What kind of business ownership is mcdonald adopting

It has established quality centres all around the globe for the purpose of quality review. This council is made of technical and safety experts as well as supply chain specialists.

Suppliers and outside academia are also a part of this council who advise on food safety practices. This helps the company manage all the aspects of food safety. Another area where the company has partnered with its suppliers is innovation.

It works in tandem with its suppliers to encourage innovation and to ensure that the correct standards are closely followed. It also helps assure that the best practices are being followed and the system continuously improves on them. In this regard the company collaborates with suppliers and leverages its scale, infrastructure and risk management strategies to derive the best results. Over the longer term, this will help the management keep the costs of raw material, paper and equipment under control.

By the end of , the number of company operated restaurants was 3, whereas that of the franchised restaurants was 34, The number of restaurants in U. Apart from U. A large global network of restaurants serves millions of customers every month. The number of total restaurants grew by around in compared to Operations and operational processes are like the fundamental building blocks of organizations that decide the productivity of the organization and the quality of their output as well.

Focusing on operational efficiency helps businesses find faster growth both domestically and internationally as well as maximize output. Many times, if the efficiency of processes is low then it is mainly because the company has adopted a poor operational design.

Processes across business organizations and industries can differ significantly and that is why all processes need to be managed differently. Some of the leading differences between various processes are due to the types of technologies and know-how involved. Different processes require different production equipment as well as different skills and know-how.

However, apart from these things, the difference also lies in the nature of the demand for the products and services these processes produce. There are four particular characteristics of demand that have a significant impact on process management and which are as follows:. Does the business being discussed produce a large amount of the same products and services or many items in small volumes?

If the volume of output is high, it indicates repeatability or high-level familiarity of the process. Many times since a large business produces more and more of the same thing, it helps the business gain significant expertise in a particular area. The company may also acquire a significant competitive advantage compared to the smaller ones. The company has maintained a strong global presence through a large number of company-operated and franchised restaurants. The company is headquartered in Chicago, Illinois, United States.

Over time, the company has also innovated its menu greatly. In the case of the franchise-operated restaurant stores also, the company provides the required knowhow and training to run the stores and produce the menu items.

Over time, the company has also gained significant expertise and efficiency in this area which has become a source of competitive advantage for it. The company has leveraged its competitive advantage to maintain its leading market position. There are no major changes in processes that can happen overnight. Variety denotes the various types of operational activities being performed by a company.

The level of operational complexity can be higher in the case of the mixed model manufacturers that have to continuously switch between various processes.

In that case, apart from a large range of inputs required for producing the output, the company would have to deal with the additional complexity of matching customer requirements to the products or services. The high variety processes are generally more costly as compared to the low variety processes.

However, several businesses employ both high and low variety processes. The company sources its raw material from the local suppliers in various geographical markets.

Apart from that, the company produces and serves food products locally inside the restaurants. There is no major switching between various processes and that allows the company to handle a large volume of orders without difficulty. As in the case of the restaurant industry, businesses are mostly engaged in low variety processes. These processes are also not very costly and the raw material can also be found easily in the local markets. In fact, this is one of the most challenging aspects of business operations.

It is easier for businesses to manage the processes when the level of demand is predictably constant. However, when demand can fluctuate significantly then managing processes becomes a lot more complex. If demand is predictably constant, it is easier to gear resources to efficiently cater to the existing demand, Moreover, businesses can plan operational activities including marketing and sales or after-sales services in advance.

On the other hand, if the level of demand varies significantly or can be highly variable or even unpredictable, then resources will need to be adjusted over time. What is even worse is that if demand can soar unpredictably, extra resources need to be devoted to the process such that it provides a capacity cushion that can easily absorb the unexpected demand. Demand for a large range of products surges suddenly during the festive season including gifts, electronics, home decor products as well as fashion products.

Businesses like Amazon need to remain ready to cater to the fast surge in demand that happens during the festive season. However, compared to the technology or retail businesses, the level of uncertainty or fluctuation in demand is generally much lower in the case of a fast-food brand. It is because the demand for fast food remains predictably constant during most seasons. Moreover, the demand for fast food does not significantly increase or decrease during the holiday season.

However, since a large number of people are at their homes during their holidays, they would like to visit restaurants and that can lead to a small surge in demand during the holiday period.

Apart from that the demand mostly remains predictably constant and companies do not have to face significant surges. There are certain factors that may cause a decline in demand for fast food as happened due to the spread of Coronavirus. So, there are rare cases where demand can significantly rise or fall for a fast-food brand.

This is also a rather complex aspect of business operations to grasp. It denotes that aspect of business operations that is easily visible to the customers. The businesses that work with consumers directly may have more visible processes. For example, the healthcare and retail industry have more visible processes.

However, the same is not true about an automobile business. Customers generally do not have a very clear view of the production and distribution processes of automobile brands. They cannot peep into everything that goes on before the finalized cars reach the showrooms.

