Contribution of the Operations Management Department in McDonald - Case Study Example

Operations Management Name: Institution: Introduction McDonald Corporation is termed as been the world’s largest chain in the selling of hamburger and it operates as a fast food restaurants. It is said that the company serves as least 68 million customers on a daily basis in 119 countries all over the globe. The company began its operations in 1940, and it was market by an opening of a restaurant by two brothers Maurice and Richard McDonald in San Bernardino, California. In the year 1948, they introduced a spedee service system that furthered the ideologies of the modern fast food restaurants that had been put in place and in practice in about two decades earlier by white castle hamburger chain (McDonald History 2012). The original amulet for the company was a man who had a chef’s hat of top of a hamburger shaped head and his name was speedee. He was later replaced with Ronald McDonald in the year 1967 when the organization was filing for a trademark and an amulet became a clown shaped man who had puffed out costume legs. Current McDonald dates its foundation on the opening of a franchised restraint by Ray Kroc, he later purchased the equity owned by the McDonald brothers and it is him who has led to the organizations worldwide expansion. With its expansion to the global market, the company is usually viewed as a mark of globalization as well as the spread of the American way of life (McDonald History 2012). The prominence of the company has made it a core topics in the debates when it comes to issues related to corporate ethics, obesity as well as consumer responsibility. Contribution of the operations management department in McDonald Managing an organization with a prominent global presence such as McDonald seems to be an enormous task. Consequently, the management of its day to day operations seems to be a major challenge and thus communication and information technology requirements as well as infrastructure ought to be put in place. The operations department at McDonald plays a crucial role and contributes a lot to the organization success. In relation to this the department ensures that quality is provided at all times (Bamford and Forrester 2009). McDonald is fully committed to offering the highest quality of food as well as service to their customers. In respect to this, McDonalds work with their employee, suppliers as well as the franchisees so as to serve a balanced collection of food selections and offer the correct nutrition information to assist their customers in making sound decisions when purchasing their products. Another contribution that the department makes is in the coordinating and management. For a company such as McDonald, the coordinating and management functions cannot be ignored since it ensure that the goals of the organization are been met in an efficient and effective manner. In respect to this, McDonald evaluates their products and services regularly, constant advertising and promotions (Collier and Evans 2007). Through the advertising and promotions the organization ensures that their products as well as their quality services to the customers are significantly in the minds of the consumers and clients. Operational Methods and strategies adopted in McDonald Operational strategy and methods is termed as the coming up of a number of long term tactics that will aid in the usage of the chief resources that the company have in the aim of achieving a high degree of compatibility linking the resources and the company’s long term corporate strategy (Derdak and Pederson 2004). McDonald has adopted an operational method as well as strategies to assist them in providing the products and services to their customers in a manner that gives them the maximum satisfaction. The operational strategies include: Quality control operational strategy R & D operational strategy Franchise management operational strategy Human resource operational strategy Quality control operational strategy This seems to be the first operational strategy that McDonald adopts in line with the offering of services to their customers. In respect to this strategy the company aims at offering quality food products and services to their clients and customers. This operational strategy adopted by McDonald offers unrivaled steadiness in their operations in hold up of high product quality. It must be accomplished with a low cost, adequate level of speed as well as process innovation so as to accommodate any changes that may occur in consumer tastes. In doing so the company aims at offering standard services, food and cleanliness in the company owned and also in their franchised restaurants. McDonald aims at offering the best in terms of the quality of foods, in terms of cleanliness and services to their customers. Clients and customers will receive same services foods and cleanliness in all McDonald’s outlets this will ensure that they return at a later date and acts as advocates to the company. This is mainly based on the fact that the management at McDonald is aware of the positive role played by quality food and services in terms of returning customers. The other aspect that McDonald has adopted that correlates to quality control strategy is the ensuring that their quality is controlled by the global restaurants improvement process. The GROIP will be implemented in at least 3,000 restaurants. McDonald plans to undertake constant inspections which amounts to a total f four with two of them been announced while the other two takes place unannounced. Franchise management operational strategy This is the second operational strategy that has been adopted by McDonald in the aim of offering their products in a manner that offers the maximum level of satisfaction to their customers. In relation to this strategy McDonald aims at adding the number of franchises store by the year 2013 and as a company they have set the target to have at least 2000 stores by the year 2013 (Burtonshaw-Gunn 2010). By these they will be able to satisfy their customers. Other aspects that have been covered under this strategy includes aspects such as reduction of company owned outlets this will be achieved by making