Operations Management: McDonald's Organizational Performance and Operations Strategy

Operations Management
EXECUTIVE SUMMARY
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Operation management refers to the effective administration of organisational practice with
the objective of covert raw material and producesa high level of efficiency. The
transformation of material attempts an organisation to provide the highest level of proficiency
by maximising the overall profitability and productivity of the firm. The first point reflects
the contribution of various operations like supply chain to deliver quality output and enhance
the performance of an organisation in terms to gain a competitive advantage. Operation
management strategies like lean thinking help to reduce the chances of wastage by carrying
out smooth and systematic functioning. To strength internal operations McDonald's company
needs to carry out transparent, traceable and vulnerable operations in terms to strengthen its
global image.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Introduction......................................................................................................................................4
Main body........................................................................................................................................4
1.0 Critically reflect on how operations contribute to McDonald’s organisational....................4
Performance. In your response, consider which processes are in place to assume the...............4
company’s competitive advantage...............................................................................................4
2. Assess McDonald’s operations strategy (i.e. ‘lean thinking’, ‘quality’, TQM) and...............8
implications for setting up processes and supply chains.............................................................8
3. Evaluate the statement “Honesty and transparency make you vulnerable. Be honest and
...................................................................................................................................................10
transparent anyway” from the perspective of McDonald’s operations function. Consider in
...................................................................................................................................................10
your response, the transparency, traceability and vulnerability of operations..........................10
4. Based on your analysis, list some recommendations to McDonald’s to remain
competitive................................................................................................................................11
in a turbulent and global business environment. Consider new trends like veganism and.......11
more environmentally conscious customer in your response....................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Operation management helps in designing and controlling the process of production and after
that redesign business operation in the methods of production of goods and services(Albrecht
and Dasigi, 2016). It is concerned with the successful conversion of raw material as well as
the workforce's efforts to derive out best possible output (Albrecht and Dasigi, 2016). This
process is concerned to maximize the overall profitability of the firm by producing the right
quality of the product within the stipulated time frame. McDonald's company has been
selected, which is a world’s leading foodservice organisation which generate around 40
billion dollars in system-wide sales. The business is spread over hundred countries on six
continents; it has unparallel global infrastructure and competencies in restaurant operations.
This report cover topics like the contribution of operations to maximise organisational
performance and gain long term competitive advantage. Determine a diverse operations
strategy whose implication helps in setting up processes or supply chain. Based on McDonald
company evaluate the statement “Honesty and transparency make you vulnerable. Be honest
and transparent anyway”. Further, list down specific recommendations that can assist the
company in overpowering its competitors within the global business environment.
1.0 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 of the company
McDonald's is the fast-food which started its operations in 1940 and has successfully
diversified its business in developed as well as emerging economies. The operations of the
company were initiated with the efforts of Richard and Maurice McDonald, which led the
company to become the world's largest chains of food outlet. It currently functions in more
than hundred countries and has approximately 35,000 restaurants all over the globe. The
managers of the company effectively carry out research and understand market dynamics as
well as the culture of people before expanding its operations and designing its menu
(Bahmani-Firouzi and Azizipanah-Abarghooee, 2014).Therefore, the operation strategy, as
well as internal processes of McDonald, has helped in successfully gaining an immense
competitive advantage.
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