Operation analysis Essay Example | Topics and Well Written Essays - 1250 words

Operation analysis - Essay Example Thus, the proponent emphasises the two chosen measures of operational performance for McDonald’s by explaining their importance and their capacity to help manage McDonald’s operation effectively. Company Background The company is an international icon as the leading fast food chain restaurant operating in an international coverage. Thus, it is important to learn a little background about this company as far as global foodservice retailing and performance evaluation measures are concerned. There were 22 million people worldwide served by McDonald’s in 1994 (Lyon et al., 1994). This figure rose more than twice which correspondingly one of the most important bases why McDonald’s declares to be the leading global foodservice retailer (McDonald’s, 2011). McDonald’s does not only cater to the needs of the consumers, as well as its franchisers. The reason why McDonald’s continues to flaunt its achievements is to entice international franchise rs in order to continuously help the brand grow for the better. Today, there are more than 32,000 McDonald’s local restaurants in 117 countries which approximately cater around 60 million people. This alone is enough to entice local business persons to go for foodservice retailing through McDonald’s franchising. At present, 75% of McDonald’s restaurants are globally owned or operated by local business people. Among of the world’s favourites at McDonald’s are its world famous fries, big mac, quarter pounder, chicken mcnuggets, and egg mcmuffin. Ray Kroc, founder of McDonald’s had established a good foundation for the company. He was successful in passing on the vision from generation to generation. This makes McDonald’s one of the best companies that can remarkably give important insights on how a business should function according to the basic business principles and even in areas of complicated situations. McDonald’s without q uestion is good at establishing both its internal and external control. This paves way to probable interrelated relationship between the company’s management control system and its strategies (Kober et al., 2007). In every business, control is important because it paves way to strategic management system (Nilsson and Olve, 2001). It is in this reason that control has become one of the most important options in business operation in order to evaluate existing strategies prior to the achievement of corporate goals. It is in line with this that performance measurement and management control have become strongly related with each other prior to effectively enhancing efficient business operation (Epstein, 2004). Measures of Performance – McDonald’s The main content of this paper includes two general performance measures that can be applied in an organisation. Particularly, the proponent includes financial perspective and customer perspective as two general performanc e measures that can be applied at McDonald’s. These two measures are essential perspectives of the balanced scorecard as a set of performance measures from the company’s strategies in order to support its strategy and generally its operation in the long run (Garrison and Noreen, 2000). Financial Performance Measure In the midst of tough competition most firms are apt to stimulate needs for their service or product offerings (Kotler et al., 1999; Boone and Kurtz, 2006). This is eventually relevant in the case of McDonald’s. The current market trend demands for more healthy foods which eventually tries to ward off consumers from