LB5230: McDonald's Strategic Resources and Operations Report

This report provides an in-depth analysis of McDonald's strategic resources and operations, examining its business practices before and during the COVID-19 pandemic. It explores the company's day-to-day operations, including its adaptation strategies in response to the pandemic, such as changes in supply chain management and the shift towards home delivery services. The report highlights the application of various management theories, including Human Relations Theory, Modern Management, and Systems Theory, to understand how McDonald's has navigated challenges and maintained its operations. Furthermore, it assesses the sustainability of McDonald's future operations, considering public awareness and concerns regarding the company's social and environmental impact. The report provides insights into how McDonald's has managed its resources and operations to maintain its market position and fulfill its social responsibilities during a time of crisis.

Managing Strategic Resources
and Operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of Business Organisation............................................................................................3
Day-today-operations..................................................................................................................4
Linkage between the company operations and LB5230 theory...................................................6
Sustainability of McDonald’s Future Operations........................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management of strategic resources and operations is very important task to an
organisation. By properly managing resources and operations, a company or business can save
its lots of precious time and money. Currently top-level management within most businesses are
putting their huge efforts for managing their resources and operations in productive manner. This
is report discusses management of strategic resources and operations of McDonalds, before
COVID 19 (corona virus) pandemic and after pandemic. McDonalds is one of the most popular
fast food companies in all around the world, headquartered in Chicago, US. The company has
over 900 restaurants in Australia. Currently whole world is suffering from COVID 19 pandemic.
This pandemic has very badly impacted whole business environment of Australia. There are
different operations of McDonalds also has been included in this report which are operating by
upper management in this pandemic situation as well.
MAIN BODY
Overview of business organisation
The chosen business organisation for the purposes of the report is the McDonald’s
Corporation, which is an American fast food company that operates in the hospitality industry of
the world in the genre of fast food restaurants. McDonald’s was founded in 1940, an astonishing
79 years ago by American entrepreneur brother Maurice and James McDonald. Currently
McDonald’s operates from its headquarters in Chicago, Illinois, United States of America.
Through its continued successful operations within the hospitality industries, McDonald’s has
expanded a lot and grown into an international brand with outlets spanning the entire world. This
has resulted in McDonald’s being crowned as the largest restaurant chain in the entire world on
the basis of their revenues generated (Pilcher, 2017). As McDonald’s operations are so diverse in
numerous countries, McDonald’s serves around an astonishing 69 million customers daily
around the world through the 37,855 distinct establishments it operates globally in more than 100
different countries. Such significantly expanded operations around the entire globe allow
McDonald’s to generate positive revenues and income, with their total revenue for the fiscal year
of 2019 being 21.076$ billion and their net income for the fiscal year of 2019 being 6.025$

billion, both of which metrics have increased when compared to their operations in the past
years. McDonald’s also has become the second largest private employer in the entire world for
all of its operations, with McDonald’s employing around 1.7 million different individuals around
the world at various organisational positions.
McDonald’s first started out as a singular restaurant with their business operations being
rechristened as hamburger stand. This was later turned with a switch in the business strategy of
McDonald’s as the business organisation turned into a franchise, with the now iconic Golden
Arches M logo being introduced as the business brand in 1953. Over the years McDonald’s has
become especially known to its customers for their cheeseburgers, hamburgers and made to order
French fries. McDonald’s menu also features other customer favourite products such as breakfast
items, soft drinks, wraps, milkshakes, coffees and deserts such as various assortments of ice
creams and softy. As the business organisation has been in operations for such a long period of
time which amounts to 79 years, it has also been affected through changing customer tastes and
various food trends. As a direct response to these external factors, McDonald’s has also added
assortments of healthier salads, fish delicacies, fruits and smoothies to its menu choices for their
customers.
Most standalone restaurants of McDonald’s offer to their customers both customer
service and drive through options with the seating arrangements ranging from location to
location being indoor and outdoor as well (Eriksson and Pettersson, 2017). Additionally,
McDonald’s also operates establishments that offer exclusive drive through services to its
consumers near highways, while many restaurants in high density urban areas choosing not to
offer drive through services. In addition, in many places McDonald’s also operates a café styled
establishments called McCafe with the services and décor of the McCafe resembling that of
traditional café around the world.
Day-today-operations
Before the COVID 19 pandemic, McDonalds’ 24-hour cycle was very simple. It was
open or close its restaurant on the basis of location’s requirements within Australia. For example;
McDonalds’ restaurants were 24*7 opening in Airports, Railway stations etc. Its most restaurants
were mainly opening for 24 hours everywhere in Australia. But in some selected places,
McDonalds was opening and closing its restaurants from 6AM to 10PM. Between opening and

