INFORMATION

SYSTEM: MCDONALDS CORPORATION

Title
Case Study on Business Systems Planning And Implementation: McDonalds
Corporation

Introduction
The field that involves using information systems comprised of processes, technologies and
people for resolving business issues are termed as Management information Systems
(MIS). For evaluating information systems employed for various organizational functions
MIS is utilized (Kenneth, 2011). The role of information system in accomplishing
competitive advantage by proper utilization of core competencies, synergies and network
related strategies of McDonalds is dealt with in this report. It will also describe threats
caused by strategic information systems and recommendations to overcome these issues.
McDonalds Company Profile
McDonald's is the largest fast food restaurant chain in the world, which has in fact become
a part of the daily life of 47 million customers. McDonalds is spread over 114 countries and
their outlets count 32,000. It emerged as an icon and represents the popularity of American
culture. In the very tough US fast food market their contribution is 21 percent share
(mcdonalds, 2010). The skill to act according to requirements and wishes of customers are
the key factor behind McDonalds success. Customers prefer neat surroundings with
friendly and fast service. McDonalds give priority to cleanliness, quality and value.

Management Information Systems (MIS)
The system that offers information required for successful organizational management and
to accomplish competitive advantage is referred as management information system
(Mcleod, 2008). To allow value added services, to facilitate decision making procedure and
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resolving problem, to manage and synchronize actions, to enhance accuracy in procedures,

assessments and resolutions, to estimate and design, to enhance productivity, to facilitate
accomplishment of goals of organization and to support people are the major purposes for
which business information system is meant (Terence, 2009).
Implementation of Strategic Information System in McDonalds
Information system employed for attaining competitive advantage in the industry is
termed as Strategic Information System (Hackney, 2010). McDonalds is trying to enhance
IT application for successful accomplishment of its business goals (mcdonalds, 2011). To
give monthly expense report, employees list, their working hours, to propose strategies for
future, to enhance productivity, to offer managers and workers information concerning
business status etc. MIS system is employed by McDonalds.

In McDonalds attempt to enhance organizational efficacy, cost savings and in attracting
customers towards them big contribution is made by technology. Internet terminal, video
games consoles, wireless networks, music videos, television with flat monitors etc. are
launched in McDonalds outlets as part of serving their customers better. McDonalds is
looking into the practicability of developing advertising programs and income sharing
partnerships with their equipment providers and internet service providers
(mcdonaldsmis.blogspot, 2009).

Some among the major segments of the organization where information technology is
implemented is money management, recording and processing of transactions. Moreover,
by implementing real-time payment service in their inventory, financial data and point of
scale it is possible for McDonalds to enhance marketing and sales procedures and
customer relationship management (Genn, 2008).

For making order taking and payment procedure quick and effective, IT is applied. For
understanding the current customer trends and flow of the business the information stored
in POS will be helpful. This knowledge will enable McDonalds to act according to customer
requirements and understand the performance of outlets and profitability of the company
all over the world. This will help the company to present their current financial position in
front of the shareholders.

To communicate with their employees, shareholders and suppliers Intranet and Internet
facilities are employed by the organization. To link with existing and latent customers and
to commence various marketing strategy McDonald utilize internet facility.

Transaction Processing System (TPS) implemented in McDonalds
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If an exchange is made by two persons it is said that transaction has occurred. Transaction
processing is gathering data about the transaction that took place. Gathering, amassing,
amending and accessing the transactions made in a company is termed as transaction
processing and keeping the confidentiality of transaction details are essential for a
company since it is related with money exchange (Reynolds, 2011). In order to respond to
daily queries transaction system is necessary. In paying the staffs, in maintaining records of
workers, payroll and in performing other business operations TPS is really beneficial
(Mcleod, 2008).
Very large number of food products are sold by McDonalds daily. Hence they require huge
amount of raw materials from supplier. Transaction occurs whenever McDonalds order for
raw materials. Important information like name and other details of supplier, quality of
raw material and bill amount etc are noted using TPS.

