Group Project 2: Presentation on Enterprise System and Enterprise
Architecture Considerations Assignment
Purpose of this Assignment
This assignment gives you the opportunity to demonstrate your ability to research,
evaluate, and explain enterprise systems, and to communicate effectively at the executive
level. This assignment specifically addresses the following course outcomes:
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analyze and examine how enterprise architecture and enterprise systems influence,
support, and enable an organization's ability to contribute to strategic decision
making and to respond and adapt to the business environment
analyze enterprise system solutions to make recommendations based on benefits,
limitations, and best fit within the enterprise environment
analyze and explain the elements of a successful plan for implementing enterprise
solutions, addressing structure, processes, culture, and other considerations
analyze considerations for enabling enterprise architecture
Assignment
Your instructor has assigned each group one of several types of enterprise systems (ERP,
SCM, CRM, etc.) to research and prepare an executive-level informational presentation.
Your instructor has provided you with instructions on locating case studies. Your group
should have completed Group Project 1 and each team member should have completed the
individual project memo identifying seven criteria for successful implementation of
enterprise systems.
As you saw in Group Project 1, the chief information officer (CIO) of your organization has
heard about enterprise systems and believes that they could solve many of the problems in
your organization. He has asked your team to do some research and prepare an analysis
and recommendations about these types of systems. Your team has been assigned one of
several types of enterprise systems (ERP, SCM, CRM, or others) to research and prepare an
informational presentation for the CIO. The purpose is to help him understand the type of
enterprise system (assigned to your team), to understand how other organizations have
implemented such systems, and lessons learned from the implementations. Finally, your
team is to present the considerations that the CIO should think about—both positive and
negative aspects—prior to suggesting that the organization consider implementing one of
these systems.
For Group Project 1, your team analyzed the case studies and assessed the success of the
enterprise system implementations. Then, for your individual project, you researched,
identified and explained in a memo to the CIO what makes for a successful implementation
of these types of enterprise systems. Your group will use the information gathered and
developed for those assignments to prepare the presentation described below.
Group Project 2
Develop an executive-level PowerPoint presentation that uses the organizations in your case
studies as examples to provide an analysis and recommendation to your CIO. Your
presentation should include:
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1. A brief
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summary of each organization that includes the following:
the business the organization is in
the problem the organization was trying to solve
whether the enterprise system implementation was a success or not in
terms of cost, schedule, performance, and quality
lessons learned
(Summarized from Group Project 1)
2. An evaluation of what each organization did right and what they did wrong;
compare and contrast them.
3. Your own set of considerations—both positive and negative—that the CIO should
think about prior to making any suggestions that the organization move forward.
Your group should consider and address, at a minimum:
o benefits of enterprise systems
o limitations of enterprise systems
o determining the best fit for the organization
o implementation planning and success criteria, including structure,
processes, and culture of the organization; the phases of the System
Development Life Cycle; and other considerations
o potential to enable an enterprise architecture
(Some of this information may come from your individual memos on success
criteria.)
Presentation Formatting and Requirements
I.
Your presentation should be 14-23 slides that include:
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II.
A cover slide with a title, your group number/name, and date, as a minimum
An introduction or slide outlining the presentation to follow. Make a nice
introduce and “thesis statement” to capture the objective of this briefing.
2-4 slides that summarize the case studies (the business they are in; the
problem they were trying to solve; whether the enterprise system
implementation was a success in terms of cost, schedule, performance, and
quality; and lessons learned)
3-6 slides that provide an evaluation of what each organization did right and
what it did wrong; and compare and contrast the organizations
6-9 slides that provide considerations for the CIO including: benefits and
limitations of enterprise systems, determining the best fit for the organization,
implementation planning and success criteria (covering structure, processes, and
culture of the organization; the phases of the system development life cycle
(SDLC); and other considerations)
1-4 slides on positioning of these case studies for their ability to enable the
architecture (i.e. are the “hooks” in place to enable EA?) Very important!
A summary/conclusion slide. Don’t forget a nice wrap-up here articulating the key
points.