closing time period, McDonalds was conducted different activities in its restaurants, like; take
food order from customers, prepare food according to orders, provide food to customers,
cleaning restaurants for maintaining proper hygiene, unload vehicle of raw-material, maintain
financial records, maintain effective relationship between all employees etc.
Now, due to COVID 19 pandemic this food company is not able to open its restaurants for 24
hours. Reason is, government of Australia recently has passed rule of full lockdown till
pandemic is comes under control. In this situation, top-level management of McDonalds also has
required follow rules of local government. Before lockdown, company was properly running its
daily operations in this country (Balaji and et.al., 2018). A customer of McDonalds was able to
buy products and services in any time in a week. But now during pandemic situation, that
customer is not able to purchase or buy products and services from McDonalds in any time.
Reason is, currently most restaurants of this company are completely closed within Australia
because of corona virus.
In this lockdown period, all food companies have completely followed different rules and
regulations of local government. Recently, Australian government has allowed to different food
companies for running their business operations but only in that specific time period which has
allotted by local government. Australian government allowed food companies, because there is
food is the essential or prime need for every person. In this situation, currently McDonalds is
also able to runs its different operations includ9ing supply and demand chain in this country,
because this company also provides excellent food service to people or customer. Currently there
are large number of people within Australia are completely depends on McDonalds for fulfilling
their food needs. In this situation, now those people are able buy products and services from this
company in this pandemic time period as well. Government of Australia said that, every food
company need to boost their home delivery services for properly deliver food to a customer at its
home. In this situation, currently McDonalds is also responsible to provides its services to
maximum people through home delivery system. Of course, food companies not allowed for
providing their services in their respective retardants, because they only allowed to provides their
food services through home delivery system.
Currently local people are not able to visit McDonalds’ restaurants for buying food items
due to lockdown, but they are able order food through online system from McDonalds. In this

pandemic time period, this food company is providing its food services for 24 hours in many
locations of Australia (Meredith and Shafer, 2019). Currently top-level management of company
is not giving priority to earn profit, because management’s aim is to provide the best services to
maximum people in this COVIDE 19 pandemic. According to the top-level of McDonalds,
currently whole is fighting against this pandemic. Our doctors, police officers, nurses etc. are
giving their huge contribution for overcoming corona virus pandemic. In this situation,
McDonalds is responsible understand its social responsibility. This is the main reason that, this
food is currently putting its huge efforts to provide food items to large number of people within
Australia. During providing its food services, existing management at McDonalds fully considers
all rules and regulations which has passed by Australian government.
Due to COVID 19 pandemic, there is big difference between company’s previous and
existing supply and demand chain operations (La Ode Sumail, 2019). Currently effectiveness of
McDonalds’ supply and demand operations has decreased because of total lockdown, but
company is still running these operations, because products and services of company comes
under essential category. Nowadays people are ordering food online from McDonalds, in which
company is completely responsible to fulfils food demand of customers. In this situation,
existing management of company has boosted its home delivery system for supplying ordered
food to different people within Australia. Currently company is supplying its food products for
24 hours in different locations of Australia. On the other side, local people are also able to take
many advantages from McDonalds’ extra-ordinary food services during this pandemic time
period. The main aim of McDonalds’ management is to provide excellent services to different
people of Australia in this pandemic time period.
Linkage between the company operations and LB5230 theory
Currently McDonalds need to use some appropriate theories of operations for effectively
managing it’s all operations in this pandemic situation. According to current conditions,
company should use human relations theory of operation management. Human relations theory
plays great role in any business to maintain an effective relationship with different people
(Henderson, Sheldon and Pick, 2019). In this situation, top-level management of company has
highly required to maintain great relations with its employees, customers, investors, suppliers,
existing government. Basically, these are some major stakeholders of company. Currently

