Company Selection Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
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    1
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    449

Table of Content

Title: McDonald’s

McDonald’s

McDonald’s is a publicly listed company that has been among the best performing fast-food chain for a long time (Crawford, 2015). The four reasons for selecting McDonalds are:

Consistency in performance- McDonald’s has managed to maintain a consistent performance in all aspects. This is through standardised processes using repetition and high efficiency (Talpau & Boscor, 2011). On financial performance, McDonald’s have been able to perform well. They have consistently retained their profits despite the competitive market. For example, the company revenue in 2015 was $25,413 million and $24,622 Million in 2017. Despite the drop, the financial history shows revenue of over $ 24,000 Million since 2010 (Morning Star, 2017).

Innovation- The company has ensured that they have new and innovative offers to retain their customers. Over the years, the franchises have introduced innovative products offers such as: McFlurry, Happy Meal and Big Mac. Other innovations by McDonalds include the Drive-thru and product offerings for all meal times (Ottenbacher & Harrington, 2009).

Customer service-Customer service is at the heart of operations management (Heizer, 2016). This is an area that McDonald’s has excelled in. The fast food restaurant is based on highest level of quality in service delivery, cleanliness and timely services (Keiningham et al., 2014). They have a direct complaint line and highly trained front office staff.

Excellent supply chain management – McDonald’s has a global supply chain which supports its activities in all locations (New, 2015). The supply chain is based on modern technology using Big Data which ensures that there is reduced inventory (Tan et al., 2015). The firm relies on different suppliers from various areas to reduce supply chain risks.

References

Crawford, A. (2015). McDonald’s: A case study in glocalization. Journal of Global Business Issues, 9(1), 11.

Heizer, J. (2016). Operations Management, 11/e. Pearson Education India.

Keiningham, T., Gupta, S., Aksoy, L., & Buoye, A. (2014). The high price of customer satisfaction. MIT Sloan Management Review, 55(3), 37.

Morning Star (2017). Growth, Profitability, and Financial Ratios for McDonald’s Corp (MCD) from Morningstar.com. Financials.morningstar.com. Retrieved 14 August 2017, from http://financials.morningstar.com/ratios/r.html?t=MCD

New, S. (2015). McDonald’s and the challenges of a modern supply chain. Harvard Business Review. Pub, 4.

Ottenbacher, M. C., & Harrington, R. J. (2009). The product innovation process of quick- service restaurant chains. International Journal of Contemporary Hospitality Management, 21(5), 523-541.

Talpau, A. & Boscor, D. (2011). Customer-oriented marketing-A strategy that guarantees success: Starbucks and McDonald’s. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 4(1), 51.

Tan, K. H., Zhan, Y., Ji, G., Ye, F., & Chang, C. (2015). Harvesting big data to enhance supply chain innovation capabilities: An analytic infrastructure based on deduction graph. International Journal of Production Economics, 165, 223-233.

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