Notes: Details of Presentation
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The bullet points in your presentation will be supported by relevant
details in the Notes section of the slides, which contain the actual
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words you would say to the CIO as you present each slide. Since you
cannot actually present the slides in person, the Notes will show what you
would actually say. This is an important part of your presentation. If you
were writing a paper, the content would be in the notes and the PowerPoint
slides would be the outline. [Select the Notes Page under View option in
PowerPoint.]
Presentations with limited or no “Notes” will receive much lower grades,
because the bullets should not tell the whole story.
Use a graphic or visual representation of the model to emphasize key points
or to add interest. It is useful to add an image or graphic representing the
model to help describe it.
Resources
The use of at least four external scholarly resources (which may include
your case studies) is required. (NOTE: More than four resources are required to
receive all possible points; see Grading Rubric below.) You should use scholarly
journals (rather than Wikipedia and authorless website postings). If you need
assistance with determining what a scholarly journal is, the UMUC library is a
very good source of information, accessed via the following link:
http://www.umuc.edu/library/libhow/articles.cfm.
Remember to correctly cite and reference all sources. Any direct quotes should
be indicated within the slide text with appropriate quotation marks and an in-text
citation (however, direct quotes should be short and used sparingly, if at all).
Complete references for sources should be included in the corresponding Notes
section. Paraphrased material can just be referenced within the Notes section of
the slides without an in-text citation on the slide. This deviates from APA style
but keeps the slides more readable. Note: Do not include your resources on a
separate slide in the presentation. They need to be included in the notes section
of the slide to which they pertain.
Additional Instructions
Each slide should have a title and a limited amount of text. The presentation
should capture key bullet points and not include complete paragraphs and
detailed text.
Content on your Slides should be double-spaced
Use bullet points – 6-8 words per line; 4-7 lines per slide; Font – preferably
Arial, Verdana or Calibri (sans serif) size 18
Your presentation format should be professional and use a professional
theme to make it interesting in appearance to keep your audience’s attention
Stay with the same theme of graphics throughout your presentation. For
example use all clip art, all photograph, etc.
Proofread and Spellcheck (including what you write in the Notes section)!
Read your Notes out loud to yourself to see that the presentation flows well
from start to finish and that the words you read correspond to and
complement what is shown on the slide without just repeating it
Use the Grading Rubric below to be sure you have covered everything.
Submit your presentation via the Group Assignment Folder as a Microsoft
PowerPoint document (or a presentation format that can be read using
PowerPoint) with your group name first in the filename.
Individual Assessment of Group Member Participation
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At the conclusion of Group Project 2, each team member will rate the overall group
participation of each of the team members, but not himself or herself. These ratings will be
based on the person’s participation in the group project, using the instructions provided in
the individual assignment, Group Project 2 Participation Assessment. The report will be
submitted via the (individual) Assignments Folder as either a Word or Excel file and is due
on the date Group Project 2 is due.
Grading Rubric for Group Project 2
The group project will be graded based on the rubric below. The instructor will determine
whether all members of a group will receive the same grade, or will have their grades
influenced by the group members' ratings of their individual participation.
Criteria
Introduction
or Outline
Summary of
Case Studies
Evaluation of
Case Studies
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Possible
Points
5 Points
4 Points
3.5 Points
3 Points
0-2 Points
5
A sophisticated
introduction or
outline sets the
stage for the
presentation.
A well-written
introduction or
outline sets the
stage for the
presentation.
The introduction
or outline
adequately sets
the stage for the
presentation.
The
introduction or
outline does not
adequately set
the stage for
the
presentation.
No
introduction
or outline is
included.
9-10 Points
8 Points
7 Points
6 Points
0-5 Points
The summary of
each case study is
clearly explained;
covers all pertinent
facts; is clearly
derived from the
case; and
demonstrates
sophisticated
understanding of
course concepts,
analysis, critical
thinking, and
synthesis.
The summary of
each case study
is clearly
explained;
covers most
pertinent facts;
is derived from
the case; and
demonstrates
good
understanding of
course concepts,
analysis, critical
thinking, and
synthesis.
