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Operations Management Mcdonald Case Study

… Operations Management

McDonald's is a fast food restaurant and one of the world's most successful franchise chains. In spite of recent setbacks, challenging the company to reconsider its role in the marketplace and its brand identity, the company continues to thrive. McDonald's has restaurants in 6 continents and well over one hundred countries. Perhaps the greatest key to the success of the McDonald's model is operations management. Operations management has been a cornerstone for the success of the company because it informs the details in everyday operations, leading to the delivery of products to the customer. Ultimately, McDonald's is a service- and customer-oriented business that uses strategic operations management to manage expenses, retain customer loyalty, and create a consistent brand. Its delivery system is finely…. [read more]

Operations Management Ok, I Looked Essay

… The way that the organization organizes these different process will determine how effective the organization will be.

6. Heterogeneity refers to things being different from one another. With a service organization, what this means is that every customer and every transaction is a little bit different. This view is opposite to something like a manufacturing organization, where the company might produce standardized products. For example, a seamstress in Bangladesh might sew the same type of socks all day every day -- this is standardized output and therefore it is relatively easy for the organization to develop standardized production procedures. In many companies, robots do the work because there is such a high level of standardization.

In a service organization, however, there are differences with each…. [read more]

Mcdonalds Operations Management Essay

… Section 1:


This research is carried out against the background of operations management theory, and explores the techniques and strategies used by McDonalds over the years to attain dominant market share. Knowing about the strategy of operational management helps to ensure that operations of the business are effective and efficient. Operation management is one of the primary tools an organization uses to reduce unnecessary expenditures and provide quality services. Supply chain management is a part of operation management that determines how effectively operations address supply and demand or capacity.

This research will discuss the importance of operational management in McDonalds' marketing success.. This study helps to identify the fundamentals for achieving success especially in a business where marketing and sales competition is rigorous The…. [read more]

Applied Operations Planning and Control Term Paper

… They have designed the queues in such a way that the best service can be provided to each unique customer upon each visit to any McDonald's. McDonald's staff are take orders, make transactions, and either have the food immediately prepared so as not to hinder customer traffic, or divert the waiting customers into areas that are close to the queue/pick-up area, yet also, do not impede customer traffic or diminish customer service. The research and development branch of operations management must have taken on this task. Tailoring the experience of the consumption of the product is not an experience to be ignored or looked into superficially. This kind of research yields results of revenue in the billions. Each aspect of the McDonald's experience is a…. [read more]

Human Resource Management | Mcdonalds Research Paper

… Each restaurant is equipped with its own video-training room, and all hand-out step-by-step manuals which cover all aspects of operations -- from how to make a cheeseburger, to how to handle customers.

The training of McDonald's employees ensures that once they have completed the process, they are expected to do the following:

Report to work on time, in proper attire

Maintain a level of hygiene

To know and understand operational procedures

Rely on team-work and high energy performance

Remember to be fully customer-oriented and, to deliver fast and efficient service

Organizational Climate

McDonald's is not only the number one ranked fast food chain in the world, but it is also one of the biggest employees in the United States. They are dependent on their employees…. [read more]

Operations Management Managers Essay

… By ordering what is needed, and not over or under-buying, Wal-Mart does not have to sell older merchandise at a discount or use up valuable warehouse space that could be better allocated to wanted items. "Variability in demand and variability in lead times from suppliers" causes most retailers to have 'safety stock' to ensure they will not be surprised by a sudden upsurge in demand (Atkinson 2011). By closely monitoring what consumers want and need, Wal-Mart can reduce the need to have such safety stock on hand. By using technology and opening up channels with suppliers, Wal-Mart no longer needs a substantial inventor of such 'safety stock,' thus lowering the ratio between ordering costs and holding costs and shortening lead times (Atkinson 2011).

JIT obviously…. [read more]

Dell Operations Management Dell (NASDAQ Term Paper

… The top frame is how many days it took Dell in the past to produce a complex workstation or server, including two to five days on just producing the quote. The bottom half of the image shows the results of how Dell was able to streamline the build-to-order operations process and attain in just one hour what had taken up to 25 days (Dell Investor Relations, 2013).


