Operations Management Case Study - McDonald's

Operations management is the administration of business practices to create the highest level of efficiency possible within an organisation. It focuses on changing the materials and techniques with efficient goods so that profits of organisations could be increased according to the expectation of the company (Mahadevan, 2015). In this report, “McDonald’s’s case study” is selected; it adopts different strategies, procedures and method to expand in international market and improve the performance of the organisation.

This case study describes that honesty and quality are key main approaches which are used by the company it is because organisation believe that it offers better and bigger product and services according to the expectation of the consumers (Slack & Brandon-Jones, 2019). Further, this report will discuss the procedure, strategies which McDonald’s’s adopt to increase performance. The discussion will also make on the statement of honesty and vulnerabilities as well as recommendations are also provided to solve the problems of the organisation.

McDonald’s’s adopt the “speedee service system” it is because through this organisation maintain the food with consistency and support the organisation to manage the high quality of the food. This process is adopted by the organisation to manage the unique technique as well as method for preparing the food according to the needs and requirement of the consumers. Therefore, through this procedure organisation described the methods of preparing the food with addition to the equipments which is to be used for the product; this also leads in managing the strict product specifications. The strategy raise the speed of the company that is only 10 minutes time period is required between being cooked and serving to the consumers. Therefore it is estimated that company use just in time (JIT) strategy. 

The strategy leads in increasing the performance of the organisation and also increases the capability to gain competitive advantage it is because of focusing on the standardized of the product so that food and quality is managed according to the expectation. The procedure of the operations in described in minute detail in which overall instructions regarding the cooking the food such as temperature, portions as well as cooking times. The “fool-proof” devices are also adopted by the organisation for the consistency it is because the organisational performance will be enhanced. The organisation describes that this helps the organisation to maintain efficiency in the job t is because through this job of the organisation make more manageable and easier.

Operations Contribute To McDonald's Performance

The major focus of the organisation is on detailing the overall procedure adopted by the organisation. Therefore, for this M Donald’s also adopt the strategy on contributing and focus on research and develop laboratory so that organisation can learn the cooking, storing, freezing and serving the techniques so that quality is maintained for the hamburger (Slack & Brandon-Jones, 2019). This benefited the organisation in increasing the loyalty among the consumers and raises the capability of the organisation and flexibility to expand their operations by providing the quality products according the requirement of the consumers that is through this company open 36,000 restaurants. McDonald’s also use the procedure of “field service” in which organisation review the performance of the consultants so that various areas of the organisation needs to be reviewed such as quality of the food, services to the consumers and cleanliness in the organisation.

The organisation adopts the process of air-dying the quick frying after them to freeze the potatoes so that quality of the fries and maintain satisfactory in cooking them.  Further, to maintain in the competitive environment organisation also adopt the strategy of focusing on various areas this the most important process such as maintaining better relationship with the suppliers (Slack & Brandon-Jones, 2019). The process and areas which improved by the organisation are developing the franchise holder and creating the equipments, this strategy is used by the organisation to gain competitive advantage and raising the efficiency of the organisation. McDonald’s conducts their operations in highly competitive environment and its competitors offer several varieties of product to the consumers but only limited products. This strategy overcome this problem this is due to the reason that this leads in raising the capacity growth of the organisation and seek the new opportunities to gain consumers attention (McDonald’s Corporation, 2018).

The organisation used the process of securing suppliers in which relation among the company, suppliers and franchisees leads to be maintained. It is because McDonald’s’s describes that it the major procedure for timely delivering of the product so that supply of the product meet the demand in the external environment. The productivity of the organisation increases due to more long relationship with the suppliers and this helps the organisation to gain success over their competitors and also leads in maintaining the industry standards. In the supplying the organisation also develop “novel quick-freezing” procedure because of capturing the fresh taste as well as managing the texture for the beef patties, this increase the capability of the company to maintain cost credibility.

Operations Strategy

The other process is supplying is that organisation shares the technology through suppliers which supply meat to the company, this results in contributing towards the performance of the organisation because of expanding the operations by adding different items to compete the competitors (Slack & Brandon-Jones, 2019). This also support the organisation to develop franchisee it is because organisation itself believe that it is considered most important strategy in offering the quality and more better, increasing loyalty as well as increasing the profitability and sales of the organisation.

The organisation makes various process of innovation by providing new meal to the consumers which includes food of chicken finger without bones; however this changes and makes the small portion of the white chicken. This strategy supports the organisation and help in becoming one of the leading and second well-known purchasers of the chicken in USA (Talhaoui, Daif, Azzouazi, & Oubrahim, 2019). Further, to execute the restaurant’s the organisation focus on the process of “better not just bigger”, through this organisation does redesign in the restaurants (Slack & Brandon-Jones, 2019).  The organisation develops the modern outlets, raises transparency in the supply chain so that organisation performance will be improvement and increased in the eyes of the consumers.