The summary of
each case study
is provided; each
is aligned to the
case; and
demonstrates
adequate
understanding of
course concepts,
analysis, and/or
critical thinking.
The summary
of each case
study may not
be clearly
explained; may
not be aligned
to the case;
and/or may not
demonstrate
adequate
understanding
of course
concepts,
analysis, and/or
critical thinking.
Minimal or
no summary
of the case
studies is
included. Or
only 1 case
is discussed.
18-20 Points
16-17 Points
14-15 Points
12-13 Points
The evaluation of
what was done
right and wrong
for the enterprise
The evaluation
of what was
done right and
wrong for the
The evaluation
of what was
done right and
wrong for the
The evaluation
of what was
done right and
wrong for the
0-11
Points
Minimal or
no
evaluation is
provided.
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10
20
Criteria
Considerations
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
system
implementation in
each case study is
convincing, fully
explained and is
directly related to
the case study.
The pertinent
aspects of the case
studies are
compared and
contrasted,
demonstrating
sophisticated
understanding of
course concepts,
analysis, critical
thinking and
synthesis.
enterprise
system
implementation
in each case
study is clearly
explained and is
directly related
to the case
study. The case
studies are
compared and
contrasted,
demonstrating
thorough
understanding of
course concepts,
analysis, critical
thinking and
synthesis.
enterprise
system
implementation
in each case
study is
explained and is
related to the
case study; case
studies are
adequately
compared and
contrasted;
evaluation
demonstrates
adequate
understanding of
course concepts,
analysis, critical
thinking and/or
synthesis.
enterprise
system
implementation
in each case
study may not
be clearly
explained or
may be only
partially related
to the case
study; case
studies may not
be adequately
compared and
contrasted;
and/or the
evaluation does
not
demonstrate an
adequate
understanding
of course
concepts,
analysis, and
critical thinking.
Or only one
case is
discussed.
32-35 Points
28-31 Points
24-27 Points
21-23 Points
The considerations
are fully explained
and clearly
appropriate, and
adequately cover:
benefits and
limitations of
enterprise
systems,
determining the
best fit for the
organization,
implementation
planning and
success criteria.
Slides presented
that thoroughly
articulates
the greater
The
considerations
are clearly
explained and
appropriate, and
adequately
cover: benefits
and limitations of
enterprise
systems,
determining the
best fit for the
organization,
implementation
planning and
success criteria.
Slides presented
that clearly
articulates the
The
considerations
are explained
and are
appropriate, and
cover the
following:
benefits and
limitations of
enterprise
systems,
determining the
best fit for the
organization,
implementation
planning and
success criteria.
Slides presented
that touches
The
considerations
are not clearly
explained
and/or not
appropriate,
and/or may not
adequately
cover the
following:
benefits and
limitations of
enterprise
systems,
determining the
best fit for the
organization,
implementation
planning and
0-20
Points
Considerations are
minimally
covered or
not included.
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Possible
Points
35
Criteria
Summary/
Conclusion
External
Research
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
application to an
enterprise
architecture.
Demonstrates
sophisticated
understanding of
course concepts,
analysis, critical
thinking and
synthesis.
greater
application to an
enterprise
architecture.
Demonstrates
thorough
understanding of
course concepts,
analysis, critical
thinking and
synthesis.
lightly on
the application
to an enterprise
architecture.
Demonstrates
thorough
understanding
Demonstrates
adequate
understanding of
course concepts,
analysis, critical
thinking and/or
synthesis..
success criteria;
and/or does not
demonstrate
adequate
understanding
of course
concepts,
analysis, and
critical thinking.
Slides do not
address
the application
to an enterprise
architecture nor
does it
demonstrate
a thorough
understanding
of the concepts.
5 Points
4 Points
3.5 Points
Conclusion is
convincing,
effective and
relevant.
Demonstrates
sophisticated
analysis and critical
thinking.
Conclusion is
effective and
relevant.
Demonstrates
analysis and
critical thinking.
9-10 Points
More than four
scholarly sources
(which may include
the case studies)
are incorporated
and used
effectively,
contextualized,
appropriately
researched and
supported, and
synthesized with
original arguments.
