Essay on Mcdonalds Operation Strategy

1555 Words Oct 23rd, 2010 7 Pages
McDonald’s utilizes an excellent operations strategy in order to gain a larger market share and increase value to the shareholders. The corporation specifically focuses on speed, standardization, quality, and affordability. McDonalds has moved ahead of the competition by focusing on these factors.
McDonald’s competes on three main bases, such as speed, affordability, and standardization, mainly to make their customers happy. Through extensive market research and surveys, the organization discovered that its customers desired speed as one of the restaurants’ top priorities. Therefore, McDonald’s vision aims to “provide fast, friendly and accurate service” (“McDonald’s Worldwide”). McDonald’s realized that specific targets are necessary
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Speaking of cost, McDonald’s gives value to the customer by keeping more money in the customer’s wallet. Most people that go to McDonald’s don’t want to pay a lot of money for a filling meal; people want to spend a few dollars, get a relatively fresh and flavorful meal, and leave. In other restaurants, people expect to shell out a good amount of money to get waited on, eat a delicious meal, and possibly have the meal packed up to go if they don’t finish eating. However, people enter McDonald’s with no notion of having the food brought out and dealing with a waiter or waitress; the lack of such service allows people to keep more money, which gives the product more value.
A core competency is as a specific factor that a business sees as being central to the way it, or its employees, work. Adherence to quality, new products and location are two essential core competencies of McDonalds. Part of the reason McDonald’s has gained its popularity is because people can rely on McDonald’s consistent production of quality food. McDonald’s gained a positive reputation for their fast food which allowed of global expansion. As of 2007, McDonald’s had over 31,000 restaurants worldwide and served more than 47 million customers around the world daily (McDonald’s Canada). The focus on adherence to quality is established on the McDonald’s website. It states that McDonald’s is devoted to “continue to develop high quality menu offerings that provide our customers with a

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