Presented By:

Group No. :- 05
Group Members:
CASE  Adarsh Kumar Mishra (110005)
 Avinash (110013)
SOLUTION  Kalyani (110021)
McDonald’s Corporation  Mona Ranjan (110029)
 Prayag Pushkaram (110037)
 Rohit Kumar (110045)
 Siddhant Ranjan (110053)
1. What attracts you to McDonald’s? Explain McDonalds Value
proposition. How does McDonald’s operating system deliver the value
proposition? Which characteristics of McDonalds production system have
been most important in building its record of success and growth in the
industry?
What attracts you to McDonald’s?

 Quick Service
 Value for money Products
 Wide Variety
 Customization
McDonald’s value proposition would include

Convenient locations
Improving equipment's
Comfortable seating and in-store facilities
Fast and efficient service
Consistent quality menu items
Good value offering and pricing
A broad range of food choices – suitable for a variety of ages
Monitoring and training franchise &its worker and employees.
How does McDonald’s operating system deliver the value
proposition ?

McDonald’s, deliver their overall value proposition to customer by

ensuring uniformity and consistency in the quality and price of their
products.
McDonald’s provide customization offer along with the wide variety of
product.
McDonald’s keep regular check on the innovation and study what goes
right and what failed.
They focus on 3 categories of KPI i.e. Quality, Service and Cleanliness
and later they added one more to it i.e. Value.
Which characteristics of McDonalds production system have
been most important in building its record of success and
growth in the industry?
The uniform and consistent taste and service in every McDonald’s outlet all over
the world at every time.
McDonald’s have standardize their preparation method.
 McDonald invented cooking efficient equipment tailored to the restaurant’s
needs.
 It regularly analyzed meat and potato supplied to its laboratories
McDonald revoutionalised the entire supply chain by introducing innovations,
altering processing method- the way they grow potatoes.
 Achieving success through simple formula of limited products with wide
variants, low prices and fast services.
2. Explanation for how McDonald’s developed its supplier base. How did the
relationship with suppliers help the organization to achieve growth?

• In its quest to improve and enlarge its supplier base, McDonald

revoutionalised the entire relationship between corporation, supplier and
franchisees.
• Kroc brought a supplier loyalty that the restaurant business had never seen.
• By meeting McDonald's strict standards and price requests, suppliers were
guaranteed future volumes from a burgeoning restaurant chain. A supplier
described the
• McDonald never chisel on price. They were rather more concerned about
quality of product
• It treated every supplier with due respect even when they became much
bigger unlike other firms who look suppliers as someone to wall on.
• an improved supplier and corporation relationship provided the company
with the desired product without delay and thus speeding up the
McDonald's service.
• This improved handshake further provided the firm with ample space to
experiment with its food processing techniques.
3. Compare McDonald's operations strategy with A typical
restaurant, specifically with respect to how it grow over years.
Explanation for how the company effectively linked its
operations to its competitive strategy?
Comparison of McDonald's operations strategy with A typical
restaurant
McDonald
• It offered consistency and uniformity
across all its outlets.
• It revoutionalised the entire supply
chain introducing innovation in altering
process method, inverting efficient
cooking equipment.
• It introduced a concept of supplier
loyalty.
• It sought to elicit commitments that
required experimentation.
• It introduced a new meal- breakfast thus
maximizing its business.
A typical restaurant
• Most typical restaurants haven't been able
to bring the discipline needed in fast food
to get that type of consistency
• Never before had a restaurant cared about
its suppliers products beyond price, let
alone suppliers method of operations.
• Ignored both franchisees and suppliers
• Most restaurant remained opened from 11
am to midnight.
Explanation for how the company effectively linked its
operations to its competitive strategy?
• McDonald's had built the most successful quick-service
• franchise in the world.
• McDonald's responded with double drive-through windows to keep pace with
changing consumer preference, as well as new venues for its restaurants, such
as schools, sporting arenas, museums, airports, and hospitals.
• It also developed new smaller restaurants, less expensive than its traditional
designs, which could service customers profitably in 'seam' areas between
existing McDonald's restaurants.
• To address concerns about nutrition,
• McDonald's had introduced salads, chicken and muffins.
4. Explain McDonalds approach to innovation (in terms of
bringing new products to market) with example.

