Free Essay

Ikea Slowly Expands Its Us Market Presence

In: Business and Management

Submitted By Autumn30
Words 504
Pages 3
McDonald's is the leading global food service retailer, with more than 33,000 local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated independently. McDonald’s is categorized as a fast-food restaurant that serves mainly hamburgers, fries, and beverages, with the main focus on product and service quality, speed and accuracy.
McDonald’s uses Cost Leadership Strategy in combination with Operational Excellence Strategy. A Cost Leadership Strategy is a strategy an organization follows when it wants to be the lowest-cost producer in its industry. Operational Excellence is a philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process. This company is creating value, based on price, combined with customer service. Cost Leadership Strategy allows McDonald’s to keep production costs and customer prices low; meanwhile, Operational Excellence helps maximize the efficiency of the product development process to minimize costs, but creates a competitive advantage on operational excellence. Employees need to identify and follow efficient processes and engage in improvement practices. The big advantage of McDonald’s is mainly consistency, fast service, quality, and global coverage. This means that a traveler from the U. S., who wants to purchase a McDonald’s product in Asia, knows exactly what he will get. Consistency is very important for a lot of people who don’t like to experiment and by trying different food; that’s why McDonald’s is so successful. Another big advantage of this company is innovation, and listening to people and their needs, and wants. McDonalds staffing strategy consists of priorities, policies, and behaviors required to manage the flow of talent information. First of all, the company has to identify their Vision and Mission in order to hire qualified employees. Those two statements are public and it is each employee’s responsibility to research what the company stands for and if the applicant fits into the culture in order to work in harmony.
The centralized stock management system generates many benefits. Many of these are for restaurants and Restaurant Managers. However, customers also benefit through improved customer experience customers can eat a quality product, in a clean environment, when they want it.
[pic]
Efficient stock management is essential to any business. It enables the business to operate in a responsible way. The system also minimizes waste. Efficient use of materials means that society's resources are being used well with very few waste products. For example, fewer materials end up as waste in landfill sites. This leads to a reduction in costs. Due to lower costs, McDonald's can pass the benefits on to customers, providing better service and lower prices. The reduction of waste provides a win/win/win situation for McDonald's, its customers and wider society.

Reference:

1. Why McDonald's wins in any economy - Fortune Management

management.fortune.cnn.com/.../why-mcdonalds-wins-in-any-economy/‎

2. Economics for Managers, Farnham, Paul G. (2010) 2nd edition

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