Operations Management and Strategy - McDonald’s

RUNNING HEAD: OPERATIONS 0
OPERATIONS MANAGEMENT

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Executive Summary
Operations management increases the ability of organisations to gain competitive
advantage and leads in increasing profitability. The objective of the paper is to understand the
operational process and strategies which McDonald’s’s adopts for improving the operations and
raising the efficiency in the supply chain. Through the investigation, it is revealed that
McDonald’s’s adopts “speedee service system”, “field service” for increasing speed, flexibility
and reducing the expenditure of the company. Further, company also adopts “lean thinking”,
“TQM” strategy to manage the quality of supply chain and process. These strategies have
positive implications on McDonald’s’s because it increases the status and loyalty of the
consumers as well as also enlarges the capability of the organisation to maintain transparency
and honesty in operations management.

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Table of Contents
Scope of Report...............................................................................................................................3
Operations contribute to McDonald’s’s performance.....................................................................3
Operations Strategy.........................................................................................................................5
Statement Evaluation.......................................................................................................................8
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
References......................................................................................................................................12

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Scope of Report
Operations management is the administration of business practices to create the highest
level of efficiency possible within an organisation. It focuses on changing the materials and
techniques with efficient goods so that profits of organisations could be increased according to
the expectation of the company (Mahadevan, 2015). In this report, “McDonald’s’s case study” is
selected; it adopts different strategies, procedures and method to expand in international market
and improve the performance of the organisation.
This case study describes that honesty and quality are key main approaches which are
used by the company it is because organisation believe that it offers better and bigger product
and services according to the expectation of the consumers (Slack & Brandon-Jones, 2019).
Further, this report will discuss the procedure, strategies which McDonald’s’s adopt to increase
performance. The discussion will also make on the statement of honesty and vulnerabilities as
well as recommendations are also provided to solve the problems of the organisation.
Operations contribute to McDonald’s’s performance
McDonald’s’s adopt the “speedee service system” it is because through this organisation
maintain the food with consistency and support the organisation to manage the high quality of
the food. This process is adopted by the organisation to manage the unique technique as well as
method for preparing the food according to the needs and requirement of the consumers.
Therefore, through this procedure organisation described the methods of preparing the food with
addition to the equipments which is to be used for the product; this also leads in managing the
strict product specifications. The strategy raise the speed of the company that is only 10 minutes
time period is required between being cooked and serving to the consumers. Therefore it is
estimated that company use just in time (JIT) strategy.
The strategy leads in increasing the performance of the organisation and also increases
the capability to gain competitive advantage it is because of focusing on the standardized of the
product so that food and quality is managed according to the expectation. The procedure of the
operations in described in minute detail in which overall instructions regarding the cooking the

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food such as temperature, portions as well as cooking times. The “fool-proof” devices are also
adopted by the organisation for the consistency it is because the organisational performance will
be enhanced. The organisation describes that this helps the organisation to maintain efficiency in
the job t is because through this job of the organisation make more manageable and easier.
The major focus of the organisation is on detailing the overall procedure adopted by the
organisation. Therefore, for this M Donald’s also adopt the strategy on contributing and focus on
research and develop laboratory so that organisation can learn the cooking, storing, freezing and
serving the techniques so that quality is maintained for the hamburger (Slack & Brandon-Jones,
2019). This benefited the organisation in increasing the loyalty among the consumers and raises
the capability of the organisation and flexibility to expand their operations by providing the
quality products according the requirement of the consumers that is through this company open
36,000 restaurants. McDonald’s also use the procedure of “field service” in which organisation
review the performance of the consultants so that various areas of the organisation needs to be
reviewed such as quality of the food, services to the consumers and cleanliness in the
organisation.
The organisation adopts the process of air-dying the quick frying after them to freeze the
potatoes so that quality of the fries and maintain satisfactory in cooking them. Further, to
maintain in the competitive environment organisation also adopt the strategy of focusing on
various areas this the most important process such as maintaining better relationship with the
suppliers (Slack & Brandon-Jones, 2019). The process and areas which improved by the
organisation are developing the franchise holder and creating the equipments, this strategy is
used by the organisation to gain competitive advantage and raising the efficiency of the
organisation. McDonald’s conducts their operations in highly competitive environment and its
competitors offer several varieties of product to the consumers but only limited products. This
strategy overcome this problem this is due to the reason that this leads in raising the capacity
growth of the organisation and seek the new opportunities to gain consumers attention
(McDonald’s Corporation, 2018).
The organisation used the process of securing suppliers in which relation among the
company, suppliers and franchisees leads to be maintained. It is because McDonald’s’s describes
that it the major procedure for timely delivering of the product so that supply of the product meet

