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Executive Summary The report provides in depth research on Operations management concepts and give insights on McDonald’s service operations. It justifies why McDonalds is known as a leader worldwide in the fast food industry. The customers are quite dynamic in nature because of which the research draws that the fast food industry needs to keep up with changing customer preferences. The managers in fast food corporations need to make continuous innovations and give good customer experiences. In essence, it is inferred that fast food organisations have to keep improvising on their service qualities and enhance customer experience throughout to generate customer loyalty.1
Table of Contents Page No1. Established and Emerging Value Propositions 41.1 Established Value Propositions41.2 Emerging Value Propositions42. Order Fulfilment- Process Map63. Application of manufacturing excellence 73.1 Service and Manufacturing 73.2 Manufacturing excellence in McDonalds74. Service quality v/s profitability 95. Operational Challenges106. Recommendations127. Conclusion 128. References 142
1.Established and Emerging Value Propositions 1.1 Established Value Propositions The fast food industry consist of restaurants that allow consumers to pay for their food before consumption. It has a high level of customer engagement in ordering, collecting food, and discarding their own garbage, and is usually referred to as counter service. Fast food meals can either be eaten at the outlet, ordered for a take away, or get delivery at doorstep (Dipietro et al. 2017, p. 288). The fast food industry has escalated in business as they deliver fast, convenient and often cheap food to their customers (Carden et al. 2018, p. 25). Some of the value proposition attributes customers expect from fast food chains are cost, friendly staff, menu options, service rate, calorie content, cleanliness, comfort, business hours, delivery service, kids novelties, and seating facilities which is found in most locations (Dipietro et al. 2017, p. 289). 1.2 Emerging Value Propositions In recent years, fast-food restaurants have encountered intense competition, partly due to the proliferation of the fast food industry and the global economic slump (Min & Min 2011, p. 283). The preferences of customers have moved to being health conscious. The fast food sector, onthe other side, is recognised for selling unhealthy food. Customers want corporations to be more open about what ingredients they are using and are more discreet about what they are consuming. The changing preferences and tastes of customers have undermined the profitability andbusiness practises of fast food companies (Carden et al. 2018, p. 25). To counter this scenario, McDonald's has created a strategy which attracts consumer by incorporating nutritious food in their food product mix, it includes egg-white McMuffins, premium wrapping for grilled chicken, lettuce, tomatoes and cucumbers and fresh fruit instead of french fries. In 3
order to continue to adapt with a focus on nutrition to the changing food