Operations at McDonald’s: Analysis and Recommendations

McDonald’s

Executive Summary
This report is intended in analysing the operations at McDonald’s and providing
recommendations for improving its operations during internalization process. McDonald’s as
part of its growth strategy has internalized its key operations to more than 100 countries
across the world. Analysing the key processes such as product manufacturing and customer
order servicing has identified several issues faced by this organization. Some of the issues
identified are related to changing the menu to meet needs of local customers, inventory
management decisions to offer product customization, employee training to provide
innovative customer service and selecting reliable suppliers and third party delivery
organizations as part of its supply chain network. To deal with these challenges and improve
its productivity level, McDonald’s is recommended to implement standard sequencing rules,
supplier selection questionnaire and predictive analytics for inventory management practices
during internationalization of its operations.

Table of Contents
McDonald’s 1
Executive Summary 2
Introduction 4
Operational Activities at McDonald’s 4
Figure 1: Transformation model at McDonald’s 5
4V’s of McDonald’s 8
Performance Objectives of McDonald’s 10
Supply Chain Network 13
Feasible recommendations for McDonald’s 15
Conclusion 16
References 16

Introduction
McDonald’s started as small restaurant in the year 1954 has currently become one of the
leading fast food restaurant brands in the world. At present, McDonald’s consists of nearly
36000 restaurants across 100 countries in the world (McDonald’s, 2019a). In spite of being a
large organization, the business model of McDonald’s involves in offering franchisees for
entrepreneurs showing high commitment towards the organization values. This fast food
restaurant provides number of fast food items and innovative services like quick-serving,
home delivery, take away and mobile app delivery services. McDonald’s serve millions of
customers who are interested in having fast food with high quality and innovative service
options (McDonald’s, 2019b). McDonald’s tend to serve its customers through its several
restaurant outlets located across the world, its e commerce website, mobile app and UberEats
(Ashe, 2018). As part of its growth strategy, McDonald’s has expanded into various countries
in the world like US, UK, Malaysia, India, Hong Kong, China, Serbia and so on. As part of
this expansion, McDonald’s has taken various operational decisions related to product
variety, quality, suppliers, capacity and so on (McDonald’s, 2019c).
In this report McDonald’s company is considered and its operation activities are analysed in
international context. In spite of McDonald’s being a multinational organization it has made
several operational decisions during its process of internationalization. All these operational
activities and operational choices are analysed by applying theoretical frameworks of OM
such as four V model, transformation model, supply chain network and the performance
objectives. In order to overcome the identified critical issues, this report provides
operationally feasible solutions for McDonald’s.
Operational Activities at McDonald’s
McDonald’s being a fast food restaurant , the key operation involves in transforming the
inputs provided In the form of raw materials to outputs like the fast food items , drinks that
are served by McDonald’s. Figure 1 shows the transformation model of McDonald’s.