Strategic operation management

Strategic operation management


“It begins with delivering a great restaurant experience every time. Our owner/operators, suppliers and employees work together to meet customer needs in uniquely McDonald’s ways.” (, accessed 1st April 2016)

“McDonald’s is the world’s leading global food service retailer with over 36,000 locations in over 100 countries. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.”

“The strength of the alignment among the Company, its franchisees and suppliers (collectively referred to as the “System”) has been key to McDonald’s long-term success. By leveraging our System, we have been able to identify, implement and scale ideas that meet customers’ changing needs and preferences. In addition, our business model enables McDonald’s to consistently deliver locally-relevant restaurant experiences to customers and be an integral part of the communities we serve.

Our overall vision is for McDonald’s to become a modern, progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today and progressive is about doing what it takes to be the McDonald’s our customers will expect tomorrow. To realize this commitment, we are focusing on our customers and what matters most to them – hot and fresh food, fast and friendly service, and a contemporary restaurant experience at the value of McDonald’s.

The cornerstone of our System is our powerful and enduring Brand. We’re leveraging our competitive strengths: iconic menu items that customers love, a unique franchise model that empowers local entrepreneurs, size and scale that makes operational investments efficient and a global well-diversified geographic footprint.” (, accessed 1st April 2016)

Effective strategic operations management lies at the heart of this competitive approach. Investigate McDonalds (using this web address as the starting point – and produce a fully referenced academic report (using the Harvard Style) that answers the assignment task. The word count for the report is 3000 words.

Although the McDonald’s website contains much material, you must look beyond the company’s website when researching the information you will need for this assignment. Your report should relate your findings to the academic theory used during the course. Page 3 of 4 Strategic Operations Management © NCC Education Limited 2016

Task – 100 Marks

  1. a) McDonald’s comprises a mixed manufacturing/service operation. Critically compare the different characteristics of the product and service operations and the consequential impact on the operational/performance measures employed.

(25 marks)

  1. b) Critically discuss the role of Key Performance Indicators (KPIs) used by McDonalds for their manufacturing and service operations at a typical restaurant. You should illustrate your answer by giving ONE (1) example of a KPI for each of the manufacturing and service operations (15 marks)
  2. c) i) Draw, label and explain McDonald’s supply chain network. (Focus only on those aspects of the supply chain which are needed to directly produce and sell food.)

(10 marks)

  1. ii) Critically evaluate the role of the supply chain in addressing
  2. the concerns and needs of customers
  3. in supporting McDonald’s operations objectives

(24 marks)

  1. d) Using evidence to support your answer, critically discuss how McDonald’s is implementing lean philosophy to minimise waste, yet still meets the demand for immediate service. (16 marks)


  1. e) Conclusion – summarise the main points from your report and discuss the implications for McDonald’s strategic operations. (10 marks)


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