more information than Dominos. 3rd party reports were also taken into account to see whether there was contradictory or extra information. …show more content…

It has 16 supply chain operating centers in the U.S. and more abroad (Dominos report). Give more control and lower costs but decrease flexibility (occupy theory, 2014). McDonald’s on the other hand doesn’t own any factories/distribution centers, the supply chain is outsourced (revision lecture) therefore communication and good relationships with suppliers is vital (university alliance, 2015). McDonalds sources most of its ingredients from the U.S. and uses other countries to meet demand. For example McDonald’s suppliers obtain beef from farmers in the U.S. New Zealand, Canada and Australia

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