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WRITTTEN REPORT MARKSHEET UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE UBAI2043 IT FOR MANAGEMENT (MAY 2013) Bachelor of Commerce (Hons) Accounting
Topic: Tutorial Group: Name Student ID Programme
IT/IS’s impact on ‘FOOD AND BEVERAGES INDUSTRY’: Implementations of technologies for ‘MCDONALD’S’.
No 1 Items Executive Summary
Date of Submission:
1. CHAN KAH HUI 2. LEE KAH YEE 3. MALVEENN PREET KAUR GILL 4. MOO CHOI NYUK 5. SIM HWA KENG 6. YEE MIN NIE
Satisfactory 1 2 3 (Reasonably written) 2 3 (Reasonably written) 3 4 5 6 7
09ABB02548 12ABB07274 11ABB05909 10ABB00515 10ABB00996 12ABB07273
Excellent 4 5 (Exactly written) 4 5 (Exactly written) 8 9 10
AC AC AC AC AC AC
Poor (5%) 0
(Improper or None) 2 Discuss the impact of IT/IS on ‘your selected industry’ (5%) Introduction : (10%) Name of the company of your selected industry and its brief history The company’s main activities Lengthy discussion on how the three (3) IT/IS identified are used by the company of your choice in the daily business processes (30%) 0 0 1
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(Reasonably written with overview included) 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 (Reasonably written) 22
(Exactly written with concise overview) 23 24 25 26 27 28 29 30 (Exactly written with relevant examples and relation to business process) 15 16 17 18 19 20 (Exactly written with concise analysis done) 11 12 13 14 15
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The impact of Porter’s Five Competitive Forces model on the company (20%)
7 8 9 10 11 12 13 14 (Reasonably written)
(Improper or None)
Strategic use of IT/IS for competitive advantage
(Improper or None)
(Exactly written with concise analysis done) 4 5 (Exactly written with concise summary) 4 5 (Properly formatted and perfect standard compliance) 4 5 (Properly formatted and perfect standard compliance)
3 (Reasonably written with proper summary included)
(Improper or None) 8 APA referencing (5%) 0 1 2
3 (Reasonably formatted and reasonable standard compliance)
(Improper or None)
Formatting for the report
3 (Reasonably formatted and reasonable standard compliance)
(Improper or None)
Comments: Total Report Marks (100%) Lecturer / Tutor Acknowledgement: Name Signature
APA REFERENCING 14 . CONTENTS PAGE 1. STRATEGIC USE OF IT/IS FOR COMPETITIVE ADVANTAGE 10-11 7. EXECUTIVE SUMMARY 1 2. DISCUSS THE IMPACT OF IT/IS ON „YOUR SELECTED INDUSTRY‟ 2-3 3. THE IMPACT OF PORTER‟S FIVE COMPETITIVE FORCES MODEL ON THE COMPANY 8-9 6. INTRODUCTION 4 4.NO. CONCLUSION 12-13 8. EFFECTIVE IMPLEMENTATION OF IT/IS IN MCDONALD‟S 5-7 5.
7 million workers are employed by McDonald‟s worldwide. By doing so McDonald‟s will be able to improved their business process and operations. HBS. McDonald‟s will be able to save time. Transaction Processing System used to record McDonald daily transaction. error control point of sales systems in restaurants also eliminate or reduce human error. TPS is a system that helps to serve customers better. Using this system McDonald‟s able to attract more customers and keep customers and get what they need in the easiest way. POS also reduce paperwork. McDonald have strong decision making plan. (McDonald. 2011) It has been implementing in order to create smoother. It can consider as a backend system in McDonald. McDonald also uses Management Information System (MIS) to maintain and improve the internal control in the company. employee performance record and many more. By using this system. The best system in McDonald‟s is the POS system “Scale of Point System”.Hyperactive Bob System. Besides. (McDonald. Today McDonalds operating more than 30. McDonald‟s used Information System to identify their own strength and weaknesses by using the revenue reports. McDonald‟s also uses Made-For-You System. faster and more flexible kitchen system. 2011) Made-For-You System can help McDonald to raise their productivity and customer‟s satisfaction. Around 1. This may help them to keep the useful information in order to make a better decision in the future. This system uses cameras on the roof of the building and also gathers point of sale information in real time to monitor the entrance and parking lots of the McDonalds. 1 . The new entrants are not easy to enter the fast food market.000 restaurants worldwide which consist of 80% owned by franchise and 20% are owned by company itself. Decision Support System (DDS) is used to model data and make quality decision base on data. The other system that McDonald‟s used is Transaction Processing System (TPS).EXECUTIVE SUMMARY McDonald‟s is a fast food restaurant that offers delivery services and drive-thru services for customers‟ convenience.
