This document provides an overview of McDonald's operations and business strategies. It describes McDonald's success overcoming financial losses in 2002 through improved growth strategies. It also discusses McDonald's emphasis on food quality consistency through strict supplier penalties and tests. However, some critics argue that McDonald's marketing contributes to child obesity and uses manipulative advertising tactics. Nonetheless, McDonald's sees opportunities for expansion in China and other developing markets through strategies like drive-through locations. The document concludes with a SWOT analysis that identifies McDonald's strengths in branding and processes but also weaknesses in flexibility and threats from health trends and competition.

1. BIG MAC
Inside The McDonald's Empire

2. Objectives
• To describe the summary of the CNBC’s report
• To know the causes behind McDonald’s success
• To know the strengths, weaknesses, opportunities and
threats

3. McDonald's operation in its
outlet in Darien, America
• Biggest McDonald’s
outlet
• Owner Operator George
Michelle
• Operations Manager
Tyrone Davis
George Michelle and Tyrone Davis (Left)

4. Overcoming the 2002’s
quarterly loss
• This happened because of
a growth strategy
• For company executives
like, President Don
Thompson it was a
wakeup call
McDonald’s CEO James A Skinner

5. The McDonald's #1 Store Museum is housed in a replica of the former McDonald's
restaurant
in Des Plaines, Illinois, opened by Ray Kroc in April 15, 1955.
History of McDonald's

7. McDonald's test kitchen
Dan Coudreaut, executive chef and director of culinary innovation for McDonald's Corporation

8. McDonald's food quality
consistency
• Deborah Mc Daniel is the
head of McDonald’s food
innovation and menu
management
• There are penalty test for
each supplier

9. Controversy: increase in
child obesity
• More than nine million
children in US are obese,
said Food critic and
obesity expert Kelly
Brownell
• Marion Nestle,
“McDonald's is a
business and its job is to
sell more foods, it doesn’t
care what kind of food it
sells”
Marion Nestle, professor of
nutrition food studies and public
health at NY University

10. Controversy: advertising at
the cost of children
• Manipulative marketing
• But McDonald's said its
marketing aims to push
the children to healthier
direction
Ronald McDonald

11. McDonald's expansion in
China
• Jeff Schwartz, CEO of
McDonald’s China thinks
that the opportunity is
endless here
• Mainland China has 800
outlets of McDonald’s
• McDonald’s saw an
opportunity in there
called Drive-through
(Drive-Thru).
• lot of competition
• food safety concern
McDonald's in China

12. McDonald's Operations
Management
Design of Goods and Services
• Providing affordable products
• Satisfying their customers as their changing expectations
Quality Management
• Maximizing product quality within constraints
• Maintaining product quality consistency
Process and Capacity Design
• Cost-minimizing
• Maximizing efficiency and capacity utilization through production line
method
Location Strategy
• Establishing locations for maximum market reach
Layout Design and Strategy
• Maximizing space utilization in restaurants and kiosks

13. McDonald's Operations
Management (continued)
Job Design and Human Resources
• Training for skills needed in the production line in restaurant kitchens or
production areas
Supply Chain Management
• Getting more suppliers from different regions to reduce McDonald’s
supply chain risks.
Inventory Management
• Minimizing inventory costs while supporting restaurant operations
Scheduling
• McDonald’s adapts to local market conditions
Maintenance
• The company addresses this strategic decision area of operations
management through local and corporate control.

14. SWOT Analysis
Strengths
• Strong brand
image
• Moderate
market
diversification
• Standardized
processes
Weaknesses
• Limited
process
flexibility
• Low product
diversification
• Vulnerability to
Western market
decline
Opportunities
• Expansion in
developing
countries
• Market
development in
the Middle East
• Product
diversification
Threats
• Aggressive
competition
• Healthy
lifestyles trend
• GMO
(Genetically
Modified
Organism)
trend and
regulations

15. Thank You