Business model & competitive position 1.1. Apart from food quality, the company also focuses on maintaining the highest quality standards in the other aspects of its business operations including supply chain management. McDonald’s is a leading fast-food brand and it has acquired a strong brand image through its consistent focus on product quality as well as customer service. The company has been able to reduce its operating expenses over the years through a focus on growing the efficiency of its operating model and by reducing necessary expenses. U.S. is the leading market for McDonald’s which accounted for around 35% of the company’s revenue in 2017. However, McDonald’s own operations are also of special significance since they help it be a credible franchiser. Even when McDonald's introduces new products to its stores, the delivery system remains the same. In 2019, the operating expenses of the company equaled $12 billion. McDonald’s extensive global presence is also an important pillar of its business model. Suppliers and outside academia are also a part of this council who advise on food safety practices. However, it retained a 20% ownership in the entity that now holds the ownership of those businesses. There are four types of flexibility in general that are applicable to business operations. Ultimately, McDonald's is a service- and customer-oriented business that uses strategic operations management to manage expenses, retain customer loyalty, and create a consistent brand. Overall, flexibility is an important aspect of operational performance and superior flexibility also denotes superior performance. These centres distribute food and supplies to the restaurants. Moreover, the internal effects of these performance objectives have a definite impact on cost. There are challenges related to reputation that can emerge from not managing a healthy supply chain. Not all companies compete in the market on the basis of price. Instead, the entire capital is invested by the licensee himself. As they Not just in manufacturing or services industries but in the other industries too speed matters more than ever. In the era of digital marketing and digital shopping, companies have to focus more than ever on customer relationships to remain a dependable brand in the eyes of the customers. As in the case of the restaurant industry, businesses are mostly engaged in low variety processes. This council is made of technical and safety experts as well as supply chain specialists. For example, staffing costs may represent the largest costs for a transportation company but the costs of raw material may be the largest group of operating costs for an automobile brand. However, the share of licensed restaurants in the net revenue is also growing bigger with time. Apart from that, there is a Food Safety Advisory council to manage the food safety aspect of McDonald’s supply chain. There are several factors that affect optimal ownership structure for a restaurant, trading area or a country. The Business Model Canvas of McDonald’s can be described as follows: McDonald’s is famous for its value proposition: food of a constant quality that is served quickly and consistently across the globe. Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. The kind of customer experience that you offer to your customers also affects your customer experience. Apart from that, there are also some initial fees that are to be paid at the time of the opening of a new restaurant or when a new franchise is granted. The largest of such developmental licensees operates around 2,200 restaurants in 19 countries of Latin America and the Caribbean (McDonald’s Annual Report, 2017). 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