Analysis of the Business process of McDonalds

McDonald’s is the world leader and quick service famous food chain company in which more than 32,000 local restaurants are serving more than 60 million people in 117 countries each day. In the UK McDonald’s operate more then1200 restaurant and 67,000 people are working McDonald’s and its franchisees. McDonalds also operate five offices housing support departments from marketing to HR in the addition of its restaurants.

The vision of McDonalds is to be the world’s best quick service restaurant experience. It means providing outstanding quality services, and value.

McDonalds’ Marketing strategy is concern with the internal resources, environment and its basic competencies along with its share holders. Also it aims to serve good food in a friendly and fun environment, provide good returns to its share holders, and provide customers with food of a high standard and its value.

Operation Management/McDonalds

Operation management is the management process to product and distribute process and service ,Creation of the product , development of the product and distribution of the product are the main function of operation management .In any organization, All the operation has managed by the operation managers .They have to manage the purchase, quality and quantity control, storage, logistic and evaluation. Operation management depends on product and service. Operation management is the combination of product management and service management.

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Operation management is the most important for every business and it determines the success of business. After the SWOT analysis any company creates separate and unique operation strategic which is direct based on company financial status . They know that competition in all domestic and international market has appeared to be new markets challenge and new phase.

Whenever performance of company, company brand and product quality are becoming more important to the customer and consumer then product price. The product development and promotion strategic is the essence of competitive advantage.

Analysis of Business process of McDonalds

McDonalds want to change the perception of the customers so that they tries to be cheapest and qualitiable fast food then other competitors. Mc Donald’s expanded the variety of food and drinks provided from the original offering of burgers, drinks and fries to include breakfast, sandwiches and salad. Besides to being sold as individual items, most of the products are ackaged into special offers, listed as Extra value Meals. Such as a big Mac is consists on the Big Mac Meal, a drink and a portion of fries, one panel exhorts customers to make it large-have large fries and a large soft drink with Extra value meal. To increase the business of the company some special promotion items like ribs and Mexican chicken are also added from time to time.

McDonalds strongly care on customer needs and satisfactions as well employees so that some of McDonalds restaurant open for 24 hours in 7 days. McDonalds staff to be flexible for decreasing the customer queue and needs. They flows two selling techniques. The first one is known as ‘selling up’, which involves augmenting the order, by either suggesting a larger portion or an additional item such as a drink. The technique is called ‘suggestive selling’. Here an order for a ‘Big Mac and medium fries’ would be greeted by suggesting to a customer the nearest Extra value Meal alternative that would cost a little more than the original order but give better overall value. Suggestive selling aims to increase as the substitute offered includes other items, such as drink fries and others.The counter person delivered the order in to the till.

TO standard items like Big Mac, chicken nuggets, cheeseburger, quarter pounder with cheese, Hamburger, vegetable Deluxe, Quorn premiere, Grilled chicken sandwich, the food would be available in the bins in the production area. The counter person then picks the food in a set sequence like cold drinks, hot drinks, fries, boxed burgers, wrapped burgers etc.

After market research, they got positive feedback from the all their stake holders. Because of its food quality ,medium cost and flexible services, McDonalds able to gain good will on market then their competitors like Burger king, KFC, Pizza hot etc. The perception of customer over the McDonald is fine. The hygiene standards of its outlets and the speed and style of service. Processes are designed to build in quality and then standardised, their requirements complement and exceed legal minima, they focus in health and safety; inspections take place at critical points; traceability allows rapid response to problems; and all aspects are continually reviewed with an eye to improvement. These are the marks of excellence. Quality policies also link with others related to the environment

Operational strategy analysis/ McDonalds

Operations strategy is a long-range plan for the production of a company’s products/services and provides a road map for the production function in helping to achieve the business strategy.

Mc Donald’s integrates different type of quality management factors in their business process. To ensure quality they apply individual type of strategies that include speed measurements, quality services. People, Product, Price, Place and promotion (marketing mix), employee training etc.

McDonalds give the chance for the internal talent plane to fill the regarding vacancies. In this system current employees can be move either at the same level or on promotion .If there is no any capable and right people in this talent plane first they developed internal management. The mission of the McDonald’s Company consists of delivering operational excellence. At the heart of its effort to increase sales and profits lie policies on food and service quality designed to make the firm stand out from its competitors. While the big McDonald’s is not to every one’s taste, the company was cited by Fortune as the world’s most well-liked food service company. McDonalds objectives is zero defects, which are to serve hot, fresh, testy food of good value to customers at every time. More than 45 million customers visit to near about 28,000 restaurants every day.

