(Redux)Essay 2- Evaluate the response of operations management to influences in achieving a competitive advantage.
Introduction
Operations management is an area of management that is responsible for the production processes and operations within a business and focuses on resource allocation to satisfy customer’s needs. A competitive advantage is an element or circumstance that places a business in a favourable position relative to its competitors. Technology and corporate social responsibility are two influences that McDonald’s has effectively responded to, leading it to achieve a competitive advantage.
McDonalds is the world’s leading food service organisation with its operations management being responsible for the practical delivery of McDonald’s goods and services.
Corporate Social Responsibility
Corporate social responsibility is where a business goes beyond their compliance costs to become an ethical and environmentally focused business. Corporate social responsibility can affect a business’s ability in achieving a competitive advantage as corporate social responsibility can increase or decrease a business’s market share or profits. It can also lead to a short-term increase in costs and a long-term increase in cost-effectiveness for a business.
McDonalds has been effective in responding to corporate social responsibility, resulting in a competitive advantage as by 2022 they aim to simplify the ingredients of their Happy meals and ensure that 50% of the ingredients meet nutritional requirements. Hence this is effective as they have improved their corporate social responsibility by showing their concern for the wellbeing of their customers, as well as benefitting from their improved and positive corporate social responsibility. This show of care can lead to an increase in McDonald’s reputation amongst consumers which would result in an increase in sales as consumers see McDonalds as a socially responsible business. As a result, would feel inclined to reward its social responsibility by buying products from them leading to McDonalds increasing their ability to achieve a competitive advantage. Therefore McDonalds has effectively responded to corporate social responsibility by improving on it and using it to increase their sales, hence increasing their ability to achieve a competitive advantage.
Technology
Technology is the design, manufacturing and application of innovative devices and methods of machinery to use in operations processes. Technology can be a high initial cost for a business and its operations management when it comes to using and developing technology. However, it can significantly improve quality and productivity.
McDonalds’ operations management responds to technology in an effective manner as they use automated dispensers and use delivery companies such as Uber Eats to deliver food to their consumers. This is an effective response as McDonalds utilises technology in their operations management to increase efficiency in the delivery of their goods and services. This would thus allow them to sell more of their products in a shorter period, leading to increased profits which results in McDonalds achieving a competitive advantage. Therefore, McDonalds has effectively responded to technology by utilizing it in their operations management leading to efficient delivery of their products which results in an increase of sales and achieving a competitive advantage.
Conclusion
In conclusion, McDonalds has effectively responded to operations influences as it was able to take full advantage of their corporate social responsibility and technology to increase their sales, reputation, and efficiency in delivering their products; thus, results in McDonalds getting a competitive advantage.
Introduction
Operations management is an area of management that is responsible for the production processes and operations within a business and focuses on resource allocation to satisfy customer’s needs. A competitive advantage is an element or circumstance that places a business in a favourable position relative to its competitors. Technology and corporate social responsibility are two influences that McDonald’s has effectively responded to, leading it to achieve a competitive advantage.
McDonalds is the world’s leading food service organisation with its operations management being responsible for the practical delivery of McDonald’s goods and services.
Corporate Social Responsibility
Corporate social responsibility is where a business goes beyond their compliance costs to become an ethical and environmentally focused business. Corporate social responsibility can affect a business’s ability in achieving a competitive advantage as corporate social responsibility can increase or decrease a business’s market share or profits. It can also lead to a short-term increase in costs and a long-term increase in cost-effectiveness for a business.
McDonalds has been effective in responding to corporate social responsibility, resulting in a competitive advantage as by 2022 they aim to simplify the ingredients of their Happy meals and ensure that 50% of the ingredients meet nutritional requirements. Hence this is effective as they have improved their corporate social responsibility by showing their concern for the wellbeing of their customers, as well as benefitting from their improved and positive corporate social responsibility. This show of care can lead to an increase in McDonald’s reputation amongst consumers which would result in an increase in sales as consumers see McDonalds as a socially responsible business. As a result, would feel inclined to reward its social responsibility by buying products from them leading to McDonalds increasing their ability to achieve a competitive advantage. Therefore McDonalds has effectively responded to corporate social responsibility by improving on it and using it to increase their sales, hence increasing their ability to achieve a competitive advantage.
Technology
Technology is the design, manufacturing and application of innovative devices and methods of machinery to use in operations processes. Technology can be a high initial cost for a business and its operations management when it comes to using and developing technology. However, it can significantly improve quality and productivity.
McDonalds’ operations management responds to technology in an effective manner as they use automated dispensers and use delivery companies such as Uber Eats to deliver food to their consumers. This is an effective response as McDonalds utilises technology in their operations management to increase efficiency in the delivery of their goods and services. This would thus allow them to sell more of their products in a shorter period, leading to increased profits which results in McDonalds achieving a competitive advantage. Therefore, McDonalds has effectively responded to technology by utilizing it in their operations management leading to efficient delivery of their products which results in an increase of sales and achieving a competitive advantage.
Conclusion
In conclusion, McDonalds has effectively responded to operations influences as it was able to take full advantage of their corporate social responsibility and technology to increase their sales, reputation, and efficiency in delivering their products; thus, results in McDonalds getting a competitive advantage.
