1) McDonalds uses their decisions in SCM to positively impact their company and gain a
competitive advantage. In 2019, McDonald’s announced a gain in market share for the first time
in five years. They decided to switch to fresh beef for their Quarter Pounders, which directly
resulted in an increase in competitive advantage. Once they made the switch, “the company
[sold] 40 million more Quarter Pounders in Q1” in comparison to the previous Q1 numbers in
2018 (Kelso, 2019). In 2019 alone, McDonald’s sold 30% more Quarter Pounders than they did
in 2018. A few of McDonalds competitors, such as In N Out and Shake Shack have been using
fresh beef for years, which is why these companies appeal more to millennials. Therefore, this
change to fresh beef for McDonalds became more appealing to more quality-conscious
consumers. This is just one example of a small supply chain change that led to a significant
impact on the company, while also making improvements the customers can taste.
McDonalds is also able to maintain a competitive advantage in the market due to their
low prices, which can be attributed to SCM. McDonalds is able to keep low production costs by
owning the sources to their products. Unlike most fast food chains, McDonalds has partnerships
which allow them to process their own meat, grow their own potatoes, and own transportation of
these materials. By taking control of the supply chain and implementing vertical integration
techniques, McDonalds is able to offer some of the cheapest prices out of all fast food chains.
2) As previously mentioned, McDonalds SC allows it to own supplies and collaborate
with suppliers to achieve low costs of production. Through supplier partnerships, they are also
able to “achieve competitive and predictable food and paper costs in order to help the company
achieve cost efficiency” (Khandelwal, 2020). In a company that serves over 70 million meals per