The organisation is achieving the various results which include decreasing the cost and expenditure of the organisation, enhancing the quality of the product. Other outcomes include meeting the consumer’s requirements and focusing on the process of production so that efficiency is maintained in the organisation (Slack & Brandon-Jones, 2019). Therefore, to accomplish these objectives the company focuses on adopting the strategy lean thinking in which procedure is followed in the operational strategy in which organisation assigned each workforce in the specific job it is because this implied in maintaining the taste and quality of the product in more efficient manner. The other strategy is providing the varieties of food for this the ingredients of the company concentrate on milk, bread, chicken, beef etc. This strategy is adopted to increase the menu of the product so that satisfaction level of the consumer’s increases and it can also attract new consumers for the organisation (McMurtrey & Rowley, 2016).

This lean thinking strategy adopt the changing external and internal factors of the organisation it is because the company supply the product according to the demand and this also leads in understanding the casual factor which influence the operations of the company. The organisation also uses the performance of the objectives so that actual performance will be examined with the standard performance so that gap will be identified and resolved by the company. This leads in increasing the number of operations that is company open up to 36,000 restaurants across 117 countries and raise the innovation in the organisation that is in the year 2003, the company launched largest menu revolution (Tao, Cheng, Qi, Zhang, Zhang, & Sui, 2018).

The just in time technique also support the company to reduce the wastage and raise the efficiency by receiving the good on timely manner when need required at right place. McDonald’s adopts the strategy of quality in which different procedure is to be followed by the organisation. The different high quality food is to be offered in which vegetables, salads is also t be included. Therefore to maintain the different procedure is required by the organisation such as “Speedee service center” in which company maintains the balance between the product specifications with the methods which is to be used in preparing the methods of the product. The quality is managed by describing the temperatures, portions etc (Slack & Brandon-Jones, 2019).

The other strategies for providing quality services to the consumers organisation learn the improvement in the product by which it learn cooking and serving of the hamburger so that efficiency is to be maintained in managing the quality standards and place. The implication of this strategy is that it also results in increasing the number of delivering for offering superior quality of beef patties to the consumers (Hahn & Packowski, 2015). For using the quality the organisation also adopt the process for meeting with the suppliers and to manage good relationship, it also used the procedure of quick freezing so that loyalty among the consumers should be increased by providing fresh and quality taste of the product.

The company revealed that maintaining quality is not the individual concept in maintaining efficiency but total quality management is the new concept through which the consumer experience great services and drive the sales of the organisation (Slack & Brandon-Jones, 2019). Therefore, the organisation adopt advanced technologies and innovations by which several quality meal is delivered to the consumers which includes a chicken finger with no bones to the consumers and various other meal according to the needs and requirement of the consumers. The organisation also delivers different dressings so that it manages the quality and meets the new requirements and needs of the consumers. This leads in increasing the profits of the organisation and sales of the organisation.

The probabilistic situation of the organisation that is more competition and differences in the behavior and attitudes of the consumers is overcome by adopting total quality management (TQM) strategy. This strategy helps McDonald’s’s to manage efficiency in the organisation and at the same satisfying the needs and requirement of the consumers (Hitt, Xu, & Carnes, 2016). Further, to manage the quality in the long run, organisation provides the training to the employees so that they can adopt particular procedure in preparing the cooked as well as raw products.

In addition to this company also use all the specifications of hygiene and taking continuous feedback for total quality management of the product. This has positive implication in the quality of supply chain because one of the company supplier that is “Keystone Foods” produced process of quick-freezing in which it increase the capability of capturing the fresh taste as well as beef patties texture. Through the TQM strategy the suppliers believe that each patty would achieve its consistent quality by the time it hit the grill. This quality technology is also shared through other main supplier of McDonald’s’s so that TQM will be adopted in the long run.

Another operational strategy which company adopts so that efficient and effectiveness is managed with the positive outcomes is to become “better not just bigger in which organisation strategy is to provide quality services and product with executing the operations of the restaurants. This strategy also has positive implication that is this helps the organisation to become one of the leading organisations which provide fast food by focusing on the health of the consumers (Slack & Brandon-Jones, 2019). The “gone back to basic” is also the strategy adopted by the CEO of the organisation in which it does the various change by changing the modern methods for the operations.

 Through this strategy it also maintains good relationship with the farmers so that standards of the organisation will be increased and leads in raising the transparency in the supply chain. The organisation also invest more in the research and development so that current needs and requirements of the consumers will be described, through this internal environment of the organisation changes according to the external environment which includes changes in the dynamic behavior of the consumers (Piercy & Rich, 2015).  This results in accomplishing the long-term objectives of the organisation by raising the competitive ability in the company.