Decision support system (DSS) in McDonalds
For sorting the data and taking appropriate decision on the basis of it DSS is employed. The
appropriateness of decision depends on the persons capability to scrutinize the data and
value of the data. DSS comprised of computer applications that consist a human element
(Burstein, 2008). It is possible to sort huge amount of data and choose from various
options with the DSS. It also helps in taking non-routine decisions.
Modern world is world of technology, considering this fact McDonalds wanted to offer
wireless services in their outlets. As part of it they collected information regarding use of
wireless services by customers, extent of sales etc and the collected data was examined by
the decision support system and it was decided that wireless service will be offered in
McDonalds outlets.
Made for you system
To support business procedures in McDonalds, latest technology is implemented and they
named it as Made for you system. McDonalds consider requirements of customers with
great priority. As soon as customer order for a sandwich, an image of sandwich will be
displayed in the screen in the kitchen and to signal the employees a sound will be produced
by the computer (aboutmcdonalds, 2009). Sandwiches are prepared considering the exact
order from customers which helps in keeping efficacy of the organization.

Before implementing this system, extra foods were thrown to waste baskets. When special
request is made by customers, employee moves the line in order to attend that customer.
This make customer to wait for long as it slows the procedure. PC oriented cash registers
operating in-house software is comprised in this system. For distributing the workload
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equally among the workers, orders are directed to screens at various food making tables. It
helps in selling of more foods at faster speed hence increases the profit of the company.

POS "Point Of Sale system"
McDonalds give preference to offering best service to their customers. In order to
accomplish this purpose by guaranteeing precise and quick order Point of scale system
(POS)" is implemented by McDonalds. It is possible to follow huge amount of data within
seconds with the help of this system. By implementation of this system order placed is
immediately broadcasted to various systems under the facility (baselinemag, 2003). So this
alert the kitchen staff about what orders are on the way and how long a customer has been
waiting and alert employee at the cash counter regarding which payment is due. It saves lot
of time and makes operations and access to information easier. As it fastens the delivery
customers will be happy and which will result in their coming back to the restaurant.

Hyperactive Bob system
To make employees aware about when they are going to be busy McDonalds use this
system. To observe incoming vehicles towards the parking lot, this system employs
computers and rooftop cameras (msnbc.msn, 2010).
McDonalds cut costs by establishing wireless network in their offices since it save
reconfiguration time. For better implementation of McDonalds office oriented and
restaurant wireless networks, XDA smart phones are distributed to some employees to
substitute the usage of mobile phones and laptops. It helps worker to save money. Time for
stock room operations is also reduced by implementation of symbol handheld wireless
computers. Making ordering devices wireless also helped McDonald's to gain profit says
Tiley (Computing, 2010).

As part of restructuring supply chain, McDonald's intends to make stock ordering
centralized. For computerization of stock ordering systems it will consider various data like
demographics of customers, previous sales in the store, forecasting of weather, special
events etc. In order to prevent errors occur during manual ordering and for minimizing the
barebones of ordering procedure this software will be helpful.

Handhelds PCs at McDonald's

For enhancing efficacy of employees McDonalds distributed handheld PCs to their
workers. Form having 500 questions regarding customer service, hygiene and quality of
the product as well as information regarding assessments will be stored in the Pocket PCs
offered. It is possible to store all the necessary information onto the handheld device and
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from it the information is automatically transferred to central system (computing, 2010).

This is very helpful for employees as it saves time and there is no need to manually transfer
the details. McDonald's business relationship manager, Keith Frimley states that improved
assessment results and standardization of methods in every operational segments are the
major benefits associated with using mobile PCs.

McDonald try to implement new systems to enhance cost savings and to combine their
current IT systems. For improving efficiency and to reduce the cost of implementing IT
infrastructure McDonalds use wireless technology. It is possible to combine operations in
the business and amalgamate tools with the help of wireless technology. It is simple to
access laptops using wireless technique.

Smart Card

In some target markets to overcome credit cards costs and its sluggish dealings,
McDonalds implemented smart card technology. Payment through card is made as easy
and fast as cash payment. McDonalds minimized payment time through card by
implementation of ADSL broadband connections for permitting transactions (Turban,
2010).

At the back end of each card a magnetic slip or computer chip is placed on which the
monetary value of each card is stored. By means of machines that take money from ones
bank account, value can be added to the smart card. Using this card customers can buy
food. Gaining loyalty by offering bonuses and incentives, less shrinkage, money
investments in relation to usage of cash etc are some of the purposes behind execution of
smart card program.

McFamily

McFamily was the first website developed by McDonalds and it was in the year 1995
(mcdonalds, 2009). To create an impression that McDonalds is meant for families services
like bringing experts or public figures as guest speakers, sponsors for auditorium for
parties, Hey Kids section which contain downloadable games and McArt in which art works
of children are included are offered by this website. A segment on serving others is also
there in the website. Details on Ronald McDonald House and attempt of McDonalds to
conserve the nature and other childrens charities are included in McDonalds website.

