Assessment Answers | Business Analysis of McDonald: OPMT620

Running Head: OPERATIONS MANAGEMENT 0
MCDONALD
OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT 1
Table of Contents
Introduction …………………. …

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Running Head: OPERATIONS MANAGEMENT 0
MCDONALD
OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT 1
Table of Contents
Introduction ……………………………………………………………………………………………………………………. 3
Operations strategy ………………………………………………………………………………………………………….. 3
Business strategy …………………………………………………………………………………………………………. 3
Performance objectives …………………………………………………………………………………………………. 4
Quality …………………………………………………………………………………………………………………….. 4
Speed ………………………………………………………………………………………………………………………. 4
Dependability …………………………………………………………………………………………………………… 5
Flexibility ………………………………………………………………………………………………………………… 5
Cost ………………………………………………………………………………………………………………………… 5
Improvement in operations capability …………………………………………………………………………….. 5
Products and services design ……………………………………………………………………………………… 5
Quality management …………………………………………………………………………………………………. 6
Process design and capacity design …………………………………………………………………………….. 6
Location strategy ………………………………………………………………………………………………………. 6
Layout design and strategy ………………………………………………………………………………………… 6
Design of job and human resources …………………………………………………………………………….. 6
Supply chain management …………………………………………………………………………………………. 6
Management of inventory ………………………………………………………………………………………….. 7
Scheduling ……………………………………………………………………………………………………………….. 7
Maintenance …………………………………………………………………………………………………………….. 7
Store of McDonald ………………………………………………………………………………………………………….. 7
Process flow ………………………………………………………………………………………………………………… 7
Overview of stores operations ……………………………………………………………………………………. 7
Counter operations ……………………………………………………………………………………………………. 8
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Food preparation operations ………………………………………………………………………………………. 8
Demand ………………………………………………………………………………………………………………………. 8
Products and services ………………………………………………………………………………………………… 8
Overview of demand …………………………………………………………………………………………………. 8
Peak and Off-Peak demand ………………………………………………………………………………………… 8
Customer service …………………………………………………………………………………………………………. 9
Waiting for queue …………………………………………………………………………………………………….. 9
Average time ……………………………………………………………………………………………………………….. 9
Order winning performance objectives ………………………………………………………………………………. 9
Store operations and recommendations …………………………………………………………………………….. 10
Conclusion ……………………………………………………………………………………………………………………. 10
Bibliography …………………………………………………………………………………………………………………. 12
OPERATIONS MANAGEMENT 3
Introduction
McDonald’s is recognized as an American multinational fast food corporation. Richard
and Maurice McDonald started in 1938 (McDonald ’sHistory, 2022) .These introduced the
Speedee Service facility in 1948 by ensuring the expansion of contemporary fast food restaurant
principles. The Company is working as the leading food service company at the international
level. It operates more than 30000 restaurants in more than 100 nations on six continents. The
Company has benefits which come with scale and arobust financial position. It is working as the
biggest quick service restaurant business. This has changed the eating habits of Americans and,
increasingly, habits of the non-Americans.
A visit to the store of McDonald’s has enabled to identify some of the operations and
evaluate them in the operations strategy and performance objectives context. This has been
identified that the interior design of McDonald’s is an important part of the smart rebranding
strategy. This has ensured that itworks to remain to reinvent and survive in harsh times by smart
rebranding. The Company introduced healthy options as well as paired them with the premium
alternatives of coffee for the cultured caffeine starved crowd (The Street, 2019) .The Company is
focused on improving the number of sales through different types of options which
accommodate people and families that prefer to sit lonely. Every customer can select their way to
order the food with additional choice availability.
Operations strategy
Business strategy
Business strategy is the important long-term planning of the organization with particular
objectives and targets with available resources. This is an important management plan developed
through organizational management to ensure that the organization earns aprofit. The business
strategy of the McDonald’s Company is to ensure and make fast food available to every
consumer at alow, competitive price and earn agood amount of profits through minimizing the
product cost and expanding the operations of the business at an international level. This plays an
important role in accomplishing business objectives (Corporate, 2022) .The business strategy
enables the organization to control and maintain every operation with comprehensive marketing
analysis as per the resources and abilities of the business.
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Business strategy is made through the top organizational management (Kim, & Min,
2015) .It enables control of every operational activity. This strategy of the organization relies on
the important sections. The organization’s strategy has enabled to ensure emphasize the
significance of customers and their satisfaction. The Company is focused on performing with
information technology to develop new ideas and improve all functional activities. It is working
with a stock control database approach to avoid inappropriate ordering and keep everything
updated. This has created the easiness of saving time and ordering the stock as per the
requirements.
