Operations Management of Mcdonald’s - 3650 Words

Table of Contents The purpose of this report is to analysis how the Value Chain management of McDonald’s contribute to the success of the business and identify the environmental impacts of McDonald’s operations and the ethical issues of McDonald’s supply chain management. 1. Introduction 1.1 McDonald’s History 1.2 McDonald’s Mission 1.3 McDonalds Values 2. Value Chain 2.1Value chain of McDonald’s Restaurants 2.2 Primary Activities 2.2.1 Inbound Logistics-Low Cost 2.2.2 Operations-Fast Service 2.2.3 The Process 2.2.4 Outbound Logistics-Consistent quality 2.2.5 Greater Value than it worths 2.2.6 Marketing and Sales 2.2.7 Services 2.3 Support Activities 2.3.1 Firm Infrastructure 2.3.2 Environment Friendly 2.3.3 Human†¦show more content†¦Strive continually to improve, aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation. 2. Value Chain 2.1 Value chain of McDonald’s Restaurants According to Porter (1985), the value chain model is made up of primary and support activities. The primary activities has 5 components included: Inbound Logistics, Operations, Outbound Logistics, Marketing Sales and Service. The support activities has 4 components included: Firm infrastructure, Human Resource Management, Technology Development and Procurement. Thus, what are the key activities which influent most to the creation of customer value from the value chain management of McDonald’s Restaurants? According to Collier, Evans (2011) mentioned, low cost and fast service are the core competencies of McDonald. According to Hill, Jones (2012) mentioned, McDonald’s success was grounded in a simple formula that is give the customers value for money, quick service and consistent quality in a clean environment. From the above, we learnt that low cost, fast service, value for money and consistent quality are the key activities contribute more strongly to the creation of customer value. 2.2 Primary Activities 2.2.1 Inbound Logistics Low cost McDonald’s purchases ingredients from its fixed global suppliers only, therefore by increasing capital and labor, their production will increase proportionately. Low food cost, with the global supplyShow MoreRelatedOperations Management at McDonalds2472 Words   |  10 PagesOperations Management at McDonalds: McDonalds Corporation is renowned across the globe as the leading and largest chain of fast-food restaurants. Since its inception in the 1940s by siblings Mac and Dick McDonald, the firm has continued to grow and develop to its current state. The corporation has adopted a number of operations that are linked to its overall strategy in all its restaurants across the globe. One of the major factors that have contributed to its success in the global fast foodsRead MoreMcdonalds Production and Operations Management1038 Words   |  5 PagesMcdonald’s Use of Teams in Production and Operations Management Introduction Strategies are important for all businesses, regardless of the products or services that they offer. Through strategic management and operations, companies are able to integrate new and effective means of running their respective businesses. In turn, these strategies results in an increased profit of sales, stable market position and greater levels of customer loyalty. In the fast food industry, businesses such asRead MoreOperation Management and Productivity at McDonalds1004 Words   |  4 Pagesthe effective management of operations in any given firm cannot be overstated. In basic terms, operations management can be said to be that process in which inputs are transformed into outputs in an efficient way with an aim of satisfying consumers. With that in mind, operations management as a management function can be said to be the core of any given business. In this text, I concern myself with the nature of operations management and productivity with a special emphasis on McDonalds Cor porationRead MoreMcDonalds Production and Operations Management902 Words   |  4 PagesMcDonalds Production or Operations Management: Total Quality Management (TQM) is a combination of fourteen principles that were developed by Dr. W. Edwards Deming for production and operations management. One of these major principles is the need to work in teams through breaking down barriers between staff and department areas. The use of teams in production and operations management requires workers in different areas like maintenance, leasing, and administration must work in teams to deal withRead MoreMcdonalds Operations Management Essay1145 Words   |  5 Pagesand time in the operation management department of the business. This report will focus on the business, McDonald’s and what practices they have put in place to ensure that they are producing their products efficiently and sustainably. The business will also be compared and contrasted alongside the American fast-food restaurant chain famous for its fried chicken, providing recommendations on how McDonald’s could further improve their business in the ar ea of waste and time management.  Business BackgroundRead MoreAnalysis of McDonalds Operation Management606 Words   |  2 PagesMcDonalds Operations Management: McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonalds global businessRead MoreScientific Management in Mcdonalds Operation1820 Words   |  8 Pagesabout scientific management in McDonald’s operation, I believe the largest fast food McDonald’s is the most successful model on scientific management. Scientific management is a branch of classical approach; Taylor said scientific management is standardisation which means people in organization should be uniformed by company rules or policy which are some written documents. Scientific management is a very important part in management a rea, since look at the history of management. People are livingRead MoreOperations Management - Planning Control in Mcdonalds Essay2386 Words   |  10 PagesOperations Management amp; Decision Making – Planning And Control Assignment The organisation I have chosen to examine from an operations management and decision making standpoint is McDonald’s, a worldwide chain of fast food restaurants, which are run either by a franchise, an affiliate or by the corporation itself. There are over 31,000 branches of McDonald’s worldwide1. It is estimated these restaurants serve a collective 47 million customers daily2. The restaurants mainly sell customers traditionalRead MoreOperations Management: McDonalds Supply Chain737 Words   |  3 Pagesto ensure quality and increased efficiency will help to ensure costs are controlled. In some cases the company may make loans or even take equity in upstream suppliers. A good example of supply chain collaboration was seen when the firm started operations in India. There were no local suppliers growing iceberg lettuces, the company worked with some supplier to create a year round supply, aiding with seeds, equipment and relevant agricultural knowledge. The tier 2 suppliers originate the inputsRead MoreEssay about Operations Management: McDonalds Competitive Advantage3016 Words   |  13 PagesAbout McDonald’s 4 Process of McDonalds 4 Operations management 5 Operations managers 5 Operation strategy of McDonald’s 5 Pricing strategies of McDonalds 6 Innovation at McDonalds to improve operations and services 7 Inventory management 8 The Just-in-Time (JIT) Approach 9 Just- in-Time (JIT) Approach in McDonald’s 9 Advantages and benefits of JIT approach 10 Capacity management 11 Capacity strategies 11 McDonalds capacity strategy 11 Quality management 12 Quality management strategies