Though it is not possible to sell food products on McDonaldss website, they can earn
money by sales of products associated with sponsorship of McDonalds. To gather
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information and personal details regarding customers using online surveys McDonalds
website is helpful.

In 1993, in stores of Wal-Mart McDonalds opened their outlets. For selling their food
products McDonalds use Wal-Marts registers. At the counter in Wal-Mart store display of
McDonalds product is provided. When customer purchases McDonalds products the
orders are transmitted to kitchen because of software developed by Wal-Mart and
McDonalds. The bill for McDonalds is appeared on receipts and records of Wal-Mart.
McDonalds share from the deal is balanced during end of the day. Supply-chain software is
employed in McDonalds for enhancing inventory management. This helps in sharing of
supply and demand information among distributors, suppliers and restaurants.

Wi-Fi Service
McDonalds is always very keen to make their customers happy. Considering the changing requirements
of customers, McDonalds introduced Wi-Fi in their outlets with no extra cost. This attracts more
customers towards them as they can go through mail, do their work and stay connected with their friends
while eating (mcdonalds, 2010).

Benefits of IS for McDonalds
Employees performance record, expense and profit report make McDonalds aware about their strong
point and flaws. Understanding this will enable McDonalds to progress their business operations.
Productivity of McDonalds is enhanced by implementation of information system. Information system
helps to minimize the workload and time required for each operation (informationweek, 2009). Hence
information system make McDonalds more efficient and help them to gain competitive advantage.

Challenges related with Managing System change in McDonalds

Implementation of strategic information system is very expensive and complex procedure.
It will completely change the framework, working environment, products, procedures etc
of McDonalds. Changing to new information system or technology is a cumbersome
procedure and will take much time so McDonalds will be reluctant towards it. Prior to
application of SIS thorough plan should be developed, as co-ordination should be there
among McDonalds, management and technology

Challenges related with maintaining competitive advantage in McDonalds

It is a universal rule that Nothing lasts forever. Competitive advantage McDonalds

enjoying is also not exempted from this rule. If a companys information system is
successful then rivals will try to replicate that. Technology, market and requirements of
customers are also frequently revolutionizing giving McDonalds chance to accomplish
their own benefits. Strategic benefits are bestowed upon McDonalds by their information
system. Usually it is not possible to copy industry relationships and business procedures
that lie behind the system, though system of organization can be copied.
Conclusion
McDonalds is a leading fast food restaurant giant. The contribution of information system
in attaining competitive advantage by McDonalds is explained above. The report gives idea
about information system, their importance, how it is used in McDonalds etc. The
challenges faced by McDonalds and how they overcome that issues are also dealt with.
Some recommendations for McDonald for effective implementation of IS and to accomplish
competitive advantage is also described.
Recommendations

There is no guarantee that competitive advantage once gained will remain forever. Sop
McDonalds should consider this fact and upgrade their information systems and business
patterns according to the changing requirements of customers. Implementing strategic
systems usually involves modifications in business objectives, procedures within the
company, association with suppliers and customers and information pattern. These
alterations are referred as strategic transitions as they influence the technical and social
aspects of the company (Ralph Stair and George Reynolds, 2011). These type of changes
usually cause confusions regarding internal and external limits of the company. So
McDonalds should consider this fact and act according to it. McDonalds should develop
strong bond with customers and suppliers and may split or distribute the responsibilities
among themselves. Hence new information systems bring about lot of changes in
McDonalds.

Suitable system that hook up altering expenses and economic condition with management
information system should be developed by McDonalds. The costs and earnings should be
thoroughly examined as sloppiness will have negative consequences on performance of
McDonalds (M. Gordon Hunter, 2009). New inventions in technological section should be
noted and apposite ones should be implemented for upgrading the information system of
McDonalds.
Modern world prefer fast services. So McDonalds should be ready to offer such services to
customers to enhance customers loyalty towards them which will enable them to increase
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the profitability and hence attain competitive advantage in the very tough fast food
industry. The transactions can be made faster by Electronic data interchange (EDI) and will
help McDonalds to offer better service by transmitting information to customers or
suppliers (Gary P. Schneider, 2010). McDonalds will be able to enjoy the advantage of
minimal cost through automated reordering procedures and information provided will also
be accurate. This will allow McDonalds to attain competitive advantage.
Application of an effective Strategic Information System will help all management levels to
easily access details of every factor that have an influence on functioning of McDonalds.
McDonalds should make use of an information system that will enable centralized control
of all the operations in the restaurant and that offer real-time transactional data. They also
can use software system that will help in Cash Control, Integrating Inventory, Scheduling
workers and maintain record on attendance.
Employee Training

