operations management
Company Background
McDonald's Corporation is the world's largest chain of fast-food restaurants. They’ve proudly served more than 46 million customers in 59 different countries and currently have more than 30,000 different locations worldwide. The fast food industry is booming at a rapid rate, especially the health conscious food options. With this in mind, McDonald’s has a strategic plan to stay on top of their competitors by providing consumers with affordable prices, great service, and more healthy meal options. McDonald’s is competitive in many categories, including price, quality, management and employee training. Consumers trust McDonald’s products because they use many of the same trusted brands that families buy at local grocery stores.
Operations Strategy
“In many companies, the key to success is often an operations-based advantage. Superior operations effectiveness not only serves to buttress a company’s existing competitive position, but, when based on capabilities that are embedded in the company’s people and operating processes, is inherently difficult to imitate.” --R. H. Hayes and D. M. Upton, “Opeations-based Strategy.” California Management Review, Summer, 1998.
McDonald’s utilizes an excellent operations strategy in order to gain a larger market share and increase value to the shareholders. The corporation specifically focuses on speed, standardization, quality, and affordability. McDonalds has moved ahead of the competition by focusing on these factors.
McDonald’s competes on three main bases, such as speed, affordability, and standardization, mainly to make their customers happy. Through extensive market research and surveys, the organization discovered that its customers desired speed as one of the restaurants’ top priorities. Therefore, McDonald’s vision aims to “provide fast, friendly and accurate service” (“McDonald’s Worldwide”). McDonald’s realized that specific targets are necessary to measure the performance of speed;
McDonald's Corporation is the world's largest chain of fast-food restaurants. They’ve proudly served more than 46 million customers in 59 different countries and currently have more than 30,000 different locations worldwide. The fast food industry is booming at a rapid rate, especially the health conscious food options. With this in mind, McDonald’s has a strategic plan to stay on top of their competitors by providing consumers with affordable prices, great service, and more healthy meal options. McDonald’s is competitive in many categories, including price, quality, management and employee training. Consumers trust McDonald’s products because they use many of the same trusted brands that families buy at local grocery stores.
Operations Strategy
“In many companies, the key to success is often an operations-based advantage. Superior operations effectiveness not only serves to buttress a company’s existing competitive position, but, when based on capabilities that are embedded in the company’s people and operating processes, is inherently difficult to imitate.” --R. H. Hayes and D. M. Upton, “Opeations-based Strategy.” California Management Review, Summer, 1998.
McDonald’s utilizes an excellent operations strategy in order to gain a larger market share and increase value to the shareholders. The corporation specifically focuses on speed, standardization, quality, and affordability. McDonalds has moved ahead of the competition by focusing on these factors.
McDonald’s competes on three main bases, such as speed, affordability, and standardization, mainly to make their customers happy. Through extensive market research and surveys, the organization discovered that its customers desired speed as one of the restaurants’ top priorities. Therefore, McDonald’s vision aims to “provide fast, friendly and accurate service” (“McDonald’s Worldwide”). McDonald’s realized that specific targets are necessary to measure the performance of speed;