Performance objectives
The most important performance objectives of McDonald’s Company are utilized to
improve the effectiveness of the operation. These are developed through the organization’s
management to work as the guiding principles for an effective vision and mission of the
organization to achieve set goals within every element of the Company. These are developed
based on specific actions and functions performed through the organization. The following
discussion will present the performance objectives of McDonald’s Company.
Quality
Most of the customers are looking for qualitative products and services in today’s time.
McDonald’s Company prefers to provide qualitative products to the customers and maintain a
competitive edge (Kowitt, 2020) .The Company ensures to serve the different types of nutrition
and qualitative food products. Organizational employees are trained to prepare and serve meals
as per the particular processes enforced in the preparation and management of cooked or raw
products. Performance objectives of the organization refer to meeting all hygiene specifications.
Speed
Speed is identified as one of the performance management objectives of McDonald’s
Company to ensure the improvement in products and services available with minimization in
waiting time. The operation procedure is designed effectively at McDonald’s as every customer
that comes is served speedily. Employees of the organization, even during their busy hours,
ensure that the order is delivered in less than 5minutes.
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Dependability
The performance objective of the McDonald’s Company presents the consistency to meet
the promised delivery time for the organizational products and services (Dorling, 2018) .This has
enabled the organization to ensure a more dependable customer procedure by meeting their
requirements. It is working with qualified employees to provide timely products with assignment
jobs. The Company has predictable opening hours during their days, and products on its menu
are available anytime.
Flexibility
The elasticity of the procedure and change within the products and services lead to
making the organizational operations flexible enough to change to the needs of customers. The
Company ensures to improve the new products range it provides. It provides the flexibility to
meet the preferences of the consumer. This maintains the balanced menu of culturally effective
items within the market for children and adults to maximize their choices. The Company is
working on multiple training employees to make flexibility. This maintains shift-based work
methods among the employees to ensure enough flexibility in every work.
Cost
Performance objectives in the case of the McDonald’s Company refer to reducing the cost
of the process and leading to providing cheap service. One of the right ways to lower the amount
of cost is to emphasize customers’ needs and fill the qualitative goal in the design of products and
operations to reduce waste. Functions of the organization emphasize gaining supplied service
rights. Everything is coordinated with procedures such as an information system that support
minimizing errors.
Improvement in operations capability
Products and services design
The goal of the McDonald’s Company in the operations management strategic decision
area is to ensure and provide affordable products. Sizes of serving and product prices rely on the
most popular expectations of customers. The organization’s products are reduced in size to
ensure organizational products affordable enough (Gregory, McDonald’s Intensive Strategies
(Intensive Growth Strategies), 2017) .
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Quality management
McDonald’s Company focuses on ensuring and maximizing the level of product quality
to maintain the quality the consistency of the product. It has been identified that consistency
satisfies customers’ expectations about the Company and its brand within the operations
management strategic area.
Process design and capacity design
Restaurant and the design of capacity focus on cost minimization effectiveness, which
supports the organizational strategies. Operations management focuses on the strategic decision
area to maintain the effectiveness of the process and appropriate capacity to fill demand in the
market. The production line approach of the organization has enabled to ensure the improvement
in effectiveness and utilization of capacity.
Location strategy
The goal of McDonald’s within the operations management decision area is to develop
locations for maximum reach in market. The organization’s marketing mix involves restaurants,
kiosks, an organizational website, and mobile application venues (Mou, Robb, & DeHoratius,
2018) .Through these locations or venues, the Company ensures to reach customers online and in
traditional ways.
Layout design and strategy
The Company utilizes practically for the operations management decision zone. The
organizational strategy includes maximizing the utilization of space in restaurants and kiosks in
place of emphasizing comfort as well as spaciousness.
Design of job and human resources
Human resource strategies of McDonald ’sinclude training for skills required within the
production line in restaurants kitchen or areas of production (Bailey, 2020) .For this operations
management decision area, individuals and organizational learners are focused on supporting the
organizational culture of McDonald’s Company.
Supply chain management
McDonald’s Company through the Supply chain management supports the locations. The
Company is working with diversification of supply chain for the important operations
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management area of decision. Strategy refers involvement of more suppliers from many regions
to minimize supply chain risks for McDonald’s Company.
Management of inventory
Strategic decision area of McDonald is focused to reduce inventory costs through
supporting all operations. The organization does not sell its products as well as ingredients at
direct level to restaurants. Intermediaries and distributors ensure to coordinate the management
of McDonald’s restaurants to manage the inventory.
