Report on McDonalds

Topic:
Information system and value chain of
MacDonalds
Submitted by:
Yasir Ayaz Roll No.64
Submitted to:
Mr. Tasawar Javed
Department of management sciences

The Islamia University of

Bahawalpur
Page 1

Report on McDonalds

Title
Executive Summary

Pg.no
2

McD Information System

Transaction Processing System (TPS)

System Decision Support (DSS)

Management Information Systems (MIS)

Made for You "system System

POS system "Scale of Points System

Hyperactive Bob system

ERP

Value Chain

Value Chain Analysis: McDonalds

References

Table of Content

Department of management sciences

The Islamia University of

Bahawalpur
Page 2

Report on McDonalds

Executive Summary

McDonald's Corporation is the world's largest chain of fast food restaurants, serving
nearly 47 million customers daily. McDonald's primarily sells hamburgers,
cheeseburgers, chicken products, French fries, breakfast items, soft drinks,
milkshakes, and desserts. Each McDonald's restaurant is operated by a franchisee,
an affiliate, or the corporation itself. The corporations' revenues come from the rent,
royalties and fees paid by the franchisees, as well as sales in company-operated
restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to
$22.8 billion, and 9% growth in operating income to $3.9 billion.The business began
in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San
Bernardino, California. Their introduction of the "Speedee Service System" in 1948
established the principles of the modern fast-food restaurant. The original mascot of
McDonald's was a man with a chef's hat on top of a hamburger shaped head whose
name was "Speedee." Speedee was eventually replaced with Ronald McDonald in
1963.The first McDonald's restaurants opened in the United States, Canada, Costa
Rica, Japan, Netherlands, Germany, Australia and Sweden in order of openings.
McDonald's restaurants are found in 119 countries and territories around the world
and serve nearly 47 million customers each day. McDonald's operates over 31,000
restaurants worldwide, employing more than 1.5 million people. The company also
operates other restaurant brands, such as Piles Caf, and has a minority stake in
Pret a Manger. The information system of the Mcd is good and There are several
types of information systems used in McDonalds as: Transaction Processing System
(TPS), System Decision Support (DSS), Management Information Systems (MIS),
Made for You "system, POS system "Scale of Points System, Hyperactive Bob
system. These systems allows the restaurant to adjust to the customers demands.
The system orders a lot of the product when customers buy much of the item, and
doesnt order the product when none wants to buy it. The system offer employees
and employers an efficient way of organizing the restaurant. That means that by
using the system they get available time, which they can spend on other things
they need to do. Information System add value for those that are implementing it. In
Infrastructure Human resources Technology Ordering Operations Service and
Marketing

Department of management sciences

The Islamia University of

Bahawalpur
Page 3

Report on McDonalds

REPORT ON MANAGEMENT
INFORMATION SYSTEM
Of McDonalds
Systems Management Information (MIS), sometimes called information
management and systems, are discipline on the application of people, technologies
and procedures - collectively called information systems - to solve problems
business. Management Information Systems are distinct from regular information
systems in that they are used to analyze other information systems applied in
operational activities of the organization. Academic, the term is commonly used to
describe the methods group information management related to automation or
support of human decision making, eg Decision Support Systems, expert systems,
information systems and administration. The terms MIS and information system are
often confused. Information systems include systems that are not intended for
decision making. MIS is sometimes called, in a restrictive sense, as the
management of information technology. This area of study should not be confused
with the computer. IT service management is a discipline-oriented practitioner. MIS
has also some differences with Enterprise Resource Planning (ERP) ERP incorporates
elements that are not necessarily focused on decision support.

McD Information System

There are several types of information systems used in McDonalds as:

Transaction Processing System (TPS)

First transaction happens when two people make an exchange, and collection of
data on this subject called transaction processing, transaction processing is the

Department of management sciences

The Islamia University of

Bahawalpur
Page 4

Report on McDonalds
collection, storage, modification and retrieval operations of an organization.
transaction system is important to answer routine questions and assists in the
conduct of business such as payroll, employee record keeping or paying an
employee. It is important to store transaction data recording and protected because
transaction typically involves an exchange of money is essential for any
organization.

How Transaction Processing System is

implemented in McDonalds?
daily McDonalds sells a huge amount of hamburgers, so McDonalds should order the
raw materials from its supplier, McDonalds each time placing an order with its
supplier, a transaction is happening, and the transaction processing system records
relevant information such as vendor name, address, quality of items purchased and
then the invoice amount.