This method led him to be more successful and capable in process. Thus it‟s only natural that something as everywhere as I. Consequently. Technology raises a company's capability to predict sales and decide which commodities have high consumer demand. internet terminals. Information System is a set of interrelated process that collects. With Wi-Fi hotspots in McDonald‟s customers can check email. For example building a database and calculating time of process to build up his work incessantly. and distribute information to support decision making and control in an organization. This 2 . store. operational efficiency and large amount of advertisement. In addition they will also increase the excellence of management and decrease human mistakes or errors. So if they decrease period of waiting. Actually. By using Information systems technology in McDonald's has provide a hand to computerize the business method and make them uncomplicated. Cost effectiveness. MacDonald‟s forward to control value of management by decreasing the time of each method that they are made. Information systems in the McDonald‟s are reducing the time that customers used to waiting in line. process.T. wireless devices and the internet have McDonald‟s plugged into mainstream technology.IMPACT OF IT/IS ON MCDONALD’S Information Technology is basically a broad and diverse field. Personal computers. and web-based games for children into its stores. McDonald‟s inventive planning introduced Wi-Fi hotspots. This occur through a screen that shows the customer place when he/she order in the McDonalds restaurant. McDonald does also have a system where it allows customers to order online and accept his home order from nearest brunch. Then they deliver the order in less time. plays a major part in business. they will boost amount of consumers and decrease time charge. Besides. access the internet and download presentations while having their food. it‟s not farfetched to say that Information Technology is practically involved in every aspect of one‟s life. But what exactly is the impact of Information Technology and Information System on McDonald‟s? Technology is playing an important part in McDonald's plans to attract more consumers into its fast food restaurants plus savings on expenditure. MacDonald‟s also used advanced IT in processing it systems. business become really cost effective money which made by machines.
shareholder and workers. In contrast. For example. Effective planning from information technology can create an advantage over competing organizations in this global market and offer the information needed to maintain its leadership in the fast food industry McDonald‟s has taken full advantage of what technology has to offer and effective planning is its best customer. which means better pay to workers and excellent working environment. intranet serves as a confidential communication means for the inside stakeholder of the company such as suppliers. internet and intranet is also being used in McDonald‟s in order to get connected with the stakeholders. Besides.gives opportunity to increase efficiency and profits. 3 . internet is being used in charge to start on their diverse marketing strategy as well as to get connected to their potential and faithful buyers.
milkshake. Transaction Processing System(TPS). McDonald‟s has continued to expand its business to 117 countries since the first restaurant opening in Australia during 1971. Last but not least. teenagers. McDonald‟s vision is “To be the world‟s best quick service restaurant and to take over the global food-service industry” whereas their mission is “To provide excellent quality. Hyperactive Bob System. Besides. DSS‟s function is to analyze data when they wanted to come out with a decision.7 million workers are employed by McDonald‟s worldwide. providing wireless service in their restaurant. service. so that we make every customer feel satisfied. On the other hand. french fries. breakfast items. 4 . for example. McDonald‟s also offers delivery services and drive-thru services for customers‟ convenience.INTRODUCTION „I‟m Lovin‟ It‟ is a tagline known by everyone including kids. POS system is used to track large amounts of data and transmit the data to several workstations to speed up the business process. MIS is used to provide periodic report to help managers monitor the business performance and its future plan. Today McDonalds operating more than 30. big Mac burgers. The company focuses on providing high quality of food and customer service through its product line. “Made For You” system is specifically designed to place customers‟ order in which the order will automatically appear in the computer in the kitchen to increase efficiency. Due to high demand of cheap takeaway food. McDonald‟s is the world‟s number 1 fast food corporation found by Richard and Maurice McDonald in San Bernardino California in 1940. chicken porridge.” McDonald‟s uses various types of information systems in daily operation such as. Point of Sale System(POS system).000 restaurants worldwide which consist of 80% owned by franchise and 20% are owned by company itself. and elderly people. pie. Their main selling products are hamburgers. “Made For You” system. Management Information System (MIS). soft drinks. TPS is used to record suppliers‟ information when transactions occurred. fillet-o-fish burgers. McDonald‟s started to grow rapidly in 1960‟s. double cheeseburgers. and value. cleanliness. nuggets. Around 1. Decision Support System (DSS). Hyperactive Bob System uses camera to monitor incoming traffic within the restaurant area so that their staffs will always be alert. and desserts.