sure that most of the stories are franchised to various business men and women who will be located at diverse places in the world (Hill and Hill 2012). The other aspect is the expansion of the capacity of the already existing franchise. McDonald will ensure that the already existing franchise are able to accommodate and offer almost all the products that are offered in the company owned outlets thus making it certain that their customers are fully satisfied. The other aspect is to increase their geographical presence. In line with the franchise management, McDonald aims at increasing their global presence so as to cover a wide geographical area and offer their products in areas where there presence have not been previously felt. When all this aspects are achieved there will be maximum satisfaction for the customers. Human resource operational strategy The other operational strategy that has been adopted relates to the human resource. The aspects that are addressed in this strategy include neatness, timeliness and cleanliness of the employees, washing of hands, teamwork, welcoming guests and standardized quality and services (Hill and Hill 2012). Employees working at McDonald ought to be neat at all times and they must also arrive at work early and must keep the restaurants clean. The employees are also supposed to wash their hands before servicing the customers and also when preparing the foods for the customers. The employees are also supposed to work in teams to as to achieve the organizational goals and objectives and also to ensure that the customers are satisfied. Through effective team work of all the employees the operations of the organization will go as planned and therefore good customer service. The other aspect is the welcoming of guests, employee are supposed to welcome every guest entering the restaurants and they are also supposed to treat them in a polite way. R & D operational strategy The last operational strategy that McDonald has adopted is the R & D operational strategy. One of the major aspects that are considered under this strategy is the research and surveys. Through extensive research and surveys, McDonald has been able to discover that a great number of their customers desire a high level of speed as been a key priority. Therefore as a company, McDonald aims at offering fast, accurate and friendly services to their customers and clients. The other key aspect was considered under this strategy is the specific targets (Slack, Chambers and Johnston 2009). Over time, McDonald has been able to realize that specific targets are essential when it comes to measuring the performance of speed. They therefore ad infinitum take applicable dimensions to evaluate real performance with preferred goals. From the making of the customer’s order, to the making of the burger, and until the time the customer leaves the eatery, speed is termed as an essential issue in McDonald’s operation strategy. in the aim of reducing the duration of time it takes to offer the services to the customers the company applies a standardized training process for all their employees as well as innovative new drive-thru layouts. Alongside with speed, the company also competes by pricing their products at a lower cost. Model adopted McDonald focuses on all types of customers inclusive of all ages and by adoption of Ray Kroc’s theory of QSC (quality service and cleanliness); the operations management has tremendous success in the delivery of its services to the customers. By applying the model, McDonald has thrived to have quality characteristics making it to remain in the top position among other fast food competitors. Through the services that it offers to the customers, the fast food company has become known worldwide as they are experts in their marketing strategy through the diversity of services it gives to different cultures in a global setting. To guarantee that quality services are maintained, the company through the theory has advanced in services it offers such as on the types of breakfast given in all ages from young to old where it offers healthier choices and alternatives to adult food and children foods. In his theory, Ray Kroc the managing director of McDonalds saw that for the three aspects in the QSC theory, there was need to change on the type of product that was offered to its customers and be diverse on the product orientation that the company was known for. As supported by Reid and Sanders (2005), effective operation management takes time to be adopted and even implemented in any organization. The company has adopted a strategy where they produce a product at a time. The company has adopted the strategy as this process gives them time to check at the response the product will get from the customers and the impact the product has if it is funds are put aside for its production (Aarnio and Hämäläinen 2008). Having this type of marketing orientation, McDonald as a company has seen success in their growth due to the fact that by having to produce a product in a particular time, they are meeting the customer needs where there is more satisfaction in the quality of services rendered. In their operations management, McDonald has incorporated the opinions of the customer and at times implements these ideas to their products. Still focusing on the QSC model, the company has made their packaging of products more comfortable to the consumer and environmentally friendly where they incorporate market segmentation in their pricing and packaging and are now environmentally conscious by making people aware of not littering the environment. McDonalds has a good reputation through the willingness to give back to the community (Hill 2005).In their operations management, the company aims at being socially responsible to the society around it. As part of operations management, the company views its customers to be the greatest asset that they could ever have hence in the QSC model, the company applies giving quality services which is accompanied by great value to the society at large. To maintain the customer loyalty that the company has been facing for a period of time, McDonald has come up with operation strategies that can suite the overall organization for successful