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The ketchup company, Heinz, acquired a new CEO by the name of Bernardo Hees, who was the former chief executive officer of Burger King. Because Burger King is a rival, McDonald’s is planning to change its ketchup supplier, destroying the 40-years old business relationship with H.J. Heinz Co. This decision by McDonald’s took the whole world, including myself, by surprise.

McDonald’s is not being reasonable nor profitable. A change in the supplier’s CEO, who happened to be from a rival company, does not mean they should change suppliers especially when there is a long history behind it.  It makes no sense whatsoever. Heinz is at the top of the ketchup supplier chain and McDonald’s is simply walking away from them. Just because the CEO used to work for Burger King does not mean he still does. He operates Heinz now and is expected to keep Heinz as number one. Because of McDonald’s stubbornness, they are walking away from a long partnership and potential customers as well. As Heinz has a good reputation, McDonald’s is losing credibility of its food as well as people who expect quality ketchup for fries.

Heinz also loses from the ended partnership with McDonald’s. Without the world’s largest fast food chain buying its products, Heinz is at risk as there will not be a replacement that is just as profitable and beneficial. Being the one affected by McDonald’s poor judgment, Heinz will desperately need to find a new buyer to make up for its major loss. If not, competitors such as Hunt’s will try to overtake the primary position that Heinz held so many years. Perhaps, Burger King will be Heinz’s new partner in a several years.


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