company highly want extra-ordinary support of these all people to smoothly run its various
operations in this pandemic time period within Australia. The company already has an effective
relationship with their all customers. That’s why currently local people are ordering food from
this company in the lockdown as well. On the other side, top-level management of company has
maintained an effective relationship with its different suppliers as well. So, with the support of
suppliers, currently company is able to run its various operations within Australia.
On the other side, modern management is another theory of operations management
(Erceg, 2019). According to this theory, top-level management of McDonalds should use some
modern and latest management tactics or techniques to smoothly run it’s all operations in this
lockdown time period as well. Currently company is facing many conflict, challenges and
problems in its business environment due to COVID 19. That’s why existing management should
implement some modern management techniques in its business environment to resolve these all
conflicts, problems and challenges. Top-level management of company should understand the
basic thing that, McDonalds is not only the business which is facing different problem due to
corona virus, because currently each business or company is facing these different problems,
challenges and conflicts within their respective business environment. In this situation, different
innovative theories of operations can play great role to McDonalds for perfectly dealing with
existing challenges and conflicts which has raised because of corona virus pandemic.
There is systems theory is another major theory which can support to company for
running it’s all operations in systematic manner in this pandemic situation (Gryko, 2018). This
theory will give opportunity to company for properly maintaining its supply and demand
operations. Of course, McDonalds’ demand of food items has decreased due to corona virus, but
company still supplying its food products on the basis of home delivery system. In this situation,
existing management of company should systematically maintain its supply and demand chain
for providing food items to different people within Australia. Currently Australian government
required huge support of different exiting food companies for providing proper meals to local
people. This is great opportunity to McDonalds for fulfilling its social responsibility.
Sustainability of McDonald’s future operations
As McDonald’s is such an old business organisation operating successfully within the
hospitality industries for such a long period of time, they now have an effective understanding of

the importance that the concept of sustainability can have to their future operations as the public
awareness and concerns over McDonald’s current operations increase. McDonald’s has always
been associated with negative social implications such as rising childhood obesity, increased
plastic pollution, and degrading quality of food (Langert, 2019). Though these issues can have an
effect on the sustainability of McDonald’s operations in the future, their leadership and
management has effectively created business strategies that address these social implications and
work towards making the future operations of McDonald’s just as successful as they have been
in the past decades. McDonald’s leadership and management have created a brand new initiative
called the ‘Better M Programme’ which aims to address various issues related to the rising public
awareness and make the operations of McDonald’s effectively sustainable for the future. The
Better M Programme of McDonald’s prioritises 5 key areas which could effectively help to
increase the business’s sustainability in the future, with these being packaging and recycling,
beef sustainability, climate action, commitment to families and youth opportunities.
As of now 50% of packaging operations of McDonald’s are done using plastic and only
10% of its restaurants are practising recycling operations. This is an issue to McDonald’s
sustainability, with even its leadership assessing so. Through the changes planned in the Better
M program, McDonald’s hopes to increase their fibre packaging capabilities so that by 2025,
100% of McDonald’s packaging operations would be done using recyclable fibre with increased
number of restaurants practising recycling operations. This operational change can have
immense impact on the operative sustainability of McDonald’s as it serves approximately 69
million customers daily with 50% of the packaging being plastic, which immensely harms the
environment (Schramade, 2019). Not only would the fibre packaging be healthy for the
environment, it is also edible and would not result in dire consequences should wildlife happen
to ingest it, further improving McDonald’s sustainability efforts. Through the Better M
Programme, McDonald’s would contribute to saving 1200 tonnes of plastic a year through their
sustainable operations.
Through the feedbacks received from McDonald’s customers they have also stated
developing evolved high quality paper straws and cups for their operations in an effort to further
distance their future operations from plastic. McDonald’s has also been sponsoring the Next
Generational Cup Consortium which aims to develop innovative solutions to the current plastic

problems of hospitality businesses. All these alternative products which have been expressed in
the Better M programme of McDonald’s are also recyclable which would also contribute
immensely to the sustainability of McDonald’s operations for the future (Candelo, Casalegno
and Civera, 2019). According to the Better M programme, all establishments of McDonald’s
around the world will practise recycling operations by 2025, which was also effectively make
their operations sustainable for the coming decades.
CONCLUSION
It can be concluded that McDonalds’ is highly affected through COVID 19 (corona virus)
pandemic. But, company is still running its different operations within Australia including supply
and demand chain. Currently many local people in this country are completely depends in
McDonalds for fulfilling their food need. On the other side, food items come under essential
category, because a person can’t survive without food. This is the main reason that, government
of Australia has allowed to this company for running its supply and demand operations, but only
through home delivery system. Currently company is running its operations for 24 hours in many
places of Australia, because local people are continuously demanding for food items from their
respective homes. McDonalds is trying provide the best food services to people within Australia
in this pandemic time period.

REFERENCES
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