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the demand in the external environment. The productivity of the organisation increases due to
more long relationship with the suppliers and this helps the organisation to gain success over
their competitors and also leads in maintaining the industry standards. In the supplying the
organisation also develop “novel quick-freezing” procedure because of capturing the fresh taste
as well as managing the texture for the beef patties, this increase the capability of the company to
maintain cost credibility.
The other process is supplying is that organisation shares the technology through
suppliers which supply meat to the company, this results in contributing towards the performance
of the organisation because of expanding the operations by adding different items to compete the
competitors (Slack & Brandon-Jones, 2019). This also support the organisation to develop
franchisee it is because organisation itself believe that it is considered most important strategy in
offering the quality and more better, increasing loyalty as well as increasing the profitability and
sales of the organisation.
The organisation makes various process of innovation by providing new meal to the
consumers which includes food of chicken finger without bones; however this changes and
makes the small portion of the white chicken. This strategy supports the organisation and help in
becoming one of the leading and second well-known purchasers of the chicken in USA
(Talhaoui, Daif, Azzouazi, & Oubrahim, 2019). Further, to execute the restaurant’s the
organisation focus on the process of “better not just bigger”, through this organisation does
redesign in the restaurants (Slack & Brandon-Jones, 2019). The organisation develops the
modern outlets, raises transparency in the supply chain so that organisation performance will be
improvement and increased in the eyes of the consumers.
Operations Strategy
The organisation is achieving the various results which include decreasing the cost and
expenditure of the organisation, enhancing the quality of the product. Other outcomes include
meeting the consumer’s requirements and focusing on the process of production so that
efficiency is maintained in the organisation (Slack & Brandon-Jones, 2019). Therefore, to
accomplish these objectives the company focuses on adopting the strategy lean thinking in which
procedure is followed in the operational strategy in which organisation assigned each workforce

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in the specific job it is because this implied in maintaining the taste and quality of the product in
more efficient manner. The other strategy is providing the varieties of food for this the
ingredients of the company concentrate on milk, bread, chicken, beef etc. This strategy is
adopted to increase the menu of the product so that satisfaction level of the consumer’s increases
and it can also attract new consumers for the organisation (McMurtrey & Rowley, 2016).
This lean thinking strategy adopt the changing external and internal factors of the
organisation it is because the company supply the product according to the demand and this also
leads in understanding the casual factor which influence the operations of the company. The
organisation also uses the performance of the objectives so that actual performance will be
examined with the standard performance so that gap will be identified and resolved by the
company. This leads in increasing the number of operations that is company open up to 36,000
restaurants across 117 countries and raise the innovation in the organisation that is in the year
2003, the company launched largest menu revolution (Tao, Cheng, Qi, Zhang, Zhang, & Sui,
2018).
The just in time technique also support the company to reduce the wastage and raise the
efficiency by receiving the good on timely manner when need required at right place.
McDonald’s adopts the strategy of quality in which different procedure is to be followed by the
organisation. The different high quality food is to be offered in which vegetables, salads is also t
be included. Therefore to maintain the different procedure is required by the organisation such as
“Speedee service center” in which company maintains the balance between the product
specifications with the methods which is to be used in preparing the methods of the product. The
quality is managed by describing the temperatures, portions etc (Slack & Brandon-Jones, 2019).
The other strategies for providing quality services to the consumers organisation learn the
improvement in the product by which it learn cooking and serving of the hamburger so that
efficiency is to be maintained in managing the quality standards and place. The implication of
this strategy is that it also results in increasing the number of delivering for offering superior
quality of beef patties to the consumers (Hahn & Packowski, 2015). For using the quality the
organisation also adopt the process for meeting with the suppliers and to manage good
relationship, it also used the procedure of quick freezing so that loyalty among the consumers
should be increased by providing fresh and quality taste of the product.

