Operation Strategy Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1137

Operation Strategy

Operation Strategy

Introduction

The strategy is the process that businesses use to look for a plan of tasks that will help come up with their differentiated competence. On the other hand, operation procedure is made of a series of decisions that, with time, allows an enterprise to reach its desired infrastructure, services structure, and a set of exceptional abilities that support its competitive choices[ CITATION Hay05 l 1033 ]. Operation strategy in an organization gets concerned with making sure that all activities run smoothly, that is, producing goods and services for the consumers. It helps in managing all the resources owned by a business. Operation strategy does not only deal with the passing, day to day operations of an enterprise as many would think but also its long-term goals and objectives. All companies develop strategies that will enable them to survive and prosper in the future. An organization’s operation strategy is the plan that the group comes up with to set up long-term directions of the activities that it needs to guarantee its future success. For an enterprise get successful, it has to ensure that its short-term operation strategy directly related to its long-term strategic intentions that help increase its competitive advantage. This essay will focus on McDonald’s operation strategy. MacDonald began has a small hamburger stall in California[CITATION Jam091 l 1033 ]. Mac and Donald owned the stall. This two brothers closed the stall for the months in so that they could increase their business. In 1948, they reopened the stall as a self-service restaurant. Today, MacDonald is recognized as the largest foodservice retailing chain in the world. The company sells burgers and fries through its 31,000 fast-food restaurants available in more than 119 countries

Order-Qualifiers and Order winners

Order-qualifies are the criteria that an enterprise gets required to fulfill before consumers consider it as a possible supplier. In this case, businesses get supposed to get as good as their competitors. In the case of McDonald, it uses speed, innovation, and cost for to get considered as order qualifiers by potential customers. This quick service is to ensure that a client doesn’t feel delayed and leaves the store happy for him or her to return again. McDonalds deals with fast food, and it ensures that it serves its customers with enough speed[ CITATION McD081 l 1033 ]. Also, it ensures that its cost is on par with consumers’ expectations. Moreover, it always changes its products to meet the change in customer’s preference.

Order winners are the criteria that a business uses so that it can win the market. In this part, an organization needs to get better than its competitors[ CITATION Mil02 l 1033 ]. In this case, high-performance, consistency, and good quality get required. McDonald’s service delivery gets considered as one of the best in the food industry. Moreover, it has standardized all its products in all its stores in the world. Ray Kroc, who used to sell milkshake machine, bought the McDonald’s from the two brothers and developed into an enterprise characterized by uniformity and conformity. He believed in the ethic of mass production. This mass production ethic enabled MacDonald to come up with a new uniform production methods. This method involves the use of frozen beef patties in place of fresh ground beef. Also, McDonalds developed a genetically modified potato to replace locally grown potatoes so as to ensure that all MacDonald’s fries have the same taste. All the products that McDonalds provides in all it stores in the world have the same qualities. This ability makes its customers have a sense of belonging thus becoming loyal to the brand. With this kind of services, McDonald gets a competitive advantage over its competitors.

McDonald’s operation strategy

McDonald’s operation strategy statement is to provide products that are of high quality and cannot get matched by its competitors. It accomplishes this by use of required speed, reliable cost, and process innovation which helps it to keep up with the changes in consumer preferences. It employs the following operations strategies:

Firstly, McDonald has grown in capacity over the years so as to meet day-to-day customer demand and expectations. It has over 31,000 outlets located in more than 119 countries. Moreover, it has utilized the concept of franchising that helps in meeting its everyday operation strategy. The use of franchise helps it in maximizing its market share. Before opening a franchise store, McDonalds makes sure that the spot they select is perfect since they have a simple of never closing a franchise. Secondly, McDonalds has distributed facilities which provides similar services. All McDonalds uses the same menu, that is, all its products have the same quality and taste that keeps its customers loyal[ CITATION Mar14 l 1033 ]. Thirdly, it employs a high degree of process understanding which put more stresses more on fool-proof methods. Moreover, it is the ranked as the best in the technology of first food delivery globally. Fourthly, it adopts vertical integration in a partnership arrangement. Also, it has a long-term relationship with its suppliers. This kind of relationship ensures that the quality of its products does not drop but keeps on improving and also promotes innovation.

Moreover, McDonalds employs the strategy of the workforce. Before it opens a franchise, it ensures that it has adequately trained the operators of the franchise store on their culture, service delivery, and how to prepare their products to avoid having products that are of different taste and quality[ CITATION Mar14 l 1033 ]. Also, it employs workers that are readily available and do not demand high salaries. Also, its regulatory guidelines get provided by the corporation and the franchisees follow. Lastly, its control system emphasis on centralized buying. Also, it employs push strategy for essential supplies and uses pull procedure in its day-to-day operations in its restaurants.

Conclusion

All the operation strategies that McDonalds use rotate around cost which shows its ability to produce values that get at par with consumer expectations. Quality that is, its ability to produce similar products in all its outlets. The speed that shows its capability to quickly respond to customers demand. Dependability which means that its customers can depend on its products. Lastly, the flexibility that enables it to change its operations in accordance to change in customers tastes and preference.

References

Hayes, R. P. G. U. D. a. W. S., 2005. Services, Strategy, and Technology: Pursuing the Competitive Edge. New York: John Wiley.

James, R., 2009. A brief history of McDonald’s abroad. Available at
[Online] http://content.time.com/time/world/article/0,8599,1932839,00.html [Accessed 16 12 2015].

Maria, S., 2014. Financial Exposure of McDonald’s. Success as a Market Leader. International Journal of Accounting and Financial Reporting, 4(1).

McDonald, 2008. Marketing at McDonald’s, New York: McDonald,s Corporation.

Mills, J. P. K. B. M. a. R. H., 2002. Competing through Competences. Cambridge: Cambridge University Press.