Service of employees is one among the major thing that will make customers come back to
the restaurant. So keeping this in mind the most efficient and pleasing worker should be
appointed to serve the customers. As part of this McDonalds should properly train the
employees regarding the use of all the information system equipments in the outlet as
customers always look for fast service. Any slight confusion will result in sluggish delivery
which organization cant afford. Staff should be managed well and system should be
implemented that schedules time for workers and record their in-time and out-time (R.
Kelly Rainer and Casey G. Cegielski, 2009). For observing the attitude of employees
towards work and how efficient they are in their work, account should be kept on
deliveries made by each employee. This will make staff more attentive towards serving
customers which will surely increase the productivity of organization and hence will help
McDonalds to gain competitive advantage.

Backup System:
For averting system breakdown and interruptions backup system should be developed as
vital information will be lost if the system break down and will also result in confusions.
This will affect the efficiency of McDonalds which will take customers away from them
(Turban, 2010). So using a backup system will increase productivity of McDonalds.
Dissemination of information
For effective functioning, flow of information is necessary in every organization. All the
operations and even minute details should be carefully scrutinized to understand whether
expenses are utilized properly and for suitable operations. Stakeholders should be supplied
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with the information regarding the organization at correct time (M. Jacobson and I.
Fiksdahl-King, 2009).
Lessening of expense and maximizing the profit
Increasing the profit is the major aim of any organizations and even McDonalds have same
objective. For that more and more customers should be lured and convinced to purchase
the food products of McDonalds. Attaining this objective is all the more difficult in modern
world as customers have got various alternatives to choose from and competition is very
tough in fast food industry. Low cost is another factor that leads to competitive advantage.
Effective implementation of appropriate information system will help in lowering the
expenses (Ralph Stair and George Reynolds, 2011). Wastage of food can be avoided by
keeping track of customer trends and other aspects. This will enhance lowering of
expenses. The staffs who manage information system procedure in McDonalds should be
properly guided and trained for effectual implementation of operations. If incompetent
employees perform such jobs then there is possibility of error (Gamma and Vlissides, J,
2009). Minimizing cost and maximization of profit should be opted as tracker of
operational efficiency by McDonalds and new tools should be used to determine them.
Adapt to changes in the information system methods:
New technologies are developing every day. So it is necessary to update your system
according to it (Frada Burstein and C. W. Holsapple, 2008). The Strategic IS should be
implemented in such a way that employees and other stakeholders can access information
from anywhere at any time. For trailing and observing the status of McDonalds system
should be properly implemented in domestic offices along with Head office. McDonalds
should develop data warehouse or business management database that will be helpful to
sales managers and management. In order to manage business, create application for data
mining in addition to real time online systems.

References
M. Jacobson and I. Fiksdahl-King (2009): "A Pattern Language". Oxford University
Press, New York
Frada Burstein, C. W. Holsapple (2008), Handbook on Decision Support Systems 1:
Basic Themes, Springer Publications
Gamma, Helm and Vlissides, J. (2009) "Design Patterns: Elements of reusable object-
oriented software", Addison Wesley.
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Gary P. Schneider ( 2010), Electronic Commerce, Cengage Learning Publications

Kenneth C. Laudon, Jane P. Laudon (2011), Management Information Systems:
Managing the Digital Firm, Pearson Education, Edition12
Kevin Grant, Ray Hackney, David Edgar (2010), Strategic Information Systems
Management, Cengage Learning
Laudon Kenneth C. (2010), Management Information Systems : Managing the
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Lucey Terence(2009). Management information systems.
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India
Paul Facella, Adina Genn (2008), Everything I know about business I learned at
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R. Kelly Rainer, Casey G. Cegielski (2009), Introduction to Information Systems:
Enabling and Transforming Business, John Wiley & Sons Publications
Ralph Stair, George Reynolds (2011), Fundamentals of Information Systems,
Cengage Learning Publications
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