System Decision Support (DSS)

system decision support is used to model data and make quality decisions based on
the data, make the right decision is usually based on data quality and its ability to
analyze data, systems support decision are generally computer applications with a
human component. They can sift through large amounts of data and to choose
between the many choices and supports the decision of non - routine.

How the decision support system implemented in

McDonalds?
At first Mac started as a small restaurant selling food to customers, the company
expanded slowly, then McDonalds and analyze the market to come with the option,
as we know we are in the era of technology, McDonalds so thought to provide
wireless services, so the company to gather information on customer usage of
wireless services, length of stay and level of sales, the decision support system to
analyze incoming data with the decision to provide wireless services in their
restaurant.

Management Information Systems (MIS)

management information system is a system that provides the information
necessary to effectively manage organizations. management information systems
involve three main resources: technology, information, and people, and most
important resource is people, the information we receive supports the decision
routine in the functional areas

Department of management sciences

The Islamia University of

Bahawalpur
Page 5

Report on McDonalds

How management information system is

implemented in McDonalds?
McDonalds in that they implement MIS system that is used to produce periodic
reports as a daily list of employees and hours of work, or a monthly report of
expenditures against budget. McDonalds MIS used because the purpose of MIS is to
provide profitability and information to help managers and employees understand
the company's performance and plan its future direction.

Made for You "system

In this system McDonalds use modern technology to facilitate the McDonalds In this
system, when a customer places an order, the sandwich element appears
immediately in the computer screen in the kitchen and a bell to alert kitchen staff .

POS system "Scale of Points System

McDonald's is a restaurant very busy because many customers will be the first
priority for McDonald's is offering the best restaurant experience for customers, so
that McDonalds used the POS system "point system-wide" to ensure order quickly
and accurately, because this system is used to accelerate business processes, it can
take massive amounts of data in seconds., With these systems, each command is
immediately transmitted to multiple workstations throughout installation, the
cashier knows instantly what the payment is due. The kitchen knows that orders
arrive and how long a customer was waiting.

Hyperactive Bob system

McDonalds implement this system to let their employees when they are about to be
occupied, the system uses computers and cameras on the roof to monitor traffic
entering the parking lot of a restaurant and drive-thrus.

ERP
ERP is a family of software modules that support the activities of companies
involved in these processes vital back-office. For example, ERP software for a
manufacturing company will generally track the status of sales, inventory, shipping
and billing, and estimates of raw materials and human resources needs.
Enterprise Applications / Packages / Suites / Systems connects all the information
that passes through a partnership with a single integrated set of systems.
This is implemented in modules that can be integrated.
ERP can work with a variety of databases, hardware and operating systems.
The origin. ERP packages were intended for manufacturing.
Their goal is to integrate information in society and eliminate the complex links

Department of management sciences

The Islamia University of

Bahawalpur
Page 6

Report on McDonalds
between computer systems.
A key aspect to ERP is that it provides an integrated solution for all business
requirements.
He takes care of the organizational hierarchy of authorities
ERP solutions are fundamentally based on Unix and Windows NT.

ERP benefits
ERP offers many benefits to the organization for implementation.
It allows a manager to make decisions at the right time.
This is possible when any organization is the sharing of information and
perspectives in the same interpreter.
The benefits of ERP can be classified into two categories: Tangible benefits (those that can be measured in one form or another)
Intangible benefits (difficult to measure in absolute terms)
Delay Reduction

Department of management sciences

The Islamia University of

Bahawalpur
Page 7

Report on McDonalds
The time between placing an order and receiving is known as the delay.
To reduce delays, the organization must have a system of effective inventory
management.
This inventory system is integrated with purchasing, production planning and
production department.
ERP systems help automate this task and thus make inventory management more
efficient and effective.
Business has doubled
Increased turnover of over 30%
The cycle time reduced to 80%:
The cycle time is the time between receipt of the order and product delivery.

Value Chain
The important point is that all these activities must be consistent so that the value
chain to operate effectively.
Support activities not related to one of the main activities, but is supposed to serve
them,
The first stage of analysis resources intern is how the various activities of the
enterprise is the foundation of its competitive strategy.

