Mcdonalds : Provider With The Assessment Answer

Business Background

McDonald’s is the world’s largest food service provider with the huge revenue of $40 billion through its system-wide sales. The operations of the company largely cover more than 200 countries from six different contents of the world with the presence of more than 30,000 restaurant chains. The company obtains the benefits from its enormous organizational structure and satisfying financial position in the global market. These factors significantly contribute to the enhancement of brand name and global presence for the company. With the strength of its organizational structure, the company able to serve almost 58 million people every day. Numerous branches of the company spread across the major locations of the world. The operations of these branches are monitored and controlled by the effective contribution from the efficient staff base, support staffs, and senior administration. Hence, it is important to highlight the organizational structure of McDonald’s for providing suitable understanding.

(Fig 1: Organization Structure of McDonald’s; Source: businessresearcher.com 2012)

The growth and success of the financial position and organizational structure of McDonald’s are highly proliferated by the significant direction offered by the company’s strategies. The strategy of McDonald’s highly contributes to the basic alignment of operations within the company. The primary strategy of the company is developed by providing key focus to the franchisees and suppliers. These two factors are collectively referred to as the “System”. Over the course of operations, McDonald’s has continuously able to identify, execute, and measure the ideas and approaches for satisfying the rapidly changing customer needs and preferences of the global market. This particular scenario is highly possible by increasingly leveraging on the System. In addition, the company strategy drives the creation of certain business model supporting the constant delivery of locally relevant restaurant experiences to the consumers for promoting the activities to be the integral part of the specific community.

(Fig 2: Operations of McDonald’s in the US Market; Source: aboutmcdonalds.com 2015)

(Fig 3: Yearly Performance regarding Revenues of McDonald’s over the Past One Decade; Source: statista.com 2016)

Customer Target/Needs

(Table 1: Logistics Value Profile of McDonald’s; Source: create by the author)

McDonald’s is the world’s leading food service providers with the help of the increasing brand name and reputations throughout the major countries of the world. Therefore, the company should need to maintain its reputation from the logistical perspective during the product delivery process. The food items should need to be delivered by McDonald’s within the proper time while maintaining a reasonable price level to capture the increasing attention of the market consumers.

McDonald’s is one of the very few companies that has availed an instant recognition virtually all the leading countries in the world. One of the major challenges faced by McDonald’s is related to the management of stock, which is an important factor for managing the needs of the customers from the target market. Stock management deals with bringing proper balance between the customer needs and reduction of waste. In the past, stock ordering system was developed by the company managed by the managers of the restaurant. The process was conducted by using the local knowledge and information about the store sales based on the previous operating days. Hence, the process was highly time-consuming resulting in the managers to provide less emphasis on delivering quality food and services to the customers.

Due to the identified scenario, the company has launched a central stock management function called “Restaurant Supply Planning Department” for developing effective communication with the restaurant managers and gaining information about the local events. The factors ascertain from the process support the formation of new planning and forecasting system for McDonald’s assisting the forecasting of likely demand of the target market.

Current and Desired Position (200 Words)

(Fig 4: Present Market Position of McDonald’s in the Respective Industry; Source: aboutmcdonalds.com 2016)

McDonald’s is one of the most successful companies in the world that had started its operations as a small business. The company ultimately achieved the desired goals and success by continuously aligning its operations in line with the vision statement of the firm. The significance of the company’s vision has ensured it to become a family-friendly and fast food operator providing low cost meals to the customers at the superior quality. Apart from that, McDonald’s has adopted some number of activities like marketing and communicating initiatives to communicate with the target markets more clearly. It helps the company to determine the specific needs of the target market and serve accordingly. Due to the implications of the activities, the company has gained the rapid market growth ultimately contributing the achievement of higher competitive position within the chosen market. However, the current prices of the products delivered by McDonald’s are slightly higher in prices causing the company to take longer time for achieving the desired position within the market.