The process flow diagram comparison shows how effectively Six Sigma and lean process management strategies can be used to completely revamp and improve the performance of even the most intricate, integration process in a business. Dell continues to concentrate on operations processes that have the highest potential profitability contribution first, and they are often highly integrative in…. [read more]

Global Management of McDonald Research Paper

… Global Management of McDonald Company

History of McDonald Company

McDonald Company first began as a restaurant in concept form. The company saw its first introduction in California by an individual called Dick McDonald. They came from Manchester, Hampshire. While working with another business partner named Ray Kroc, the company expanded from just being a simple restaurant to a global brand. Kroc hailed from Oak Park in Illinois. Later on, Kroc was able to buy out the interests of the business as he established them from McDonald brothers. After acquiring the interests, Kroc went on to establish McDonald's Corporation, a bigger business than the earlier McDonald Restaurant. All these happened in 1937 (McDonald, 1996).

The early history of McDonald Company dates back to 1937 with the…. [read more]

Mcdonald's Corporation How Recent Economic Trends Essay

… McDonald's Corporation

How recent economic trends are influencing the business

The recent global financial crisis that hit America the hardest affected almost all industries and sectors, including the fast food industry. However, looking at the financial performance of McDonald's the company only suffered slight decrease of revenue in 2007, but recovered the following year and has continued to show a positive growth. This means that strategies adopted by the company were successful. This section will examine these strategies and the role of the role human resource management plays in helping the company achieve its business goals.

McDonald's marketing strategy

As stated in the first part of this paper, McDonald's is the biggest fast-food restaurant, with over 30,000 restaurants in 119 countries. The company serves about…. [read more]

Project Management Emerging Markets Continue Essay

… This also allows flexibility in respect to overall consumer trends. With a matrix organizational structure, a particular region can quickly and efficiently address varying consumer tastes within that region. As I will show with my McDonalds example later in the document, the entire organization did not have to change its product offering which would have been detrimental to the entire business. Instead, only the Indian region was to change which allowed flexibility within the overall scope of the McDonalds franchise. Below are many multinational structures and how they are defined. It's important for the project manager in the digital age to understand organizational structure so as to determine his best approach to leadership and success.

1. Ethnocentric. An ethnocentric mind-set is one primarily based on…. [read more]

Transforming HR Management Essay

… However, approximately 70% of the function of human resources is consumed by the traditional activities like compliance and record keeping though people are spending more time on strategic partnering. The HR transition to a more strategic partner within the organization has focused on enhancing technology and service delivery. The focus has now shifted to the realization of human capital strategies based on the improvement of profitability and competitiveness.

Importance of HR as a Strategic Partner:

While the process of transforming human resources management requires organizations to implement a talent strategy, its benefit to the organization cannot be underestimated. It's important for human resources management to transform from being basically administrative and operational to a strategic partner because of the following reasons

Increased Productivity:

One of…. [read more]

Operations and Quality Management "Research Forecasting Essay

… Operations and Quality Management

"Research forecasting and demand. As a regional manager of 27 Burger Queens, you are thinking about expanding the number of outlets in your area. What types of forecasts would you want to create in order to support your decision?"

First Student

Of the many types of forecasts that would need to be created to deliver accurate location analysis and expansion plans, the most critical of all are geo-economic analysis of potentially high growth areas that would not cannibalize the sales of existing Burger Queen restaurants. Location-based and impact assessment programs would need to be created for each of the specific locations being considered to ensure other restaurants' sales and the potential business of other franchisees is not negatively impacted by the…. [read more]

PERT CPM Project Management Essay

… There are many assumptions and probability statistics that require analysis and guesswork in order to properly apply them in a practical manner. It should be remembered that the role of project manager is to be a gatherer of all information and ideas and synchronize them into a cease and flowing project. This is difficult to do when assumptions based upon unknown quantities such as market conditions and other completely unpredictable events of human existence often dictate the manner in which these techniques are applied.

CPM, while often discussed as an associated term of PERT, also has its positive characteristics that can affect a company as well. CPM is best used when applied to a specific mechanical issue with any larger project. The nature of this…. [read more]

Knowledge Management Succession Plan Strategy Essay

… According to Bagorogoza & Waal (2010), an effective KM strategy is realized when an organization is able to make use of its knowledge resources ad intellectual capital to achieve high performance. Therefore, since technical forms the basis of KBR's engineering and construction business section, it should be a major transferable competent or knowledge in the KM strategy. The succession strategy for technical knowledge can entail training workshops for recruits, supervisory programs for new and upcoming leaders, consultants and engineers by outgoing senior staff. The KM and succession strategy must also involve the management and development of the intellectual capital of the firm, which entails a comprehensive development of its human capital's expertise, skills and knowledge levels Bagorogoza & Waal (2010). Adding these dynamics to its…. [read more]

Supply Chain Management Hypothesis Thesis

… It requires the total dedication from organization within which it SCM implementation is being planned. SCM "expands the scope of the organization being managed beyond the enterprise level to include interorganizational relationships." (Strader et al., 1999)

