INTRODUCTION TO ENGINEERING

ASSIGNMENT 1

By: M.Faraz Awan

Section: ME 10 C
 Mc DONALD’S CASE STUDY:

STAKE HOLDERS:

SR# NAME DESIGNATION

1 Dic and Mac MacDonald Founders
2 Ray Kroc National Franchising
Agent
3 Fred Tuner CEO
4 Michael Quinain Chairman
5 Rene Arend Professional Chef
6 Kennth Smargon Shortening Supplier
7 Ed Rensi President
8 Jim Williams Meat Supplier
9 Jack Simplot Potato Supplier

IDENTIFICATION OF ISSUES:

ISSUE BASIC INTERMEDIATE

Flexibility and Extent of variety in products *
Consistency in quality *
Trusted Suppliers *
Change in demographic trends *
Competition from other Companies *
Environmental & Health Issues *
Analytical Review:
A number of new chains are making their place in quality services and are
providing the customers a wide range of discounted menus and quality food. This
competition is not only coming from arch rivals i.e. Burger King, KFC, Hardees but
also from new startups like ‘Chills’ and ‘Olive Gardens’. Moreover, people are now
moving toward the trend of taking the food with them instead of dining in. Sonic
and Rally’s offer drive thru and have specialized in speedy delivery. Also, the
company had the basic principle to keep the Menu short in order to keep
homogeneity in the products being served. This leads them to the problem that
they can only offer a limited range of variety to the customers while other chains
are expanding with their variety and new yummy stuffs. Moreover, people are
now more concerned about the environment and hygiene. As a quick service meal
giant it is very important for McDonald’s to find an economical and eco-friendly
way to give things packed hygienically too. If, for instance, the variety is
introduced and number of menus are to offered at Mc Donalds then the issue of
quality main arise which is the basic vitality for their sales and business. Another
important issue is the supplier chain. Trust suppliers are of great significance as
they assure you of having best quality food and products.

Alternatives:
The competition Mc Donalds is getting from other chains is an
important issue and for it’s eradication some important steps should be taken. As
in this case we need to increase the amount of products being offered. So, the
main focus is to add new items and step out of the conventional practice and
maybe start offering which is the present trend. The basic problem of Suppliers is
of prime importance as well. To maintain the signature quality we need products
with specified properties. So, to do better lets give more focus on ‘developing
outstanding supplier relations’ and improve equipment. As McDonald’s uses
specific proportions of the materials like 83% lean chuck from grass fed cattle and
17% of choice plates from grain fed cattle. Similarly, the starch content in
potatoes was also specific. If you want to maintain the quality you need to have
good relations with suppliers so that he cultivates the product according to your
requirements and treat them as the team. We need to put our trust in the
suppliers and ask them to help us regarding our supply line. The demographic
trends which are changing continuously need to be taken seriously. As, the people
now being busy prefer to eat on the move or to get it in their plates. So, giving a
drive thru in every location would be the best way and the other thing would be
the fast and speedy home delivery service. Provide the customers with good and
hygienic food.

More Alternatives:
Flexibility and Extend the menu. Step out of the
conventional practice and make food healthy and maintain quality.

Criteria for Decisions:

Increase in sales and market share.

Remedial Action:
When it comes to remedial action, only best quality along with best
quantity and variety can serve this. The basic aim is to regain the trust of people
by assuring the same quality and providing the new items. Let’s, bring
transparency and give the calorie count for the health concerned people. And to
maintain the quality introduce the system of franchise scorecard, only those
franchisees will get future stores who have maintained the best quality. Also,
arrange the monthly corporate tours. And to check the demographic trends we
can introduce a mobile app. The app will collect data like age of the customer,
preferred type (chicken, beef etc.), time of order and location etc. This will help to
know the trends hence adapting ourselves in the new environment.