DOC-20250104-WA0001.

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McDonald’s Corporation Case

Analysis
McDonald’s Value Proposition
• What Attracts Customers:
• - Consistent quality, affordability, quick
service, and convenience.

• How Operating System Delivers:


• - Standardized processes.
• - Efficient supply chain.
• - Optimized kitchen workflows.
Characteristics of the Production
System
• - Standardization of operations.
• - High-speed assembly-line processes.
• - Rigorous quality checks.
• - Scalable franchising model.
Supplier Base Development
• Development:
• - Long-term supplier contracts and shared
investments.
• - Supplier integration into quality systems.

• Impact on Growth:
• - Ensures cost-efficiency and consistent quality
globally.
Comparing Operations Strategy
• McDonald’s vs. Typical Restaurant:
• - High-volume, low-cost, standardized service
vs. localized and customized menus.

• Growth Factors:
• - Franchising, operational innovation,
centralized supply chains.
Linking Operations to Competitive
Strategy
• Competitive Strategy:
• - Cost leadership, consistency, convenience.

• Operational Linkages:
• - Standardized processes.
• - Efficient supply chains.
• - Strategic locations.
Innovation Approach
• McDonald’s Innovation:
• - Menu diversification (e.g., McCafe, regional
items).
• - Technological advancements (self-order
kiosks, apps).
• - Sustainability initiatives.
Challenges in the 1990s
• Key Challenges:
• - Shift toward healthier eating.
• - Competitive pressure from Subway, Burger
King.

• Responses:
• - Menu expansion, tech integration,
sustainability efforts.
Future Choices
• Options for Growth:
• - Expand healthier menus, delivery services.
• - Explore digital and AI-driven efficiencies.

• Family Dining?:
• - Could align with demographics but risks
diluting fast-food identity.
EDF Collaboration
• Why Collaborate?:
• - Leverage expertise for sustainability
credibility.

• Challenges:
• - Balancing costs with eco-goals.
• - Public scrutiny.
Waste Reduction and Lessons
Learned
• Activities:
• - Recycling initiatives, biodegradable
packaging.

• Lessons from EDF:


• - Sustainability as a competitive advantage.
• - Enhanced brand loyalty and efficiency.
Summary and Q&A
• Summary of Key Insights
• Thank you! Questions are welcome.

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