McDonald's Operations: Strategy, Processes, and Evaluation Report

This report provides a detailed analysis of McDonald's operations strategy, as requested in the assignment brief. It begins by assessing McDonald's operational strategies, including 'lean thinking' and 'total quality management' (TQM), and explores their implications for setting up processes and supply chains. The report examines how McDonald's utilizes these strategies to achieve competitive advantages, maintain product quality, and enhance customer satisfaction. The analysis covers the company's standardization of processes, use of innovative technology, and emphasis on employee training. The second part of the report evaluates McDonald's operations function, focusing on the statement, "Honesty and transparency make you vulnerable. Be honest and transparent anyway." from the perspective of McDonald's operations. It examines the transparency, traceability, and vulnerability of McDonald's operations, highlighting the importance of open communication, accountability, and the impact of these factors on brand image, customer loyalty, and overall business success. The analysis is supported by references to academic journals.

Project
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TABLE OF CONTENT
Mc Donald Operation strategy and its implication on different process or supply chain...........3
Evaluation of MC Donald operation function.............................................................................4
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1) Mc Donald Operation strategy and its implication on different process or supply chain
Operational management perform various activities in order to convert raw material into
finished products so that needs and demand of customers can be fulfilled and organisation can
achieve its objectives. Operational manager continuously supervise and monitor various
function that are performed by employees in order to get maximum output and increase sales and
profitability of firm. MC Donald has formulated various operational strategies in order to get
competitive advantages and enhance customer’s satisfaction. Company by maintaining quality
and standardisation of products and services is able to attract large number of people to prefer
products of company over other competitor in the industry (Göstl and Schwaiger, 2016). Lean
thinking strategy was used by MC Donald for effective operation of business and achievement of
goals such as it has use innovative technology to reduce wastage of products and services.
Company by providing its franchisor information time taken to make particular food is able to
ensure quality and reduce wastages. Such as in making fries Idaho Russet was used which was
seasonal and not available in summer month so company has planned to use frozen potato to
increase quality of product at the same time reduce wastage by changing its cooking method. It
has planned to first air dry raw fries, then quick frying and freezing them so that needs of people
can be meet and company can increase its market share.
Another strategy that was used by McDonald in operational management is to formulate
a particular standard that need to be followed by each and every store of McDonald while
delivering products to customers. Standardisation of process and activities to be followed while
manufacturing of food helps in retention of quality in each franchise stores and customers
satisfaction (Famiyeh and et.al., 2018). Standard quality and rigorous food safety helps in
ensuring quality of products and health and safety of people thus increase sales of company. It
has also used 5ps policy in order to maintain quality of products and service render by firm to its
customers such as people, price, promotion, product and place. McDonald continuously trained
employees so that it can enhance knowledge and skill at the same time ensures quality of
products manufactured by company. It also tries to retained employees within company in order
to save itself from cost incurred to trained new and inexperienced employees (Zhivotova and
Berdonosov, 2018). Operating manager of company also continuously supervise and monitor
activities of other employees so that various steps can be taken to improve quality and reduce
wastage for growth and success of firm. Periodic control and at least two inspections within one
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year across all restaurants so that quality of products and services can be maintained and
company can easily achieve its objectives. Therefore MC Donald by setting top priority to
maintain quality is able to build strong brand image and meet needs and preferences of
customers.
MC Donald has used total quality management strategy in operational management to get
maximum output within minimum input in order to increases sales and profitability of company.
Company has also planned to maintain total quality by continuously ensuring cleanness,
simplicity and efficient within each restaurant so that people can easily come and enjoy delicious
meals. Company has stated uniform method of preparation of food in term of time taken,
integrants to be included and technology to be used that helps in total management of quality of
services and products offered by firm to its customers (Lautala and Pouryousef, 2016).
Therefore it stated that company want to provide speedee services system that means exact
manner to prepare food, specialised equipment to be used and strict product specification so that
same quality of products can be visited at any stores. Innovative technology, continuous learning
and improved operation helps in maintaining total quality management and building strong brand
image in the market. MC Donald in order to maintain quality of product continuously makes
research to develop new method for cooking, storing and freezing products and service of
company. Company also trained its franchisees and operator to perform various activities in
particular manner for growth and success of firm. Field service was also provided by company in
order to review performance of restaurants on basis of various dimensions such as cleanliness,
quality of food, queuing and customer services. Thus, helps in improving performance of various
restaurants and delivery of services by effective guidelines of field service consultant. In order to
maintain continuous supply of raw material firm has build strong relationship with its supplier
and its franchise holders in order to achieve common objectives (Bascur, 2019). McDonald has
used customised equipment and strict control on its menu and well infrastructure and utilised
stores for effective management of resources. Therefore company by adopting all such
operational strategy is able to gain competitive advantages and increase its markets share.