Human recourse management

Margin

Firm infrastructure
Support activities

Technology development
Procurement
Primary
Activities

Inbound
Logistics

Operations

Outbound Marketing and sales

Service
Logistics

Department of management sciences

The Islamia University of

Bahawalpur
Page 8

Report on McDonalds

Support activities
Firm infrastructure: This includes planning systems, finance, etc. Quality
assurance also the structure and routines to maintain the culture of the organization
are included here.
Management of appeal rights: Includes, among other things recruiting, training
and development of reward systems.
Technological development: is obviously important when it comes to the actual
product, but it is also important in the process of manufacturing the finished
product and the resources that is central to this work.
Procurement: Includes all activities that meet all the necessary raw material to be
available for business activities.

Major activities
Inbound logistics: This includes receiving goods, storage, transmission and
distribution. Control of the commodity is a central element in this case
Operations: includes all activities which make the product or service. From basic to
finished product. This also includes the manufacturing process, testing and rap, etc.
Outbound Logistics: storage and distribution are the finished product
Marketing and sales: This includes commercial and sales. The client receives the
opinion of the product for ad campaigns and marketing. The product is then
available to the client. Sales Administration manages this kind of work.
The service includes all activities, which gets the value of the product or service.

Analysis of the value chain: McDonald's

Technology:
Some restaurants will offer 561 Driving WiFi hotspots BT Openzone to attract
business travelers
In the U.S., testing wireless 400 restaurants in four cities attracted new, mainly
older users, 60 p. percent of them said they would not have visited if it were not for
wireless access.
touch screen TV will be tested in 10 restaurants in the first quarter of this year
Internet terminals and Playstation are likely to be implemented this year
Mobile devices are already used to taking orders and reduce wait times in 500
McDonald's restaurants

Department of management sciences

The Islamia University of

Bahawalpur
Page 9

Report on McDonalds

Human resources:
Nearly 60% of all managers in stores Macdonald started out as hourly associates.
This indicates that MacDonald gives employees the opportunity for career
advancement. Employees are encouraged to communicate openly, offer new ideas,
take risks, strive for excellence and fun. Macdonald has been ranked as one of
America's 100 Best Companies to Work For in recent surveys.
Employees receive competitive wages and comprehensive benefits. These benefits
include both full time and part-time people.
When hiring new employees the company began a comprehensive program of
recruitment in the community where the store is to identify candidates. Recruitment
programs are well known and practical, offering an opportunity for job seekers and
society begin to become familiar.
When new employees begin to Macdonald, they are presented with two basic rules
of Macdonald. They are:
Rule 1: The customer is always right
Rule 2: If the client happens to be wrong, see section 1.

Command:
The national headquarters apply to goods stores all Macdonald. Macdonald is
working with suppliers to find ways to cut costs and still make a reasonable profit.
As a result of this teamwork, less packaging and distribution systems are
streamlined to reduce the total cost of the product.

Marketing:
The majority of sales in retail merchandising for a national advertising account. The
company sells its own brands. Macdonald has committed to buy products from local
and regional suppliers, instead of buying cheaper elsewhere.
Macdonald Innovation Network promotes new products and ideas. It offers inventors
and entrepreneurs inexperienced professional advice to determine the commercial
potential of products that are still under development, or have a sales history of less
than six months. The process also helps identify risks to bring the product to the
market

Service:
All stores Macdonald maintain uniform prices, unless the lower prices are needed to
meet local competition. Sales are primarily on a self-service cash-and-carry basis
with the goal of maximizing sales volume and inventory turnover while minimizing
expenses. Bank credit card programs, operates without recourse to the Company, is
available in all stores.

Department of management sciences

The Islamia University of

Bahawalpur
Page 10

Report on McDonalds
The refueling system also helps the store to accommodate customer requests. The
stores are organized the same way everywhere in the world, so customers can
identify with the stores where they go.

References
Wekipedia.com
http://www.scribd.com/share/upload/13943727/j2h12yra9gvetkw8xp
http://docs.google.com/viewer?
a=v&q=cache:SJTC3QtBHVcJ:www.prenhall.com/behindthebook/0132304619/pdf/Laudon
%2520Feature
%25203.pdf+dell+information+system+strategy&hl=en&gl=pk&pid=bl&srcid=ADGEESiq6x0c
MBghChEHTx6UxDDu-aefn11YS6MA0fSqFI3b-huIT6uFS7LaNJ0JPPjPZqPT5o2QXhqxI0UvYNaMdvchFcnf1U79qjlARZ1jRoe8mEPg1miSb2BIQ85ppdulABs&sig=AHIEtb
TkT8DJ0gagU5FHKl45xrUKiz-ENQ

Department of management sciences

The Islamia University of

Bahawalpur
Page 11