Analysis of the Business process

of McDonalds
Published: 23, March 2015

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 concerned with the internal resources,
environment and its basic competencies along with its shareholders. Also it aims to
serve good food in a friendly and fun environment, provide good returns to its
shareholders, 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.
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 try to be
cheapest and qualified fast food then other competitors. McDonald'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 packaged 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 standardized, 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 CompanyOwned 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.