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The company revealed that maintaining quality is not the individual concept in
maintaining efficiency but total quality management is the new concept through which the
consumer experience great services and drive the sales of the organisation (Slack & Brandon-
Jones, 2019). Therefore, the organisation adopt advanced technologies and innovations by which
several quality meal is delivered to the consumers which includes a chicken finger with no bones
to the consumers and various other meal according to the needs and requirement of the
consumers. The organisation also delivers different dressings so that it manages the quality and
meets the new requirements and needs of the consumers. This leads in increasing the profits of
the organisation and sales of the organisation.
The probabilistic situation of the organisation that is more competition and differences in
the behavior and attitudes of the consumers is overcome by adopting total quality management
(TQM) strategy. This strategy helps McDonald’s’s to manage efficiency in the organisation and
at the same satisfying the needs and requirement of the consumers (Hitt, Xu, & Carnes, 2016).
Further, to manage the quality in the long run, organisation provides the training to the
employees so that they can adopt particular procedure in preparing the cooked as well as raw
products.
In addition to this company also use all the specifications of hygiene and taking
continuous feedback for total quality management of the product. This has positive implication
in the quality of supply chain because one of the company supplier that is “Keystone Foods”
produced process of quick-freezing in which it increase the capability of capturing the fresh taste
as well as beef patties texture. Through the TQM strategy the suppliers believe that each patty
would achieve its consistent quality by the time it hit the grill. This quality technology is also
shared through other main supplier of McDonald’s’s so that TQM will be adopted in the long
run.
Another operational strategy which company adopts so that efficient and effectiveness is
managed with the positive outcomes is to become “better not just bigger in which organisation
strategy is to provide quality services and product with executing the operations of the
restaurants. This strategy also has positive implication that is this helps the organisation to
become one of the leading organisations which provide fast food by focusing on the health of the
consumers (Slack & Brandon-Jones, 2019). The “gone back to basic” is also the strategy adopted

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by the CEO of the organisation in which it does the various change by changing the modern
methods for the operations.
Through this strategy it also maintains good relationship with the farmers so that
standards of the organisation will be increased and leads in raising the transparency in the supply
chain. The organisation also invest more in the research and development so that current needs
and requirements of the consumers will be described, through this internal environment of the
organisation changes according to the external environment which includes changes in the
dynamic behavior of the consumers (Piercy & Rich, 2015). This results in accomplishing the
long-term objectives of the organisation by raising the competitive ability in the company.
Statement Evaluation
“Honesty and transparency make you vulnerable”, this statement is applicable for
McDonald’s it is because the case describes that company use the strategies of maintaining high
quality by conducting the operations in more ethical manner. This strategy leads in managing the
honesty and transparency in the organisation, this helps in raising the loyalty among the
consumers and helps in providing efficient results (Özdamar & Ertem, 2015). It is because this
strategy make second largest organisation which offer quality burger according to the needs and
requirements on the consumers.
Therefore, organisation continuously manages the activities and operations. The
organisation uses the traceability by using the method so that project specification is highly
coordinated with the technique which is used in preparing the food for the consumers (Alshamsi
& Diabat, 2015). This also leads in supporting the organisation for managing food standards and
safety in the organisation, it describes that all the activities of the organisation is consistent with
the ethical practices and acts which are developed by the government (Noroozi & Wikner, 2016).
This practice makes the company more capable of attracting more consumers and this
leads in expansion of the organisation. For the vulnerability the organisation maintain the
complete procedure in the activities which includes that it focuses on various dimensions so that
hygienic and health of the consumers will be managed such as cleanliness, food quality as well
as new services which is provided to their target consumers (Ramanathan, Subramanian, &
Parrott, 2017). Through this strategy transparency is maintained with the consumers by

