production ppt of mcdonald
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The document provides an overview of McDonald's business including their vision, mission, values, strengths, weaknesses, opportunities, threats, product life cycle, competitive dimensions, product range, plant layout, service process design, inventory, and transformation process. McDonald's aspires to end hunger globally by providing low-cost, high-quality food. Their strengths include largest market share and ability to adapt menus to local tastes, while weaknesses are negative publicity around unhealthy food and low-paying jobs.
production ppt of mcdonald
- 3. Vision We aspire to end hunger one meal at a time by providing low cost- high quality nutritional food globally. Mission & Values McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.
- 4. S.W.O.T ANALYSIS Strength Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). More than 80% of restaurants are owned by independent franchisees. Therefore, McDonald’s can focus more on perfecting its serving system and marketing campaigns. Children targeting. The business successfully targets very young children through offering playgrounds, toys with its meals and advertisements. Locally adapted food menus. The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or European consumers. Thus ability to adapt to local tastes is one of McDonald’s strengths.
- 5. WEAKNESSES Negative publicity. McDonald’s is heavily criticized for offering unhealthy food to its customers, stimulating obesity and strong marketing focus on very young children. Unhealthy food menu. Although McDonald’s tries to introduce healthier choices in its menu, the menu is largely formed of unhealthy meals and drinks. Such menu offering prompts protests by organizations that fight obesity and hence, decreases McDonald’s popularity. Mac Job and high employee turnover. Mac Job is a low paid and a low skilled job, which is often seen negatively by its employees. This results in lower performance and high employee turnover, which increases training costs and add to overall costs of McDonald’s. Low differentiation. McDonald’s is no longer able to substantially differentiate itself from other fast food chains (at least not enough to gain some market share) and opts to compete by price rather than by additional features.
- 6. OPPORTUNITIES Increasing demand for healthier food. While demand for healthier food increases, McDonald’s could introduce more healthy food choices in its menu and reverse its weakness into strength. McDonald’s is trying to seize such an opportunity and soon plans to open only vegetarian restaurant in India. Home meal delivery. Full adaptation of its new practices. McDonald’s should finish remodeling all of the restaurants and adapt the best practices in them as soon as possible. Changing customer habits and new customer groups. So far, the company has been successful in introducing its McCafé, McExpress and McStop restaurants to meet the changing customer habits and the needs of previously untapped customer groups
- 7. THREATS The fast food market in the developed countries is already overcrowded by so many fast food restaurant chains and this already proves to be a threat to McDonald’s as it barely grew through 2012. Trend towards healthy eating. Due to government and various organizations attempts to fight obesity, people are becoming more conscious of eating healthy food rather than what McDonald’s has to offer in its menu. Local fast food restaurants can often offer a more local approach to serving food and menu that exactly represents local tastes. Although McDonald’s does a great job in adapting its own menu to local tastes, the rising number of local fast food chains and their lower meal prices is a threat to McDonald’s.
- 8. PRODUCT LIFE CYCLE OF MCDONALDS: Marketing continuously monitors customers’ preferences. In order to meet these changes, McDonald’s has introduced new products and phased out old ones over time, and will continue to do so. The type of marketing undertaken and the resources invested will be different depending on the stage a product has reached. For example, the launch of a new product will typically involve television and other advertising support. At any time a company will have a portfolio of products, each in a different stage of its cycle. Some of McDonald’s options are growing in popularity while arguably the Big Mac is at the ‘maturity’ stage.
- 9. COMPETITIVE DIMENSIONS FOLLOWED BY MCDONALD'S: We strive to be cost leaders and offer our food at prices that cannot be matched by our competitors. In order to do this, your store must be efficient and keep everyday operations costs as low as possible. Doing so, will allow for our stores to be superior to other fast food restaurants because we can serve our food at lower prices than any other fast food company. Another important competitive advantage we have here at McDonald’s is the speedy delivery of our food. In order to maintain this advantage over other fast food chains, you must make the processes of cooking food simple for all your employees. It must be easy to learn and easy to execute with a low failure rate to ensure the quick production and delivery of your food. Customer Loyalty Unique Merchandise Vendor Relations Location Customer service
- 10. THE PRODUCT RANGE OF MCDONALD'S Breakfast - Ala Carte Breakfast – Meals Hot Cakes Small Sandwiches Large Sandwiches MEDIUM EVM's Happy Meal Drinks Shakes
- 11. PLANT LAYOUT layout refers to the specific physical facilities. minimize delays in materials handling and customer movement maintain flexibility use labor and space effectively promote high employee morale and customer satisfaction provide for good housekeeping and maintenance enhance sales as appropriate in manufacturing and service facilities
- 12. SERVICE PROCESS DESIGN With McDonalds, a major impact on their customers is there Face to Face interaction. Whether it be drive thru or dining inside, McDonalds has a huge customer base serving billions a day. Dealing with so many customers McDonalds has to be very flexible, and since no two customers are usually the same, McDonalds has to make sure to please everyone and they do this very efficiently and utilize customized service.
- 13. INVENTORY McDonalds is considered a JIT inventory operation meaning "Just in Time" another company that uses this same technique, is Dell. This means that McDonald's doesn't begin to cook or reheat food until a customer has placed a specific order. This prevents extra food from being used and cuts cost because inventory can still be kept and not thrown out. JIT inventory operation One is lowering the ratio between ordering costs and holding costs, and shortening lead times. The results is an operation with high holding costs, and that ordering very small batches very frequently is the most profitable solution.
- 14. TRANSFORMATION PROCESS OF MCDONALD’S INPUTS TRANSFORMED RESOURCES: Materials: are the ingredients including beef, fish, chicken, salad ingredients, buns, milk… and that are delivered to MCDONALD’S restaurants in one lorry under 3 sections ; chilled, ambient, and frozen ; for being converted into finished products on the FIFO basis to remain the freshness. Packaging: MCDONALD’S uses boxes of burgers, tumblers for drinks and various bags for chips. This fast food restaurant uses cardboard because it is clean, recyclable and that what’s make a responsible and ecological company as well as to insure the convenient freshness and safety of its products. Customers: consumers of all ages, from children to elderly people and families, MCDONALD’s is for all classes but mostly for working and middle classes. TRANSFORMING RESOURCES: Facilities: kitchen equipment, such as equipment of food concession and food processing . etcStaff: restaurants staff, restaurant management, office staff and franchisee staff, these people are working in delivering a high quality of services and products to the MCDONALD’S customers.
- 15. PRODUCTIVITY Output quantity: the burgers made in a second, so for MCDONALD’s , they make 75 simple burgers in a second. Input quantity: are the factors used in the production of the burger, which are 9 factors: labor, energy, packaging, bread, beef, cheese, onion, ketchup, gherkin. Productivity= 75/9= 8,333333333 In order To Increase the productivity for MCDONALD’S they have: - To produce more burgers with the same amount of inputs, or, - To produce as many with fewer inputs.