Operations Management Case Study

Locating and Laying Out the Fast Food Business

OR

Abstract:
The case explains the various business strategies adopted by McDonald group since its inception. In 1948, Richard and Maurice McDonald opened a burger and fry outlet at San Bernardo. By 1961, McDonalds became a company, which offered value to its customers and shareholders. McDonald treated the delivery of fast food as a manufacturing process rather than a service process. As a result, it provided cutting-edge, efficient services by minimising deviation in the service experience from customer to customer. He also came up with the concept of ‘customising the service experience’ by designing a new product for health conscious consumers called the McLean Deluxe. As part of expansion, McDonald opened its first outlet in Delhi in 1996. To counter competition in fast food business, they introduced ‘Made for You’, system, where cooking began after the orders were received so as to ensure the freshness of the products. The case study deals with the identification of a suitable location for McDonald in Hyderabad.

Pedagogical Objectives:

The case study may be used for understand:
• Understanding the service-system design matrix
• Identification of a suitable facility location for a manufacturing setup.

Keywords : Operations Management, Service-Sysytem Design matrix, Facility Location, Manufacturing Setup, Business Startegy, Manufacturing Process, Service Process, Customized Service, Customized Service Experience, Deamnd, Fixed Cost, Service Assembly, Centr of Growth Method, Multi-Attribute Mode,, Factor-rating, Point Rating, Transpotation Model Course Case Mapping