Operations Strategy Coursework Example | Topics and Well Written Essays - 2750 words

Operations Strategy - Coursework ExampleThe paper begins with business description and SWOT analysis of distributively of these three fast-food chains. From the SWOT analysis and business background information the paper shall identify the key trading operations performance objectives for each company and relate them to their competitive factors. The paper shall then conclude by identifying which inbred performance objectives that McDonalds, Subway and KFC need to focus on in their operations schema if they atomic number 18 to bear competitive in future. 2.0. Business description and SWOT Analysis 2.1. McDonalds McDonalds Corporation franchised and operated a total of 32,737 restaurants in 117 countries as at end of 2010. This essentially makes it the biggest fast-food seller in the world. McDonalds tax incomes find from sales by its own restaurants and fees in form of royalties and rent from its franchised restaurants. Fees levied to these franchises vary depending on a unnumbered of factors stipulated in the franchise agreement that typically runs for 20 years. McDonalds realised sales slightly in excess of US$ 24 billion in 2010 which was a 6 per cent increase all over the 2009 revenue figures (McDonalds, 2011). The business is managed as distinct geographic segments, namely the US, Latin America and Canada, Asia/Pacific, Middle eastside and Africa (APMEA), and Europe. The bulk of its revenues originates from Europe, US and APMEA in that descending order. Within Europe, more than half of the companys revenue comes from three countries France, Germany and the UK. The UK therefore is a major market for McDonalds. Also according to the 2010 Annual Report, restaurants in the U.K., France and Russia are entirely company-operated (McDonalds, 2011, p.14). 2.1.1. SWOT Analysis Strengths McDonalds is the global market leader in the retail fast-food industry. Its vast international presence enables it to benefit from economies of scale that bring down it s costs which supports its low-cost pricing strategy. Additionally, this immense international presence, allows the company to spread risk thus so as to reduce negative make that may emanate from poor economic performance of certain countries. The McDonalds cross off, which is among the worlds scoop out known is another source of strength as the company benefits from all the advantages that accrue due to brand recognition and loyalty such as increased sales. An additional strength for McDonalds comes from its large real estate portfolio. McDonalds real estate operations bring in large revenues and allow it to adequate to(p) more stores. Moreover, the strategic location of McDonalds outlets in areas of high visibility, traffic volume and ease of entrance money further strengthen its brand recognition. The company has also continued to innovate in terms of its card variety for example introducing limited offers, introduction of healthy salads and shakes and restaurant re-im aging. McDonalds Plan to Win strategy that focuses on people, products, place, price and promotion that has been in operation since 2003 is also another source of strength as it shows alignment with the companys corporate strategy. Weaknesses According to Zagats 2011 fast food survey, despite world the global leader in market share, McDonalds was ranked third in the overall ratings of retail mega chains. This implies that the companys average for food quality, facilities and customer service is lower than expected from its strong brand. Threats opposition among competitors in retail fast food industry is intense and it is slowly gravitating towards price competition largely because products and services offered by McDonalds and its rivals are almost identical and there are virtually nonentity