Adapting to Changes at McDonalds Case Study PDF

# Adapting to Changes at McDonalds ## Critical Path Analysis for Drive Throughs at McDonalds Critical path analysis identifies the precise sequence of activities that need to be completed within a strict timeframe and shows the best way to avoid any unnecessary delay. - McDonald's can use CPA to...

# Adapting to Changes at McDonalds ## Critical Path Analysis for Drive Throughs at McDonalds Critical path analysis identifies the precise sequence of activities that need to be completed within a strict timeframe and shows the best way to avoid any unnecessary delay. - McDonald's can use CPA to schedule the redesign of drive-throughs to help each stage be completed in the shortest time possible. - CPA helps reduce the risk and costs of complex projects. - This is particularly relevant when new technology and rebuilding 8,000 drive-throughs will be happening simultaneously. It can help spot which activities have some slack/float and could therefore transfer some resources to activities that are critical to the overall completion time. However, the quality of the critical path network will depend on the accuracy of the data entered into the calculations. When the project is new, such as introducing new artificial intelligence, it might be difficult to make accurate predictions about how long each activity will take. Redesigning 8,000 drive-throughs might be very difficult, especially when this is extended worldwide in 2020. External factors, such as the weather, might impact on the timescale needed to rebuild the drive-throughs, so extending the overall time needed to complete the redesign in the US and worldwide. CPA is a management tool, and relies on the skills of the person constructing the critical path network. CPA is a management and decision-making tool that must be used in conjunction with other decision-making tools to increase its effectiveness. ## Opportunities and Threats from Plant-based Foods - Extract C indicates that there are market opportunities for plant-based products with a 29% increase since 2014 of plant-based burgers and sandwiches in the US. - The overall number of adults wanting more non-meat fast food options is 36%. This would seem to indicate that there is growing demand for plant-based products and McDonald's would therefore benefit from providing new plant-based menu items to fulfill this customer need. Adults aged 18-29 have the greatest demand for plant-based products and this may benefit McDonald's in terms of the target audience who generally buy fast food. There has been a growing concern both from health and environmental reasons regarding the consumption of meat and many adults are opting for non-meat products. However, there are many threats to McDonald's of entering this new market of plant-based products. Although there is rising demand for non-meat fast food products, only 9% of the US classify themselves as vegetarian or vegan, and this has remained unchanged since 2012. - This seems to indicate that the majority of people in the US still prefer fast food meat items, and McDonald's should perhaps focus on developing new meat products. - Extract B shows the cost of producing a non-meat burger is more expensive than a meat burger, which could deter customers from purchasing plant-based burgers. - The meat burger has a much higher mark-up of 276.73% compared to the non-meat burger of 174.45%. - Extract A also indicates that rival fast food businesses, such as Burger King and KFC, have already developed and launched their own non-meat products into the market. This may have given rivals first mover advantage over McDonald's who are only just trialling the PLT burger. - Overall, according to Ansoff's matrix, product development is more risky than market penetration but if McDonald's can produce a non-meat product that appeals to both vegetarian and meat eaters, then this strategy will help to widen its menu, which is currently very focused on meat products. ## Adapting Physical Resources at McDonalds - Physical resources refer to the operational factors concerned with premises, equipment, and other resources needed to meet customer needs. - The introduction of new plant-based products might require McDonald's to invest in new equipment to store the new PLT burgers. - Non-meat alternative products may need separate storage and cooking facilities to keep them separate from meat products. - McDonald's will have to develop supply chain relationships with Beyond Meat/Impossible Foods to ensure a constant supply of products to the 28 restaurants trialling the new meat alternatives. - McDonald's may need to ensure that it has enough physical resources to cope with an increase in the number of products being offered on its menu - However, this is not the first time McDonald's has offered non-meat alternatives, and already has experience of this market. - McDonald's offers a range of non-meat products in Germany, Sweden, and Finland, which indicates that the business already has physical resources in place and will adapt easily to any changes that are required. - McDonald's is a huge business that will have the financial resources to fund any appropriate physical resources needed.