“Honesty and transparency make you vulnerable”, this statement is applicable for McDonald’s it is because the case describes that company use the strategies of maintaining high quality by conducting the operations in more ethical manner. This strategy leads in managing the honesty and transparency in the organisation, this helps in raising the loyalty among the consumers and helps in providing efficient results (Özdamar & Ertem, 2015). It is because this strategy make second largest organisation which offer quality burger according to the needs and requirements on the consumers.

Therefore, organisation continuously manages the activities and operations. The organisation uses the traceability by using the method so that project specification is highly coordinated with the technique which is used in preparing the food for the consumers (Alshamsi & Diabat, 2015). This also leads in supporting the organisation for managing food standards and safety in the organisation, it describes that all the activities of the organisation is consistent with the ethical practices and acts which are developed by the government (Noroozi & Wikner, 2016).

This practice makes the company more capable of attracting more consumers and this leads in expansion of the organisation. For the vulnerability the organisation maintain the complete procedure in the activities which includes that it focuses on various dimensions so that hygienic and health of the consumers will be managed such as cleanliness, food quality as well as new services which is provided to their target consumers (Ramanathan, Subramanian, & Parrott, 2017). Through this strategy transparency is maintained with the consumers by developing the relationship it is because feedback should also be taken regarding the quality and taste of the product.

For the honesty organisation focuses on continuous learning it is because the organisation conducts their operations in highly competitive environment and also considers the dynamic nature, behavior and attitudes of the consumers. This support the organisation to well trained in the degree of “Hamburgerology” it is because through this perception of the organisation is not only to give positive experience to the consumers but to take the business in more serious manner (Slack & Brandon-Jones, 2019).

The estimation describes that organisation believe that learning and development is the efficient strategy to sustain in highly competitive environment (Brusset & Teller, 2017). In the case it also demonstrate that organisation also give the chance to the field service for making appraisal of the performance it is because the points will be given for the cleanliness and other ethical operations in the organisation. The honesty support the organisation to get efficient results, this leads in increasing profits of the organisation and raise the capability to invest more on the other areas which includes maintaining strong relationship with the suppliers (Hahn & Packowski, 2015). This strategy is also used for managing transparency in the organisation this helps the organisation to manage the stability and to control the menu according to the supplying of the product.

This transparency leads in increasing the supplying of the product and leads in managing the good relations with more other suppliers which provide quality product so that supply meets the changing demand in the environment. This strategy also leads in reducing the wastage and productivity in the company, therefore for the transparency organisation increase the number of employees for the organisation it is because more talented consumer’s focuses on understanding the new practices which should be adopt for efficiency. For this organisation provide training to the consumers in all the areas so that stability is maintained with the wide varieties of the items which is to be offered by the company (Resta, Powell, Gaiardelli, & Dotti, 2015).

Conclusion

From the above, it is concluded that McDonald’s use various process for managing the efficiency in the operations and to increase the outcomes of the organisation such as “fool-proof”, “speedee service system”. This leads in increasing the status of the organisation and it become second largest company it is because of increasing the loyalty among the consumers. The organisation also adopts “lean thinking”, “just in time”, “total quality management” strategy to manage the overall quality of the procedure and food. The organisation maintains honesty and transparency by developing good relations with the suppliers, consumers. This leads in increasing the consumers and provide positive outcomes to the organisation.

The above case describes that McDonald’s’s suffered from various issues which includes that company conduct their operations in highly competitive environment. The other issue is the dynamic nature of the consumers in different region (Tolba, Seoudi, Meshreki, & Shimy, 2016). The estimation demonstrate that company also does not follow the concept of green operations which raise the wastage and results in reducing the menu items  of the organisation in comparison to their competitors.

1. To overcome these problems company can adopt the strategy of “streamline and simplify”. It is because through this company can adopt new technique by describing the each method and process in simplification according to the capability of the organisation(Mani, Kesavan, & Swaminathan, 2015). As organisation provide quality food this make McDonald’s’s unique, therefore for this company can change the manner of serving the needs of the consumers.
2. The company can also focus on environment conscious consumers for whom environment play a major role in changing their buying decision. Therefore, for this company can develop new media and advertising strategies.
3. McDonald’s can adopt veganism trend, it is because through this company can target the consumers who does not eat food from animal products. Therefore, for this company can include plant-based nutrition diet to the consumers.
4. The other strategy company can also invest more on research and development it is because through this it can understand the current requirement of the consumers. Through this organisation can target the specific group and develop the functions to provide quality product to the consumers. This strategy can support the organisation to resolve the other common issues and problems which can make the problem big in the long run (Kaoud, 2017). For this wastage of the organisation will be reduced and raise the ability to manage the big problems such as coping with the competitive strategy.
5. The organisation can also adopt the strategy of measuring the performance and inspiring the talented employees of the organisation. It is because through this company evaluate the performance at regular time period(Marzouk, 2016).The motivated employees lead in adopting new innovation and technology in the company. Further, “Keep with the trends” strategy allows the organisation to remain one of the well-known organisations in the eyes of the consumers.

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