McDonalds Supply Chain of Potatoes

McDonald's buys its potatoes from corporate farmers in Idaho not the commodities market; therefore it limits its exposure to price gouging that might have occurred by using the commodity exchange to get those potatoes. Starbucks is doing the same thing, but instead of having partnerships and coffee beans, they are all of in-house. Its Starbucks owns the partnerships they grew the coffee then they might have a conflict of interest for their stockholders. Because they would be dictating the price of the coffee at the partnerships been sold to Starbucks. If they paid a little more than normal for those coffee beans, so the coffee plantation can expand by better production facilities and upgrade then Starbucks funneled money to those partnerships, that should have either paid in dividends, shown as profits or retained earnings. By doing that their stock price would go up and shareholders would be better served short-term. There is a lot more involved before that food or drink gets to your table. Commodities are very much part of the behind the scenes of our civilization.

McDonald's has even other things to consider. Its franchisees need to realize economies of scale to pay the extra franchise fee, royalties and price for the potatoes that make the French Fries. If the McDonald's made a deal long ago to help Ray Kroc's personal friend expand the production of his potato farm, in turn for loyalty to sell to McDonald's, then that is totally fair (speaking of Simplot of ID). Even if, McDonald's pays 2 cents more per potato now. You see, the potato farmer is reaping the rewards for helping Ray Kroc in the beginning; build the McDonald's brand name. Building a brand name is the most important thing that McDonald's has today. Sometimes, accounting irregularities do not take in consideration future market domination, marketing strategies, brand name building, and loyalty of partnerships, co-brands, team members and vendors. What we should understand is that anytime you are building a prototype, or trying out a new system, you must reward for potential success. By doing this, with what ever means is possible is important. You have to reward your team. Your team consists of much more than just employees, Just stockholders, and partners.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Extreme Makeover ? Small Business Edition

Have you ever watched one of those home makeover shows?... Read More

Build Brand Identity - Brand Identity Guru

Successful Guru marketers have a secret weapon that they use... Read More

The Importance of Branding - Can It Really Make a Difference?

As consumers, we don't really think about the importance of... Read More

The New Branding Awareness - A Value Based Concept

The new branding awareness is about when you take ownership... Read More

Brand Love, Part 2

Last issue, I talked about increasing your Brand Love-- meaning... Read More

Naming Names... How to Name your Business

Sometimes the best inspiration comes from hearing about the deconstruction... Read More

Hawaiian Heirloom Jewelry

Back to the era of the Hawaiian monarchy, the origin... Read More

Boston Brand Building - Brand Identity Guru

"Make no little plans, they have no magic to stir... Read More

Which Of These Words Attract Your Clients

Whether it's your business card, tagline, article title, web site... Read More

Managing the Corporate Brand - a Reputation Perspective

Adored, respected and coveted by customers and organisations alike, corporate... Read More

Trademark Your Business ? Lessons Learned

Small business owners learn many lessons the hard way -... Read More

Trademark Issues in the Mobil Auto Business

There have always been trademark issues and lawsuits in the... Read More

Effective Branding...Whats in a Name!

Ask any marketing executive and they will tell you that... Read More

New Uniforms Could be the Gold Charm for the Golden Arches

New designer uniforms could be the gold charm McDonald's needs... Read More

Brand Strategy - Brand Identity Guru

If you could have the secret recipe and all the... Read More

Tips for Creating Brilliant Business Names

Imagine if Yahoo! had been named TheInternetDirectoy. Or StarBucks was... Read More

Picking The Design Company Which Is Right For You

So you've decided to go for it-you're ready to choose... Read More

Creating Powerful Names for Products, Services, and Your Business

The name of your business is important--it's one of the... Read More

Importance of Business Branding

Branding is very important to a business, whether it is... Read More

Shattering the Branding Myths

If you've been online long, you're sure to have seen... Read More

The Positioning of Success

Many businesses of today are often driven to compete... Read More

Introduction to A Branded World: Adventures in Public Relations and the Creation Of Superbrands

You'd have to labor to shield yourself from the power... Read More

Does Your Message Pass the Test?

Develop an effective benefit message and you're well on your... Read More

Not So Stationary Stationery

The elements and functionality of the basic stationery system is... Read More

Optimize Your Mailing List For Better Results

A list of customers who have previously bought from you... Read More

Why Having A Niche Automatically Boosts Your Credibility - Become The Expert by Getting Focused

Yes, yes, we've heard it all before... loads of life... Read More

Is It Legal? - Indecent Naming With Tradition

When Mitsubishi launched a new car with the name "Pajero"... Read More

Corporate Identity - A Rough Guide

A rough guide to corporate identityThe tabloids report the millions... Read More

I Hate My Logo! What You Should Get For Your Money and Why

This is not a how-to design a logo. This is... Read More

Create a Niche: Stoke Your Market With Affiliate Branding

Propose success, demand performance, and brand your market with appeal.... Read More

Why Should I do Business With You?

It's the question that is on the minds of all... Read More

You?ll Bring a Parade of Business to Your Door!

Parades happen in every big city and many small towns.... Read More

Branding Strategy - Brand Identity

Today, in many organizations around the world, branding is treated... Read More