Assignment 4 - Briefing Document .docx - Table of Content...

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Table of Content Executive Summary ........................................................................................... 1 1. Established and Emerging Value Propositions in the fast food industry ....... 1 1.1 Convenient locations ................................................................................... 1 1.2 Higher quality of food and services ............................................................. 1 1.3 A menu of consistent quality ........................................................................ 2 2. Process Map of Order Fulfilment Process ..................................................... 3 3. Application of manufacturing excellence ....................................................... 3 3.1 Application of technology in manufacturing ................................................. 3 3.2 High level of quality control .......................................................................... 4 4. Relationship between service quality and profitability ................................... 4 5. Operational Challenges ................................................................................. 5 5.1 Current operational challenge ...................................................................... 5 5.2 Potential operational challenges .................................................................. 6 6. Recommendations ......................................................................................... 7 7. Conclusion ..................................................................................................... 7 8. List of References .......................................................................................... 7
Executive Summary In this report, it will demonstrate the answer of 5 questions and give some reasonable recommendations for improving the service operations of the fast food restaurants, which focus on McDonald's. I will list the established and emerging Value Propositions, order process flow chart, application of manufacturing excellence, and then review the relationship between service quality and profitability in the industry and describe the current and potential operational challenges faced by managers in McDonald's. Finally, it provide two reasonable suggestion. 1. Established and Emerging Value Propositions in the fast food industry 1.1 Convenient locations A convenient geographical location can provide more convenient services for consumers, but also increase the passenger flow, thereby increasing the income of enterprises. All in all, for the choice of location, McDonald's is located in or near the market center, and Burger King is located on one side of the small market area. If the market area is large enough, the two companies will be opposite. Although McDonald's will be closer to the market center than Burger King ( Thomadsen 2007 ). 1.2 Higher quality of food and services The important value propositions for the McDonald’s is the higher quality of food and services. Although franchised restaurants remain independent and manage their daily operations on their own, McDonald's still monitors and supervises the quality of their food and services (Schramade 2019). Quality and healthy food ingredients, as well as process related types of value added, such as organic or animal welfare friendly production, come at a cost, even though this is what fast food consumers expect (Schröder & McEachern 2005). Delicious food can always make customers have endless aftertaste, and at the same time, high-quality service can improve customer satisfaction and attract more customers. For the catering industry, customer value proposition is mainly for food and service quality. Today's customers have a strong value orientation in the pursuit of value, the pursuit of quality and results exceed the price they pay for products or services 1
(Thielemann et al. 2018). McDonald's goal is to become a favorite place and way for customers to eat, together with its customer value proposition, which means creating value for society in terms of affordability and convenience. In addition, the company promotes

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