Mcdonalds Operation Strategy

Topics: Fast food, Hamburger, Fast food restaurant Pages: 5 (1561 words) Published: October 16, 2010
McDonald’s utilizes an excellent operations strategy in order to gain a larger market share and increase value to the shareholders. The corporation specifically focuses on speed, standardization, quality, and affordability. McDonalds has moved ahead of the competition by focusing on these factors. McDonald’s competes on three main bases, such as speed, affordability, and standardization, mainly to make their customers happy. Through extensive market research and surveys, the organization discovered that its customers desired speed as one of the restaurants’ top priorities. Therefore, McDonald’s vision aims to “provide fast, friendly and accurate service” (“McDonald’s Worldwide”). McDonald’s realized that specific targets are necessary to measure the performance of speed; therefore, they continuously take relevant measurements to compare actual performance with desired targets. From the customers order, to the making of the burger, and till the customer leaves the restaurant, speed is a key factor in McDonald’s operation strategy. To reduce the amount of time it takes to provide services, the company uses standardized training processes for its employees and new drive-thru layouts. Along with speed, McDonald’s also competes by offering prices at a low cost. To offer high quality products at low cost requires efficient processes throughout the entire McDonald’s organization. Once again, this goal is built into their vision statement when they claim, “We will be the most efficient provider so that we can be the best value to the most people” (“McDonald’s Worldwide”). McDonald’s incorporates several avenues to provide great value to its customers. One strategy that 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 value meals for both their lunch and breakfast menu from seven to twelve. McDonald’s is one retail food chain that has reached new standards at what can be achieved out of a global business model. McDonald’s burgers and French fries are made to look, smell and taste very similar across the globe, despite all the differences in environmental variables. McDonald’s operates on a franchise model, where the company spots regional franchisees. McDonald’s puts its franchisees through rigorous training schedules, making it mandatory for all McDonald’s franchisees to attend a course at the McDonald’s University. McDonald’s franchise owners and management teams are taught how to deal with the customers, the way the outlet layout is to be planned, the look and feel of the brand, and steps to be taken to make sure that the consumer has a pleasant experience at any location (Hamburger University).

McDonald’s creates value everyday for customers by adhering to the strategies that people at the top of the business have developed. Primarily, all over the world, speed and efficiency have become a very important value to many customers. American’s especially tend to eat meals in a rush, so McDonald’s ability to provide a quick, relatively tasteful meal adds a lot of value to this customer base. Although the quality of the food is important to most people, sometimes speed can be more important; for example, business professionals with a twenty-minute lunch break are not going to want to wait for a burger to be slow cooked on a grill.

McDonald’s has also sprung ahead of the competition by providing the most standardization across the board. This provides value to the customer because they know exactly what to expect, from the speed of delivery to the taste of the Big Mac. People are creatures of habit, meaning they tend to develop specific likes and dislikes. People want to be able to order French fries at a McDonald’s in Japan and get the same taste as French fries in the United States. Providing a nearly identical service in every store creates value by putting every...
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