Global Environment/ labor (Strategic Management) - Essay Example

Global Environment/Labor Global Environment/Labor The problem faced by McDonald’s is an issues related with outsourcing of jobs. Outsourcing has several benefits and one of the main benefits is that it helps an organization in producing goods and services at lower cost as mostly jobs are outsourced to those nations where there is cheap labor (Mehrotra, 2005). The problem with McDonald’s is that the fast food chain failed to carry out its outsourcing operation in an effective manner. When outsourcing any particular job an organization needs to first identify what jobs they should and what jobs they should not outsource.

One way of deciding what to outsource and what not to outsource, McDonald’s could have used Outsourcing Decision Matrix. According to this matric an organization should never outsource those jobs that have a major impact on the operations and smooth running of the business (Hassanien, 2013). Fries is one of the most important part of the meals that McDonald’s offers to its customers. It is served independently as well as along with the burgers that are being sold by the company. Therefore they have a major impact on the operations of McDonald’s in Japan.

Due to this McDonald’s should have allowed the production of fries to take place within Japan instead of outsourcing the job to US. Furthermore, while outsourcing an organization should never depend on one supplier (Trent, 2010). It should always have more than one supplier so the organization does not end up without supply if an unknown event takes place. In case of McDonald’s, the company could have opted to purchase or manufacture fries in US and Japan and if the supply from any one of the supplier would have stopped, the company could always depend on the other supplier.

ReferencesHassanien, A., & Dale, C. (2013). Facilities management and development for tourism, hospitality and events.Mehrotra, N. (2005). Business process outsourcing: The Indian experience. Hyderabad: ICFAI University Press.Trent, R. J., & Roberts, L. R. (2010). Managing global supply and risk: Best practices, concepts, and strategies. Fort Lauderdale, FL: J. Ross Pub.