Question

1. Critically reflect on how operations contribute to McDonald’s organisational performance. In your response, consider which processes are in place to assume the company’s competitive advantage.

2. Assess McDonald’s operations strategy (i.e. ‘lean thinking’, ‘quality’,TQM) and implications for setting up processes and/or supply chains?

3. Evaluate the statement “Honesty and transparency make you vulnerable. Be honest and transparent anyway” from the perspective of McDonald’s operations function. Consider in your response, the transparency, traceability and vulnerability of operations.

4. Based on your analysis, list some recommendations to McDonald’s to remain competitive in a turbulent and global business environment. Consider new trends like veganism and more environmentally conscious customer in your response.

Answer 1

Answer 1:

McDonald’s operations management plays a significant role in supporting its organisational performance. Several strategic areas of operations of McDonald are in place with organizational objective and contribute in enhancing organizational performance. Some of the processes that are in accordance with organizational objective and gives McDonald’s competitive advantage by playing tremendous role in enhancing organisational performance are as follows:

· Quality management,

· Supply chain management,

· Process design, and

· Inventory and maintenance

These operations contribute in enhancing McDonald’s organisational performance in following manner:

· Quality management: By maximizing quality within cost constrains McDonalds ensures that it stays ahead of its competitors. By utilizing product line method in order to maintain consistency in its products, the organization ensures that they satisfy consumer’s expectations.

· Supply chain management: By implanting global supply chain strategy McDonald’s ensure that it enhances its operations. In order to reduce risk and maximize operations McDonald’s get suppliers from different regions. Diversification in SCM is the key factor in its success.

· Process design: The process design of McDonald’s emphasizes on cost reduction and quality maximization. Another area of process design is maintaining efficiency.

· Inventory and maintenance: This operational area focuses on minimizing inventory costs. In order to do so McDonald’s has alliance with local distributors that coordinate with restaurant managers to manage inventory.

Answer 2:

McDonald’s operational strategy implements several principals like lean and TQM in their processes and supply chains. The implication of lean practice in McDonald’s can be identified as follows:

· Eliminating Waste: McDonald’s has implemented this lean philosophy by eliminating waste by reducing overproduction, reducing waiting time, eliminating process wastage, inventory and defects.

· By maintaining quality in its products and processes and

· By meeting consumer demand.

Answer 3:

I agree that honesty and transparency in operations can make it vulnerable. However, McDonald’s believe that they are transparent about their goals and objectives. Moreover, overtime McDonald’s have proved that transparency, traceability of their operations does not make it vulnerable to competitors low price strategies. McDonald’s has always implemented strategy of innovation, quality, and supply chain optimization in order to maintain its position and fight tough competition.

Answer 4:

Some of the recommendations that I will give to McDonald’s in order to remain competitive in a turbulent and global business environment are as follows:

· McDonald’s must innovate and add special items in their menu for vegan customers.

· McDonald’s must implement more dynamic strategy for highlighting its CSR in order to attract environmentally conscious customers.