They sets demanding requirements for quality and safety. It will only use essentials whose source can be traced and which satisfy all regulations. To verify the supply chain Quality assurance staff carries out audits and site visits in different time. McDonalds also cooperate with suppliers to improve the quality of their product. For instance, lard was replaced by vegetable oil in buns, fat levels in sauces were cut and saturated fats in the cooking oil were reduced. Standardisation of the product variety plays the vital role to assure quality of different items. Staff training is simplified by the limited range and process development, including the provision of computer controlled cooking facilities. To ensure cooking regularity Chicken Mc Nuggets are shaped into uniform sizes from breast and thigh meat. Like all meat chicken are traceable, in this case to their grandparents.

McDonald’s food and water, medication and litter are also visible to source. Fish products use cod whose origins can be matched to the vessel and day of catch. Boning is a matter great concern and 23 checks occur during fish product manufacture. They prefer to use free range eggs in UK.

Food quality and safety policies are closely linked to concerns for the environment and customer care.. Pressed to improve its wasteful practices in food packaging and serving, the company works on reducing its use of

materials and energy. Operations, purchasing and training policies all include a strong theme of waste reduction including distribution in reusable containers, using recyclable packaging and installing heating and lighting controls.

McDonald’s Franchises versus Company-Owned Restaurants

Metric

2004

2005

2006

2007

2008

2009

Total Restaurants

30,496

30,766

31,046

31,377

31,967

32,478

Franchised Restaurants

22,317

22,593

22,880

24,471

25,465

26,216

Company-Owned Stores

8,179

8,173

8,166

6,906

6,502

6,262

% Company-Owned Stores

26.8%

26.6%

26.3%

22.0%

20.3%

19.3%

Source by : http://www.wikinvest.com/stock/McDonald’s_(MCD) ,online

Quality management tools of McDonalds

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Quality management of McDonalds means management of employees, food and restaurant.

Quality of employees of McDonalds

Employees are at on time and clean and neatly dressed.

They must be following certain standards operational procedures, That’s why customers always receive good and quality able service.

Always keep the smile up, when they are servicing.

Quality on food

Meat and fries have to be properly fried.

All vegetables are washed when they used in the food.

Quality in restaurant

Restaurant should be clean.

Restaurant has to be tidy, sparking and spotlessly clean.

Restaurant must be delivers fast accurate and friendly service.

Quality control on McDonalds

McDonalds pledge to its customers

Quality service and cleanliness is our pledge: QSC represents McDonald 100% commitment that of its employees and suppliers to deliver the best and safest quality to its 47 million customers visiting over 30,000 stores in more than 100 countries.

They thrives on customers feedback for continuously improve their service and quality.

McDonalds offer training to their employees to improve their quality.

McDonalds maintains close ties with the member of scientific community on food safety and quality to stay abreast of new development.

Customer Perception and Customer Expectation

In any business it is important that you must find out t yours customer satisfaction report. It is feedback for your organization also. Customer perception is a key points for the product’s success of any organization. Lots of potentially revolutionary products have failed simply because of healthy Perception on themselves in the customers’ minds. McDonalds being an internationally

Well-known brand brings with it certain expectations for the customers.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values.

Recommendation

In the end of this case study I have some suggestion for McDonalds.

They should be rely on test marketing to check new menu if they wants to be maintain a constant growth.

McDonalds should automate their services system,

McDonalds should target old health conscious people instead of targeting kids and teenagers.

They should become more flexible for part time employees.

They should revise their products prices.

McDonalds should work on all of their products.

There are still plenty of opportunities for increase number of outlets.

Conclusion

Operation management is the set of activities and process that creates goods and services by transformation the inputs into outputs. McDonalds want to change the perception of the customers so that they are trying to be cheapest and qualitiable fast food then other its competitors. Mc Donald’s integrates different type of quality management factors in their business process. To ensure quality they apply individual type of strategies that include speed measurements, quality services. McDonalds being an internationally

Well-known brand brings with it certain expectations for the customers.

Customers expect to be an ambient, hygienic and a little sophisticated brand that respects their values.