Scheduling
The Company utilizes corporate conventions to ensure scheduling based on market
situations, laws, and supply chain requirements. The organizational strategy ensures the
continuous and seasonal schedules to identify fluctuation in demand of the local market. The
Company remains flexible and adjusts to the local market conditions.
Maintenance
McDonald’s enables the managers of restaurants or franchises to choose maintenance
service providers. McDonald Corporation for production equipment had approved maintenance
providers (Gregory, McDonald ’sOperations Management, 10 Decisions, Productivity, 2017) .
This addresses operations management strategic decision areas by local control and corporate
control.
Store of McDonald
Process flow
Overview of stores operations
The visit to the store of McDonald’s enabled to identify the operations of the Company.
There is aproper welcome ensured through the guard of McDonald’s. Ientered this restaurant
and identified aproper arrangement of seating maintained by the restaurant manager. This has
been identified that operations of McDonald’s stores are linked to important aspects such as the
beautiful design of the store, different types of display placement to present the products and
beverages with combos, and many more.
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Counter operations
Counter operations in the case of the McDonald’s restaurant have been identified as the
place where all of the customers go to pay for the products, beverages, and combos they prefer to
purchase. There was the facility of adjustment as per the desire of customers. Users scan their
product being bought at the store counter and pay as per their suitability. It has been identified
that fast service and self-service are maintained through McDonald’s to meet customers’
requirements easily (Services & Amenities, 2022) .
Food preparation operations
It has been observed in McDonald’s restaurants that customers are not allowed to see the
food preparation operations. Customers have no idea about the food preparation operations, but it
has been asked that McDonald’s restaurants maintain the hygiene to prepare and serve the
customers every time.
Demand
Products and services
McDonald’s restaurant ensures to serve the favourite food such as Big Mac,
cheeseburgers, Sundae, Cold-coffee, and many more globally and locally (McDonald, 2022) .
Products of the organization are preferred by the customers as made specially to cater to
customers’ requirements. It has been viewed that McDonald’s restaurant ensures to maintain the
world class standards through the quality, service, and cleanliness. The Company sources
ingredients of products responsibly, providing effective and attractive services to maintain
hygiene and cleanliness in operations and restaurants.
Overview of demand
It has been viewed that the demand for McDonald’s products and services is high as
customers prefer to purchase them frequently. This has been observed that customers in the
restaurant of McDonald were visiting on acontinued basis. There was arush in the restaurant to
eat and drink food and beverage from McDonald’s.
Peak and Off-Peak demand
This has been observed that there is ahigher impact of Peak and Off-Peak demand in
McDonald’s restaurants. Ivisited the Mcdonald’s store at the weekend and identified that the
OPERATIONS MANAGEMENT 9
peak demand for McDonald’s is in the evening hours when customers are in good number. Off-
peak demand for the McDonald’s restaurant is the afternoon time of aday in which customers
come but not like evening time.
Customer service
Customer service in the case of the McDonald’s restaurant is good. This effectively
attracts many customers continuously with the right practices to maintain a loyal base of
customers.
Waiting queue
It has been viewed that there was asmall waiting queue for the customers of McDonald’s
as employees in the restaurant ensures to meet the requirements of customers as soon as possible.
This has been identified as that restaurant. It has been observed that employees in the restaurant
were trained effectively to serve the customers with the self-service technique.
Average time
The average time customer spends in a McDonald’s restaurant during peak and peak
periods differs. The average time customer spends in McDonald’s restaurant in apeak period is 1
hour. The average time customer spends in McDonald’s restaurant in an off peak period is 30
minutes.
Order winning performance objectives
Operations of McDonald’s stores are in line with order winning performance objectives
of McDonald’s (Bahng, Kincade, & Rogers, 2018) .It has been observed that operations of the
McDonald’s store remain aligned to serve every requirement of customers frequently with more
emphasis on the effectiveness of organizational practices. It has been observed that customers
ensure to make the decisions of purchase on the basis of customer value for money and
emphasize the performance, availability, price, attractiveness, and improvement in values to
serve the customers frequently. This is focused on meeting customers’ expectations that improve
continuously with qualified attributes.
