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Information System used In McDonalds

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Mcdonalds: Case Study Of Mcdonald's Information System

Summary of fast food nation.

He immediately was interested in doing business with them. He worked along side the McDonald brothers and helped build the first McDonald's in Des Plaines, Illinois. He eventually bought the company for 2.7 million

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McDonald’s is the world’s largest restaurant chain, serving a total of 69 million people a day at 34,000 restaurants worldwide. While facing a tough competition, McDonald’s has chosen to launch a new product to sustain competitive advantage as well as to attract customers in the ’18 to 32 years old’ range, which they have struggled with up to today. They launched the McWrap on April 1, invented by the 47 years old vice president and executive chef Dan Coudreaut. The McWrap is meant to be a healthier choice than the products McDonald’s are in general known for, as well as to compete with competitors such as Five Guys, Subway and Chipotle. However, people assimilate McDonald’s to junk food unlike the ”Subway buster”.

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Mcdonald's Strategy Analysis

McDonald’s is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. Under franchising visionary Ray Kroc, McDonald 's became the world 's premier food brand by selling the rights to operate a McDonald 's store. With this model, MCD keeps overhead costs down and lets local owners deal with individual units, while food costs remain low and service remains fast for a culture increasingly on the go.

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• Strategic management
• McDonald's
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Information system used in mcdonalds

INFORMATION SYSTEM USED IN MCDONALDS

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• 1. 1 | P a g e Information System used In McDonalds
• 2. 2 | P a g e Information system McDonalds being the world’s largest fast food restaurant requires what may be referred to as an extra ordinary information system in order to handle the daily sales and customer orders and so on. It is also the world's number fast-food company by sales, with more than 32,500 restaurants serving burgers and fries in 117 countries. A human being could never be able to keep track of such transaction on their own. McDonalds use several types of information systems to help ease such complicated processes. As mentioned above, the headquarters being in the United States means that, most of the work is done there itself. McDonalds use several types of information systems to help it shine and assist in the process of it being one of top fast food restaurants  An information system (IS) collects, processes, stores, analyzes, and disseminates information for a specific purpose.  An information system includes inputs (data, instructions) and outputs (reports, calculations).  It processes the inputs and produces outputs that are sent to users or to other systems via electronic networks and a feedback mechanism that controls the operation.
• 3. 3 | P a g e Types of Information Systems: There are basically Five types of information systems. 1. Transaction Processing System 2. Office Information System 3. Decision Support System 4. Management Information System 5. Expert System
• 4. 4 | P a g e 1. Office Information System: Uses hardware, software and Networks to enhance workflow & facilitate communications among the employees. 2. Transaction Processing System: The information system that captures and processes the data generated during an organization's day-day transactions 3. Management Information System: An Information system that generates accurate, timely and organized information so managers & other users can make decisions, solve problems 4. Decision Support System: An information System designed to help users reach a decision when the decision making situation arises 5. Expert Systems: The information system that captures & stores the knowledge of human experts & then imitates human reasoning & decision making process for those who have less expertise.
• 5. 5 | P a g e Types of information systems That are used in McDonalds are: 1. Transaction Processing System 2. management Information system 3. Decision Support System 4. Made for You system 5. Hyperactive bob system 6. Point of sale System 7. Touch Interface Operating System
• 6. 6 | P a g e 1. Transaction Information System (TPS) First transaction takes place either when two people make an exchange or while they are collecting data. Transaction processing refers to nothing other than collecting, storing, modifying, and retrieving the transactions of an organization. It helps in answering routine questions, and in conducting business transactions such as payroll, employee record keeping or paying an employee. The data brought about by TPS must be stored safely as in most cases it involves the exchange of money which could be very critical to an organization. Transaction processing system also helps McDonalds in keeping track of their suppliers as it record relevant information about suppliers such as supplier name, address, the quality of the items purchased and finally the invoice amount. This helps in reducing the possible complexity that the employees may face in physically keeping contacts with all the suppliers and so eases process of ordering when in need 2. Management Information System (MIS) Management information system is a system that provides the information needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: technology, information, and people, and the most important resource are people, as people are the customers and no business would mean anything without its customers. The information resulting from this system supports the routine decision making in the functional areas. It is of great significance as it produces periodic reports such as a daily list of employees and the hours worked, or a monthly report of expenses as compared to a budget. The main reason why McDonalds uses Management Information System is because the purpose of it is to provide profitability and information to help the managers and the staff
• 7. 7 | P a g e in understanding the business performance and to plan its future direction 3. Decision Support System (DSS) "Decision support system is used to model data and make quality decision based on the data, making the right decision is usually based on the quality of the data and one's ability to analyze the data, Decision Support Systems are usually computer applications with a human component. They can sift through large amounts of data and pick between the many choices and supports the non – routine decision" McDonalds implemented the use of wireless internet in their restaurant in order to gather information about certain categories such as customer practice, length of stay and sales’ levels that are then later studied and analyzed with the help of the Decision Support System to come up with a decision that could help in the betterment of the restaurant. 4. “Made for you” system Made for you system is a type of information system which was, first introduced to McDonald’s restaurants in 1998 across USA. In MYS modern technology is utilised to operate the functions within the restaurant. It starts as soon as an order is made, it appears on the kitchen screen in the appropriate workstation (there are different workstations in the kitchen such as grill side, chicken side, fries etc.). This systems also allows to store information regarding the quantity of each product that was sold, the hours a particular item was sold mostly etc. These information can be used to forecasting and preparation for another similar day. However, the MYS is mainly used to raise the productivity and to guarantee customer satisfaction by providing quality fresh products. The MYS also plays a vital role for the better communication between the front counter and kitchen staff.
• 8. 8 | P a g e 5. POS system " Scale of Point system " A cash register can be regarded as a primitive form of POS system. The main drawback or limit of a cash register is the fact that in can only monitor cash flow. This is where the POS system comes in handy. POS system can categorize data into sales by type, taxation status and provide the information regarding inventory as well .POS system functions by using a combination different hardware and software. In most case it requires, manual data entry however, it can functions using a scanning device, but it is not possible with the current operation system that exist within the restaurant. In McDonald’s restaurant POS system is attached with in the computerised electronic cash registers, which are capable to read and process electronic cards such as a debit card easily .It processes and stores vital information and it can retrieves data or transmit information to the main computers, when it is necessary for decision making purposes. Apart from the electronic cash registers there are other electronic mobile devices, which are also used for the same purpose, but from the outside of the store. They are usually when there is huge number of cars within the “drive-in through” section. McDonald’s POS system is designed to reduce and avoid complex data clogging up and causing confusions to an inexperienced staff. An inexperienced part-time staff might be able to perform the transaction on a sophisticated menu in a matter of seconds. The POS system is mainly used to ensure customer satisfaction by increasing the speed of the process and reducing the possibilities for the error. POS and MYS works together for maximum efficiency within the kitchen. Every input that is comes in, POS helps to covey them to appropriate workstation instantaneously. It enables the payment due and also shows the time duration after an order is made, this enables the staff to understand if any customer is waiting on something or not.
• 9. 9 | P a g e 6. Hyperactive Bob system Hyperactive Bob System or HBS is a simple information system which provides very vital information for the staffs and employees of a restaurant. HBS basically is nothing more than few roof mounted CCTV cameras and few appropriately placed television screen connected to the camera. The cameras are fixed outside the restaurant, and the screens are at different stations inside the kitchen (generally only 2 screens inside the kitchen), there is one screen inside the office as well. The cameras scans for incoming vehicles and the visuals are 9 transmitted to all screens simultaneously in real time. On viewing the traffic the staffs and kitchen employees start to prepare for the orders. For example, if there is a visual showing a huge number or cars coming in through the “drive in through” section or parking in the “parking lot”. Kitchen staffs will ensure everything is ready, as soon as orders come in. For this purpose they make sure, there are enough frozen food in their freezers, buns sauces and packing materials all are ready. In some cases, employees are re-arranged by staffs according to the speed and ability to perform at busy environment. The same system is also used to find out how many cars has gone through the “drive in through” section and parked at the parking lot. These information is later used to forecast what kind of business to expect on similar days or situations. 7. Touch-Interface Ordering System (TIOS) This a very new system that has the potential to transform the fast food industry. Even though this particular system still haven’t reach Llantrisant branch it is available for customers at Cardiff branches and therefore the author beliefs it must also worth mentioning. This is a machine looks very similar to an ATM or a ticket machine at railway station. The machine allows the customer to make an order by selecting
• 10. 10 | P a g e the desired item on a touch screen and pay for it debit or credit card to the slots attached to it. McDonald’s believes this will help them to reduce the labour cost, and very recently the organisation decided to fit 7000 such machines around UK.

