Strategic Analysis for McDonald's Expansion


Added on  2019-09-18

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OPERATIONS AND QUALITY MANAGEMENTQuality management ensures that an organization, product or service is consistent.It has four main components: quality planning, quality assurance, quality controland quality improvement.Operations management is an area of managementconcerned with designing and controlling the process of production andredesigning business operations in the production of goods or services.Therefore, choosing an organization which is an epitome of the same is a must. Anorganization that have seeped in the roots all the measures, controls, proceduresrelating to operations and quality management and most importantly is not a flukeof the present but a craftsmanship of century and age old business model,remodeling itself with the current of the modern scenarios and need of the market.Diversification and expansion are two parameters by which companies’ trajectorytowards growth and market share can be mapped and therefore, an organization hasmastery in the same. A organizational model that have been exemplary in settingstandards for industrial leadership and style and have priceless faithful satisfiedcustomers all around the globe and the organization which satisfies all set marks isMc Donald’s –Mc Monarch.
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Mc DONALD – Mc MONARCHINTRODUCTION:McDonald's (or simply as McD) is an American hamburger and fast food restaurant chain. It wasfounded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948,they reorganized their business as a hamburger stand, using production line principles. The firstMcDonald's franchise using the arches logo opened in Phoenix, Arizona in 1953. BusinessmanRay Kroc joined the company as a franchise agent in 1955 and subsequently purchased the chainfrom the McDonald brothers. Based in Oak Brook, Illinois, McDonald's confirmed plans tomove its global headquarters to Chicago by early 2018.Today, McDonald's is one of the world's largest restaurant chains, serving approximately 68million customers daily in 119 countries across approximately 36,615 outlets. McDonald'sprimarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, softdrinks, milkshakes, and desserts. In response to changing consumer tastes, the company hasexpanded its menu to include salads, fish, wraps, smoothies, and fruit. A McDonald's restaurantis operated by a franchisee, an affiliate, or the corporation itself. The McDonald's Corporationrevenues come from the rent, royalties, and fees paid by the franchisees, as well as sales incompany-operated restaurants. According to a BBC report published in 2012, McDonald's is theworld's second largest private employer (behind Walmart with 1.9 million employees), 1.5million of whom work for franchises.MAIN PRODUCTS AND CUSTOMERS:The McDonald brothers' original restaurant served only hot dogs, hamburgers, cheeseburgers,milkshakes, and the original pre-1960s type of French fries. Today's McDonald's menu includesnumerous other items that have been added through the years. The products range at McDonald’s can be divided into following categories:
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Mc Donald’s also have various other products prone to their popularity in the region they areproduced and is considered a regional item, as they are specific specialty of that country orregion.Customers:Mc Donald’s have established their presence in 119 countries, which can be broadly classifiedinto following regions:McDonald'sProductsBEEF(Hamburger, Big Mac, Big N' Tasty)BREAKFAST(Mc Muffin, Mc Griddles, hot cakes)CHICKEN(Mc chicken, snack wrap, sandwiches)FISH(Filet O fish, Fish Mc Bites)PORK(Mc Rib)
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Analysis:Diversification is one of the most important indicators that reflect the progress thecompany has achieved and is likely to achieve in the coming years, with the product andcustomer range as diversified as above, it can be interpreted that Mc Donald’s havemastered the art of expanding and diversifying all-round the globe.Flexibility, is one of the difficult maneuver in operation and quality management, but McDonald’s have been successful in this aspect, as creating menus in opinion of thelocalities depicts the urge of the organization to succeed under all conditions. Quality and Quantity, precision is the reason of success behind any international foodchain and Mc Donald’s have all hands on the art of technology and human resource thatsecures and maintain the quality, which gets reflected in their geographical spread.Process, is needed for each and every executing decision of the company and without astrong process and its awareness amongst the personnel is not adhered to, nothing can beachieved.Mc DONALD'S AROUND THE WORLDNorth AmericaLatin AmericaEuropeMiddle East &AfricaAsia Pacific
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