Functional Innovation Concept:-

• Kid's gadget (Eg. Happy Meal that comes with toy)
• Food safety and quality standards (Nutrition facts on the food they serve)
• Being Green (Eg. Unbleached paper napkins used from recycle material,
'One Meal, One Napkin', McRecycle)
• Packaging by availability, functionality and cost ( Brown Bags, Corrugated
Boxes, Sandwich Packaging)
Technological innovation Concept:-

• Drive-Thru, where customers can order McDonald's meals on the go,

• Online/Phone ordering & delivery 24/7
5. What are primary new challenges McDonald’s faced in 1990’s?
How have competitors been able to successfully enter
McDonald’s marketplace?
Challenges faced in 1990’s

• To what extent should McDonald’s change its operations strategy to

accommodate the growing need for flexibility and variety in products?
• To what extent would environmental concerns compromise McDonald’s
traditional strengths and complicate an already challenging competitive
situation?
• Could the lessons learned in the recent collaboration with the EDF help
McDonald’s as it sought solutions to the continuing competitive challenge?
How have competitors been able to successfully enter McDonald’s
marketplace?

• Competitors had an easy entry to McDonald’s market because they imitated

its strategies to capture market share.
• Giants like Chili’s and Olive Garden catered to customers searching for full
service and greater variety, and that too at more competitive prices than
McDonald’s, which focused on only a handful of dishes.
• Sonic and Rally’s offered drive-through service only and specialized in
delivering burgers fast.
• Taco Bell featured 26 Mexican items with costs under $1. It also shifted its
food preparations to outside suppliers to reduce kitchen space in outlets.
6. How has McDonald’s operating system changed over time to
achieve competitive advantage over rivals? What are McDonald’s
Choices for future? What options should it consider to return to the
growth of the past? Should it introduce family dining?
How has McDonald’s operating system changed over time to
achieve competitive advantage over rivals?

• Standardization and uniformity

• Product development keeping in view the consumers’ tastes and preferences
• Introducing salads, chicken and muffins
• Simple formula-limited menu, low prices and fast service
Choices for future

• Consistency and quality through standardization

• Allowing autonomy to franchisee
What options should it consider to return to the growth of the past?

• To provide autonomy to franchisee

• Provide greater variety
• Imitate its customers’ strategies
Should it introduce family dining?

• Yes, it should introduce family dining.

• It is very much in demand.
• It can provide a very strong customer base.
7. Why McDonalds went in for collaboration with the EDF when it
was already having the McRecycle USA program? Do you think
collaboration increased the challenges for company

• McDonald's and EDF began a groundbreaking partnership to reduce

McDonald's solid waste. The project team analysed McDonald's U.S.
operations, including restaurants, distribution centres and suppliers. We set
out to help them find ways to reduce, reuse and recycle as much as they
could.
• Over the next decade, McDonald's eliminated more than 300 million
pounds of packaging, recycled 1 million tons of corrugated boxes and
reduced restaurant waste by 30 percent. As a result of these and other
packaging changes, McDonald's also saves an estimated $6 million per
year.
Cont...

Lasting impact

• Since this effort, EDF has launched many partnerships with market
leaders, blazing a path for non-profits partnering with companies. In
2005, they secured a commitment from retail giant Walmart to reduce
the environmental footprint of the company's operations and the
products it sells.
 8. Explain the activities of the waste reduction task force for
reduction of solid waste. Can the lesson learnt in the recent
collaboration with EDF help McDonald’s as it sought solutions to
continuing competitive advantage?
• On August 1, 1990, McDonald's and Environmental Defense Fund joined
forces in a groundbreaking partnership to find ways to reduce McDonald's
solid waste. The project team examined McDonald's materials use and solid
waste issues in its U.S. operations, including restaurants, distribution centers
and suppliers.
• The goals of the partnership focused on the following:
• Reduction: Using less material
• Reuse: Introducing re-usables throughout the supply chain
• Recycling: Return materials to productive use
• Composting: Recycling organic materials when possible
Cont...
• As a result of the partnership, in April 1991 McDonald’s announced that it
had made many changes to their packaging and waste management
systems, including:
• Switched from polystyrene foam "clamshells" to paper-based wraps for its
sandwich packaging, providing a 70-90% reduction in sandwich packaging
volume, reducing landfill space consumed, energy used and pollutant
releases over the lifecycle of the package
• Converted to unbleached paper carry-out bags, coffee filters and Big Mac
wraps
• Reduced paper use by 21% in napkins, and incorporated 30%
postconsumer recycled content
• Asked suppliers to incorporate 35% postconsumer recycled content into all
corrugated shipping boxes
THANK
YOU