Sources used are
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< 60%
Well Below
Standards
Possible
Points
3 Points
0-2 Points
5
Conclusion is
provided and is
relevant.
Conclusion is
somewhat
effective and/or
relevant.
No
conclusion
provided, or
minimal
effort
shown.
8 Points
7 Points
6 Points
0-5 Points
More than four
scholarly sources
(which may
include the case
studies) are
incorporated and
used effectively,
appropriately
researched and
supported, and
support original
arguments.
Sources used are
credible,
Four scholarly
sources (which
may include the
case studies) are
properly
incorporated and
used. Uses APA
format for
references and
citations.
Two or fewer
sources other
than the class
resources may
be used; may
not be scholarly
sources; may
not be properly
incorporated or
used to support
arguments;
may rely too
heavily on the
reporting of
No external
research is
incorporated
or reference
listed is not
cited within
text.
10
Criteria
Presentation
Format
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
credible, relevant,
and timely. Correct
APA style is used
for citations and
references.
relevant, and
timely. Correct
APA style is used
for citations and
references.
13-15 Points
12 Points
10-11 Points
9 Points
0-8 Points
Presentation is clear
and concise, and
supported by
complete and
appropriate notes.
It reflects effective
organization and
creative design;
appropriate focus for
the intended
audience; correct
structure of slides,
uses course
vocabulary and
concepts, correct
grammar and
spelling; presented in
a professional format
for an oral
presentation;
references are
appropriately
incorporated and
cited using APA style
as indicated in the
instructions.
Presentation is
complete and
clear, and
supported by
appropriate notes.
It reflects effective
organization and
correct structure of
slides, keeps
audience in mind,
may have few
grammar or
spelling errors;
presented in a
professional
format; uses
course vocabulary
and concepts;
references are
appropriately
incorporated and
cited using APA
style as indicated
in the instructions.
Presentation is
complete and
supported by
notes.
It includes correct
structure of slides;
may have some
grammar and/or
spelling errors;
references are
appropriately
incorporated and
cited using APA
style as indicated
in the instructions.
Presentation has
few notes, and/or
is not well
organized, and/or
is not focused on
audience, and/or
contains several
grammar and/or
spelling errors;
and/or does not
follow APA style
for references
and citations as
indicated in the
instructions.
Presentation
includes very
few or no
notes; is
extremely
poorly done
and/or does
not convey
the
information or
shows little
effort.
external
sources, and/or
are not
effective or
appropriate;
and/or are not
credible,
relevant, or
timely. May not
use APA format.
TOTAL
Points
Possible
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Possible
Points
15
100
Running Head: Project 1: SCM
Group 5-Project 1: Analyzing and Summarizing
Supply Chain Management (SCM) for
McDonald’s and Subaru Corp
Project 1: SCM
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I. Introduction:
In today’s business world, the most prosperous companies are those with a vision, plan, and
strategy to execute a marketable brand with a continuous flow of supplies to meet consumer
demand. However, in saturated and competitive business markets, sometimes finding effective
business models with a steady supply-chain can be difficult, resulting in low productivity,
revenue loss, or business failures. This document will analyze the case of McDonald’s restaurant
franchise and Subaru Corporation to see how these companies implemented strategies to guide
stakeholder decisions and business goals with flexible, productive, and competitive enterprise
architectures and enterprise systems.
McDonald’s is a quick service restaurant (QSR) that operates company-owned and franchise
locations around the world with a net worth of 100 billion dollars in 2019 and serving nearly 70
million people in over 100 countries daily (Klein, 2020). The McDonald's restaurant offers a
standard and limited menu of breakfast, burgers, chicken tenders/nuggets, fries, salads, desserts,
and hot or cold beverages in addition to some items favoring taste and culture of people where
McDonald's restaurants are located. The McDonald’s vision is based on the philosophy of Ray
Kroc, a founder of McDonald’s who conceptualized a “three-legged stool” model with each leg
representing employees, owner/operators, and suppliers (respectfully), who all share vested
interests and long-term goals for McDonald's success that is driven by loyalty and trust (Vitasek,
2014), so the McDonald’s ecosystem will only flourish from the cooperation of all stakeholders
who form Kroc’s model of a three-legged stool. McDonald's is always thinking of innovative
strategies to enhance their menu offerings so they can remain competitive in the QSR sector.
