There are several different planning strategies that exist Which include the

There are several different planning strategies that

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There are several different planning strategies that exist. Which include the chase demand, level capacity, demand management, lead strategy and the lag strategy. Of which McDonalds use lead strategy. Which (Kejariwal and Allspaw, 2008) say is when the company increases its production capacity in advance of anticipated increases in the demand. This is done to ensure supply meets demand. An example would be the company’s perishable goods, such as the Poultry, in which they are bought 2 days in advance. The advantages of using the lead strategy is that it ensures McDonalds have enough stock (Poultry) to last the day. Therefore, allowing the business to run smoothly, therefore customers get their product on time, leading to better customer service. Which in turn improves the company’s success. But on the other hand, this method could be a disadvantage. The stock in which McDonalds use are perishable, so there is a need for them to be replaced frequently. But, if supply is greater than demand then, the unused products will go to waste, therefore increasing cost and decreasing efficiency. The use of this method is very practical. As it manages demand and ensures that the percentage of error is limited. But there may be some difficulties. McDonald are well known for their great variety. But with that comes the need of storage for stock. Consequently, buying more stock than required increases the need for space/expansion therefore increasing the cost for the organisation. Other difficulties may include the constant checking of stock to ensure that it has not passed the due date. Overall as in the case of McDonalds, this strategy is best for them. This is to ensure that stock (food products) are received when required and as McDonalds are popular and fast paced, supply will have to be kept up with demand, which will ensure success over competitors such as KFC. 7 | P a g e Transformed Resources – Ingredients and recipes Product – Happy meal and other food items Transforming resources – staf and kitchen Equipment required
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7. Conclusion The purpose of a management Report has been discussed and McDonalds operation strategy has been studied. This has been done to evaluate the current strategies used by McDonalds and see whether they are the best choice for the company. The ways in which their products are made and delivered and the type of capacity planning has also been evaluated, in which it was discovered that McDonalds buy more supplies than required in case there is an increase in sales. Which at the moment is the best strategy for them. As of right now it seems that all the strategies used by McDonalds are working well, but in the near future a better processing strategy will have to be introduced to manage production and delivery times. In conclusion, McDonalds are an innovative organisation, constantly changing and adapting to the economic changes, as well as introducing new item on their menu to ensure most if not all tastes are met. This has given them the competitive advantage, therefore ensuring their success.
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