C7 McDonalds Corporation

8/13/2019 C7 McDonalds Corporation

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McDonalds


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Core competencies

Focus on - Quality, Service, Cleanliness, Value(QSCV principle)

Uniform, high quality standardized products

Close integration with suppliers ensuringcontinuous supplies with high quality and lessvariability

Quick service time achieved through continuousimprovements in product as well as process

Clean & pleasant ambience inside restaurants


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Strategy

Deliver pleasant, fast service and tasty,inexpensive food

Standardized products and with tried and tested

variationsEnsure consistency and uniformity across all

outlets

Ensure consistent high quality while keepingcost low through operational efficiency acrossthe supply chain


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Operational strategy

Standardized, limited products to Achieve economies of scale

Maintain service level

Close relationships with suppliers andfranchisees to Elicit commitmentto adhere to the operations

manual and to experiment

Transform the supply chain by partnership

Ensure consistent high quality

Constantly drive innovation even from backwardsupply chain


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Service Factory Service shop

Mass Service Professional

Services

Degree of Interaction & Customization

Degree

ofCapitalIntensity

HighLow

McDonalds

Service-Process MatrixHigh


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Product innovation

Scientific product development approachthat includes development of product aswell as the process in the best possible

way

Initiation and ideas are sought from all thestakeholders

Product having economies of scale arelaunched


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Growth and Challenges

Keeping track of the customer requirements Growing emphasis on dietary preferences and

health consciousness More variety is required

Variety vs. Consistency in operations Threat from specialist competitors

Ones focusing on full-service and greater variety-Olive Garden, Chili's, Perkins

Ones focusing on extremely fast service-Sonic,Rallys.

Ones offering a specialty menulike Taco Bell(Mexican)

Initiative for environmental conservation


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Bringing in variety

How much of change is good? Slowing down service time

Uniformity and consistency will be tough to

maintain Disrupts the existing operating efficiency built

around a limited menu

Hampers its reputation as a food outlet for

hamburgers and quick-serviceHowever:

Variety can provide strategic advantage in themarket place if implemented successfully


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Environment Initiatives

Waste Reduction Task force formationcomprising of McDonalds and EDF members

Possibility of reduced costs through environmentfriendly measures

Increasing Environment consciousness amongstthe customers


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Business trends

Junk food eating habits are condemned due toincreasing awareness

62% of sales come from off premises eating(figures at 23% in 1982)

Dinner contributes only 20% of sales

Competitors not able to match the operationalexcellence of McDonalds (e.g. Burger King)


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Starting New Dinner Services

Effect on the operationsIncreased costsSkilled Labor, different

ambience

Increased customer services.But the services should be started after thoroughmarket research and after scientifically optimizing

the whole operations

Improved Customer turnaround rates.


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Recommendations

Stick to its core competenciesFaster delivery, high quality at lower prices

Fine tuning current strategyadvantageous over drastic changes

Strains operations, slows serviceBrand image may be affected


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Recommendation Contd.

McDonalds image boosted byenvironmental initiative

Bottom line contribution through savings in

wastage and material costTop line contribution is less, compared to

that by innovative ideas

- Fresh ideas in terms of new products onthe menu will help McDonalds.


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THANK YOU!

Documents

C7 McDonalds Corporation