...------------------------------------------------- Operation strategy and management course work McDonald’s management report March 10, 2015 student number: 100086944 Words: 2631 March 10, 2015 student number: 100086944 Words: 2631 Contents 1. Abstract 2 2. Introduction 3 3. Background information: 4 4. McDonald’s operation strategy: 5 5. Supply network: 5 6. Operation management: 7 7. Theory and practise: 10 8. Wastes and solutions: 13 9. Conclusion: 15 10. Reference list 16 1. Abstract McDonald’s is the largest chain of global foodservice retailer, their global operation strategy calls “plan to win” which means focus on improving existing food and service rather than overextension. Therefore, there are 3 factors need be concerned: supply chain management, operation management and potential waste of operation. Firstly, the objectives of supply chain management are that: control the quality of suppliers, ensure the logistic work efficiently, and monitor the information flow between each process, hence to make customers satisfied with our food. Secondly, we analyse the process of producing a Big Mac meal, then we found that, due to the high volume of production and low variation in demand, McDonald’s order qualifying factors are low price and quick service. Moreover, to attract more customers, the order winning factors are better quality with valued price of food and higher flexibility of choice. And managers also need to ensure all staff...
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...Michael Porter’s 5 market forces framework. McDonalds Corporation continually monitors its performance to make sure it is competitive and profitable while also being aware of its immediate community responsibilities. This can be achieved by using the Porters 5 Forces model so the company is able to determine where its business needs to change or improve in order to stay competitive in the fast food industry. Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. The threat of substitute products A substitute product is one that can be used as an alternative to a company’s own. It could be argued that the threat of substitute to McDonald’s comes from pizzas and other domestic kebab and fast food houses. However, most of the above do not have the same level of convenience that McDonald’s offers, in having a number of outlets in big cities and also through the use of multiple drive-through outlets. The threat of new competitors The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are: * How loyal are the end users in this industry? * How troublesome or hard is it for the end users to switch and use another product? * Does it require a large seed capital to enter this industry? * Do entries to this industry regulated by government? * How hard is it to gain access to the distribution...
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...who gave me an opportunity to do this project, and for his guidance, efficient teaching, and cooperation. . This study greatly acknowledges the cooperation and assistance of all those employees of McDonald’s, whose favors have helped me to precede my project, for that I'm very grateful. Table of Content 1. Executive Summary 2 2. Organizational Overview 3 3. Issue Analysis 12 4. Analysis of Information Systems 14 4.1 Customer relationship management 14 4.2 Knowledge Management 19 4.3 E-Procurement and McDonald’s 25 4.4 Supply Chain and Logistic Management Definition 29 5. Details Analysis of suggested Systems 35 6. Organizational Impact of Recent Systems 36 7. An overall analysis of organization 40 Conclusion: 42 Reference 44 Analysis of Mc Donald’s Information systems Executive Summary McDonalds is the world's largest chain of burger fast food and perhaps is one of the fastest and rapidly growing fast food chain restaurants in the world. It uses various Information Systems to thrive in a competitive marketplace of fast food industry. Some of the Information systems used by McDonalds will be described in detail in the report analyzing the benefits of each system to McDonalds. The report begins with general description of McDonald’s along with the food offered and the Information systems used. Then a through issue analysis will be carried out to...
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...Management in BusinessAssessor/Tutor : Nicholas Kelly | Registration Number : GCD 3389Learners Name: Kondwani MandeInternal Verifier (s) : Tracey Gallagher | | | Contents OPERATION MANAGEMENT IN LARGE BUSINESS 3 McDonald’s 3 Business Model 3 Mission Statement 4 Vision 4 SWOT Analysis 4 Learning Outcome 1: Understand the nature and the importance of Operations Management 8 1.1 The importance of operational management 8 Examples of operations management in McDonald’s 9 1.2 Assess the operations management in terms of production of goods and services safety, on time, low cost, quality and within the law 11 Production of goods and services safely 11 Production of goods and services on time 12 Low cost 12 Quality and within the law 13 1.3 Significance of links between operation management and strategic planning 14 1.4 Operations management system diagram 17 2.1 The impact of “Three E’s” (Economy, Efficiency and Effectiveness) make on operations management 18 Economy 18 Efficiency 18 Effectiveness 19 2.2 Identify any measure adopted for cost minimization and quality maximization 19 Measures for cost minimization and quality maximization 21 2.3 Evaluation of the significance of the five performance objectives 22 Learning Outcome 3: Understand how to organise a typical production process 25 3.1 How linear programming can assist to make operations management more effective 26 3.2 Compare and contrast critical path analysis...
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...comprehensive organizational approach. This paper proposes a framework that uses the balance scorecard (BSC) as the basis for brand management. The framework proposes both a proactive and reactive approach to brand management through the use of performance measures or perspectives, which form the underlying components of the BSC. These are the financial perspective, the customer perspective, process perspective, and the learning perspective. The paper enhances and expands this BSC framework by including a brand maintenance and enhancement component. The concept of balance scorecard was introduced by Kaplan & Norton (1992, 1996, 2007) and they argued that that balance scorecard is a useful tool that tells managers how organization is performing in relation to strategic objectives of organization. Kaplan & Norton(1992) state the four perspectives which are financial perspective,customer perspective,internal business process perspective and learning and growth perspective.These four perspectives are used by managers in order to measure and analyze information. Kalpan and Norton explain these four perspectives which are effective in brand management and manger should make these perspectives to address both short and long term objectives of organization before making decision of marketing mix of that brand. One can effectively manage their brand image by using these four perspectives.Aaker (1991) find that by providing high product differentiation leads to the firm to charge...