Supply chain depends heavily on the relationships that organizations can develop and sustain through personal interactions and using the latest technology. Earlier studies in SCM focused on identifying the supply chain network (SCN) developed by organizations. Later, studies focused on supply chain demands, supply chain operation and information sharing. In the present organizational environment, competitive advantages are not just single company or organization-based. Rather, they are supply chain based. (Muralidharan et al., 2002)

There are many independent models within the SCM methodology. Each of these deserve discussion. Some of…. [read more]

Mcdonald's New Challenges Essay

… McDonald's has to work assiduously to find the balance between standardization and customizing its services to accommodate to local preferences and customs. However, as markets continually change and consumer preferences evolve, it is believed that McDonald's will have to produce even higher levels of customization. It will be more difficult for McDonald's to continue to use the mass production model and it will undoubtedly have to localize much of its supply chain to provide healthier and higher quality menus.

There are two primary drivers of the need for greater customization and localization. The first driver arises out of new pressures exerted from industry changes and the development of the fast-casual market niche. These competitors offer high quality and healthier items in a setting that is…. [read more]

Strategic Management Mcdonalds Mcdonald's Is the World Research Paper

… Strategic Management McDonalds


McDonald's is the world's largest fast food chain having presence in 119 countries with more than 34,000 outlets and restaurants. The major product offerings include of the company include Big Mac (hamburger), French fries, chicken sandwiches, Quarter Pounder, Chicken McNuggets, desserts, soft drinks, milkshakes, soups, and breakfast items. It has currently employed more than 1.7 million people around the Globe. It was founded in 1940 by Richard and Maurice McDonald as a small Bar-B-Q restaurant in San Bernardino, California. At present, McDonald's is present in all the corners of the world and serves more than 69 million customers every day (McDonald's, 2013).

Importance of Strategic Plan for the Success of McDonald's

A strategic plan is important for McDonald's in defining and…. [read more]

TQM Layouts Term Paper

… Thus the value process chain analysis for a fast food chain would emphasize pedestrian traffic, for a retail chain, the amount of time spent looking at goods, and for a bank, the amount of time each teller spent with a customer, and the speed in which the teller redirected the consumer to the necessary channels. (Control Charts, 2004)

Question 3: TQM

It has been said "strategic planning is necessary because the environment that organizations operate in is constantly changing. There are many forces operating on the organization and most of them are outside of the organization's control." Thus, to remain viable in the future, an organization must anticipate the force changes and act to position itself for success. Total Quality Management provides such a solution.…. [read more]

Strategic Management at Mcdonald Essay

… The mission of McDonald's is to provide the best eating experience to its customers through high quality food and beverage products and highly efficient and superior customer services. The corporate wide strategies of the organization are to keep up pace with the changing consumer trends and ensuring a continuous growth strategy in the Global markets.

The organizational structure and Corporate Governance of McDonald's are fully aligned with this mission and strategy. That is, the company aims to see a continuous growth in its operations in international markets (McDonald's, 2012). Therefore, the Senior Management for each region and operational area is separate from those of other regions and operational areas. It enables these Governance officials to watch over the performance and growth of their company in…. [read more]

Mcdonalds ACCT Management Accounting Essay

… The franchise model of operations rather than a company-owned restaurant model is far less capital intensive on one hand, and provides a very low-cost and steady revenue stream of substantial size on the other hands, both of which contribute to a strong inflow of capital that provides the company with abundant leeway in making capital decisions (McDonald's, 2008; McDonald's, 2011). The strong investment opportunity that the company has been and remains in the yes of most analysts and investors also provides significant capital availability, should it be seen as required for some reason (Hoovers, 2012).

Capital Acquisition and Structure

Selling increased equity in the company as a means of raising capital (and eroding existing shareholder value) is not really something the company engages in or…. [read more]

Mcdonald's Corporation Term Paper

… In the east, it starts with Gisborne in New Zealand and covers the world to reach Western Samoa. These two countries are the closest neighbors on either side of the International Date Line. (Fascinating Mcfacts about McDonald's International) Thus, it is clear that the objective of the founder in terms of spreading the enterprise across the world has been fulfilled. The products have however remained mostly fast foods.