Subaru is a Japanese automobile manufacturer founded in 1953 and headquartered in Japan. The
company has two manufacturing plants located in Gumna, Japan, and Lafayette, Indiana for cars
and SUVs worldwide, including the Impreza, Legacy, Crosstrek, Forester, Outback, BRZ and
WRX vehicles (Gresham, n.d.). However, in 2015, in the midst of an increased demand for new
vehicle production, press reports surfaced that raised ethical questions and shed light on the low
wages paid to Subaru workers in Japan and Indonesia manufacturing plants to help offset the
high volume of vehicle production (Wilson et al., 2015), causing many to wonder if the Subaru
business model could withstand the production demand for new vehicles within standards of
ethical business practices. From a logistical standpoint, Subaru relies heavily on the timely
shipments of automobile parts from suppliers to ensure the vehicle assembly line is producing
quality vehicles that can be delivered to the parking lots of car dealerships worldwide with
minimal warranty defects or service recalls for maximum customer loyalty and satisfaction to
ensure return business purchases in the future or referrals to family, friends and associates.
Project 1: SCM
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On the next pages that follow, this document will analyze how these two companies formed a
business strategy to guide stakeholder decisions based on the benefits, limitations, and best fit for
the organization, as well as lessons learned from the implementation of these systems.
II. The problem they were trying to solve:
McDonald’s operates about 37,000 fast-food restaurants serving about 70 million customers
daily in over 100 countries around the world. The corporation does not own a farm or warehouse,
meaning all supplies are outsourced. Thus, McDonalds requires a dependable supply system to
match up to their demand. QSR chains have a complex web of direct and indirect suppliers that
must be well coordinated to ensure a consistent supply of items needed to create menus for
customers (Khandelwal, 2019). McDonald’s operates in an industry where safety and health
standards are very high, and products are transported in a specific condition and within specified
periods to ensure the quality and safety of the food sold to customers. The firm also faces the
challenge of ensuring suppliers maintain high safety standards and consistency across the board
while producing and transporting farm produce to restaurants (Gale, 2006). McDonalds was
looking to create an All-Day Breakfast (ADB) menu, and there were uncertainties as demand can
increase or decrease beyond expectations since the suppliers are located across different regions
with different production capacities. Thus, a supply chain management system (SCM) was
needed to effectively manage supplies to prevent any excess or shortage at various restaurant
locations. The continuous increase in consumer awareness about food safety and food sources
requires that supplies are trackable down to its origin to assure consumers of high quality and
safety standards (McCorkle, 2017). To solve these problems and surmount these challenges,
there is a need to incorporate SCM and continue to improve the system for efficiency in the
supply system. The approach will increase customer satisfaction and enhance business growth,
which will be beneficial to all stakeholders.
In recent years, Subaru has enjoyed impressive growth and a high level of demand for its
vehicles in the North American market. The increase in demand for Subaru’s vehicles created the
challenge of increasing supply to meet up with the high rate of demand. Subaru uses parts from
164 Tier-1 automotive parts suppliers making it highly reliant on suppliers for production (RPA,
n. d.). Before 2016, Subaru had a single production line, which made it challenging for the
company to meet the increased demand for its vehicles. There was a need to make more cars
within a short duration of time without sacrificing the expected quality. The company continues
an attempt to surmount its challenges by adopting a lean SCM process and by partnering with a
logistics provider, Venture Global Solutions (Tredway, 2017). Sequel to the partnership with
Venture Global Solutions, the firm has been able to increase its production from 850 vehicles per
day to 1,000 and projects to reach a daily volume of 1,800 (Hoppe-Spiers, 2017). However, the
company is still striving to solve the problem of poor vehicle quality and customer satisfaction
while increasing supply. Subaru’s quality ranking has suffered a decrease, and there is a high rate
of recall of their vehicles. The company relies on suppliers for its parts, and some suppliers have
Project 1: SCM
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been reported to be operating at quality levels lower than the company’s quality target. Hence,
the situation has created challenges for logistics and quality assurance (Posky, 2019).
