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Critical Success Factors in a Competitive Dairy Market

Extracts from this document...

Introduction

McDonald's Restaurant STAT 2800 Survey of Operations Management Project II Dr. Rotimi Aderohunmu By: Stephanie Earley Matt Kellond Heather Kraich Eddie Phillips Rabab Sadeq Thuy Van Table of Contents Introduction ..........................................................................................3 Operations Competitive Strategy Competition Bases...........................................................................4 Strongest Priority............................................................................6 Strategy Changes.............................................................................8 Quality Management Speed.........................................................................................11 Quality Inspection..........................................................................12 The 5 P's....................................................................................14 Training......................................................................................15 Raw Materials Arrival and Maintenance...................................................................16 Grade "A" Beef and other Meats.........................................................17 Produce.......................................................................................18 Restaurant Inspection.......................................................................18 Forecasting Aspects of Forecasting......................................................................19 Supply Chain Examination of Supply Chain.............................................................22 Supply Chain Efficiency...................................................................23 Quality along Supply Chain...............................................................24 Share Costs..................................................................................25 Summary.............................................................................................25 Appendices Appendix A................................................................................. 27 Appendix B................................................................................. 28 Appendix C................................................................................. 29 Appendix D................................................................................. 30 Introduction McDonald's, first started by Ray Krov, is now one of the most popular fast food restaurants across the world. They proudly serve more than 46 million customers in 59 different countries and have more than 30,000 different locations domestically and internationally (Food Service). The fast food industry is booming at a rapid rate, especially the healthy trend, with this in mind, McDonald's has strategically plan to stay on top of their competitors by providing consumers with more options of healthy meals, cheaper prices, and better service. McDonald's is competitive in many categories; examples are price, quality, management and employee training, other categories will be explained throughout the preceding sections. Consumers trust McDonald's products because they use many of the same trusted brands that families buy at local grocery stores. The only difference is that their shopping cart is a whole lot bigger. OPERATIONS COMPETITIVE STRATEGY McDonald's Corporation competes in a challenging market segment by providing need-satisfying products to customers. In this segment, ineffective competitors often fail without proper strategies (Kerin). To sustain its viability, the McDonald's corporation employs an effective competitive strategy to make it stand out against competitors such as other fast food restaurants. McDonald's competes on several bases, including cost, speed, and nutrition, their strongest priority is "making customers happy" ("McDonald's Worldwide" 3). The company recently made drastic changes to its process by introducing the "Made for You" system (Chase). ...read more.

Middle

Points will also be lost if employees are not dressed according to regulations, this includes wearing name tags (Phillips, Kenny). Mcdonald's must also provide a food safety log of recorded entries to ensure that proper food testing is completed properly (Phillips, Eddie). The Five P's Even though many of the quality management processes in McDonald's are done through the use of information technology, other quality management factors such as maintaining the five P's forces (People, Product, Price, Place, and Promotion) are essential in any business. Consequently, McDonald's Corporation uses these related forces in the sense that each P creates a chain affect on each other. The following is a list of methods using the P forces. The first force is the people working in the McDonald's chains, which are represented by service, hospitality, and pride. The staff employed in McDonald's are continuously trained and kept in the company to reduce the cost of training short-term inexperienced workers. Moreover, the training process has been improved to include online e-learning tools for the restaurant staff. Maintaining the workers in the company is very important to McDonald's and the corporation rewards workers who do outstanding services. This form of incentive is motivational to the workers (Cantalupo 4). The second force is the products which include the quality, taste, and price of the goods sold. McDonald's is trying to establish flexibility with the changing tastes and preferences in the market, Moreover, they are also seeing growing interest in premium product and wholesome food choices. The quality and safety of the food is a main entity in maintaining the quality of the food at McDonald's (Cantalupo 4). The third force is place which is represented by the clean, relevant, and modern store environments. Whether it was in the main restaurant area, the kitchen, or even the restrooms, the company ensures the safety and comfort for the consumers and staff workers. ...read more.

Conclusion

McDonald's ensures that they stress their standards based on quality, value and cleanliness. They say that they have in place stringent quality assurance and food safety programmers. They also claim that they know where all product ingredients come from. This enables the company to control every link in its supply chain. Food safety is clearly very important to the company. This is understandable when you consider how reputations can be seriously damaged when things go wrong. Their emphasis on safety and origin of ingredients highlights the efforts McDonald's make to allay fears among the general public over nutrition and modern farming methods. Also, their Extensive use of animal welfare audits ensures that all of their suppliers adhere to their rigged standards for animal treatment and care. They do this by having unannounced audits up to 100 per year at various farms and suppliers facilities to ensure that their standards are met along their supply chain. Share Costs McDonald's share cost between their suppliers and the corporation is much lower than other fast food restaurants. This is due to the fact that they have specifications and specialist who assists the suppliers in planting or producing the raw materials before it is shipped to the restaurants. For example, they send agronomists to spend two years to help farmers grow a russet potato that is six inches long and has the solid contents that are required to produce a finished fry that looks, taste and has the mouth feel that french fries have. By doing so, they lower the cost between their potato suppliers and themselves and the risk of the suppliers having to re-grow the potato and than reshipped the potatoes. McDonald's also publishes specific guidelines for their suppliers to abide by; this ensures that suppliers meet the guidelines for all their needs. This also reduces the risk of a supplier messing up and having to resend the raw materials which will cost more to do so. By giving attention to the suppliers ahead of time, McDonalds will reduce the share costs between them. ...read more.

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