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McDonald's: Creating effective stakeholder relationships - Suppliers - 'Supporting New Zealand's products and services'

Suppliers - 'Supporting New Zealand's products and services'

The McDonald's supply chain brings great benefits to the New Zealand economy. McDonald's NZ spends approximately $100 million yearly with New Zealand suppliers including farmers, growers, bakers, fisheries, paper product suppliers and printers. In order for McDonald's NZ to maintain its promise of quality for the customer, suppliers are subject to rigorous quality control in all areas of their operations, including animal welfare, health and safety, handling procedures and cleanliness. In 2006, New Zealand suppliers sourced the following for McDonald's:

The economic benefits of McDonald's NZ stretch further than just the employment of 6,000 Kiwis. With over 85 per cent of its products purchased from New Zealand suppliers in 2006, McDonald's NZ contributes vast amounts of money to the New Zealand economy, thus supporting companies who themselves employ even more New Zealanders. These suppliers are often found in small town New Zealand and often form the backbone of the local economy.

The following table shows examples of New Zealand producers.

In addition to supporting the local economy, New Zealand producers also supply McDonald's in other countries, improving New Zealand's export market. In addition to the companies featured above, New Zealand beef is exported to the United States for use in its McDonald's patties. Not only does this mean more business for New Zealand beef farmers and processors but it also is a great opportunity to showcase New Zealand's beef to the United States. Suppliers to McDonald's NZ also export cheese processed in Eltham, fries from Timaru and fish from Nelson.

McDonald's NZ is also a large purchaser of services from different New Zealand businesses - from transport companies to their distribution centre. The Distribution Centre in Auckland is responsible for ordering, receiving, compiling and delivering the restaurants' needs throughout the country from Kaitaia to Invercargill.

These food, packaging and other service suppliers are required on an ongoing basis by McDonald's NZ and, as McDonald's continues to grow in New Zealand, the demand for these goods and services increases. There is also the demand for workers when a new McDonald's restaurant is first built. It is the carpenters; electricians; plumbers, etc., that are hired to carry out the work and, where possible, it is local timber and appliances that are purchased.


(Page 7 of 8)
Associated with:
Learning Area(s):
  • Business Environment | Developing organisational culture
  • Business Environment | Stakeholders
  • Business Environment | The external environment
  • Business Environment | Types of large organisations
  • Business Structure and Organisation | Forms of ownership of large organisations
  • Business Structure and Organisation | Franchising
  • Business Structure and Organisation | Organisational structures:overview
  • Communication | Effective communication models
  • Human Resource Management | Training and development systems and programs
  • Marketing | Product development
  • Marketing | Promotion strategies and their application
  • Operations Management | Materials management
From: Edition 7

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