Operations Management Approaches for a New McDonald's Store in Tharwa, Australia

Running head: OPERATIONS MANAGEMENT
Assessment 2: Task B
Operations Management

1OPERATIONS MANAGEMENT
Executive Summary
This literature elaborately outlines the operations management approaches for a novel store set
up of McDonald's in Tharwa, Australia. The various significant aspects pertaining to decisions
on site/locations and the selection of the most appropriate store layout design has also been
outlined with justified reasons. There exist a wide range of effective factors or determinants that
impact the choice of site and facility layout designing; a brief description of the same has also
been outlined in detail. The individual pros and cons have additionally been elaborated. In the
next section, Hill's strategy development framework is discussed along with the factors provided
which are aligned with the organisation. Two main corporate objectives are chosen for
discussing the feasibility, limitations, and implementation in the organisation. Some suggestions
are recommended over here on the organisational response in overcoming the demand
fluctuations and the capacity constraints. Lastly, a brief conclusion is provided with the overall
summary of the report.

2OPERATIONS MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................4
2. A brief introduction on McDonalds.............................................................................................4
3. Discussion of the factors that affect location decisions and layout design..................................4
3.1 Factors affecting locating decisions.......................................................................................4
3.2 Factors affecting layout design..............................................................................................5
4. Succinctly discuss the pros and cons of the options....................................................................6
4.1 Pros of location decision........................................................................................................6
4.2 Cons of location decision.......................................................................................................6
4.3 Pros of product facility layout...............................................................................................7
4.4 Cons of product facility layout..............................................................................................7
5. Application of the Hill's Strategy Development Framework to the organisation and discuss the
practical feasibility, limitations, and implications...........................................................................8
6. Recommendations on how the organisations can response and overcome the unexpected
demand fluctuations and capacity constraints.................................................................................8
Conclusions......................................................................................................................................8
Reference List..................................................................................................................................9

3OPERATIONS MANAGEMENT
1. Introduction
Operation management can be described as an administration in the business practices in case of
creating high efficiency in an organisation. Operation management consists of planning;
organizing and lastly supervising procedure providing necessary improvement in case of gaining
higher profitability rate (Penn & Pennix, 2017). Operation management now is known as the
multidisciplinary function in an organisation due to the equal involvement in marketing and
finance. The key function of the operation management is finance, operations, product designing,
forecasting and lastly the supply chain management. The operation management can benefit an
organisation by adequately managing areas like human resources, inventory, production, and
purchasing, logistic, material management and so on (Manning & Soon, 2016).
2. A brief introduction to McDonald's
In Australia, McDonald's is a famed fast food unit with its' varied branches dispersed
homogenously all across the globe (Mcdonalds.com.au, 2019). The eminent food chain is
noteworthy because of their fresh fries, chicken items and cheeseburgers. They also notably
serve breakfast menus, sandwiches, milkshakes, and other soft drinks. On today's date, wherein
people are enormously health conscious, their tastes vary with the gradual passage of time
(Turnwald & Crum, 2019). As their effective response towards the same, McDonald's have
additionally been noted serving salads, healthy smoothies and many fish items. Their net revenue
generation is exceptionally well and this corresponds to their widespread expansion and
eminence.
3. Discussion of the factors that affect location decisions and layout design
Because of McDonalds’ all-inclusive fame, their management often widens their distribution by
opening smaller branches everywhere. In general, whenever it comes to setting a new store up,
location plays a remarkable role (Dixit, Clouse & Turken, 2019). Along with the location, comes
a wide range of determinants that are known to affect such location decisions. It corresponds to
the specific procedure that determines a business unit’s geographic site. For the chosen
discussion, a new McDonald store will be furnished in a place namely Tharwa in Australia