Operations Management: McDonald's Case Study

Operations Management

EXECUTIVE SUMMARY

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Critically reflect on how operations contribute to McDonald’s organisational performance.
In your response, consider which processes are in place to assume the company’s competitive
advantage.....................................................................................................................................4
2. Assess McDonald’s operations strategy (i.e. ‘lean thinking’, ‘quality’, TQM) and
implications for setting up processes and/or supply chains.........................................................7
3. Evaluate the statement “Honesty and transparency make you vulnerable. Be honest and
transparent anyway” from the perspective of McDonald’s operations function. Consider in
your response, the transparency, traceability and vulnerability of operations.............................9
4. Based on your analysis, list some recommendations to McDonald’s to remain competitive
in a turbulent and global business environment. Consider new trends like veganism and more
environmentally conscious customer in your response...............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations Management encompasses the administration of routine business activities
that maximize the level of efficiency required to produce better result. It is basically concerned
with the successfull conversion of raw material as well as manpower's efforts to derive out best
possible output (Albrecht and Dasigi, 2016). This process is concerned to maximize overall
profitability of firm by producing right quality of output within stipulated time frame.
To better define the topic McDonald's company has been selected whose headquarter is
in Chicago, US. It comprises of lengthy chain of fast food restaurants that are spread across
global boundaries including both developing and developed countries. The company with the
help of wide outlets serve diverse food as well as beverages to wide range of customers by
reducing the waiting time and gain immense customer base. This report cover topics like
contribution of operations to maximise organisational performance and gain long term
competitive advantage. Determine diverse operations strategy whose implication helps in setting
up processes or supply chain. On the basis of McDonald company evaluate the statement
“Honesty and transparency makes you vulnerable. Be honest and transparent anyway”. Further,
list down certain recommendations that can assist company to overpower its competitors within
global business environment.
MAIN BODY
1. Critically reflect on how operations contribute to McDonald’s organisational performance. In
your response, consider which processes are in place to assume the company’s competitive
advantage.
Overview on company: McDonald's is the fast food company of America which started
its operations in 1940 and has successfully diversified its business in developed as well as
emerging economies. The operations of company was initiated with the efforts of Richard and
Maurice McDonald which led company to become world's largest chains of food outlet. It
currently functions in more than hundred countries and have approximately 35,000 restaurant all
over the globe. The managers of company effectively carry out research, understand market
dynamics as well as culture of people before expanding its operations and designing its menu
(Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). Therefore, the operation strategy as well