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developing the relationship it is because feedback should also be taken regarding the quality and
taste of the product.
For the honesty organisation focuses on continuous learning it is because the organisation
conducts their operations in highly competitive environment and also considers the dynamic
nature, behavior and attitudes of the consumers. This support the organisation to well trained in
the degree of “Hamburgerology” it is because through this perception of the organisation is not
only to give positive experience to the consumers but to take the business in more serious
manner (Slack & Brandon-Jones, 2019).
The estimation describes that organisation believe that learning and development is the
efficient strategy to sustain in highly competitive environment (Brusset & Teller, 2017). In the
case it also demonstrate that organisation also give the chance to the field service for making
appraisal of the performance it is because the points will be given for the cleanliness and other
ethical operations in the organisation. The honesty support the organisation to get efficient
results, this leads in increasing profits of the organisation and raise the capability to invest more
on the other areas which includes maintaining strong relationship with the suppliers (Hahn &
Packowski, 2015). This strategy is also used for managing transparency in the organisation this
helps the organisation to manage the stability and to control the menu according to the supplying
of the product.
This transparency leads in increasing the supplying of the product and leads in managing
the good relations with more other suppliers which provide quality product so that supply meets
the changing demand in the environment. This strategy also leads in reducing the wastage and
productivity in the company, therefore for the transparency organisation increase the number of
employees for the organisation it is because more talented consumer’s focuses on understanding
the new practices which should be adopt for efficiency. For this organisation provide training to
the consumers in all the areas so that stability is maintained with the wide varieties of the items
which is to be offered by the company (Resta, Powell, Gaiardelli, & Dotti, 2015).

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Conclusion
From the above, it is concluded that McDonald’s use various process for managing the
efficiency in the operations and to increase the outcomes of the organisation such as “fool-
proof”, “speedee service system”. This leads in increasing the status of the organisation and it
become second largest company it is because of increasing the loyalty among the consumers.
The organisation also adopts “lean thinking”, “just in time”, “total quality management” strategy
to manage the overall quality of the procedure and food. The organisation maintains honesty and
transparency by developing good relations with the suppliers, consumers. This leads in
increasing the consumers and provide positive outcomes to the organisation.
Recommendations
The above case describes that McDonald’s’s suffered from various issues which includes
that company conduct their operations in highly competitive environment. The other issue is the
dynamic nature of the consumers in different region (Tolba, Seoudi, Meshreki, & Shimy, 2016).
The estimation demonstrate that company also does not follow the concept of green operations
which raise the wastage and results in reducing the menu items of the organisation in
comparison to their competitors.
1. To overcome these problems company can adopt the strategy of “streamline and
simplify”. It is because through this company can adopt new technique by describing the
each method and process in simplification according to the capability of the organisation
(Mani, Kesavan, & Swaminathan, 2015). As organisation provide quality food this make
McDonald’s’s unique, therefore for this company can change the manner of serving the
needs of the consumers.
2. The company can also focus on environment conscious consumers for whom
environment play a major role in changing their buying decision. Therefore, for this
company can develop new media and advertising strategies.
3. McDonald’s can adopt veganism trend, it is because through this company can target the
consumers who does not eat food from animal products. Therefore, for this company can
include plant-based nutrition diet to the consumers.

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4. The other strategy company can also invest more on research and development it is
because through this it can understand the current requirement of the consumers. Through
this organisation can target the specific group and develop the functions to provide
quality product to the consumers. This strategy can support the organisation to resolve the
other common issues and problems which can make the problem big in the long run
(Kaoud, 2017). For this wastage of the organisation will be reduced and raise the ability
to manage the big problems such as coping with the competitive strategy.
5. The organisation can also adopt the strategy of measuring the performance and inspiring
the talented employees of the organisation. It is because through this company evaluate
the performance at regular time period (Marzouk, 2016).The motivated employees lead in
adopting new innovation and technology in the company. Further, “Keep with the trends”
strategy allows the organisation to remain one of the well-known organisations in the
eyes of the consumers.

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