Executive Summary: McDonald’s Corporation (Abridged)
McDonald’s development from its first drive-in restaurant in San Bernardino, California, to the famous fast food giant was based on the perfection of its operations - the recipe for its success and growth. Its operating system is characterized by focusing on uniformity for consistent quality, the formation of partner relationship with its franchises and supplier to improve operating system innovatively and last but not least the introduction of new products. With its steady drive for improvement and consistently high quality, McDonald’s revolutionized the entire supply chain. Instead of regimenting its supplier and franchisees, McDonald’s expected commitment from them in terms of adherence and experimentation. The implementted, smooth operating chain of suppliers, McDonald’s corporate management and franchisees balances each other, creates an entrepreneurial spirit that added value, innovation, economic of scale, the bargaining power for advertising and purchasing, as well as new product and process ideas to the company. Additionally, all involved parties maintained a collective emphasis on disciplined quality standards. As years passed by, McDonald’s needed to adapt to industry changes by accomplishing some process design innovations in fruitful collaboration with its suppliers and franchisees. In this context, McDonald’s improved the chain’s fries’ quality and consistency by switching from raw to frozen delivered fries as well as the productivity of employee with the creation of the V-shaped aluminum scoop. Another major process enhancement was the introduction of the breakfast at McDonald’s. In this way, the corporation expanded its operating hours since it had to pay for rent, utilities and insurance 24 hours a day, anyways. The generation of a totally new business came along with the nice side effect that it again distinguishes itself from its competitors. The third innovation to point out deals with the...
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