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McDonald’s Corporation- Operation Management
Contents <ul><li>Mc Donald’s history </li></ul><ul><li>Competitors </li></ul><ul><li>Operations: </li></ul><ul><li>Supplie...
History <ul><li>1940 First McDonald’s </li></ul><ul><li>1952 Attempts at franchising </li></ul><ul><li>1954 Milk Shake Mac...
History Continued <ul><li>1994 Kuwait City, Kuwait </li></ul><ul><li>2002 Forty seven years after </li></ul><ul><ul><li>30...
Competition - Rivals <ul><li>Customer Service </li></ul><ul><ul><li>McDonald’s is currently ranked last amongst its top co...
Competition - Rivals <ul><li>Burger King – 14% </li></ul><ul><ul><li>Wendy’s – 13% </li></ul></ul><ul><li>Other strong com...
Operations: Supplier Side “ You have got to be deaf,  dumb & ignorant to loose  Mc Donald’s business once you have it”
Supplier Side Contd..
Customer Orientation
Franchisees <ul><li>More than 30,000 resturants in more than 119 countries </li></ul><ul><li>They want to be their own bos...
McDonald & Environment <ul><li>Tie up with Environmental Defense Fund (EDF) </li></ul><ul><li>EDF  </li></ul><ul><ul><ul><...
Waste Reduction  <ul><li>Task Force  - </li></ul><ul><ul><li>4 sr. Managers(McD) + 2 scientists + Economist(EDF)  </li></u...
Waste Reduction  <ul><li>1 McDonald generated .12pounds waste per customer , 238 pounds on premise waste per day </li></ul...
Lifecycle Assessment
Initiatives <ul><li>Brown Bags  – 100% recyclable </li></ul><ul><li>Corrugated Boxes  -  35% recyclable mandate  </li></ul...
Sandwich Packaging <ul><li>Abandon polystyrene clamshell packaging </li></ul><ul><li>New Packaging – 3 areas  </li></ul><u...
Layered wrapping <ul><li>Reduce waste </li></ul><ul><ul><ul><li>Less volume of boxes </li></ul></ul></ul><ul><ul><ul><li>L...
 
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Mc Donalds

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Mc Donalds Operation Management

