McDonald's Hong Kong: Operations Analysis and Service Enhancement

This report provides an analysis of McDonald's Hong Kong's service concept and operations management. It describes the company's service concept, emphasizing customer value and satisfaction through technological upgrades and quality service. The report assesses the contribution of operations to this service concept, highlighting the use of technology and customer preferences. It also evaluates how the operations implement the service concept, focusing on customer perceived quality and bridging the gap between customer expectations and perceptions. The report suggests improvements to both the service concept and delivery system, including enhancing financial stability, recruiting technically skilled personnel, and gathering customer feedback to improve services. The overall goal is to ensure McDonald's Hong Kong continues to provide quality food and a positive dining experience, thereby avoiding the challenges faced by the company in other markets.

Running head: OPERATIONS
Operations
Name of Student
Name of University
Author Note

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Table of Contents
Describing the service concept of McDonald's Hong Kong......................................................2
Explaining the contribution of the operations of McDonald's Hong Kong...............................4
Assessing the operation implements the service concept..........................................................5
Suggesting improvement of both concept and the delivery system...........................................7
Bibliography...............................................................................................................................9

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Describing the service concept of McDonald's Hong Kong
According to Mahadevan (2015), service concept is a shared understanding of the
nature as well as service that has been provided. It helps in the capturing of information such
as organising of ideas, service provided and the service received. It consists of a systematic
flow of input process and output that determines the manner in which experience of the
customers can be satisfied. In the case of McDonald’s the service concept that is adopted by
the company in Hong Kong consists of ensuring value and satisfaction of the customers.
At the same time, the business leaders also help in setting the services of McDonald’s
by ensuring that the customer satisfaction and employee satisfaction are taken into account.
The focus of the restaurant is to ensure that customers of the modern era are provided with a
modern dining experience (Hitt, Xu & Carnes, 2016). Hence, McDonald’s assures
technological upgrade and quality of service in terms of online or offline delivery. This can
help in designing and specifying the type of service required to be provided by the company.
The service concept adopted by McDonald’s for the next generation of restaurant seekers in
Hong Kong is provided below.
Organisation McDonald’s
Organisation idea To present the next generation of restaurant experience by
introducing signature collection in all of its outlets
Summary of service concept Self-order kiosk, digital menu board, split counter, charging
station, self-service water station. Quality Wifi, McCafe order
ready board
Service provided To end users
 High quality food products

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 Beverages
 Desserts
 Free meal voucher
 Sustainability services
 Effective delivery of food
 Prompt responses to take orders
 On call food services
 Reliable infrastructure
 Convenient location
 Affordable prices
To business leaders
 Manage monthly meetings
 Preview customer feedback
 Ensure every call is recorded and stored
Service received Benefits
 Learning about the customers
 Gaining support from employees
 Leisure time
 Various products
 Quick solution to IT issues
 Availability in critical delivery services
Business leaders
 Technical upgrade
 Prompt services
 Assessment of the feedback received

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 Reduction of the cost of service
 Raising the productivity level of the employees
Table: Service concept of McDonald’s
(Source: Mcdonalds.com, 2019)
Explaining the contribution of the operations of McDonald's Hong Kong
Operations management is often considered as the administration of business practises
that are undertaken in order to create the highest level of efficiency that can be provided to
the customers (Swink et al., 2017). In the case of McDonald’s, Hong Kong, the development
of the new service concept requires the support of the operations of the company. As stated
by Hitt and Ireland (2017) the concern is to convert materials into goods and services so that
experience of the customers can be made satisfactory. Therefore, an analysis of the service
operations that is adopted by McDonald’s in Hong Kong can be made.
The service operation of McDonald’s in Hong Kong is ideally suited to the taste and
preference of the people residing in the country. The value of the customers is taken into
account with the focus on quick delivery of service and effective use of technology
(Mcdonalds.com, 2019). As seen from the analysis of the service concept McDonald’s aims
to provide and use technology for the development of the services. Hence, customer
satisfaction can be ensured by taking into account the food habits as well as the preferences
related to the development of the infrastructure of the company (Mcdonalds.com, 2019).
For example, it has been evidenced by Walker et al. (2015) that the people of Hong
Kong are more into the use of technology in their daily activities. Hence, the development of
quality Wifi services in the restaurants can be considered as an effective operations strategy
that is used by McDonald’s to attract the customers. At the same time, the development of

