Report on McDonalds¶

Topic:

Information system and value chain of MacDonaldÙs

Submitted by:

Yasir Ayaz Roll No.64

Submitted to:

Mr. Tasawar Javed

Department of management sciences

The Islamia University of Bahawalpur
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Report on McDonalds¶

Table of Content
Title Executive Summary 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: McDonaldsÙ References Pg.no 2 2 2 3 3 3 3 3 5 6 6 8

Department of management sciences

The Islamia University of Bahawalpur
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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 Café, 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 doesn t 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

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The Islamia University of Bahawalpur
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Report on McDonalds¶

REPORT ON MANAGEMENT INFORMATION SYSTEM Of McDonaldsÙ
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 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

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Report on McDonalds¶
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

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
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The Islamia University of Bahawalpur
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Report on McDonalds¶
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 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.

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The Islamia University of Bahawalpur
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Report on McDonalds¶

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 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.

Support activities

Primary

Firm infrastructure Human recourse management Technology development Department of management sciences Procurement The Islamia University of Bahawalpur Marketing Service
M a r g i n
Inbound Operations Outbound Logistics Logistics

Activities

and sales

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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:
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The Islamia University of Bahawalpur
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Report on McDonalds¶
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

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

Department of management sciences

The Islamia University of Bahawalpur
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Report on McDonalds¶
volume and inventory turnover while minimizing expenses. Bank credit card programs, operates without recourse to the Company, is available in all stores. 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/behindtheboo k/0132304619/pdf/Laudon%2520Feature%25203.pdf+dell+information+system+strategy&hl=en &gl=pk&pid=bl&srcid=ADGEESiq6x0cMBghChEHTx6UxDDu-aefn11YS6MA0fSqFI3bhuIT6uFS7LaNJ0JPPjPZqPT5o2QXhqxI0UvYNaMdvchFcnf1U79qjlARZ1jRoe8mEPg1miSb2BIQ85ppdulABs&sig=AHIEtb TkT8DJ0gagU5FHKl45xrUKiz-ENQ

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