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...Teaching Note: Case 14 – McDonald’s Case Objectives 1. To investigate the key external environmental issues that can affect a firm’s strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing growth. See the table below to determine where to use this case: |Chapter Use |Key Concepts |Additional Readings or Exercises | |1: Strategy Concept |Strategic management; vision, mission, strategic |Visit McDonald’s website to evaluate its mission.| | |objectives |See an embedded video of a 1967 McDonald’s TV | | | |commercial. | |2: External Environment |External environmental forces; Porter’s five forces |Visit investor commentary on MCD, view embedded | | |model |video about current coffee strategy; read about | | | |healthy foods controversy, watch video re | | | ...
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...Sales and Distribution Management Program Credit Course Code : PGPM : 3 : SL MM 606 Class of Sessions : 2012 : 30 Objective To make the student aware of issues related to sales force management focusing on ―selling‖ as a tool of Marketing Communication. The study of Channel Management offers an appreciation of logistics of information and goods, and exposes students to the types of systems required to optimize organizational efficiency through this function. Learning Objective: The aim is to prepare students to manage sales and channel teams for different types of selling, with the purpose of enhancing value based output and productivity Learning Outcomes: REFERENCE BOOKS Sales Management - Decisions, Strategies and Cases. 5ed Marketing Channels: A Relationship Approach Sales & Distribution Management Sales Management Sales and Distribution Management – Text & Cases Retailing Management – Text & Cases, 2 nd AUTHOR / PUBLICATION Richard R Still, Edward W Cundiff, Norman A, P Govoni- PCI Coughlan, 7th ed IUP Panda / Sahadev Havaldar / Cavale. Tata Mcgraw Hill - 2007 Pradhan, Swapna. Tata McGraw-Hill - 2006 e Faculty teaching the subject in all PGPM Campuses should refer Articles, Journals, Websites. Detailed Syllabus Introduction: Emerging Trends in S & D, Linking S & D Role & Responsibility of Sales person: - Cross Functional Linkages, Types of selling, Value Proposition, Lifetime Customer Value Creation- Key Accounts Management. Selling Skills: Communication...
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...observation while Arts is the practical reflection of human’s creativity and imagination. Marketing if taken as a science means considering all relevant variables and forecast that are crucial for the marketing or business on rational, systematic pattern. In contrast, when it is taken as Arts it is considered as the idea, soul, essence, spirit and the metaphysical characteristics of business that is actually helping it to thrive and prosper. For Instance, before launching a new product, all the necessary research is carried out on rational grounds. All the variables like market trend, number of competitors, price, product placement, marketing strategy and tactical plan are evaluated systematically. The use of historical data or past performance is also used in doing this. In a word; it involves much science so far. On the other hand, thinking of a new business idea, devising innovative promotional plan, Giveaways and all the marketing tools involves imagination. This falls under the scope of Arts. It can be concluded that Marketing is a blend of Science and Art Q # 2. Marketers should be skilled in stimulating demand for a company's products. Just as production and...
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...primary activities and support activities. The primary activities directly deal with the creation of products or services, whereas, support activities can be used to obtain or increase competitive edge in the marketplace. Primary activities: Inbound logistics; Operations; Outbound logistics; Marketing and sales; Service. Support activities: Infrastructure activities; Technology; Human resource management and development. Let us see Pacific Coffee. Pacific Coffee Company is a Pacific Northwest U.S-.style coffee shop group originating from Hong Kong, with a few outlets in China, Singapore and Malaysia. Primary activities Inbound logistics. Pacific Coffee inbound logistics involve company agents choosing coffee beans producers mainly in African continent, South and middle America, Hawaii and Asia ,communication the standards related to the quality of coffee beans, establishing strategic relationships with suppliers and organizing the supply-chain management. Operations. Pacific Coffee operations are conducted mainly in Hong Kong, Macau , Mainland China, Singapore and Malaysia with stores over 130 in two ways :direct operations of the stores by the company and the licensing. Outbound logistics. The outbound logistics for Pacific Coffee ，it sells own-brand coffee beans and Jura brand coffee machines to distributors and corporate clients, such as banks, airline companies, clubs and hotels. Its coffee beans are sold in Hong Kong , Macau and Singapore. Marketing...
