USE OF TEAMS

Using Teams in Production and Operations Management

[Institution Name]Table of Contents

Introduction2

McDonalds Corporation2

Market Share and Financials of McDonalds3

Global Presence of McDonalds4

McDonald's Production and Operations Management5

Product Planning6

Capacity Planning6

Location Planning6

Process Planning7

Supply Chain Management7

Inventory Management7

Quality Management8

Maintenance8

McDonald's Strategy to Brawl Recession8

Conclusion9

References10

Using Teams in Production and Operations Management

Introduction

Production and Operations Management are a key area of excelling in the competitive market. A vital characteristic of Operations Management is helping companies improve their customer service levels and reduce cost over time (Johnston, 2007). McDonald's have achieved heights in its profits and cost leadership through effective operations management by their productive team.

Furthermore, the relation between operations management and use of teams will be discussed. Use of teams in an efficient and effective manner helps improve the processes in operations management. This, in turn, helps the strategy of the organization. The international organization I have chosen for this paper is McDonald's Corporation. McDonalds being the multinational corporation well known and well established across the globe.

The market share, financials, global presence and the complete production and operations management of McDonalds Corporation are discussed in this paper. A highlight of their dealing with economic and financial crisis along with their approach of communicating with their customers and employees is also mentioned.

McDonalds Corporation

McDonalds is working as the largest worldwide chain of fast food restaurant with over 31 thousand restaurants serving more than 1.5 million consumers. The corporation has spread over its branches in more than 119 countries (McDonalds, 2011).

The concept of 'Speedee Service System' was established by Dick and Mac McDonald in San Bernardino, California in the year 1948 with the establishment of modernized fast food restaurants. Ray Kroc, founder of McDonalds, formed the corporation on 2nd march, 1955. Today, McDonalds is serving approximately 47 million customers around the world every day.

In all the McDonalds restaurants across the globe, many key operations are being performed to comply with the corporate strategy of McDonalds. The integrated operations and production management of McDonalds are purely team based and the success of their business underlies this business strategy.

Market Share and Financials of McDonalds

The financial position of McDonalds closes by the end of December each year. In the year 2010, the financials show 67.43% of sales by company operated restaurants 32.57% revenue was generated from franchised restaurants. Furthermore, company operated restaurant expenses were dropped down by 54.25% (SAN, 2011).

The company is doing very well with its current financial position. The rising trend of the growth of McDonalds is due to their efforts to control their expenditures and have managed to earn higher margins compared to its competitors. 'The market had been anticipating same store sales growth of approximately 3.8% in the third quarter ending 30 September. Instead, McDonald's surprised analysts when it reported growth of 6.0% worldwide. Especially encouraging was the 5.3% increase in US same store sales growth, demonstrating an improving trend throughout the year' (McDonalds, 2011).

The board of directors of McDonalds has also announced a quarterly cash dividend of approximately $0.61 per common stock share. The current positions are visibly representing a capture of ...