4. WHO WE ARE …
McDonald’s operations have steadily grown in the U.S., Europe, the Middle
East, Asia-Pacific, Africa, Canada, and Latin America.
Currently 1.7 million people in 119 countries work for McDonald’s.
serve 64mn customers each day around the world.
More than 80% of McDonald's 33,000 restaurants worldwide are independently
owned and operated.
In the midst of global economic concerns, McDonald’s has maintained a firm
grasp on the industry because the core strategy remains unchanged – McDonald
continue to invest in people and Brand.
For more than 50 years, McDonald has provided quality food, valued jobs, and
meaningful charitable support to the communities they serve. MCD’s the
number-one foodservice retailer in the world.
5. MCD are committed to providing the highest quality food and superior
service, at a great value, in a clean and welcoming environment.
That’s why MCD work with their employees, franchisees, and suppliers
to serve a balanced array of food choices and provide the nutrition
information needed for customers to make sound decisions.
At the restaurant level, MCD focused on energy conservation, sustainable
packaging, and waste management.
MCD is dedicated to innovation and improving their operations in order
to build an even more sustainable, environmentally friendly, and
profitable business.
MCD will continue to re optimize their menu, modernize the customer
experience, and broaden accessibility to their brand, so that consumers
will always enjoy the maximum MCD’s experience
WHAT MCDONALD’S DO
Offering Quality Food, Healthy Choices
6. MISSION
McDonald's brand mission is to be our customers' favorite place and way
to eat. Our worldwide operations are aligned around a global strategy
called the Plan to Win, which center on an exceptional customer
experience – People, Products, Place, Price and Promotion. We are
committed to continuously improving our operations and enhancing our
customers' experience.
7. VALUES
We place the customer experience at the core of all we do: Our customers are the
reason for our existence. We demonstrate our appreciation by providing them with high
quality food and superior service in a clean, welcoming environment, at a great value.
Our goal is quality, service, cleanliness and value (QSC&V) for each and every
customer, each and every time.
We are committed to our people: We provide opportunity, nurture talent, develop
leaders and reward achievement. We believe that a team of well-trained individuals with
diverse backgrounds and experiences, working together in an environment that fosters
respect and drives high levels of engagement, is essential to our continued success.
We believe in the McDonald’s System: McDonald’s business model, depicted by our
“three-legged stool” of owner/operators, suppliers, and company employees, is our
foundation, and balancing the interests of all three groups is key.
8. CONTINUE…
We operate our business ethically: Sound ethics is good business. At McDonald’s, we hold
ourselves and conduct our business to high standards of fairness, honesty, and integrity. We
are individually accountable and collectively responsible.
We give back to our communities: We take seriously the responsibilities that come with
being a leader. We help our customers build better communities, support Ronald McDonald
House Charities, and leverage our size, scope and resources to help make the world a better
place.
We grow our business profitably: McDonald’s is a publicly traded company. As such, we
work to provide sustained profitable growth for our shareholders. This requires a continuous
focus on our customers and the health of our system.
We strive continually to improve: We are a learning organization that aims to anticipate
and respond to changing customer, employee and system needs through constant evolution
and innovation.
9. McDonald's enter in to Global Market
McDonald’s chooses contractual and equity entry modes because the level of control, and
the relationship between franchise and franchisee in this case has the most positive
outcome.
Easily assessing foreign markets with minimum level of investment and high profit
expectations is what McDonald’s entry mode choices stand for.
McDonald’s introduces it’s unique concept to international markets, and it becomes a win-
win cooperation. First of all, McDonald’s affect business standards in foreign countries.
It increases standards of service in foreign countries by introducing machinery, clean and
neat restaurants, quality products. Franchisees, in return, propose their innovations.
So, McDonald’s benefits from international operations by having access to new know-
how’s
McDonald’s is flexible to foreign culture food habits and manipulates with its menu
accordingly. Nevertheless, McDonald’s is presented as original American franchise, though
having different “faces” and approaches overseas
10. WHY PEOPLE CHOOSE MCDONALD’S..?
Meeting the needs of key audiences
Customers are not all the same. Market research identifies
different types of customers.
A parent with two
children
Visits McDonald’s to give the
children a treat
Children Want to visit McDonald’s as it is a
fun place to eat.
A business customer Visits McDonald’s during the day as service is quick, the
food tastes great and can be eaten in the car without
affecting a busy work schedule
Teenagers Are attracted by the Saver Menu which is affordable, and
the internet access available in restaurants. These
examples represent just a few of McDonald’s possible
11. Being the best means providing outstanding quality, service, cleanliness, and
value, so that make every customer in every restaurant smile. To achieve
this, McDonald’s focus on three worldwide strategies:
(1) Be the Best Employer
(2) Deliver Operational Excellence
(3) Achieve Enduring Profitable Growth
To be the world's best quick service restaurant experience.