2) Evaluation of MC Donald operation function
McDonald operation can be evaluated on basis of transparency, traceability and
vulnerability of operation that are performed by company in order to gain long term competitive
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advantages. Transparent means effective and open communication or exchange of crucial
information to people that are interest in the operation and performance of business such as
customers, suppliers, government and investors. Transparency can also be stated in term of
accountability of company or it has performed all its function as per desired. McDonald can be
stated transparent in operating its various functions as it clearly state all policies and rules that
need to be performed by franchisee owner (Karkoszka, 2019). Such clear and open
communication regarding uniform standard to be used by various stores while delivering services
and product to customers helps in effective building of brand image and customers satisfaction.
McDonald is also accountable in terms of its quality of services and products that are render to
customers and continuous using new technique to meet unsatisfied requirement of people and
achieve its goals. Continuous supervision and monitoring and rigid rules in order to perform
various function of operational management helps in maintaining standard and quality of
products and retaining customers loyalty and satisfaction. It has also explained all rules, policies,
equipment and technology that has to be used by franchisee to offered various services and helps
in growth and success of firm. MC Donald by building strong relationship with its supplier is
able to promote open communication and bring new ideas, innovation such as one of the supplier
name Keystone food develop new process for novel quick freezing in order to retain its fresh
taste and texture of beef patties. Therefore open communication and strong relationship with
supplier helps in bringing standardisation within industry and promote growth and success of
firm. Company got another idea from its franchisee holders name Lou Groen that state launch of
Filet-O-Fish will helps in increasing sells of company (Vizina and et.al., 2018). But as per Ray
Kroc meatless sandwich is better so they decide to offer both the item and then let review whose
food was mostly consumed so it get to know that 350 Filet-O –Fish were sold. Therefore
transparency between owner of company and its franchisee helps in bring new innovation and
growth of company in the industry.
Quality of products and services of MC Donald can be easily traceable from where it have
developed and material is used to cook health and tasty food. Such as Ray Kroc has got idea to
start business from two bother Dick and Mac that have small Bar- B- Que that deliver self
service and limited menu of nine items but have large number of customers (Semin, 2016). Thus,
Ray by get inspired from effective operation of two brother business influence them to expand
McDonald business all over USA. Ray Kroc by sticking on its original operation is able to
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expand its business by building 200 stores in five years. McDonald main focus is to use its
original operation that is to maintain quality of products, cleanness and value and effective
delivery of services, simplicity in order to meet needs and demand of customers. Standard and
uniform methods are used in order to prepare particular food products to retain quality of
products and customers satisfaction and loyalty. Company has formulated policies to use similar
equipment, infrastructure of stores and method to cook food in order to delivery similar quality
of products at various stores in order to build string brand image and customers satisfaction.
Therefore it can be stated that traceability of company operation helps in effective functioning
and achievement of goals. Despite McDonald face lot of vulnerability it is able to grow and
expand its business by using two principles honesty and transparency. Company by continuous
maintaining quality of product and accountable for all things is able to gain competitive
advantages and increase its market share (Camaj, Dlugos and Blaho, 2018). Such as company
was not able to get certain raw material in particular season so supplier of potato suggest that to
switch to frozen potato. Therefore such a idea helps company in facing challenge of increase
supply change and less availability of raw material. Transparency and open communication
protect company from various threats and gaining various opportunities that are available in
market to increase its sales and profitability.
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REFERENCES
Books and journals
Göstl, P. and Schwaiger, W., 2016, September. Risk-based planning and control systems:
integration of different risk types into strategic, financial and operational management
systems. In Management control association conference, university of antwerp (pp. 7-
9).
Zhivotova, A.A. and Berdonosov, V. D., 2018, October. Expert Systems as a Tool to Improve
Efficiency of Operational Production Management. In 2018 International Multi-
Conference on Industrial Engineering and Modern Technologies (FarEastCon) (pp. 1-
7). IEEE.
Lautala, P. T. and Pouryousef, H., 2016. Evaluating the use of operational management
techniques for capacity improvements on shared-use rail corridors (No. CFIRE 09-10).
National Center for Freight and Infrastructure Research and Education (US).
Bascur, O., 2019. Process Control and Operational Intelligence. SME Mineral Processing and
Extractive Metallurgy Handbook, p.277.
Karkoszka, T., 2019. Operational Control in the Process Safety Assurance. System Safety:
Human-Technical Facility-Environment, 1(1). pp.126-131.
Vizina, A. and et.al., 2018. HAMR: Online drought management system–operational
management during a dry episode. Vodohospodářské technicko-ekonomické
informace, 60(5), pp.22-28.
Semin, A. N., 2016. Operational management in agricultural organizations: theory and
practice. Economy of Agricultural and Processing Enterprises.
Camaj, J., Dlugos, M. and Blaho, P., 2018. Management and Operational Planning of Train
Service with the Support of Information Systems. DEStech Transactions on Social
Science, Education and Human Science, (icems).
Famiyeh, S. and et.al., 2018. Environmental management practices, operational competitiveness
and environmental performance. Journal of Manufacturing Technology Management.
Krylov, S., 2020. Strategic operational analysis based on balanced scorecard in present-day
global economic environment. In SHS Web of Conferences (Vol. 74, p. 06016). EDP
Sciences.
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