McDonald's Operations Case
(a) Why has McDonald sustained its prosperity for so long? What are the key threats to its future success?
McDonald designed an outstanding operating system that not only ensured quality and consistency but also quick delivery and value for money to customers. They sustained its prosperity for so long because
Unlike other players they were more concerned with quality of the product. To ensure quality they not only improvised their own process but also controlled supplier’s products beyond the price and standardize processing.
• They believed in developing outstanding supplier and franchisee relationships. In a mode of continuous improvement they focused on customer satisfaction. They had best of best process and machines in place. The fry maker and the drink machine at the McDonald do not need human attendant. They were custom-designed to blend with existing cooking equipment. It helps keeps uniformed best quality product
• They continuously worked towards innovation while maintaining their quality and consistency came up with breakfast menu, meal for kids, Chicken McNuggets and McLean sandwiches. They strived towards reaching and appealing to wider range of customers.
• Training and monitoring franchisees When McDonald s sold franchises, it made sure that its partner would make money before the company did and insisted that corporate revenue come not from initial franchise fees but from success of the restaurants themselves. Together with corporate management and suppliers, franchisees infused McDonald s with an entrepreneurial spirit.
• Restaurant service categories: QSC McDonald’s evaluate and assist field service operation of each of its restaurants. It is summarized to evaluate in three categories: Quality, Service and Cleanliness
Key threat’s to McDonald’s success
• Fast food market is well saturated, and growth opportunities are limited.
• There is also emphasis on healthier eating. If McDonald’s intended to offer a wider
McDonald designed an outstanding operating system that not only ensured quality and consistency but also quick delivery and value for money to customers. They sustained its prosperity for so long because
Unlike other players they were more concerned with quality of the product. To ensure quality they not only improvised their own process but also controlled supplier’s products beyond the price and standardize processing.
• They believed in developing outstanding supplier and franchisee relationships. In a mode of continuous improvement they focused on customer satisfaction. They had best of best process and machines in place. The fry maker and the drink machine at the McDonald do not need human attendant. They were custom-designed to blend with existing cooking equipment. It helps keeps uniformed best quality product
• They continuously worked towards innovation while maintaining their quality and consistency came up with breakfast menu, meal for kids, Chicken McNuggets and McLean sandwiches. They strived towards reaching and appealing to wider range of customers.
• Training and monitoring franchisees When McDonald s sold franchises, it made sure that its partner would make money before the company did and insisted that corporate revenue come not from initial franchise fees but from success of the restaurants themselves. Together with corporate management and suppliers, franchisees infused McDonald s with an entrepreneurial spirit.
• Restaurant service categories: QSC McDonald’s evaluate and assist field service operation of each of its restaurants. It is summarized to evaluate in three categories: Quality, Service and Cleanliness
Key threat’s to McDonald’s success
• Fast food market is well saturated, and growth opportunities are limited.
• There is also emphasis on healthier eating. If McDonald’s intended to offer a wider