Analysis Of Mcdonald's Management Information System

Show More 1. Introductions: Management information system (MSI) is the integration between people and technology. Over the years, management system has significant impact on developing organizational productivity, efficiency and most importantly financial growth. Though, management information system is the catalyst to increase business operation flow by relating people with technology but immensely incurred additional cost on its implementation within organization . During World War II, McDonald started business in 1940 California founded by Richard and Maurice McDonald but after World War II, In 1955 McDonald incorporated as McDonald Corporation by Ray Kroc. The company generally entered into retail-market to sale fast food items (such as, hamburger, …show more content… McDonald makes sure every outlet have all the necessary resources to facilitate this work flow. 2.2 Transaction Processing System: Introducing electronic payment (i.e. eftpos payment) system allows McDonald to receive daily transaction report from every outlet in worldwide. Recent addition of eOPS in McDonald’s restaurant, analyze million of record throughout its network as well as enabling user to access on web based system from easy access environment(Fujitsu Australia Software Technology, 2014). Figure 2: Transaction Processing System in McDonald 2.3 Management Information …show more content… This awareness strategy for McDonald’s products was proven successful for capturing target market at the very initial stage. 9.2 Exploration: During the exploration stage, McDonald started to increase promotional campaign, corporate marketing, personal sailing, direct marketing using web based marketing strategies i.e. promotion with communication. More and more consumers able to know about McDonald products via newspaper, online email subscription system (i.e. newsletter, discount coupon, event booking for kids) and radio. This was in mid 1950-1960 of the year when McDonald launched franchise options to expand the business in United States of America. As the business is expanding, consumers began to have more interest of McDonald’s information. 9.3

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