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COMPREHENSIVE HISTORY

1948: Richard and Maurice McDonald open the first McDonald's restaurant in
San Bernardino, California.

1954: Ray Kroc gains the rights to set up McDonald's restaurants in most of the
country.

1955: Kroc opens his first McDonald's restaurant in Des Plaines, Illinois; he
incorporates his company as McDonald's Corporation.

1960: The slogan, "Look for the Golden Arches," is used in an advertising
campaign.

1961: Kroc buys out the McDonald brothers for $2.7 million.

1963: Ronald McDonald makes his debut.

1965: McDonald's goes public.

1967: The company opens its first foreign restaurant in British Columbia, Canada.

1968: The Big Mac is added to the menu.

1973: Breakfast items begin to appear on the menu, with the debut of the Egg
McMuffin.

1974: The first Ronald McDonald House opens in Philadelphia.

1975: The first McDonald's drive-thru window appears.

1979: The children's Happy Meal makes its debut.

1983: Chicken McNuggets are introduced.

1985: McDonald's becomes one of the 30 companies that make up the Dow
Jones Industrial Average.

1998: The company takes its first stake in another fast-food chain, buying a
minority interest in Colorado-based Chipotle Mexican Grill.
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1999: Donatos Pizza Inc. is acquired.

2000: McDonald's buys the bankrupt Boston Market chain.

2002: Restructuring charges of $853 million result in the firm's first quarterly loss
since going public.

2003: McDonald's sells Donatos in order to refocus on its core hamburger

business.
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OPERATIONAL STRATEGY

To make McDonald's operation strong, effective, and efficient as well as to gain

a larger share and increase value, they utilize certain operational strategies.
One of their essential operational strategies is to maintain their supply chain
management in order to facilitate the efficient and effective production of their
goods and the implementation of excellent services.

As you can see, McDonald's has three-dimension operational process strategies

and they are as follows:

1. The first one is value. In this strategy, McDonald's makes use of a standardized
training process for the purpose of improving their employees so that they will
learn how to do their job correctly and efficiently. The employees have assigned
tasks in which they will work systematically and repetitively to maintain the
quality of their company's products. Additionally, McDonald's utilizes this strategy
to increase their employees' rate of speed and provide their customers products
and services with great value.

2. As for varieties, McDonald's enhanced their menu by offering a variety of

quality products that are affordable for their customers. In order to make their
high-quality products affordable, McDonald's makes strong, efficient processes
and procedures throughout its whole organization.

3. When it comes to variations, they make use of their well-organized processes

in order to accommodate the changing capacity of their customers' demands
as time goes by.
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CORPORATE and BUSINESS STRATEGY

Corporate Strategy

Expansion Strategy

A Market Development plan has been implemented by McDonald's to

expand into emerging markets. The Golden Arches have already achieved
unrivaled success in Tokyo, Seoul, and Beijing. There are numerous additional
Asian markets that promise great sales, market share, and profit.

Franchising

More than 80% of the company's restaurants are now owned and run by
franchisees. It has been able to successfully replicate its business model not only
in the United States, but all over the world.

Adaptation Strategy

McDonalds struggles to maintain uniformity of quality and cost for its shops
in Russia. Wholesalers are employed to buy meat, potatoes, buns, veggies, milk,
soft drinks, and other items. This has an impact on product quality and profit
margins, as well as market share and costs.

Business Strategy

Value for Money

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The company has created new dishes like the Buffalo Ranch McChicken
and Jalapeño McDouble. In the past, McDonald's menu focused on high-value
items such as cheeseburgers and McCafe milkshakes, but it has since moved its
focus to lower-priced items.

Customer Service

McDonald's has decided to eliminate several of its more conventional

menu items, such as Big Macs and Quarter Pounders. Customers should expect
to receive their orders within one minute of placing them during peak traffic
hours (lunch and supper rush times).

Brand Marketing

McDonald's is attempting to gain customers' trust in the quality and brand

of its products. Salads, iced tea, sugar-free drinks, fruit juices, and other
low-calorie and/or low-carbohydrate alternatives have been added to the
menu.

Menu Standardization

McDonald's has implemented menu customization in many nations of

operations. This has made menu items more difficult to prepare and hence
raised customer wait times. To standardize and simplify its menu items,
McDonald's is emphasizing on sugar-free drinks, juices, and breakfasts.

Digital Marketing

McDonald's first digital marketing officer was hired in 2013. More young
people are visiting McDonald's than ever before because to digital marketing,
according to the data. The problem for McDonald's Corporation is the reduction
in sales and market share among families. In order to engage and target a
younger online audience through social media networks like Facebook and
Twitter.