VISION
14. Corporate
objective
Examples
Marketing
strategy
examples
How do goods
&services qualify
and win orders in
the
marketplace?(com
petitive priorities)
Operation strategy
Operating
Design choice
E.g.:
Infrastructure e.g.:
Profitable
growth
Add
worldwide
1300
McDonald’s
restaurants
and 150 new
partner
Brand
restaurants
using
company
owned
franchised
stores
Competitive
priorities tie the
corporate and
marketing
strategies to the
operational
strategy
•Flow shop
process design
• Standardized
store design
• equipment
design
• order-taking
design
• Capacity &
facility,
size, location,
and clusters
•Hiring process &
criteria
• First job training
• Recognition and
rewards
•manager trainee
Program
• Coaching and
counseling
• Teamwork
• e-mail capabilities
15. Corporate
objective
Examples
Marketing
strategy
examples
Infrastructure e.g.:
Operating
Design choice
E.g.:
Operating Design
choice E.g.:
• global value chain
coordination
• suppliers
• resources
scheduling
• inventory placement
and control
•Distribution centers
standardized
operational
And job procedures
Ideal store
location, best
training and
employee
wellbeing
programs.
Operational
excellence
1.low price
2.quick service
(delivery speed)
3.high service
quality
•Operating plans
and control
system
• shift -
management
• supplier relation
and negotiation
• equipment
• maintenance
• online network
capability
• distribution
centers
Operation strategy
How do goods
& services
qualify and win
orders in the
market place?
(competitive
Priorities)
16. Corporate
objective
Examples
Marketing
strategy
examples
Infrastructure e.g.:
Operating Design
choice E.g.:
Leverage
Strength
Through
Innovation
and
technology
Develop new
food items,
store
And food
mix
Tie demand
Analysis to
Diverse
work
force
•Store equipment
Technology
•Value chain
information
system to tie
stores, distribution
centers, and suppliers
together
•New food
products
• Quality control
• laboratory testing
• organizational
structure
• Compensation
• systems
4.High food
quality
How do goods
& services
qualify and win
orders in the
market place?
(competitive
priorities )
Operation strategy
17. Corporate
objective
Examples
Marketing
strategy
examples
Infrastructure e.g.:
Operating Design
choice E.g.:
Diversity
Long-
standing
Commit-
ment to
A diverse
work
force
• Training and
• franchising
• Process
performance
• Career paths
• Learning and
innovation
systems
• Hamburger
university
5.Demand
flexibility
Social
Respon-
sibility
Being a
Good
neighbor
And partner
With the
local
community
• Trade-off
analysis
• Recycling
process
• Package redesign,
shipping,
warehousing
• Support services
• Ronald
McDonald’s
house
• Mobile health
• centers
• Youth camps
6.Brand image
How do goods
& services
qualify and win
orders in the
market place?
(competitive
priorities )
Operation strategy
18. STATEMENT OF MCDONALD’S OPERATIONS
STRATEGY
“To provide unmatched consistency in operations in support of high product
quality. This must be accomplished with adequate speed, low cost, and
process innovation to accommodate changes in consumer tastes.”
19. MCDONALD’S OPERATION STRATEGY
Dimensions Strategy
Capacity
• Growth as needed through additional stores - but capacity added
carefully
• Well-utilized - franchisee's well-being depends on it being used
heavily
Facilities
Distributed facilities, each facility being very similar to the next, all
focused around the same menu - although the uniformity is
beginning to change
Process
Technology
High degree of process understanding, emphasis on "fool-proof"
processes
A leader in the technology of fast-food delivery
20. Vertical
Integration
Partnership arrangement
Long-term relationship with suppliers to promote
innovation and quality improvement
Workforce
Franchisees: well-trained, carefully selected, entrepreneurs
Operators: high-turnover, cheap
Organization
Guidelines provided by corporation, but franchisees push to locally
optimize
Control
Systems
Centralized buying
Bulk contracts
"Push" system for basic supplies, "pull" system day-to-day in the
restaurants
21. Contribution to competitive advantage –
Systemic strategy creates unmatched consistency in operations
that has been difficult to imitate
Evaluation of the operations strategy:
Internal and external consistency –
Looking at the operations strategy along the seven
dimensions, they all support the operations mission and the
business strategy.
22. Focused on the 3E's:
Ethics, Environment, and Economics
•Ethics - We envision purchasing from suppliers that follow practices that ensure the
health and safety of their employees and the welfare and humane treatment of animals in
our supply chain.
•Environment - We envision influencing the sourcing of our materials and ensuring the
design of our products, their manufacture, distribution and use to minimize life-cycle
impacts on the environment.
•Economics - We envision delivering affordable food, engaging in equitable trade
practices, limiting the spread of agricultural diseases, and positively impacting the
communities where our suppliers operate.
23. INDIRECT SUPPLIERS
Primary processing
Plants & production
Plants
Operate facilities such as
Grain mills and abattoirs
Farms & Ranches
Raise cattle: grow lettuce
Wheat & other ingredients.
DIRECT SUPPLIERS
DISTRIBUTION CENTERS
Coordinate purchasing and distribution to restaurants.
FINANCIAL PROCESSING FACILITIES
Produce finished products like meat patties, buns & beverages.
