McDonalds :: essays papers

McDonaldsThis is an exciting and interesting essay to write for a number ofreasons. For one its an honour to represent a research on one of the mostprofitable societies of the world, for second because the kindness ofMcDonalds employees and the precision of McDonalds Web site, areperfect sources for all kind of instruction that can help analyse by dint of Porters value drawstring, all the aspects of its value creation.In the late 1940s, Dick and Mac McDonalds were searching for a way to alter their little drive-in restaurant in San Bernardino, California,U.S.A. they invented an entirely new concept based upon speed service,low prices, and big volumes. Word of its success spread quickly, in1952 they had more(prenominal) than 300 franchising inquires a month from all all overthe country. McDonalds is now the largest and best-known foodserviceretailer and one of the two best-known and powerful brands in themarket. With more than 24,500 restaurants in 115 countries, some ofthose ope rated by the company, some by franchisees or by affiliatesoperating under joint-venture agreements. The orbiculate market potentialis still massive yet on any day, even as the market leader, McDonaldsserves less than one percent of the worlds population. The restaurantchain plans to expand their leadership position through convenience,superior value and excellent operations. The effort to increase market region, profita bility and customer satisfaction has produced highreturns to shareholders a compound annual total earning of 21% overthe past 10 years. McDonalds vision is to dominate the world-widefoodservice industry. Universal dominance means setting theperformance standard for customer satisfaction and increasing marketshare and profitability through successful fulfilling McDonaldsconvenience, value and execution strategies. A precise way ofconsidering McDonalds role of operations is through Porters valuechain analysis. The Value chain breaks down the firm into itsstrategic ally relevant activities, in order to understand the behaviourof costs and the existing or potential sources of differentiation. Afirm gains combative advantage by performing these strategicallyimportant activities more cheaply or better than its rivals. For acompany which feeds some 38 millions clients every day, finding areliable quality supplies is a major factor for success. McDonalds hassolved the problem by making food supplies part of their success.McDonalds distributors are strategically to be accessible to the eachrestaurant and carry practically everything, from meat and potatoes tolightbulbs. Coca-Cola, the right well-known drink, has been withMcDonalds from the beginning supplying beverages. McDonalds isincreasingly using its leverage to capitalise upon global purchasingpractices. New restaurants throughout Europe feature tabletops fromBelgium chairs, floors and tiles from Italy doors from Austria etc.