Operations Management of Mcdonald’s

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Table of Contents

The purpose of this report is to analysis how the Value Chain management of McDonald’s contribute to the success of the business and identify the environmental impacts of McDonald’s operations and the ethical issues of McDonald’s supply chain management.

1. Introduction
1.1 McDonald’s History
1.2 McDonald’s Mission
1.3 McDonalds Values

2. Value Chain
2.1Value chain of McDonald’s Restaurants
2.2 Primary Activities
2.2.1 Inbound Logistics-Low Cost
2.2.2 Operations-Fast Service
2.2.3 The Process
2.2.4 Outbound Logistics-Consistent quality
2.2.5 Greater Value than it worths
2.2.6 Marketing and Sales
2.2.7 Services
2.3 Support Activities
2.3.1 Firm Infrastructure
2.3.2 Environment Friendly
2.3.3 Human
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Strive continually to improve, aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation.

2. Value Chain

2.1 Value chain of McDonald’s Restaurants

According to Porter (1985), the value chain model is made up of primary and support activities. The primary activities has 5 components included: Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service. The support activities has 4 components included: Firm infrastructure, Human Resource Management, Technology Development and Procurement.

Thus, what are the key activities which influent most to the creation of customer value from the value chain management of McDonald’s Restaurants? According to Collier, Evans (2011) mentioned, low cost and fast service are the core competencies of McDonald. According to Hill, Jones (2012) mentioned, McDonald’s success was grounded in a simple formula that is give the customers value for money, quick service and consistent quality in a clean environment.

From the above, we learnt that low cost, fast service, value for money and consistent quality are the key activities contribute more strongly to the creation of customer value.

2.2 Primary Activities
2.2.1 Inbound Logistics
Low cost

McDonald’s purchases ingredients from its fixed global suppliers only, therefore by increasing capital and labor, their production will increase proportionately. Low food cost, with the global supply
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