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digital order boards and effective online food acceptance service can help McDonald’s to
gain the trust of the customers. Therefore, based on the analysis it can be said that apart from
ensuring the quality of food products, McDonald’s also take into account the satisfaction that
is derived by the customers from an abstract point of view (Hoyos, Morales & Akhavan-
Tabatabaei, 2015).
Hence, the services provided can be considered as an asset for McDonald’s mainly
because of the interest of the customers and the innovate manner in which it can present its
existence to the people of Hong Kong. The satisfaction of the customers both in terms of food
quality as well as the restaurant environment are taken into account by McDonald’s.
Assessing the way operation implements the service concept
After conducting an analysis of the service concept provided by McDonald’s and the
operations adopted by the company, it can be said that the implementation of the services are
directed at the satisfaction of the customers. As stated by Slack and Brandon-Jones (2018) the
operation service quality assess the manner in which service was delivered by the company.
In the case of McDonald’s customer, perceived quality is the focus that provides the
restaurant with the reputation it has in the market of Hong Kong (Meyer, Neck & Meeks,
2017). The experience gathered by the customers, the quality of products and the benefit of
the services are taken into account while trying to implement the services.
One of the implementation of the operation management is the manner in which the
expectation of the customers can be aligned with that of the perception of the customers. As
pointed out by McCrie (2015) the expectation and the perceptions are important for the
delivery of service operations so that gap in the service provided by organisations can be
identified in an effective manner. As pointed out by Lovelock and Patterson (2015) some of

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the reasons behind the existence of the gap are based on the inappropriate designs of services
or the poor understanding of the needs of the customers.
Figure: Customer satisfaction gap and expectation
(Source: Mcdonalds.com, 2019)
From the figure, analysis can be made about the reasons for the gap in operations. It
can be seen that for McDonald’s to maintain the bridge between the expectation and
perception it is necessary that the service of the company be improved. As stated by Jones
and Kierzkowski (2018) the services are main reasons behind the downfall of any restaurant
including that of McDonald’s in some parts of the world. In Hong Kong, the service of the
company can be improved by the implementation of proper operational strategies such as
development of technology.
As seen from the service concept, development of technology is one of the important
factors that are considered by McDonald’s as part of its changed services in the country.
Hence, along with the development of quality food as well as providing customers with fine
ExpectationServicePerceptionSatisfactionGap 1
Bridge of the
expectation and
perception
Gap 2

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dining experience, McDonald’s aims to ensure that pre-booking as well as online orders can
be made so as to enhance the use of technology as well as improve on the service concept.
Suggesting improvement of both concept and the delivery system
Therefore, based on the analysis, recommendations can be provided that highlight the
manner in which McDonald’s can improve its operations as well as the service concept. One
such recommendation that can be provided is the fact that the company need to enhance its
financial position in order to apply the type of service that it aims to provide. As stated by
Hoyos, Morales and Akhavan-Tabatabaei (2015) without effective financial services it can be
difficult for McDonald’s to continue with the development of the technological support that it
aims to provide to the customers.
At the same time, technically stable people need to be recruited so that McDonald’s
can continue with the development of the digital order system and ensure that the Wifi
service that aims to provide does not suffer any set back. Another point of improvement that
can be made is the fact that the operations of the company need to be directed towards the
bridging of gap between the expectations and perceptions of the customers. This can be done
by gaining the feedback of the customers in terms of product and services offered by
McDonald’s. The business managers can use this feedback so that strategies for improvement
can be made.
Overall, it can be said that for McDonald’s to succeed as a restaurant in Hong Kong, it
needs to take care of the customers and the infrastructure. The manner in which the service is
provided by the restaurant accounts for ensuring the quality of food as well as the perception
that the customers have on the restaurant. The feedback from the customers can be used to
develop the services of the restaurant and ensure that McDonald’s in Hong Kong does not

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suffer similar fate as it had suffered in India. Hence, the service concept developed by the
restaurant can have a positive impact with the application of the improvements.

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Bibliography
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management research. Journal of Operations Management, 41, 77-94.
Hitt, M., & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic
management research. The Blackwell entrepreneurship, 45-63.
Hoyos, M. C., Morales, R. S., & Akhavan-Tabatabaei, R. (2015). OR models with stochastic
components in disaster operations management: A literature survey. Computers &
Industrial Engineering, 82, 183-197.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international
trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
Mahadevan, B. (2015). Operations management: Theory and practice. Pearson Education.
McCrie, R. (2015). Security operations management. Butterworth-Heinemann.
Mcdonalds.com. 2019. McDonald's: Burgers, Fries & More. Quality Ingredients. Retrieved
from https://www.mcdonalds.com/us/en-us.html
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
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Swink, M., Melnyk, S. A., Cooper, M. B., & Hartley, J. L. (2017). Managing operations
across the supply chain. New York, NY: McGraw-Hill Education.

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Walker, H., Chicksand, D., Radnor, Z., & Watson, G. (2015). Theoretical perspectives in
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