McDonald’s

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McDonald’s unable to adequately ability to serve its Chinese customers.
In 1955, Ray Kroc found McDonald’s system incorporation an antecedent of McDonald’s corporation whereby 1961 he took the exclusive right of the brand name McDonald’s (Wilson, 56).He encouraged and persuaded suppliers and franchisees to take up his idea of ensuring there a uniform method of preparation of high-quality meals. Some of the meals he targeted to provide to the market were burger, beverages, and fries. The success of this business was effective since he drove his partner to share a common vision that stated ‘work for yourself but not by yourself’.
Their guiding principle illustrated by a stool, which each leg was symbolic. One of the legs represents the employee, franchisees, and supplier who represented the support required to have the stool stable. A common menu and uniform type of meal sometimes can be boring so people tend to visit the place and stays for a while before revisiting again.
McDonald’s made a mistake for depending much on Shanghai Husi Food Company, the Chinese supplier (Zhang & Zeqing,57).The supplier after messing up with the meat supply the business operations had to stand still which triggered a lot of losses McDonald’s. McDonald’s having several suppliers they will enjoy diversity and obtain something new they are missing out yet they are supposed to get. There is added innovation advantage. McDonald’s with multiple vendors the risk of shortages is evaded.

In case one of them fails you can substitute.
Nevertheless, there are challenges of having too many suppliers. To begin with, placing a purchase order with a lower volume of goods then the amount of savings is less. At some point McDonald’s having multiple suppliers it might be difficult to supervising all them hence costing the company extra cost for outsourcing a logistics officer. After the scenario, China customers had reduced trust so they have to get back to the market. For them to regain the Chinese customer add some more food menu to provide the wide range of meals’ for them to choose. For them to adequately serve the Chinese clients they need to localize their set of choices based on main Chinese food.
Works cited
Wilson, Kyle. From San Bernardino to Shanghai: Domestic and Global Challenges at McDonald’s Corporation. Diss. Vanderbilt University. Dept. of History, 2006.
Zhang, Zeqing. “An Evaluation of Crisis Response Performance of Husi Food Co. during its 2014 Food Safety Scandal-Using the Situational Crisis Communication Theory.” (2015).