For the strategy Assignment 1, read the Closing Case on “Trouble at McDonald’s” on page 139, then:

For the strategy Assignment 1, read the Closing Case on “Trouble at McDonald’s” on page 139, then:

Answer the case questions 1-6
Prepare a PPT (suggested guideline: 10-15 slides), this is the submission format. Adequate integration of applicable course concepts is critical.

ANSWER

Trouble at McDonald’s Case Study

What functional-level strategies has McDonald’s pursued to boost its efficiency?

• Standardization strategy of its operation’s processes such as in the order taking, food making, and service providence to maximize customer experience and employee productivity.
• Optimization of the company’s supply chain by developing closer ties with suppliers hence cost reduction.
• Maximizing on its R&D to ensure effective market search and develop new innovative products that meet the changing demands among customers.

What functional-level strategies has McDonald’s pursued to boost its customer responsiveness?

• Reinforcement strategy of its workforce through incentives and excellent compensation keeps them motivated to provide exemplary customer service and solve their problems effectively.
• Presence of online platforms for transactions, ordering and giving customer feedback.
• Standardization of service providence processes for quick, excellent, and consistent service.
• Integration of cost leadership strategy by offering low-priced meals hence increased demand.

What does product quality mean for McDonald’s? What functional-level strategies has it pursued to boost its product quality?

• Product quality is an integral aspect of the providence of service in McDonald’s, as it has standardized and optimized its processes to ensure consistent quality of products is achieved and a clean environment with maximized sanitary protocols followed.
• Optimization of the company’s supply chain by developing closer ties with suppliers hence cost reduction and its procurement sources by ensuring quality raw materials such as purchasing high-quality coffee beans.
• Integrating a quality management system and culture, including clean working environments, better working equipment, and ensuring water is filtered.

How has innovation helped McDonald’s improve its efficiency, customer responsiveness, and product quality?

• Enabled expansion of operating centers hence increased restaurants due to quick and consistent services.
• Enabled system automation and process optimization resulting in improved customer providence and efficiency in order taking, food making, and service providence, hence increasing productivity.
• Process automation, especially in coffee-making, has shortened customer waiting time, enhanced customer service providence, and increased platforms of execution such as mobile and web platforms.

Do you think that Mc Donald’s has any rare and valuable resources? In what value creation activities are these resources located?

Rare and valuable resources include efficient human resource development, financial resources seen in the low prices and cots leadership strategy, economies of scale, global expansion, and an effective supply chain network. They are located in its global structure, procurement activities, distribution network, and inner activities of order taking, cooking process, and service delivery.

How suitable is McDonald’s competitive position in the fast restaurant business?

McDonald’s is well-suited and highly competitive as it is an industry leader and cash cow for three reasons. They include a cost leadership strategy, speedy delivery services, value-added activities, innovativeness, and high quality.