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INFO 564 Homework Assignment-7

100 pts

Read the following case and answer the questions below.

McDonald’s

When a customer drives up to the speaker box at some McDonald’s drive-throughs, their order is placed with an employee located in a distant call center.The order, along with a photograph taken to the match the customer with the order, is then instantly displayed on a video screen in the food preparation area of the restaurant where the order is placed.

Brainerd, Michigan – Ellie Feld pulled into the drive-through lane at McDonald’s the other day, craving a double cheeseburger.As she leaned out of the window of her Chevy Blazer to place her order through a speaker box, Feld was greeted by the friendly voice of an order taker she thought was working inside.Not even close.Four states away in a Colorado Springs, CO call center, “Linda” recorded Feld’s order and flashed it onto a computer screen inside the kitchen of the Brainerd McDonald’s.Less than 2 minutes later, Feld drove away, a smile on her face and a burger in hand.

In these McDonald’s test sites, the drive-through turnaround time improved by 20 seconds and orders contained fewer mistakes.“In most McDonald’s you’ve got someone to take the order, make the change, and go get the food – you’ve got somebody doing three things,” said Glenn Cook, owner of Brainerd McDonald’s.“Here, someone is sitting at the call center and they have nothing else to do.They are not multi-tasking.”

Question-1 (40 pts)

What aspects of McDonald’s production process are tradable? How does customer involvement limit the tradability of inputs and finished goods? Limit your response to 300 words.

Question-2 (60 pts)

What risks does McDonald’s take with call-center ordering?How does this change customer experience?Has McDonald’s faced this tradeoff in the past?How do they deal with it?Limit your response to 200 words.