Thursday, 12 March 2015



          
  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


New, S. (2015, February 4). McDonald’s and the Challenges of a Modern Supply Chain. Retrieved March 10, 2015, from
 https://hbr.org/2015/02/mcdonalds-and-the-challenges-of-a-modern-supply-chain



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