III. Whether the Enterprise System Implementation was a Success or not:
When it comes to a fast-food giant like McDonald's, it’s not difficult to understand that they
must have done something(s) right in the industry. For many decades they have been the largest
fast-food chain in the world compared to others. One of the main reasons for this is that they
essentially got “it” right. What is “it”? Their SCM system, which received an overhaul when it
was preparing to launch its ADB initiative. They invested in a sophisticated SCM, which
included an efficient assured supply system (EAS) that provides suppliers, distributors, and the
company with one “shared” view of demand and inventory levels. They also implemented a
restaurant order proposal (ROP) system, which reduces the burden on restaurant managers, all
while improving the accuracy of replenishing supply/inventory orders (McCorkle, 2017). With
these two, they were able to integrate both systems to have an overall SCM system. McDonald's
governs itself by a “three-legged stool” approach and a “System First” methodology. They have
a belief with their partners (i.e., suppliers, owners, distributors, etc.) that “if we win, everybody
wins” philosophy.
The ADB implementation was a success in the fact that they were able to gain the trust in and
from their suppliers and distributors, which allowed them to realize the true value of the SCM
system. Another reason that this was successful is that they effectively coordinated and
collaborated with the suppliers and distributors to source, manage, and deploy equipment for
13,700 domestic restaurants in under four months, which represented how the SCM system met
complexities and challenges of this project (McCorkle, 2017). Having to deal with a project of
this size is very daunting. Clear communication was accomplished through daily contact with
suppliers, daily/weekly reports, weekly meetings with senior management, and on-site feedback
from suppliers and staff allowed the SCM to be effective at keeping all parties informed, aligned,
and working toward the common goal. This was another reason for the success of the ADB
through the SCM implementation.
Another company that has been successful in using SCM is Subaru Corp. Its SCM system
allowed for it to be optimized with a lean process flow for the company as a whole from the
suppliers to the distributors. The tentative launch of the famed Impreza line, drove the company
to look for ways to optimize its supply/transportation system. By optimizing their lean
transportation system using the Venture Global Solutions “The Digital Yard” (Hoppe-Spiers,
2017). This system allowed them to obtain real-time, automated data, which eventually led to an
increase in sales. Also, they integrated the concept of drone technology with software that
integrates with the yard transportation system, and this allows them to see where everything is,
pretty much at any given time. Another reason for their success with this system was that they
Project 1: SCM
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were able to standardize the process and get the suppliers and distributors on the same page. In
doing this, they set out to build relationships with their suppliers, where they would hold
meetings, and have “go and see” type activities where they would visit each other (Hoppe-Spiers,
2017). As with McDonald's, communication played a major role in how they able to accomplish
this success. Overall, I think both of these companies in their respective business’ have both
utilized SCM systems to build their brands and make a mark in the global market. Furthermore,
they both were able to successfully implement these systems due in part to them effectively
planning, communicating, and establishing effective relationships with their partners in the
supply and distribution chain; they were able to capitalize on these systems for their respective
industries.
IV. Why it was or was not a Success in Terms of Cost, Schedule, Quality, and
Performance:
When it comes to why McDonald’s SCM is a success, there are a lot of reasons. McDonald’s is
one of the biggest businesses in the world and they were able to outsource all their supply
chain’s. They decided to use a vertical Integration system that helps keep costs down. They
control everything they need for their company, so they don’t need to have deals with different
farms. This allows them to get their beef at a good price as they own the land that they build their
stores on. Another good thing is they don’t have to sign a lease or contract with people. One
great point about it is that they create and control every aspect of their business.