This is the only aspect of automobile operations that they are generally familiar with. It is also true about businesses like Apple inc.

However, when it comes to businesses like Amazon or even Facebook, these are highly customer-facing businesses or customers have very high visibility into their operations. These are also some businesses for which transparency and accountability matters a lot.

Customer trust and business accountability have continued to gain significance in the modern era. The company carries out its sales as well as marketing from its stores. Since store operations are the most visible aspect of its business, they also have the most significant influence on demand apart from product quality. Apart from that the company also strives to provide its customers with an in-store dining environment that helps them relax and enjoy their food. To run an organization, a well-defined set of operations performance objectives is essential.

There are five basic performance objectives applicable to all types of business operations. These five basic operations objectives include cost, dependability, flexibility, quality, and speed. There are both internal and external implications of these five performance objectives. Moreover, the internal effects of these performance objectives have a definite impact on cost. This is the first leading operational performance objective. Quality also has a direct and significant effect on customer satisfaction.

However, what quality implies for business varies on the basis of the industry it operates in. For example, quality acquires a different meaning for an automobile business and for a technology business.

The same quality standards will not apply to the two businesses. Quality can acquire different meanings in different settings or industry environments. While in some industries, staff friendliness and customer service are the main measures of quality, product quality, and performance might be the main indicator of quality for another. However, no matter whatever industry a business belongs to, customers appreciate quality is a fact.

Quality bears a direct and major influence on not just customer satisfaction but also on organizational performance. Growth for any business is not possible without quality and compromising quality in most cases leads to loss of customers and financial performance. This is just as true about the fast-food industry as any other industry. Consumers have become highly health-conscious and if fast food brands do not focus on the quality of food they serve, they will lose both their customers and reputation.

It has acquired a very large customer base by expanding its presence internationally and throughout the globe, it operates its business through the help of company-operated and franchised stores. It is why the company focuses on maintaining consistent quality standards throughout the system. Apart from food quality, the company also focuses on maintaining the highest quality standards in the other aspects of its business operations including supply chain management. The company sources only from reliable suppliers and the ones that offer the highest quality raw material whether they are supplying vegetarian products or non-vegetarian products.

This has helped the company manage a strong reputation in the market and stay ahead of the rival fast-food brands. Speed has also become an important factor affecting organizational performance.

The growth of digital technology has led to a higher focus on both speed and efficiency. Speed has become a central concern like product quality, prices, and operational efficiency for nearly every industry. A large range of services is being bought and consumed online. Not just in manufacturing or services industries but in the other industries too speed matters more than ever.

It is because companies need to deliver their products or services to the consumers in a timely manner. They have to serve fresh food to their customers whether customers dine in the restaurants or order their food from their homes. Due to the spread of Coronavirus , a large number of restaurants have opted for online delivery or drive through models.

So, fast food brands have changed their operating models in order to suit the need of the time. The company has to source fresh raw materials and serve fresh items before their customers. Dependability also implies reliability or trust that customers place in a business. Brand equity is a leading strength for any business and companies take it more seriously than anything else in order to find market growth. How dependable your business is or how much your customers trust your business decides your overall influence in the industry as well as the markets where your business operates.

There are a large number of factors that affect reliability or dependability in each industry. For example, it is the quality of the product and its efficiency that matters in one industry, in the other it is the product design apart from product quality as well as how well a company markets itself that affect dependability. Brands must only make promises that they can keep since if your product or services fall below their expectations, it will hurt your brand image and reduce your dependability.

The kind of customer experience that you offer to your customers also affects your customer experience. Moreover, the focus on dependability must also remain due to the fact that the level of competition in most industries is very high. The company has been highly successful at growing its influence in the fast food industry through its focus on product quality and marketing. Its growth is a direct result of a consistent focus on product quality, customer service, and marketing.

Building a dependable brand requires focus upon all these aspects of business operations and consistent efforts to build trustful relationships with customers. In the era of digital marketing and digital shopping, companies have to focus more than ever on customer relationships to remain a dependable brand in the eyes of the customers. Flexibility means the ability to change what, how, and when operations do.

There are four types of flexibility in general that are applicable to business operations. The fact that every Its growth strategy is based on Retain, Regain, and Convert. In addition, it has also adopted three accelerators, Digital, Delivery, and Experience of the future in the US, to power immense growth.

Each member of the organization is not only committed to its work but also actively participates in any sort of exchange of information. What might surprise one is that it is quite silent considering the number of companies acquired by it ever since its establishment.

Boston Market is a fast-food restaurant chain which primarily focusses on home-style food. It supports its employees in every possible way and enables them to set up business networks.

Mentors, role-models, and sponsors are available at all the times to guide the network members on all the aspects of effective leadership, career strategies, and prosperous business. They actively engage in community services and continue to make a significant impact on diverse communities.

The Global Diversity, Inclusion and Community Engagement Team along with its key partners has built treasured relationships with various community-based organizations.