Breakfast Menu Items

McDonald's has just added a morning menu that includes coffee,

milkshakes, and pastries. Jack-in-the-Box serves breakfast 24 hours a day, seven
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days a week. McDonald's could consider following in the footsteps of one of its
smaller regional competitors.

OPERATIONS MISSION/S

So, McDonald’s consider the costumers preference on Their menu. This is why
McDonald’s has different specialties around the world. Just like, Poutine in
Canada, Taro pie in China, Big Brekkie Burger in Australia, Cheesy egg desal in
Philippines and a whole lot more. McDonald’s wanted to be the Customers’
favorite way to eat and drink so they have different layout and design that
would enhance their costumer's experience. This is why they introduced the
McCafé. Other McDonalds franchise doesn’t have rice like in Philippines.All in all,
McDonald’s want to achieve their mission by prioritizing costumer's preferences,
open more franchise, and reach a good profit.

OPERATION OBJECTIVE/S

McDonald's operation objective is to reduce the cost of their products,

especially for people who need affordable food. Increase the product quality
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so that people will be satisfied with what they're eating at McDonald's.

McDonald's is one of the fast-food restaurants that is well-known for its
fast-serving meals. Also, McDonald's is collaborating with vendors who meet all
of the company's value standards.

STRATEGIC DECISION/S IN FIVE OPERATIONS DECISIONS

GOODS AND SERVICES DESIGN

The sizes and delivery prices of its products are based on the most common
expectations of consumers the good and services design is arranged for their
costumer need to be neat and beautiful arrangement of each meal they serve
to the costumer, and if we will notice that all McDonald's branches have the
same process of their good and services design to serve the costumes.

MANAGEMENT OF QUALITY
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To ensure consistency in food quality, McDonald's uses a production line

system that uses machines to consistently design their products so that every
meal they serve is more pleasing to the customer's eyes.

STRATEGY FOR LOCATION

The purpose of McDonald's in this strategic decision area of operations

management is to expand its market reach as much as possible.

MANAGE YOUR INVENTORY

The purpose of McDonald's in this strategic decision area of operations

management is to keep restaurant operations running smoothly while lowering
inventory expenses.

MAINTENANCE

Managers or franchisees of McDonald's restaurants have the option of choosing

their own maintenance service providers. McDonald's Corporation, on the other
hand, has certified/approved maintenance suppliers for its kitchen/production
equipment.

DISTINCTIVE COMPETENCE

Good day everyone. My name is Nurhessa Pangandamun and I will be

discussing about the Distinctive competence of McDonalds.
But first let me discuss what Distinctive competence means…
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Distinctive competence refers to a superior characteristic, strength, or

quality that distinguishes a corporation from its competitors. This distinctive
quality is almost anything—innovation, a skill, design, technology, name
recognition, marketing, workforce, customer satisfaction, or maybe being first to
market. This unique aspect of the corporate, product, or service is difficult to
imitate by the competition and creates a powerful competitive advantage.
Whatever it's that a corporation does well is described as a competency.
Distinctive competence could be a difficult-to-imitate characteristic, strength, or
quality. As a result, distinctive competence gives a corporation a competitive
advantage.

You will also come across Core competence. At first you may thing that
they are similar but they are actually different. Since Core competence …

Core competence refers to anything that an organization does well and is

critical to a company’s value-generating activities and overall business
performance.

Now what are the Distinctive competence of McDonalds.

Franchise monitoring

⮚ Standard recipes

⮚ Uniformity in menu

⮚ Rigorous monitoring of quantity and quality of both raw materials and

finished/cooked ready-to-serve food

⮚ Extensive checking procedure including safety & quality

⮚ Unannounced inspection & audits

⮚ Same restaurant/kitchen layout

Customized menu
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⮚ Costumers taste preferences

⮚ Laws and customs

⮚ Diverse

⮚ Pricing (Affordable meals)

⮚ Supply chain (Multiple franchises all over the world)

Trade Marks

⮚ Restaurant décor & designs

⮚ Method of operation

⮚ Marketing activities

⮚ Standard recipes

⮚ 24/7 Open (in some branches)

And the most important is …

Think Global - Act Local

⮚ McDonald’s tailored their menu to the specific customer tastes in other

parts of the world. A complete American appeal may be detrimental.

⮚ They value creation strategy that connects the supplier to employees

then to costumers.

⮚ Target highly consumable and acceptable foods for costumers (ex. Rice)

In Conclusion, All these are to …

To build a Competitive Advantage against other similar establishments
To build lasting relationships with the employees, suppliers, franchises and
most importantly with the costumers (emotional appeal)
To have a trade mark/brand that is recognized every where
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Ang pinaka Distinctive competence ng mcdo ay ang kanilang operation

management system. Kung papaanu nila pianpatakbo ang kanilang company
as a whole.