In this chapter we will discuss: McDonald’s operations strategy, global scope of operations and supply chains, supply chain strategy, operations strategy model, emphasis on operations objectives, linking strategies, environmental and sustainable operations. | Chapter 2, Operations Strategy INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Outline McDonald’s Operations Strategy Global Scope of Operations and Supply Chains Supply Chain Strategy Operations Strategy Model Emphasis on Operations Objectives Linking Strategies Environmental and Sustainable Operations Operations Strategy “Operations strategy is a consistent pattern of business decisions for the transformation system and associated supply chain that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.” McDonald’s Operations Strategy Mission: fast, quality, low cost Objectives: process, quality, capacity, inventory Strategic decisions: process, quality, capacity, inventory Distinctive competence: continuous improvement of the transformation process Global Scope of Operations and Supply Chains “Traditional” versus “Global” company, ., companies operating in one country vs. those operating in many. Characteristics of the “Global Corporation” are different from the traditional company. Operations must have a global distinctive competence. Characteristics of “Global Corporations” Facilities & plants located worldwide, not country by country. Products & services can be shifted among countries. Sourcing is on a global basis. Supply chain is global in nature. Product design & process technology are global. Products fit global tastes. Demand is considered on worldwide basis. Logistics & inventory control is on worldwide basis. Divisions have world-wide responsibility. Supply Chain Strategy Should aim at achieving a competitive advantage for the entire supply chain. Two type of supply chain strategies: Imitative products (. commodities) Predictable demand Efficient, low-cost supply chain Innovative products (. new technologies) Unpredictable demand Flexible, fast supply chain Firms must choose the right . | Chapter 2, Operations Strategy INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Outline McDonald’s Operations Strategy Global Scope of Operations and Supply Chains Supply Chain Strategy Operations Strategy Model Emphasis on Operations Objectives Linking Strategies Environmental and Sustainable Operations Operations Strategy “Operations strategy is a consistent pattern of business decisions for the transformation system and associated supply chain that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.” McDonald’s Operations Strategy Mission: fast, quality, low cost Objectives: process, quality, capacity, inventory Strategic decisions: process, quality, capacity, inventory Distinctive competence: continuous improvement of the transformation process Global Scope of Operations and Supply Chains “Traditional” versus “Global” .
