Operations Management: McDonalds

Running Head: OPERATIONS MANAGEMENT 1
Operations Management: McDonalds

OPERATIONS MANAGEMENT 2
Table of Contents
Introduction......................................................................................................................................3
Company Description......................................................................................................................3
Question 1: Explain how the competition for McDonald’s has changed over the company’s
existence and how these changes influenced the company’s operations strategy...........................4
Question 2: What are the most important structural and infrastructural decisions in McDonald’s
operations strategy? Explain how they influence the company’s main performance objectives....6
Structural Decisions.....................................................................................................................6
Infrastructural Decisions..............................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

OPERATIONS MANAGEMENT 3
Introduction
In its entire life, McDonalds has experienced both good and bad times, which have affected the
growth of company in fast food industry. McDonalds is one of the leading organizations in fast
food industry and offering a variety of products. The given case study includes the growth of
McDonalds in last half century. Company has started its business operations by opening small
franchises and then used different effective strategies for its survival in competitive business
environment. With the passage of time, the firm has confronted intense competitors, when
different competitors have entered in the fast food industry with similar product range. This
report includes the organizational life of McDonalds that how the competition for the company
has transformed over its existence and these changes have affected the operations strategy. In the
next part of report, there are some most significant infrastructural and structural decisions in the
operations strategy of organization. These decisions have impacted the major performance
objectives of the company. The report evaluates the operations management and operations
strategy of McDonalds in its life of half century.
Company Description
McDonalds is a well-known destination for a major customer base and they are making it one of
the largest fast food outlets worldwide. McDonalds is a leading fast food outlet in terms of
profits and revenues. The company was founded in the year 1955 by Ray Croc in Illinois, United
States. Currently is headquartered in Oak Brook and operating more than 36900 stores in over
100 countries. Now, it has its operations from United States to Europe to Middle East and to
Pacific Region. It offers a menu with the wide range of food products, like; burgers, milkshake,
cold drinks, salads, cookies, french-fries, coffee, ice-tea, chicken, cheeseburgers etc. Moreover, it
provides different breakfast items in US and other international markets. In this range, products
include like; Big Mac, McFlurry, McNuggets, McMuffin etc. The major competitors of
McDonalds are like; Burger King, Subway, KFC etc. These companies are also selling same
products to the customers and introducing new products segments considering the needs and
expectations of their customers (McDonalds, 2012).