Chapter 1: Problem 9

(Related to Solved Problem 1.1 on page 7) For many years, McDonald's used frozen beef patties to make its hamburgers. It recently began market testing how consumers in the United States would respond to hamburgers made of fresh beef that had never been frozen. In early 2017 , McDonald's expanded the market test from only 55 restaurants to more than 300 . The switch to fresh, neverfrozen beef patties would be a huge undertaking involving "how [the beef] is transported to the restaurants, how it is stored when it arrives and how much it affects employees' process of making burgers." If you were a manager at McDonald's, how would you go about analyzing whether to switch to fresh, never-frozen beef patties? In your answer, consider whether your decision would have to be all or nothing-all fresh, never-frozen beef patties in all McDonald's hamburgers- and whether you would have to switch in all McDonald's locations around the world (in 119 countries) or just in certain countries.

Short Answer

Expert verified

The process should start by identifying important factors and evaluating the current process. Alternatives should be analyzed, and then a pilot project should be conducted. The data collected from the pilot test should then be analyzed with a decision and plan implemented based on the results.

Step by step solution

Identify Criteria for Decision Making

First start with identifying the important factors that should impact this decision. These factors could include cost, logistics, quality, employee training, customer preferences, health regulations, and potential increase in profits.

Evaluate the Current Process

Investigate the current process of using frozen beef patties, including sourcing, storing, transporting, and training employees. Also evaluate the customer satisfaction with the current product.

Research and Analyze Alternatives

Research possible solutions and alternatives to make the transition smoother. This could include gradual implementation, regional testing, and seeking out best practices from other companies who have done something similar.

Conduct a Pilot Project

Before making any big decisions, it could be beneficial to conduct a pilot project in a selected region or handful of stores. During this project, collect as much data as possible about customer reactions, employee satisfaction and the cost-effectiveness of the change.

Gather Data and Evaluate

After the pilot, gather all data and feedback and evaluate it carefully. A thorough analysis will assure that the decision is based on facts and not on assumptions.

Make a Decision and Implement

Based on all prior analyses, now the final decision can be made on whether to switch to fresh, non-frozen beef patties or not. If the decision is made to switch, implement the plan globally or locally depending on the initial analyses.