Developing Good Business Sense

Topics: Inventory, Supply chain management, Supply chain Pages: 3 (844 words) Published: May 22, 2010
Developing Good Business Sense
Axia College of University of Phoenix
BUS 210 Developing Good Business Sense
June 29, 2008

The three companies I selected for this assignment are McDonalds, Bose Corporation and Motorola. From the reading I was able to determine the employee’s organizational structure within this company’s by which they complete their jobs. I will review and outline the main kinds of Operations and Materials Management (OMM) processes these companies use, and how it affects their operations. Also, I will discuss how companies design their operating systems to give them a competitive advantage. I will identify which components of operations and materials management costs and the methods companies use to reduce them.

McDonald’s is a highly successful and well recognized brand leader of fast food restaurants located around the world. They sell hamburgers and french fries as their primary products, and they work with many different food suppliers such as hamburger bun manufacturers, beef producers, produce suppliers and many others, to ensure their foods are as fresh as possible. McDonald’s sells franchise rights to local owner/operators which allow them to keep costs low and avoid high capital and plant investment costs. Since a great deal of McDonald’s service is reliant on delivering customer’s food fresh, McDonald’s use the Just in Time (JIT) inventory management system. This system reviews stock inventory levels available against product usage, and arranges delivery and restocking to the restaurants just as inventory items are needed. This allows inventory to be kept to a minimum in each franchise location. Foods for the restaurants are not warehoused for days or weeks, and are efficiently managed under this system so they are used quickly and, freshness is guaranteed. Each franchise owner keeps labor costs down by managing store staff schedules against the peak customer periods when the restaurant gets busy. Another technique...
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