operations management. Prevention of success in operations management Though there is much success that has been gotten in the service delivery in McDonalds, there still remain hindrances and challenges that exist in their aim for changing the operations to have better customer satisfaction. Among the things that prevent success in the company is the frequent changes in the menu. The type of food in the menu can sometimes be a problem to the company because all the stakeholders should have knowledge of all the meals offered in their branches. Though it may be seen that change in menu will lead to increase of customers and an increase in customer satisfaction, it becomes the opposite (Stevenson 2005). This is in contrary to McDonalds Company where an increase or change in the menu has adverse effects on the prices and quality of services given to customers. An increase in the type of food means that the managers must add items in making different food and this in turn means increasing the costs of operation due to more employment and by consideration of change, some customers may shift from McDonald restaurants if it ceases to provide foods it was providing initially and that was comfortable for the old customers (Russell and Taylor 2005). In their approach to be more successive than other fast food companies, the Company has implemented alternatives in the type of menu that they have. Instead of what they are known to provide like burgers and fries, McDonald is opting for local menus that are known in the region where McDonald branches are situated. It might be a success if they adopt this as a project but this may be a limitation of their success in operations management. Consistency is what customers look for in a product hence McDonald will be faced with a challenge of balancing their success in their operations and the benefits that the customers want to get of satisfaction (Barnes 2008). By allowing diversity in all branches where there is a McDonald branch, the company will lose its brand name as for a long time; it has been known to provide specific menus in all countries. Though it is their aim to embrace diversity in the foods that they offer, it becomes a limitation to the company’s operations because this will mean increase in operating costs in the sourcing of food from different countries. In application of QSC model, the company through its management sees that it has done maximally to achieve success in delivery of their services. In its operations management, there has to be interaction with the management and employees of the company. Though there has been a continued and improved interaction in the organization, it becomes a limitation in delivery of services where the management sees the customers as the major assets and leaves out the employees who are the backbone of the organizational performance (Thomson and Shouse 2010). Though effective interaction seen, there is the agency problem where the employees do not get proper of enough incentives. This in turn makes the employees to deliver low quality services where the customers are not pleased with services rendered. Recommendation and conclusion There are some recommendations that can be given for effective operations management. With the challenges described above, McDonalds can practice the following recommendations for success in their services. The company in foods offered should come up with few varieties of foods where there is guarantee of quality and satisfaction from the part of the customer. This is because having small specific products being offered motivates employees to extensively learn what they are doing hence with the experience gathered, they can provide quality products. By involving a routine process in the production of food, there will be fewer employees employed in serving while others can be employed to cater for other activities. By having a small selection from the menu, the orders can be placed efficiently and no time will be wasted while paying for the food ordered. All this will have a positive impact in the way customer satisfaction is reached. Having a centralized menu will make it a success in the operations management of the company and coming up with a franchise that will agree on the type of foods to be given in all regions. This in turn reduces cost and the prices in the food will be affordable to all the customers. With this application of reduction of costs and having equality in the menu in all regions, it will ensure customer satisfaction and increased product quality. Having specific menus in McDonald restaurants may turn out to be expensive as there is increase in pricing power which in turn leads to pricing competition increase and low reported profits. In the agency problem, the manager in their operations management program should organize for ways of training of employees and device for ways of increasing incentives as that is the only way there will be a balance in the implementation of the QSC model for improved performance. To offer solutions that can last, the company as a whole through the operations management should accurately look for ways that are adoptable and applicable in all countries where their branches are situated to improve on the implemented QSC model. McDonald to have a wide variety and positive reputation, the company should come up with ways of having competitive prices and the same type of food across all branches. In their bid to increase on the profit made and increase efficiency in the products given to its customers, McDonald should cut down on their menu size and through cutting it, this will in turn give low cost in production reduce waiting time on the part of the customer and increase quality with the type of food given. To make a conclusion on the above essay, the McDonald company has earned loyalty from its customers through the continuous quality services it offers through its creation of fast food supplies in many countries inclusive of UK.As a result of application of competitive strategies and processes and by targeting all types of ages as their customers, the company is seen to exercise efficient operations management in the management process. 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