McDonalds: Business Development Plan, Inventory and Change Management

This report provides a comprehensive business development plan for McDonald's, addressing key challenges in inventory management. It identifies the issues related to the perishability of food items and the subsequent problems of overstocking, understocking, and waste reduction. The report suggests various solutions, including the implementation of inventory management software to predict and analyze data, optimize shelf life, and reduce cross-contamination risks. It also explores the use of resource management systems, total quality management, and the Just-in-Time technique. Furthermore, the report applies Kotter's 8-step model for change management and discusses monitoring and control strategies such as benchmarking and the balanced scorecard to improve performance metrics. The report emphasizes the importance of aligning daily activities with the change management strategy to achieve the desired business outcomes.

Business development
plan
MCDONALDS

Table of contents
1. Issues with McDonalds
2. Identification of causes
3. Solutions to counter challenges
4. Kotter's’ 8-step model for change management
5. Monitoring and control

Issue with
McDonalds
The current organisational
challenge that McDonalds
is facing is the issue of
inventory management.

Identification of Causes
 The shelf life all products in McDonalds is limited which is the major reason for
the issues of inventory management.
 The factor of perishability makes almost all the food susceptible to pathogens
which are food borne if the products, ingredients and other items are not stores
hygienically by the restaurants of the company.
 McDonalds faces challenges in understocking, overstocking, waste reduction
issues, ensuring the freshness of food items
 An updation of present inventory management system is needed.

Solutions to
counter the challenge
 McDonalds can use an inventory management
software which would help in making better
decisions.
 It would be able to collect, analyse and predict
data in terms of expiration and inventory turn
monitoring.
 It can avoid overstocking, forecasting sales,
reduction of waste and optimization of shelf life,
warehouse location management and reduction
in cross contamination cut risk .

Continued..
 Factors like warehouse storage space,
number of deliveries, minimum order
numbers from vendors and value of the
product can be accounted by resource
management systems.
 Using Total quality management, Just-in-
time technique, Kaizen, change
management, effective recruitment and
talent management can improve the
management within McDonalds

Kotter's’ 8-step model for change
management

Monitoring and control
 Benchmarking: McDonalds can use benchmarking technique to
compare its performance metrics and processes with the best
practices employed by other companies in food and beverage
industry.
 Performance gaps can be evaluated to determine methods for
improvement in areas like sales, revenue, customer lifetime value
etc.
 Balanced scorecard: The four perspectives that McDonalds has to
consider are internal business processes, customers, finances and
learning and growth.
 Communication of targets by aligning the daily activities that staff
performs with the change management strategy,.