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

Operations Strategy - Coursework ExampleThe musical theme begins with business description and SWOT analysis of each of these terzetto fast-food chains. From the SWOT analysis and business background information the paper shall identify the key operations performance objectives for each smart set and relate them to their warlike factors. The paper shall then conclude by identifying which internal performance objectives that McDonalds, Subway and KFC need to focus on in their operations strategy if they are to remain 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 retailer in the world. McDonalds revenues come 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 myriad of factors stip ulated 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 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 East and Africa (APMEA), and Europe. The multitude 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. similarly 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 huge internationalist presence enables it to benefit from economies of scale that bring down its costs which suppo rts its low-cost pricing strategy. Additionally, this huge international presence, allows the company to spread risk thus so as to reduce negative effects that may emanate from poor economic performance of certain countries. The McDonalds brand, which is among the worlds best cognize 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 additive strength for McDonalds comes from its large real estate portfolio. McDonalds real estate operations bring in large revenues and allow it to open more stores. Moreover, the strategic location of McDonalds outlets in areas of high visibility, traffic volume and ease of access further strengthen its brand recognition. The company has also proceed to innovate in terms of its menu variety for example introducing limited offers, introduction of healthy salads and shakes and restaurant re-imaging. McDonalds Plan to Win strategy that focuses o n 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 being 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 Rivalry among competitors in retail fast food industry is desirous 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 nil