Operations Strategy of McDonald's: A Detailed Analytical Report

This report provides an in-depth analysis of McDonald's operational strategy within a global business context. It examines how operations contribute to McDonald's organizational performance, focusing on processes that create competitive advantages, such as quality, high service, and value to customers. The report assesses key operational strategies, including lean thinking, quality management, and Total Quality Management (TQM), and their implications for setting up processes and supply chains. It highlights the importance of waste reduction, high-quality goods and services, and cost optimization in achieving organizational goals. The analysis is supported by relevant academic literature, including works by Slack & Brandon-Jones (2018), Jeon et al. (2016), McDonald & Wilson (2016), and Reid & Sanders (2019), providing a comprehensive overview of McDonald's operational practices and their impact on business success.

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OPERATIONS OF MC DONALD
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Executive Summary
The main purpose of this report is to understand the operational strategy of Mc Donald. The
study is supported by evaluating the annual report of the company. It is found that, the
company focuses on reducing the wastes, delivering high quality of goods & service and cost
optimisation according to the customers’ expectations.

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Table of Contents
Introduction................................................................................................................................5
Discussion..................................................................................................................................5
Contribution of Operations in Organisational Performance..................................................5
Operations Strategy................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................9

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Introduction
The business strategy of Mc Donald is to make food faster that may be available to
the customers at a very low customer price and to expand their business worldwide. The
operations strategy of the organisation is to control and maintain its operations to make a
comprehensive market analysis according to its capabilities. The assignment will focus on the
operational strategy of Mc Donald
Discussion
Contribution of Operations in Organisational Performance
The operational strategy of the company is to provide a quality of product, have high
servicing facility, cleanliness and add value to the customers. The operations management of
the company is focused on maintaining and controlling the entire operations. It designs the
goods & service to support the organisational goal (Slack & Brandon-Jones, 2018). Decisions
related to product size & price is done. The supply chain & quality assurance department
focus on maintaining high quality with various product specifications according to the
customers’ expectations. It works with the suppliers of the supply chain process for product
innovation to achieve a competitive advantage. It uses product line method to maintain the
quality. It also maximise the efficiency and capacity of the production process. Marketing
department designs the marketing mix of the organisation. Layout designing done by the
operations management focuses on the comfort of the production process. Human resource
department train the workers related to product line method in the production areas.
Operations department also controls inventory at low cost. Other process including
scheduling and maintenance of services are done by the operations (Jeon et al., 2016). This
together contribute towards operational strategy of quality, high service and value to the
customers & improve organisational performance.

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Mc Donald’s supply chain & quality assurance process gives a competitive advantage in the
market. This process focus on excellent packaging, product specification & ensure high
quality standards. It predicts the food and cost for a long-term basis.
Operations Strategy
The key operations strategy includes:
 Lean thinking- To instantaneously meet demand and maintain quality & eliminate
waste. This includes elimination of over production, prepare in less time, processing
the wastes, eliminate the wastes related to overstocking and reducing the waste due to
system defects.
 Quality- To establish product differentiation & cost leadership strategies. This
includes quality control of the food & business, improving the quality of services of
the restaurant and food (McDonald & Wilson, 2016). Its aim is to improve the quality
of the food, faster food service and cleanliness of the restaurant to provide a friendly
service.
 TQM (Total Quality Management)- It includes:
(a) Benchmarking-Collecting the historical cost and build a base level to provide
benchmark against customers.
(b) Continuous Improvement- Establishing consistent quality & value to the consumers.
(c) Employee Involvement- Involving the employees by implementing quality circle
method through training, work experience & participation. Other method includes six
sigma and reduced cycle time process (Reid & Sanders, 2019).

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Sustainability and green operations
Business sustainability is concerned with creating and delivering the value to the
consumers in the form of product and services. Operations management is concerned with
management of production resources to deliver the required product or services. A larger
proportion of resources is consumed in the operational areas. Therefore, a sustainable
management of these resources is very important. This management process includes green
supply chain process, green procurement and reverse logistics process. This includes
development of energy savings, transport efficiencies and efficient operations design in the
supply chain of the operations management process. Green operation is very important in
minimising the wastes from operations.
Conclusion
Therefore, it can be concluded that, Mc Donald’s operational strategy has made it
successful to properly control the operations in order to accomplish organisational goals. The
most important operational strategy includes reducing the wastes, delivering high quality of
goods & service and cost optimisation according to the customers’ expectations.

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References
Jeon, H. J., Meiseberg, B., Dant, R. P., & Grünhagen, M. (2016). Cultural convergence in
emerging markets: The case of McDonald's in China and India. Journal of Small
Business Management, 54(2), 732-749.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
Reid, R. D., & Sanders, N. R. (2019). Operations management: an integrated approach. John
Wiley & Sons.
Slack, N., & Brandon-Jones, A. (2018). Operations and process management: principles and
practice for strategic impact. Pearson UK.