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...employees. Value Chain analysis of STARBUCKS The business management concept of the value chain was introduced and described by Michael Porter in his popular book "Competitive Advantage: Creating and Sustaining Superior Performance" in 1985. A value chain is a series of activities or processes which aims at creating and adding value to an article (product) at every step during the production process. Let’s take the example of STARBUCKS to understand this better. The STARBUCKS journey began with a single store in Seattle in the year 1971 to become one of the most recognized brands globally. STARBUCKS mission is, per its web site, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Inbound Logistics The inbound logistics for STARBUCKS refers to selecting the finest quality of coffee beans by the company appointed coffee buyers from coffee producers in Latin America, Africa and Asia. In the case of STARBUCKS, the green or unroasted beans are procured directly from the farms by the STARBUCKS buyers. These are transported to the storage sites after which the beans are roasted and packaged. These are now ready to be sent to the distribution centers few of which are company owned and some are operated by other logistic companies. The company does not outsource its procurement to ensure high quality standards right from the point of selection of coffee beans. Operations STARBUCKS operates in 65 countries either in the form of direct...
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...This report is written to evaluate if the mission statement is still necessary for company's succuss and to review mission statements for five quick services restaurants which are competing in the fast food industry including: Hungry Jack’s, McDonald’s, Domino’s Pizza, Kentucky Fried Chicken and SUBWAY chain. This report finds that a well written mission statement is able to guide the direction of the company and positively change employees’ behaviours which directly link to company profitability. Therefore is essential for successful organizations today. This report also finds that except for McDonald’s, all other four companies’ mission statements are either focusing on these companies’ growth or profitability. This report believes it might be difficult for them to cope with this changing macro-environment and plan for the future scenarios. McDonald’s is the only organisation in these five companies that mentions customer experiences and perception towards the cooperation is also it is the only one communicate effectively this to the target audiences. Table of Contents 1.Introduction 1 2.The need of Mission Statement 1 3. Hungry Jack’s 2 3.1 Company Description 2 3.2 Review of the Mission Statement 3 4. McDonald’s 5 4.1 Company Description 5 4.2 Review on mission statement 6 5. Dominos 9 5.1 Company Description 9 5.2 Review of Mission Statement 10 6. Kentucky Fried Chicken (KFC) 11 6.1 Company Description 11 6.1 Review of mission statement...
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...Introduction Taylorism: - Definition 2. Overview -General approach -Contributions -Elements 3. Applications -McDonalds -Toyota 4. Conclusion 5. Reference INTRODUCTION: TAYLORISM: Definition: Production efficiency and methodology that breaks every action job or task into small and simple segments which can be easily analyzed and taught. Taylorism, * Aims to achieve maximum job fragmentation to minimize skill requirements and job learning time, * separates execution of work from work-planning, * separates direct labor from indirect labor * replaces rule of thumb productivity estimates with precise measurements, * introduces time and motion study for optimum job performance, cost accounting, tool and work station design, and * makes possible payment-by-result method of wage determination Named after the US industrial engineer Frederick Winslow Taylor (1856-1915), Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce. Each side needed the other, and there was no need for trade unions. His approach is also often referred to, as Taylor's Principles, or frequently disparagingly, as Taylorism. Taylor's scientific management consisted of four principles: * Replace rule-of-thumb...
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...product-orientated (myopically), but rather defined in terms of satisfying basic customer needs (39). An effective mission statement should be meaningful and specific, yet motivating. It is extremely important that a mission statement is specific and emphasizes the company’s strength in the market place. Furthermore, “a company’s mission should not be stated as making more sales or profits; profits are only a reward for creating value for customers. Instead, the mission should focus on customers and the customer experience the company seeks to create.” When (40). The text goes on about McDonald’s mission being to their customers’ favorite place to eat rather than being the best and most profitable quick-service restaurant and that profits will follow if they accomplish their mission. 2) The business portfolio is the collection of businesses and products that make up the company, it is guided by the mission and objectives. When portfolio planning the business must perform a portfolio analysis. The business must ask itself, “Where are we? And, where are we going?” Companies must also ask how they are going to get there and how to carry it out. It is managements job to analyze SBU’s and determine which SBU’s need support and how much support they need to grow. The portfolio planning also should include considering products for the future (43-45). 3) It is extremely important for all departments of an organization to “think consumer.” Marketing provides the guiding philosophy that suggests...
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...used by McDonald’s Corporation. The paper begins with a brief overview of the company, its history and operations, and analyzes the internal and external environments that it currently operates in. With a Competitive Profile, External and Internal Factor Matrixes, this paper examines the relative strengths, weaknesses opportunities, and threats in McDonald’s’ mass business operations. The paper also examines Corporate Social Responsibility (CSR) and business ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company and led its global expansion with the Franchise Model. McDonald’s has...
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...expected this growth will reach US$68 billion by 2018. (Ref) On the other side delivery segment is an integral part of the Indian Food Service segment. The size of Organized Indian QSR delivery market is US$0.62 billion, growing at a healthy CAGR of 20% and is expected to reach US$1.1 billion by 2017-18. (Ref) In major cities comprise of large workplace clusters and high density residential areas people and young Indian consumers are highly price sensitive, through online they compare the price of the different fast food deals and order their food. At present days 25% of Indian youth prefer hanging out with their friends in a fast food outlet, by ignoring other outdoor entertainment activities. (Ref) McDonald's Overview & Current Position In the beginning McDonald’s was started as a drive-in-restaurant beside the high way road of California in the year 1937, which own by...
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