In: Operations Management
Making reference to an organisation that you are familiar with:
QUESTION 1.1 Provide a detailed explanation with examples of the market/task environment of the organisation you selected.
QUESTION 1.2 Identify and detail the activities and initiatives of the following functional areas of management in the organisation you chose.
The Human Resources Function
The Marketing Function
Purchasing Function
Operations function
QUESTION 1.3 Provide a detailed discussion of FIVE (5) management challenges faced by the selected organisation.
it must not exceed 3500 words The length of your answers to each question should be in line with the mark allocation. Your assignment must include a Table of Contents page. All text must be justified at each margin. References- At least 8 academic sources of reference must be used. (These include textbooks, journal articles and internet sources that are relevant to your field of study. Academic sources do not include Wikipedia and blogs). You must include Reference list at the end of your assignment. Information quoted/paraphrased from sources listed in your Reference list must be referenced in-text. The Harvard system of referencing must be used.
Please note that this is 1 assignment made up of 3 questions. So i cannot ask the questions separately.
sl no | topic | |
1 | Macro and task environment analysis | |
2 | activities and initiatives | |
3 | challenges of management | |
4 | reference |
I. Macro and task environment analysis
Political :government policies do not effect the company much .our company enjoys an added advantages in countries where consumer protection laws are not very strong.
Economic: the economy of each country they operate in ultimately affects their results. They must decide whether it’s a smarter decision to purchase raw materials locally or to ship them in. The number of tariffs for imported resources and foreign incorporation taxes plays a vital role in this decision.
Technological:mcdonald’s has a strong need for technology. The tech is necessary to improve staff productivity, communication, and produce food as quickly as their customers expect. They provide free Wi-Fi to encourage more customers to order and stay.
Socio-cultural factors: change or rise in low-carb and low-sugar diets. People are jumping on the intermediate fasting trend
Environmental: activists are promoting sustainability as it is encouraged by most countries and governments so mcdonald has been introduced go green program such as REDUCE, RE-USE, RECYCLE, DISPOSE.
Micro analysis(task)
Employees: mcdonalds totally employees friendly. But criticized for lower wages and having a high turnover ratio
Products and Services: mcdonald has to continuously evolve its menu to meet the low income customers need and to attract new customers. Currently, nutritional value has become very important for customers
Management: management plays a vital role in the progress of any organization. Decisions made by the management will be the asset for the company in a long run
Competitors: For competitors in the promoting states the organization must give more prominent client quality and fulfillment than the rivals do.
Suppliers: Suppliers shape a vital connection in conveying the worth to the clients.In this manner promoting administration must watch supply accessibility and expenses. Supply lack, work stricken and different occasions can harm consumer loyalty over the long haul and rising supply expenses can hurt the organization deals volume.
Customers: Customers are the most imperative performing artist in the micro environment. Mcdonald's serves more than 65 million customers daily with over 35,000 local restaurants in 119 countries
II.activities and initiatives
Marketing activities
The main objectives of your marketing strategy must ensure that the product must fulfill the customers demand as well as maintain a long relationship with those clients. One of the company’s greatest achievements was the opening of the Happy Meal. In year 1970’s, mcdonalds Company was searching a new ways to catch the attention of customers.
Mcdonald’s restaurant has specific value pricing as well as bundling strategy like combo meal, happy meal, family meal and happy price menu in order to improve total sales of the service and product.
Mcdonald’s recruits dynamic and talent people to meet with customers’ satisfaction and keep their reputation at high position.To fill up vacancies for running business
HR activities
Mcdonald’s allows the all employees to participate in the decision making and Restaurant Manager select the employee of the month by assessing performance of the employee in a month then s/he is rewarded £25.
Mcdonald’s provides comprehensive training program for all employees. It allows the merit based promotion. Most of the training at mcdonald’s is floor based or on job training because this procedure is very effective to develop them.
Procurement acitivities
One of the most impressive things about mcdonald's to date is the company's ability to maintain long-standing relationships with suppliers. In some cases, the suppliers that still provide materials for mcdonald's menu items are the same ones that mcdonald's pioneer Ray Kroc negotiated with back in the 1950s. Transparency in Procurement Management Can Win You Customers
Mcdonald’s employs quality assurance directors in every region to ensure that expectations are met in areas of procurement to include food quality and purchasing initiatives. Through its purchasing power, mcdonald’s can implement quality standards that suppliers must adhere to. Mcdonald’s rewards suppliers for improving performance
Operation acitivities
Quality Management. The company aims to maximize product quality within constraints, such as costs and price limits. Mcdonald’s uses a production line method to maintain product quality consistency
Location Strategy. Mcdonald’s goal in this strategic decision area of operations management is to establish locations for maximum market reach. Mcdonald’s marketing mix includes restaurants, kiosks, and the company’s website and mobile app as venues.
. Inventory Management. Mcdonald’s goal for this strategic decision area of operations management is to minimize inventory costs while supporting restaurant operations
Problem with attracting low-income customers for long time.our product still a dream for loe income group
Mcdonalds paying its staff poorly. The company has been hit by protests from workers, many of whom earn the minimum wage despite having been with the company for years. It is losing customers loyality
Changing lifestyle of customers :People are jumping on the intermediate fasting. Rise in low-carb and low-sugar diets
Pressure from investors to turn things around quickly investors alarmed by the company’s poor performance sometimes
Scandal: a supplier to the chain’s restaurants in China was accused of supplying rotting meat and meat expiry dates. There was a near three week shortage of meat products in some of its Chinese restaurants after it suspended orders from the supplier.
Reference
https://www.businessinsider.com/the-7-biggest-challenges-facing-the-new-mcdonalds-ceo-2015-1?IR=T
wess,joe(2019),the service concept of mcdonalds,munich,grinverlag
Lawrence, K. D., & Weindling, J. I. (1980). Multiple goal operations management planning and decision making in a quality control department
Prasad,lm(2017), Human Resources Management, Sultan Chand & Sons,460
http://panmore.com/mcdonalds-pestel-pestle-analysis-recommendations
Mujtaba, Bahaudin.G(2007), McDonald's Success Strategy And Global Expansion Through Customer And Brand Loyalty, Journal of Business Case Studies(3),pp.60-61
https://rejournals.com/the-challenges-facing-mcdonalds/
https://www.grin.com/document/493809
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