Macdonalds Operational Analysis

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Operations Analysis Of
McDonald’s Restaurant

INTRODUCTION

McDonald’s, founded by Ray Kroc, is now one of the most popular fast food restaurants across the world. They’ve proudly served more than 46 million customers in
59 different countries and currently have more than 30,000 different locations worldwide (“Food Service”). The fast food industry is booming at a rapid rate, especially the health conscious food options. With this in mind, McDonald’s has a strategic plan to stay on top of their competitors by providing consumers with affordable prices, great service, and more healthy meal options. McDonald’s is competitive in many categories, including price, quality, management and employee training. Consumers trust McDonald’s products because they use many of the same trusted brands that families buy at local grocery stores. The only difference is that their shopping cart is a whole lot bigger. This report details McDonalds’ competitive strategy, quality management, raw materials, forecasting, and supply chain.

OPERATIONS COMPETITIVE STRATEGY
McDonald’s Corporation competes in a challenging market segment by providing need-satisfying products to customers.
To sustain its viability, the McDonald’s Corporation employs an effective competitive strategy to make it stand out against competitors such as other fast food restaurants.
McDonald’s competes on several bases, including speed, cost, and nutrition, their strongest priority is “making customers happy”.

Speed
The extensive market research and survey, the organization discovered that its customers desire speed as one of the restaurants’ top priorities.
McDonald’s vision aims to “provide fast, friendly and accurate service”
McDonald’s realizes that specific targets are necessary to measure the performance of speed, and continuously takes relevant measurements to compare actual performance with desired targets Specific measurements are detailed later in this report in the “Quality Management” section.

The company utilizes proven, standardized training processes for its employees and new drive-thru layouts to reduce service times.

Cost
To offer high quality products at low cost requires efficient processes throughout the entire McDonald’s organization.
This goal is built into their vision statement when they claim that “We will be the most efficient provider so that we can be the best value to the most people”
The company has employed for many years is the value meal. The value meal allows customers to buy a sandwich, French fries, and beverage at a discount when purchased together. McDonald’s restaurants offer seven to twelve value meals, both for their lunch menu and breakfast menu.

Some individual franchise owners choose to offer daily specials of special menu items, such as “$0.39 hamburger Wednesdays,” or other similar specials.Big Mac Mondays are a popular regional promotion.

Nutrition
McDonald’s third main competitive baseis nutrition.The organization understands that health trend is an increasingly popular trend therefore; the organization has recently focused extraordinary efforts to promote their new nutritious choices.

PRODUCT PLANNING
Organisations exists to provide products and services which can be purchased by other organization’s or an individual. Therefore planning of products and services is one of the most important operation of any organisation. It involves designing products with both economy and quality in mind, which a customer will find attractive, be able to understand and quickly able to use with minimum risk and which delights him or her by its performance or flavor or durability etc.

In McDonald’s Restaurants, product planning is a key operation. It has to keep on adding new...
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