Business Description a Major products

The greatest achievement of the founder of the company was to make one complete unit from his suppliers, employees, and franchisees into one complete system that could be used for feeding people. This was finally calculated down into a science and the cooking in a McDonald kitchen is not left to chance.…. [read more]

Mcdonald's the Largest Fast-Food Chain Essay

… One of the substantial implications of internationalisation is the increase in the level of profits and revenues within the financial year. Increase in the volume of franchises is an indication of increment in the volume of revenues as all outlets contribute to the overall revenues of the organization. Venturing into global market provides an opportunity for the organization to increase its target base thus the increase in the level of profitability and revenues (Gerhardt et al., 2011).

Internationalisation is also vital in the development of an effective and efficient image and reputation. The organization gets to meet numerous consumers willing and able to work with the corporation towards the achievement of the goals and objectives in the internal and international markets. Reputation or image of…. [read more]

Mcdonald's Corporation Analysis Existing Conditions Term Paper

… McDonald has a policy of hiring young workers between the ages of 16-22 for their service operations. Many workers in this age group use a McDonald job as a means to earn extra spending money and often do not care about the long-term impact of the low wages provided. They are also move on due to school demands, the satisfaction of the financial need or simply because they no longer need to work for the money.

Balancing the needs of worker compensation and restaurant profit by the site manager. Every McDonald restaurant is actively managed by "numbers." Simply put, if a location does not consistently generate revenue, the local management of the restaurant will be changed or a franchise transferred. As a consequence, every supervisors…. [read more]

Global Human Resource Management Mcdonald Term Paper

… Thus, in order to satisfy both requirements, McDonald's looks at demographic information and facts of a particular nation before opening a new branch. Apart from demographics, McDonald's also looks at psychographics, which studies the values that people observe in their culture, such as the case of India, where vegetables are preferred over meat, and Saudi Arabia, where there are two divisions in a McDonald's restaurant -- one for men, and the other for women and children. It is also important to note that McDonald's employees are also essential factors that contribute significantly to the fast food company's success worldwide. By creating a balance between excellent food and customer service and superior training management and provision of quality employee benefits, McDonald's has become, indeed, a globally…. [read more]

Mcdonald's Corporation: Assessment of Process Essay

… S. And North America including their well-known and recognized trucks delivering fresh produce to restaurants, Golden State Foods trucking and logistics (Cramer, 2009). As McDonald's relies on a very diverse supply chain, logistics and fulfillment system, the headquarters had to be located in a central region of the U.S. To enable efficiency of supply chain operations. Of the many potential areas that the chain could have located its headquarters, the company chose a suburb of Chicago. Oak Brook, Illinois headquarters of McDonald's is ideally located near a dozen 3rd party and 4th party logistics providers, in addition to many freight airlines who operate out of O'Hare International Airport. McDonald's chose to pursue this strategy due to the flexibility of getting air shipments literally anywhere by…. [read more]

Mcdonald's Has the Vision Essay

… This is congruent with the company's mission statement vision of being the best quick service experience. In this situation, the major competitive threat is in the coffee/breakfast sphere. Most of the other McDonalds offerings are either 'stars' or 'cash cows', but breakfast is a relatively low market share proposition. Yet, having a strong breakfast business is essential to achieving economies of scope. For McDonald's to win in breakfast, it needs to tackle Tim Horton's head on. This means using the company's economies of scale to deliver a superior breakfast/coffee offering at a comparable price. If McDonalds can essentially undercut Tim Horton's with higher quality, it will be able to win back some of the market share that it has lost.

8. The strategy, using the…. [read more]

Mcdonald's Since the Inception Essay

… Therefore, Hamburger University has contributed to the organization's execution strategy since it has made it possible for the organization to realize its vision.

Another component of strategic success is creation of values for an organization. Within any organization there are beliefs which are shared and common among all the stakeholders who are involved in the organization. The values are what drive the culture of an organization as well as priorities which build a framework which is used to make decisions. Some of the values in Mc Donald's are service, quality, and cleanliness among others. These are the same values which are instilled to students who go through Hamburger University. This means that through the university the students get to learn these values and they are…. [read more]

TQM Total Management Quality Question Term Paper

… " (APQC Website, 2004)

In other words, because of the low labor costs, high labor skills, and ability of the company to save money in such an arena, IT companies are setting the benchmark overall for American corporate strategy regarding the outsourcing of jobs abroad. The use of this methodology is particularly important in the IT sector, but through looking at industry not in terms of American jobs lost, as a politician might, and seeing potential attempts to cut costs without sacrificing employee knowledge, benchmarking makes sense.

Question 5 JIT

The paperless strategy of JIT has proved extraordinarily beneficial for inventory control and cash management, but has also proved extremely difficult to implement. One of the most difficult aspects of JIT is eliminating all paper…. [read more]

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