McDonald's which is one of the largest food
provider in the world is facing many difficulties related to the performance
that causes the manager's removal, in addition to the criticism of the business
pages. The sources of its product and the chains that provide more upmarket
dining are relevant to this story. The organizations had to develop strategies
to know the sources of the materials. Nowadays, firms give more attention for
the origins of the products and the governments as well. The UK applied the
transparency rule after for a wide range of company in Europe after the after
the scandal of the horse meat in 2013.
McDonald's problems
offer three lessons about supply chain transparency, the first one is that the
transparency need a long game and the reputational problems cannot be solved
fast, some companies faced reputational problems in the 1990s as McDonald's and
they all were judged for their acts against the environment with terrible
reputational consequences.
McDonald's
faced these challenges strongly and it started making changes in its practices
and communication. However, the problem of the bad reputation cannot be solved
easily.
The second
lesson is that Global operations need consistent global standards. Although
McDonald's has made great strides in some markets, its progress and good
practices are not regular. Last year, McDonald's and other large food companies
were involved into a food safety scandal in china. A foreign headlines tell the
consumer that they should not trust this company, and these bad news doesn't
reduce the effect of the good work elsewhere.
The final
lesson is that Sometimes transparency
has paradoxical consequences. McDonald's future depends on more reinvention of
the brand, the corner which is its experiments is a McCafé that doesn't look
like McDonald's restaurant. However, the sources agenda is considered as
McDonald's, and the new CEO claimed that he will need to tough out the current
problems and stick to the mission of ever-greater openness.
References
https://hbr.org/2015/02/mcdonalds-and-the-challenges-of-a-modern-supply-chain