In business things are always changing. For instance, when they changed their food quality and
how fast they get their ingredients is due to the fact that they have agreements, where they can
get fresher food from their supplier(s). Although the extra can costs up to 60 million more,
“Some of these changes cost more, but consumers are more used to seeing premium prices and
are more willing to pay that price (Kelso, 2019). Due to the size and scale, we have the benefit
of being able to absorb some of that cost pressure” (Kelso, 2019). The performance of
McDonald’s SCM speaks for itself as they are at the top of the business when it comes to supply
chains. Gartner Inc. moved McDonald’s into its “Masters” category, recognizing its sustained
supply chain leadership throughout the past decade, and joined giants like Apple, P&G, and
Amazon in that category (Kelso, 2019). Looking at its performance, costs, and the quality of its
food, McDonald’s SCM is something a lot of other companies may be looking at in the future.
It’s easy to see why Subaru SCM was a success, they were able to streamline their process while
also increasing their output. Also, they were able to keep their manufacturing plants in a few
places rather than spread out the all over the world. This allowed them to save money by
reducing the miles they had to transport their cars. It helped with the vehicles they were selling in
that region. They knew that these vehicles sold well and that helped with inventory levels, which
also helped to keep the cost down. “Starting in October 2015 and over the course of a year, the
company, which has been manufacturing vehicles in Indiana for 30 years, adopted a new
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transport management system (TMS), implemented lean separation centers (cross docks), and
achieved a reduction in miles, inventory, and costs (Tredway, 2017).
Subaru also made their production more efficient by using warehouses they already had and
converting them into assembly space. This way, they had more products readily available
without having to go out and spend more money. When it comes to the quality of their
inventory, they were able to reuse a lot of it as most of the parts fit all their cars. They didn’t
have to use many outside suppliers, and when or if they did, the part would be usable in the
models in which they produce. Subaru has made a name for itself, even though they are not one
of the big car companies. The company is one of the car manufacturers that are selling enough
cars to earn a profit by having a good SCM and keeping its operation relatively small. They are
succeeding in this area where a lot of other automotive are not.
V. Lessons Learned:
McDonald’s distinctive supply chain paradigm is predicated on an outstanding set of working
concepts that generate long-term prosperity and competitive edge for the actual structure through
cost mitigation, prevention of safety problems, and the production of quality and creative brands
that revel clients in a distinctive McDonald’s way. The effect is enhanced consumer loyalty,
improved product safety, and improved results in the market. Secondly, another important lesson
from McDonald’s SCM methods is the fact that it is imperative to focus on the outcome of the
strategies rather than focusing on transactions. Additionally, the firm also revises the prices for
various items in a conservative spiteful cycle of the bid and contract renegotiation, which may be
a negative idealistic approach for the final seller in their pricing strategy (Vitasek, Manrodt, &
Kling, 2018). Also, the peer-to-peer alignment in the management process allows the firm to
make prompt decisions rather than waiting to act based on apparent problems.
The Subaru supply chain management strategies also provide insightful lessons concerning the
best and bad practices. First, the main component of the Subaru supply chain management
strategies is cost-efficiency. The firm selected a location with tax inducement provided by
Florence, which forms an essential component in giving significant reserves on real estate duties
throughout Subaru’s tenancy. Secondly, unlike many corporations’ supply chain management
philosophies, the Subaru selection of the dealership offers an opportunity for sustainability and
social accountability (NFI Real Estate, 2020). The site for the dealership, however, has a
negative cost effect meaning that the facility is very expensive in the short-run.
VI. Conclusion:
These companies implementing an enterprise architecture for their SCM systems, have done so
in a way which has been for their benefit. Throughout this analysis, we have answered five
questions as they relate to the SCM systems that have set these two companies apart from their
competitors in these respective industries. In summarizing these cases, a few things were
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realized which were; they solved a problem, their implementations were successful, and they
were successful when it came to costs, scheduling, quality, and performance. It is evident that
these companies have effectively and efficiently implemented successful SCM systems to
increase their competitive advantage in the global market.
References
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Safety.Retrieved from https://www.foodsafetymagazine.com/magazinearchive1/februarymarch-2006/mcdonalds-usa-a-golden-arch-of-supply-chain-food-safety/
Gareth Tredway (2017). Supply Chain Conference: Subaru transforms to lean at Indiana plant
https://www.automotivelogistics.media/supply-chain-conference-subaru-transforms-to-lean-atindiana-plant/18244.article
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