Develop Good Business Sense

Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.

The restaurant industry is recognized for elastic low margins that can make it hard to contend with a cost leadership marketing strategy. McDonald's has been to a great degree effective with this strategy by offering essential fast-food meals at low costs. They can keep costs low through a division of labor that enables it to contract and prepare inexperienced employees as opposed to trained cooks. It additionally depends on couple of managers who ordinarily gain higher wages. These staff savings enable the organization to offer its foods at bargain costs.

Depending on what type of business will depend on what type of OMM system they will pick to help them run their business. Resurants will usually have a POS system that will help them organize their menu and make it easier to track their food costs and ordering transactions. Each business can set the pos system to be compatiable with their business. For instance Taco Bell and Subway 's both have the POS system, however very differernt menus. Being able to customize the system give them an advantage to be able to have their own style for the employess to learn and master. They tend to keep the systems simple because it is easier for the staff to learn and understand. The POS sysetems can track labor costs, food costs, inventory, and sales. Which give any member of management an advantage to running a lower cost store or

Portillo’s became the unsurpassed leader in the fast causal dining industry because my systems required maintaining unbelievably high standards. I never took short cuts or compromised quality to justify a heartier bottom line. I knew that if I ever lowered my standards our very devoted customers would simply leave to find something better. I see stagnating sales and believe that its starting - our faithful customer base is starting to go away and we have to fix it. We have to return to the place where our employees love their jobs. Their enthusiasm will translate to cleaner stores, better quality food, faster service and eventually healthier

The moderate growth rate of the restaurant industry results in many competitive rivalries and the nature of business allows customers to switch freely. Therefore, among porter’s five forces, the pressures from substitute products tend to drive the most competition in the restaurant industry today (Restaurant 2015). In addition, restaurants face the threat of customer’s ability to choose other leisure activities such as going to the movies, bowling, or other social outings (Restaurant 2015). To effectively compete under such conditions, restaurants are heavily investing in brand building to create customer loyalty. Another trending strategy used to increase customer returns is servicing beyond food and beverages; restaurants are heavily investing in providing individualized, memorable and entertaining

Mergers of national food suppliers, ever-increasing national restaurant chains and customer loyalty to major national brands create real problems for independent restaurants that lack the buying power of big restaurant chains. In fact, small restaurant operations often spend up to 40 percent more on the supplies that big chains and group purchasing organizations or GPOs pay for identical goods.

Another aspect that would require training is maintaining the freshness guarantee of the business; training for appropriate supply purchase is necessary for the new owner in order to avoid any sort of change of quality ingredients. Other training is also needed for the actual management of the restaurant. Using the same style that has already been established as successful in the restaurant is the best model to continue with the new owner in order to ensure that there is not an increase in wait time or degradation in quality of service, which is after all, what this business relies on for success (Bowie & Buttle, 2012). It is also important for the new business owner to consult the Henry’s in regards to their pricing of their products in order to avoid alienation of their consumers.

The central thesis of this paper examines the organizational structures of McDonalds, Burger King, and Wendy’s food restaurants. It will examine the comparison and contrast of the organizational structure of McDonalds with Burger King, and Wendy’s Corporations. What functions influence McDonalds, and explains how the organizational design helps determine the structure that best suits McDonalds needs, as a business.

Remaining profitable in the restaurant industry is a requirement conceivably not considered as difficult for common chains like Taco Bell, Panera and Starbucks. Many factors impact the sustainability of cash flow for the restaurant industry when looking at changes in market trends for a product, menu pricing, and inventory management. Consistent to each of the parent companies for these restaurants however, is the need to ensure adequate and positive cash flow to satisfy the corporation’s stakeholders. An evaluation of these three parent companies to identify potential cash flow problems will consider each firm’s long-term profitability, offer observations on cash flows and potential risk from the potential investor’s perspective.

“According to the most recent statistical survey, 60% of the restaurants fail within three years of the operation and others show the figure as high as 90%” (Ramy, 2008). A company cannot control all these factors of business environments for example domestic environment, global environment, political-legal environment, economic environment, technology environment and others. (Ebert & Griffin, 2015).

The founder of McDonald has revolutionized the way world eat. Ray Kroc brought the Henry Ford secret of success of the assembly from the auto industry to the food industry’s kitchen by making product that were uniform, inexperience, and quality manufacturing (Staff). As McDonald continue to grow, owner Ray Kroc continue to improve the process to make the restaurant run more efficiently, but the world has changed. A process that worked in the 1950’s no long hold purpose today and companies will have to make changes for the future or risk being left behind.

McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonald's global business is operations management, which focuses on the careful control of processes that are used in manufacturing and distribution of goods and/or services.

Whether in Moscow or Massachusetts, the same experience would greet a customer in any of the 12,611 McDonald’s quick-service restaurants worldwide. McDonald’s had distinguished itself in the quick-service industry through its remarkable consistency across all units. To competitors and customers alike, the Golden Arches—the corporate emblem that adorned every restaurant— symbolized pleasant, fast service and tasty, inexpensive food. In the United States alone, McDonald’s served over 20 million customers every day.1 Although such a number testified to the restaurant chain’s success, it also suggested a troubling question for management. With McDonald’s

There is a higher level of substitute availability and low switching cost of consumers. Fast foods can be easily replaced by meals and restaurant or home-made food. There are many fast food restaurants which can substitute the hamburger of McDonald’s, such as Burger King, KFC, Wendy’s and White Castle. In order to gain competitive advantage, McDonald’s has competed with the competitor in terms of quality and customer satisfaction by maintaining the quality of raw material that is being used for the organizations. McDonald’s ensures that the quality of products able to meet all the requirements under a category of good manufacturing by monitoring all the suppliers is under the conformity of quality control. Moreover, McDonald’s had to promote healthier fast foods and put effort on marketing to retain its image since there is an increasing awareness of people about the fast food have brought the detrimental effects on health and hence customers are switching to substitute products with better nutritional values. (adamkasi,

To start off, the organization in the Fast Food Industry is extremely complex. On the basic level, restaurant will usually comprise their workers with Crew Members, Crew Trainers, Maintenance Members, Preparation Members, and Crew Leaders. The industry organizations will divide the crew into these patches in order, for them to achieve their business goals. Typically, we will see industry leaders such as McDonald’s divide their management staff in many segments. This would include Floor Supervisors, Swing Managers, First Department Managers, Second Department Managers, Third Department Managers, and the General Managers. This gives the restaurants a variety of staff and more promotion opportunities that could be exceeded in the restaurant. Beyond the restaurant we will see Patch Managers, District Managers, Opps Managers, the CEO if the company is not bought out, and then the Board of