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Mc Donalds

  1. 1. McDonald’s Corporation- Operation Management
  2. 2. Contents <ul><li>Mc Donald’s history </li></ul><ul><li>Competitors </li></ul><ul><li>Operations: </li></ul><ul><li>Supplier side </li></ul><ul><li>Customer side </li></ul><ul><li>Environmental Issue </li></ul><ul><li>Franchisees </li></ul><ul><li>Product innovations </li></ul>
  3. 3. History <ul><li>1940 First McDonald’s </li></ul><ul><li>1952 Attempts at franchising </li></ul><ul><li>1954 Milk Shake Machine </li></ul><ul><li>1955 prototype opens in Des Plaines, IL </li></ul><ul><li>1956 14 McDonald’s </li></ul><ul><li>1961 McDonald brothers sell rights </li></ul><ul><li>1965 McDonald’s go public </li></ul><ul><li>1968 Introduction of Big Mac and shift to Network Television </li></ul><ul><li>1970 1600 restaurants </li></ul><ul><li>1980 6000 McDonald’s Restaurants </li></ul><ul><li>1990 record sales </li></ul>
  4. 4. History Continued <ul><li>1994 Kuwait City, Kuwait </li></ul><ul><li>2002 Forty seven years after </li></ul><ul><ul><li>30,000 locations </li></ul></ul><ul><ul><li>2000 new restaurants </li></ul></ul><ul><ul><li>World Wide Web </li></ul></ul><ul><ul><li>McDonald’s a recognized Brand Name </li></ul></ul>
  5. 5. Competition - Rivals <ul><li>Customer Service </li></ul><ul><ul><li>McDonald’s is currently ranked last amongst its top competitors in the FFHR subsector. </li></ul></ul><ul><ul><ul><li>#1 – Burger King </li></ul></ul></ul><ul><ul><ul><li>#2 – Wendy’s </li></ul></ul></ul><ul><ul><ul><li>#3 – McDonald’s </li></ul></ul></ul><ul><ul><li>- Three competitors hold 73% of the FFHR market </li></ul></ul>
  6. 6. Competition - Rivals <ul><li>Burger King – 14% </li></ul><ul><ul><li>Wendy’s – 13% </li></ul></ul><ul><li>Other strong competitors </li></ul><ul><ul><li>Sonic – 6% </li></ul></ul><ul><ul><li>Jack in the Box – 4% </li></ul></ul><ul><ul><li>Hardee’s – 3% </li></ul></ul><ul><ul><li>White Castle – 1% </li></ul></ul>
  7. 7. Operations: Supplier Side “ You have got to be deaf, dumb & ignorant to loose Mc Donald’s business once you have it”
  8. 8. Supplier Side Contd..
  9. 9. Customer Orientation
  10. 10. Franchisees <ul><li>More than 30,000 resturants in more than 119 countries </li></ul><ul><li>They want to be their own boss </li></ul><ul><li>Selling a well established, high quality product </li></ul><ul><li>Excellent training </li></ul><ul><li>Continuous support </li></ul><ul><li>Benefit from national marketing carried out by </li></ul><ul><li>McDonald’s </li></ul>
  11. 11. McDonald & Environment <ul><li>Tie up with Environmental Defense Fund (EDF) </li></ul><ul><li>EDF </li></ul><ul><ul><ul><li>Assess McDonald's solid waste stream </li></ul></ul></ul><ul><ul><ul><li>Suggest ways to improve it </li></ul></ul></ul><ul><li>EDF - founded in 1967 to stop spraying spread of DDT </li></ul>
  12. 12. Waste Reduction <ul><li>Task Force - </li></ul><ul><ul><li>4 sr. Managers(McD) + 2 scientists + Economist(EDF) </li></ul></ul><ul><li>Action Plan </li></ul><ul><ul><ul><li>Comprehensive </li></ul></ul></ul><ul><ul><ul><li>Incremental Solutions </li></ul></ul></ul><ul><ul><ul><li>Environmental Action – Ongoing feature </li></ul></ul></ul><ul><li>Suggested – 42 new features around 3R’s </li></ul><ul><ul><li>Reduction Reuse and Recycle </li></ul></ul><ul><li>Initiatives would cut waste at 8500 US restaurants by 80% </li></ul>
  13. 13. Waste Reduction <ul><li>1 McDonald generated .12pounds waste per customer , 238 pounds on premise waste per day </li></ul><ul><ul><li>OTC waste 21% , BTC waste -79% </li></ul></ul><ul><li>Stressed on reducing waste during the entire lifecycle – Acquisition , Manufacturing & distribution </li></ul>
  14. 14. Lifecycle Assessment
  15. 15. Initiatives <ul><li>Brown Bags – 100% recyclable </li></ul><ul><li>Corrugated Boxes - 35% recyclable mandate </li></ul><ul><li>McRecycle USA – Before EDF , spend $100mn on using recycle products </li></ul>
  16. 16. Sandwich Packaging <ul><li>Abandon polystyrene clamshell packaging </li></ul><ul><li>New Packaging – 3 areas </li></ul><ul><ul><ul><li>Availability , Functionality & Cost </li></ul></ul></ul><ul><li>Perform in 4 areas – </li></ul><ul><ul><ul><li>1 st – food warm , 2 nd – food tasty , 3 rd – easy to handle , 4 th – meet standard of appearance </li></ul></ul></ul><ul><li>3 layer wrapped </li></ul><ul><li>Affected – 5 suppliers </li></ul>
  17. 17. Layered wrapping <ul><li>Reduce waste </li></ul><ul><ul><ul><li>Less volume of boxes </li></ul></ul></ul><ul><ul><ul><li>Less industrial pollution </li></ul></ul></ul><ul><ul><ul><li>Layered wrapping lower in volume so less weight disposable </li></ul></ul></ul>

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