Table of Contents
Executive Summary 2
Introduction 3
About McDonald’s 4
Process of McDonalds 4
Operations management 5
Operations managers 5
Operation strategy of McDonald’s 5
Pricing strategies of McDonald's 6
Innovation at McDonald's to improve operations and services 7
Inventory management 8
The Just-in-Time (JIT) Approach 9
Just- in-Time (JIT) Approach in McDonald’s 9
Advantages and benefits of JIT approach 10
Capacity management 11
Capacity strategies 11
McDonald's capacity strategy 11
Quality management 12
Quality management strategies 12
McDonald’s quality management 12
Reliability 13
Packaging quality 13
Interior design 14
Quality service abilities 14
Employee training 15
Continuous improvement 15
Customer satisfaction 16
Quality rules of McDonald's. 16
Lean synchronization 17
Lean synchronization in McDonald’s 17
Limitations 19
Conclusion and suggestions 20
Suggestions 20
References 21
Executive Summary
The purpose of this project is to know how operations management contributes to the competitive advantage of McDonald's. In this project I have also discussed the theoretical stand point of inventory, capacity management, lean synchronization and quality management and how they impacted on the organization. For this purpose I have selected McDonalds to obtain necessary data and its analysis.
On completion of this project I have learned that how operations and managements are implemented in the organization, where the company being leader in the food service industry.
Introduction
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
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Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Charles, Atkinson 2005, Inventory Management Review, viewed on 8/5/2014, JSTOR.
Mukherjee, P. (2006). Total quality management. 1st ed. New Delhi: Prentice-Hall of India.
Vonderembse, M.A. & White, G. P. (2013). Operations Management. San Diego, Ca: Bridgepoint Education, Inc.
Operations refers to the transformation of raw materials(inputs) into finished products(outputs). The operations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. The effectiveness of these strategies can measured by Qantas’ performance and whether or not it is able to hold it’s competitive advantage. How well these strategies respond to the influences on operations will determine the level of success that Qantas achieves.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Ways in which Operations Management have evolved are the incorporation of internet technologies, more efficient machines, and the scope itself. This is not an exhausted list by any means, but these three aspects are highly important as it relates to the changes in Operations Management over the past fifty years.
Operations are all the processes in transforming inputs into desired outputs. These processes must be efficiently and effectively coordinated by managers and eventually they must accomplish specific organizational goals. All operations, despite how well managed they are, are capable of improvement. In order for the operations to be improved however, weaknesses should be identified first. Therefore operations need some kind of performance measurement as a prerequisite for improvement.
Nigel, S., Alistair, B.J. and Robert, J. (2011) Essentials of Operations Management, 2nd edn., Italy: Pearson Education Limited.
The purpose of this research is to provide a substantial assessment/explanation/analysis of the degree to which the McDonald’s operates based on a universal cultural or whether it is most strongly influenced by the national culture of that country. The researcher will explain how McDonald’s uses diversity and organizational initiatives to contribute to the corporate bottom line. Finally, the researcher will evaluate the company’s bottom-line rationale for diversity initiatives.
Operations management focuses on carefully managing the processes to reduce and distribute products and services. Related activities include managing purchases, inventory control, quality control, storages, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how the operations management is carried out in an organisation depends very much on the nature of products or services in the organisation, for example, retail, manufacturing, wholesale and etcetera.
McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Schonberger, R.J. and E.M. Knod Jr. Operations Management: Continuous Improvement. Richard D. Irwin, 1994, p. 44. 16. Selto, F.H. and D.W. Jasinski. "
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
In every organization, different operational functions exist to ensure the smooth learning of the organization. In order for an individual to have the knowhow on how to operate the functions delegated to them they must have implicit knowledge on the functionalities themselves. Understanding markets, customers and the company goals has always proven to be a core starting point for individuals who ply their trade in the organization. The essence of the skills is evident in globalization, cooperate social responsibility and risk management issues. In operations management, the basic principles of operations should be followed to ensure that the profitability of the organization ensures the operation of the organization is
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp
Economies of scale are the advantages that accrue as organizations become bigger and expand their activities. The firm that I chose is McDonalds. It is one of the world’s largest fast food restaurant chains. McDonald’s economies of scale allow for bulk purchase of products, faster growth, specialized management, and franchise support. Additionally, profits received and significant cost savings are a big part of McDonald 's economies of scale.