Managing Business Operations with Reference to McDonald's Corporation

MANAGING BUSINESS
OPERATIONS WITH
REFERENCE TO MC
DONALD'S
CORPORATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Mc Donald's approaches towards capacity management.............................................................3
Implementation of 4 D's in McDonald........................................................................................4
Evaluation of performance objectives in McDonald...................................................................5
Question-4....................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Managing business operations is one of the important aspect of every management of the
corporation particularly of large size organisations (Choi, Wallace and Wang, 2018). The
businesses where operations are managed in a better way, they can guarantee their long term
success in the market. The present report is based on Mc Donald's business operations along with
various approaches it has adopted towards performance management and higher customer
satisfaction. Mc Donald is a retail company in fast food industry which is based in Chicago,
United States. It has large chain of retail outlets throughout the world serving millions of
customers every day.
MAIN BODY
Mc Donald's approaches towards capacity management
Capacity management refers to the process of identifying the capacity required by the
organisation in terms of production in order to cope up with the changing demand of its products
and services. It allows management to determine the highest possible work an organisation can
perform in a given time. McDonald has the capacity to serve 70 million customers every day.
The company's sales and profit figures are continuously increasing since its establishment. The
company has a record of 100 billion sales of hamburgers in the year 1993 (Pawar, 2018). With
regards to McDonald's approach towards capacity management, here we will be explaining the
level capacity approach of McDonald.
The level capacity is the capability of the McDonald to produce at the certain level of
output to serve customer demand. In order to ensure proper flow in production process
McDonald has adopted Just In Time inventory system which allows them to get raw materials
and other resources of production as and when required. This helps them in reducing costs
associated with inventory management. Also, they have adopted pull strategy in production
process which ensures acquisition of inventory as required. The other aspect of level capacity
approach of McDonald can be explained in its fast service system which allow them to reduce
the waiting time of the customers so that these customer's demand can be satisfied with higher
level of satisfaction. Also, they are able to ensure that their customers cannot be lose to its
competitors. Along with ensuring high level of capacity through its quick services, they are
known for maintaining and improving its products quality to the highest possible level. By doing