Professional Documents
Culture Documents
By
Abhishek Shankar (uemf1600
Ruchira Panigrahy (uemf1601
Flow
Downfall Sales per unit started slowing down between 1990 & 1991
Demographic trends
reshaping American
eating habits
Getting it Right - Again and Again
Develop
Supplier
Relations
hip
Equipmen McDonal
Train &
t ds
Monitor
Improvem Operatin
Franchise
ent g
es
System
Product
Improvem
ent
Supplier Relationship
Meat : 83% lean chuck from grass-fed cattle & 17% choice
Specifications plates from grain-fed cattle
for Raw Fillers were unacceptable
Accepted potatoes with 21% starch content, checked with
Materials hydrometers
Franchisees Relationship
Benefits to Benefits to
McDonalds Franchisees
Philosophy behind Franchise McDonalds made sure the
and operating practices Franchisees would make
money before them
Corporate revenue come not
from initial franchise fee but Being partners developed
from success of restaurants products
(Filet-O-Fish Sandwich & Egg
Franchise owners felt McMuffin)
themselves as partners
Formed powerful regional
Franchisee became the brand
cooperatives for advertising
ambassadors for local
and purchasing
promotions
Product Improvement
French Fries : Identity &
Exclusiveness
By 1985 French fries potatoes accounted for more than 25% of US market
Provided McDonalds & its suppliers sufficient purchasing power to influence the
growers to adhere to planting practices
Market opportunity for Potato processors for storage facilities using temperature
controller
Extensive Research
Company simply monitored the way French fries were cooked in its restaurants
Discoveries of Researchers :
Temperature settings on the fryers had little connection to the temperature of
the oil in the vat once cold potatoes were dropped in.
Fries were always perfectly cooked when the oil temperature rose three
degrees above the low temperature point & hence designed a new Fryer
Potato Curing : 3 weeks
Accepted potatoes with exactly 21% starch content & checked through
hydrometers
From Fresh potatoes to Freezing of potatoes
Designed V-shaped aluminum scoop with funnel at the end to fill french-fry
bag in one motion
Product & Equipment Improvement
ECONOMIES OF RESOURCES
OPERATIONS DEFICIENCIE
SCALE RESOURCES S
Nature of Network
Relationship
MARKET
STRUCTURE MARKET RISKS
Operations Resources
ECONOMIES OF TRANSACTION LEARNING RESOURCES
SCALE COST POTENTIAL DEFICIENCIES
Monitoring
costs for R&D
Market Requirements
COMPETITO
MARKET MARKET MARKET
R
POSITION RISKS STRUCTURE
BEHAVIOUR
KIOSKS
McDonalds much-hyped Create Your
Taste menu, which allowed customers in
about 2,000 US restaurants to build their
own burgers using touch-screen kiosks
Highlights
Characteristics of McDonald's production system for the success &
growth in the industry
Uniform operating system, taste and service in every McDonalds
outlet
McDonalds is very particular in quality of the raw materials they
use
Their concern
Strengths over the franchises and make them to feel as one of
of McDonalds
their partner
Usage of eco friendly packaging, ensuring efficient solid waste
disposal.
Allocation of budget for Research & Development (R &D).
Elasticity in operational time
Streamlining of menu
Future growth of McDonalds
Keep innovating the products, take into consideration the dinner
menu
Developing outstanding supplier relationship
Training and monitoring the franchises
Study the market trend and act accordingly
Use advance ERP and data centres
Necessary changes in ambience space as per requirement