Managing Business Operations at McDonald's

MANAGING
BUSINESS
OPERATIONS

INTRODUCTION
Planning, organizing, supervising and controlling of business operations especially
concerned for production and distribution with the objective of enjoying higher profits refers
Operations Management. This is related to the internal management of the company which is
inseparable. The present report concerns for the operation management at Mc Donald's who is a
multi national company offers a wide range of fast food to its customers worldwide. The
assignment includes some concepts of operations management such as 4 D's from design to
deliver, five performance objectives, approaches of capacity management, etc.
TASK
1. What approach(es) does McDonald’s seem to take for its capacity management to
reconcile capacity and demand?
Capacity management refers to the procedure of measuring the company's resources
capacity to perform the activity in order to have efficiency in its operations. There are several
approaches concerned with capacity management in the organisations.(Dasgupta, and et.all.,
2018). The approaches such as Level Capacity, Chase Demand and Demand Management are
used in the case of Mc Donald's company. The explanation of each approaches are under:
 Level Capacity: This approach involves determination of the resources which a
manufacturer company is needed to fulfil the demand of a particular product at a
particular time. This gives an idea to the producers about the requirement of all the
supportive materials such as labour, machinery,capital, raw material, etc. required for the
process in getting final product and serving it to the clients (dellaBadia, and Simon,
2019).
Mc Donald's has adopted Just-in-time management for managing level of inventory where the
raw material and essential goods are obtained by the company when required.
 Chase Demand: This approach comprises chasing of the demand raised by the customers
in the market. This involves producing the exact number of goods by the company which
is demanded by its potential customers. This approach is best suited for the industry
producing and offering perishable goods in the market which involves low production

and inventory cost. Companies under this approach manufactures its products as when
demanded by the buyers.
Mc Donald's uses pull strategic method in its production of fast food to chase the demand and
reduces the cost of production. The company also maintains smoothness and uniformity in its
production flow.
 Demand Management: Demand management refers to the process of managing the
customers demand through supply chain management or by marketing. The concept
includes forecasting the demand, promising the potential customers for delivery of their
order, managing the customers order, etc. It keeps a track on the requirements of the
business internally and the buying operations of the company (Gölzer, and Fritzsche,
2017).
Mc Donald's applies the approach of demand management in its organisation in a way it includes
the engagement of its employees related to their involvement and participation. The company
also supplies some quantities to meet the instant demand in the chain of food production.
2. Analyse the implementation of the four Ds by the McDonald’s restaurants?
Four D's refers to a method of time management or of productivity. For the big
companies who operates at multinational level each and every time is very crucial and for
managing the time companies uses the method of four D's in its organisation to offer their
product to the customers in an effective and efficient way (Hacioglu, and Sevgilioglu, 2019) .
Four D's stands the acronym for Design, Direct, Develop and Deliver. Each D is explained
under:
 Design: It includes the designing of the product, company strategies, its pricing, etc. Mc
Donald's have designed its information system by proper utilization of digital technology
which helps the customers to choose their food in an easy manner. The company also
presents new items for its customers.
 Direct: This involves directing to some expert for specific work and overall strategy in
the organisation. Proper direction helps the company to maintain effectiveness and
increase productivity. Mc Donald's has directed all its outlets for certain regulations and
measures which every store has to maintain in order to deliver best and high quality of
service to its customers. For this the company keeps on regular check of quality in food