Question:

Develop 10 functional tasks for the alternative below, ensuring that the management, marketing, finance, human resources, enterprise systems, and marketing implications are all addressed. For each task, identify a start date, duration, and end date; perform a job costs analysis by identifying the cost drivers and estimating the cost for each task. Roll up the costs and the timeframes for each phase of the project, as well as for the total project implementation.

Alternative for Mcdonalds:

An alternative that McDonalds is capable of harnessing is making business operations more streamlined through both forward and backwards integration. By using forward integration, McDonalds will be able to cut out intermediaries and create a more streamline supply chain model with less intermediaries. For example, McDonalds can innovate the use of their rewards app by implementing a McDonalds Only delivery service. With a customer base that dominates the industry, it is feasible for the company to do this. For a consumer, this will ensure lower delivery costs, faster delivery times, for an increase in enjoyment and value. By implementing a delivery service that only serves one customer base means the costs paid toward intermediaries such as Uber Eats and DoorDash are able to be invested back into the company while still achieving the same goal, but with greater efficiency. In terms of price, the cost to achieve this level of forward integration is not as high as it could be. Considering McDonalds already has software developed for their app that is capable of letting consumers place orders virtually, the added cost to further innovate the software is not much because the software has already been created. Additionally, as the world moves towards a more technologically based environment, this alternative allows for further innovation down the road. Specifically, the added addition of delivery robots powered by AI, just like Amazon and Uber Eats have bought into. As it stands, robots are only capable of completing very short deliveries which can be used in cities and tightly clustered areas based on the fact that 75% of Americans live within 3 miles of a McDonalds. However, for more rural areas, the use of delivery drivers will be needed, meaning added costs because of having to pay extra wages. Conversely though, McDonalds would be supplying more jobs under the McDonald's name, which will promote their social reputation as well as promote the overall growth of the business. As time goes on, McDonalds will have the option to make use of EV vehicles once the alternative has created more cash flows to fulfill more sustainability projects in the long run. This delivery system could be tested in a Country like Canada as the delivery industry alone is worth $35 billion and is projected to reach $98 billion by 2027. By implementing this part of the alternative, McDonalds could see increases in profits from virtual deliveries. Lastly, with the innovation of a private delivery service controlled by McDonalds, the corporation is able to implement a patent on their technology, with the availability to sell their creation for a price in order to boost profits and growth. In doing so, other businesses will be able to pay McDonalds to be included on their platform. From an investor's perspective, seeing this type of growth will make McDonalds stock more appealing and create a better chance of increased outside investment, which has decreased from 2015. By using forward integration, McDonalds will be able to cut delivery costs to consumers by implementing a private delivery system that both increases efficiency and promotes growth to the public.

On the other hand, along with the plan to harness forward integration, this can also be coupled with backward integration. McDonalds has continued to make use of buying their own farms and promoting the fact that they use their own ethically sourced food. For this alternative to work, it is beneficial that McDonalds continues to buy up more farms in order to keep the low-cost model they have. In doing so, McDonalds will keep adding to the advantage they have, which is low-cost ethically sourced food. On top of this, by increasing the number of farms they own, the price per unit will go down, meaning the profit margin will increase as expenses decrease. By increasing the number of private suppliers, McDonalds will increase their global market dominance and also become more efficient in terms of collection periods and inventories. From an investment standpoint, the land will generate more value as time goes on, so in the event that property needs to be liquidated, McDonalds can bank off selling the land. In order to keep the low-cost standard that McDonalds has, cutting out intermediary suppliers will lower the cost per unit more because the expense paid for another company's time and effort will disappear as soon as McDonalds takes that over itself for a lower cost. By Creating a fully privatized supply chain system, McDonalds will hold their competitive advantage by offering the lowest cost food in the industry while maintaining quality through sustainable food sources.

By applying forward and backward integration in the form of supply chain efficiency, with the goal of privatizing McDonalds supply chain, the company will surely hold its advantage as the lowest cost and high-quality fast-food producer. By adding on to the software already created by McDonalds, they will be able to reach their target market more accurately and provide a better-quality service in the form of faster and cheaper deliveries. On the other hand, while constantly increasing the number of farms, this will keep McDonalds in first place as a low-cost provider and producer while increasing market dominance at the same time. Putting the two together will ensure their products and services are low cost and high quality.