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Store operations and recommendations
It has been viewed that the operations of McDonald’s restaurants are maintained with
hygiene and cleanliness. This is focused on meeting the need of customers speedily and working
to ensure the improvement continuously (Demirtas, 2014) .It ensures that itmatches the taste that
customers need anytime. One of the main challenges that have been identified in McDonald’s
restaurants is the long waiting time to gain the ordered food and beverage. This should ensure the
focus on an effective differentiation strategy to position itself as asuperior service restaurant in
every customer’s mind. This implies that organizations should provide agood facility at every
customer touch point, from order placement to product delivery.
There should be more employment of well-trained employees to deliver ahigher quality
facility to every customer. It should continue to invest in employee training and development
practices to provide higher qualitative services. There should be astructured training program to
ensure long time growth. The application of the integrated promotional mix will support the
balance of traditional as well as modern digital media regarding promotion. It should recognize
the significance of digital media in the organizational promotional mix and devise marketing
strategies to remain engaged with a higher online consumer base. The offer should include
additional product as well as service features like food as per the demand level and delivery to
ensure convenience for everyone. Quality in practices to serve customers can be improved by
utilizing fresh ingredients (Mcdonalds600, 2022) .Restaurants of McDonald’s should ensure to
invest in the healthy food and beverage menu with customization and strategies of menu
standardization to attract and link all of the targeted consumers in the diverse geographical
markets.
Conclusion
In the limelight of the discussion, it can be concluded that McDonald’s Company is
working effectively to serve the customers effectively. This has been identified that McDonald’s
restaurant is focused on paying attention to customers continuously. It ensures to attend to
customers’ requirements and provides amazing services with improvement in consumer
satisfaction. This supports the organization to ensure and maintain the loyal base of customers
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with attention to take benefit of all available options. It has been observed in the restaurant of
McDonald’s that employees are focused on meeting the requirements of customers continuously.
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References
Bahng, Y., Kincade, D. H., & Rogers, F. T. (2018). Assortment Planning for Retail Buying,
Retail Store Operations, and Firm Performance. Journal of Distribution Science ,16 (8),
15-27.
Bailey, R. (2020). How Has McDonald’s Been So Successful for So Long? Retrieved 05 12, 2022,
from
https://www.franchisedirect.com/information/markettrendsfactsaboutfranchising/thesucce
ssofmcdonalds/8/1111/
Corporate. (2022). Performance & Reporting . Retrieved 05 12, 2022, from
https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/impact-strategy-and-
reporting/performance-reports.html
Demirtas, B. K. (2014). The antecedents of store image and customer satisfaction. International
Journal of Research in Business and Social Science (2147-4478) ,3(3), 48-62.
Dorling, S. (2018). Objectives of McDonald’s . Retrieved 05 12, 2022, from
https://bizfluent.com/info-8360450-objectives-mcdonalds.html
Gregory, L. (2017). McDonald ’sIntensive Strategies (Intensive Growth Strategies) .Retrieved 05
12, 2022, from http://panmore.com/mcdonalds-generic-strategy-intensive-growth-
strategies
Gregory, L. (2017). McDonald ’sOperations Management, 10 Decisions, Productivity .Retrieved
05 12, 2022, from http://panmore.com/mcdonalds-operations-management-10-decisions-
areas-productivity
Kim, S. K., & Min, S. (2015). Business model innovation performance: when does add anew
business model benefit an incumbent?. Strategic Entrepreneurship Journal ,9(1), 34-57.
Kowitt, B. (2020). McDonald ’sresponds to the pandemic with faster drive-thrus, loyalty points,
and a new chicken sandwich . Retrieved 05 12, 2022, from
https://fortune.com/2020/11/09/mcdonalds-covid-growth-strategy-chicken-sandwich-
loyality-program-drive-thru/
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McDonald ’s History. (2022, 05 13). The McDonald ’s Story . Retrieved from Corporate:
https://corporate.mcdonalds.com/corpmcd/our-company/who-we-are/our-history.html
Mcdonalds. (2022). https://mcdonalds.com.ph/our-story . Retrieved 05 13, 2022, from
https://mcdonalds.com.ph/our-story
Mcdonalds600. (2022). Recommendations . Retrieved 05 13, 2022, from
https://mcdonalds600.weebly.com/recommendations.html
Mou, S., Robb, D. J., & DeHoratius, N. (2018). Retail store operations: Literature review and
research directions. European Journal of Operational Research ,265 (2), 399-422.
Services & Amenities. (2022). Services & Amenities . Retrieved 05 13, 2022, from
https://www.mcdonalds.com/us/en-us/services.html
The Street. (2019, 10 16). History of McDonald’s: Timeline and Facts .Retrieved from The Street:
https://www.thestreet.com/markets/history-of-mcdonalds-15128096

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