stored. such as address. (McDonald. and quantity of the product that they order. 2011) It has been implementing in order to create smoother. It can consider as a backend system in McDonald. They also need to record the information of purchasing their raw material. Every day. They have to use Transaction Processing System to help them to record customer‟s transaction and information. Since McDonald consider as a fast food and beverage company. Such as the total quantity of hamburger had been sale. The second Information system our group wants to highlight is Made-For-You System that implemented by McDonald. name. This may help them to keep the useful information in order to make a better decision in the future. Transaction Processing System used to record McDonald daily transaction. In addition. TPS also will ease the ordering process. faster and more flexible kitchen system. The first IT we want to discuss about McDonald is Transaction Processing System (TPS). . So they have to change all their cooking equipment and communication technologies that may allows McDonald to launched this new concept. 2011) Made-For-You System can help McDonald to raise their productivity and customer satisfaction. TPS also used to collect. 5 . they have to provide fresher ingredient to their customer in order to be more famous and attract more fast food‟s supporter. Above function can helps McDonald to answer some general question in conducting their business transaction. McDonald has to deal with many supplier and customer. type of hamburger. employee record keeping or paying an employee. TPS is a system that helps to serve customers better. (McDonald. and retrieved the transactions of their organization. product‟s name. For examples.IDENTIFY THREE (3) IT/IS AND DISCUSS HOW EACH IT/IS IS USED BY THE COMPANY OF YOUR CHOICE IN THE DAILY BUSINESS PROCESSES. payroll. modify. Transaction Processing System also helps McDonald to reduce the possibility of committing fraud or difficulties in physically keeping supplier contact and their information. and the supplier information in order to keep track the reorder level and which supplier that they need to communicate and cooperate with them when they reach their reorder level.
the customers can ensure that they can get the meal prepared after they made orders but not the meal made before their orders. Hyperactive Bob System instructs employees for the food to prepare 6 . the current amount of food in the restaurant's warming bins and issues cooking orders to the employees manning the jobs. If there is lots of people to have their satisfaction in a rush hour. meat. this help the workers able to make an expectation for the meals that they need to be ready in that period of. This system helps to maintain and control the quality of the McDonald‟s meal. Bob‟s spots vehicles entering the McDonalds‟s parking slots and reminds the workers to know how fast should they work to serve a meal at what amount of chickens. Made-For-You System help to ensure that the customer get their meal tastier and fresher. cooking times. Hyperactive Bob System is a technology that helps McDonalds to step forward by ensuring their staff is always be prepared. the time of day. This system is not only a mechanical humanoid bring together chicken burgers behind the counter but merges machine intelligence with human activity. This system keeps an eye on the entrance and parking lots of the McDonalds with the cameras on the roof of the building to gather the points of sale information in real time. This means that after the customers had make the order. Hyperactive Bob System uses robots to control the computer vision and artificial intelligence systems to manage the kitchens at-so called quick-service restaurants.By using this system. the chef will only start to made the meal. fries and so on. The third information system we discuss here is HBS. fish. the worker will just click on the screen for what you had order and the order immediately sent to the kitchen and at that time.Hyperactive Bob System. Hyperactive Bob System scans the parking lot for the cars coming and cross-references traffic patterns for the preparation to the restaurant services as the bell curve of orders.
7 .based on past data by using touch screen with Artificial Intelligence. This system has giving McDonalds the ability to always be one step ahead.
Porter helps McDonald‟s to stay in this highly competitive food and beverages industry. the main supplier is MacFood Services (M) Sdn Bhd while the bun supplier is HaviFoods Sdn Bhd. Secondly. On the other hand. McDonald‟s uses IT such as “Made For You” system to send customers‟ order directly to kitchen crew. Customers have not much choice to make as McDonald‟s is one of the fast food chains which offers low cost and differentiated products and services. delivery service same like McDonald‟s in running their business. bargaining power of suppliers. address. contact number and invoice amount. McDonald‟s can be easily substituted by other fast food chains such as Burger King. The Five Forces Model formed by Michael E. McDonald‟s relies on single supplier on each product. Nowadays. and rivalry among existing competitors. the bargaining power of McDonald‟s customers is low. As a result. McDonald‟s becomes their main choice to satisfy hunger as it is well known for its fast and convenient services. drive-thru. 8 . the bargaining power of McDonald‟s suppliers is high. there is nothing to stop them from purchasing substitute products. Since the customers‟ switching cost is low. This system can increase efficiency and the customers can get their orders in short time. Not only these. KFC. McDonald‟s uses Transaction Processing System (TPS) to deal with these suppliers by recording the important information related to suppliers such as name. Subway and Carl‟s Jr as the customers can easily switch to other products. McDonald‟s depends on beverages industry like Coca Cola and Minute Maid. they tend to look for healthier food as alternatives. To be able to gain advantage in competitive edge. For example.DISCUSS THE IMPACT OF PORTER’S FIVE COMPETITIVE FORCES MODEL ON THE COMPANY OF YOUR CHOICE. The Five Forces Model consists of bargaining power of buyers. Since McDonald‟s attempts to provide consistency in their food serving sizes. This is because in this hustle and bustle of the big city where everyone is living in such a fast paced lives. The threat of substitute services is high because most of the competitors also use Point of Sale system (POS). McDonald‟s does not worry about customers‟ loyalty. threat of new entrants. Wendy‟s. McDonald‟s does not have its own factory to manufacture food. the threat of substitute products or services is high. threat of substitute products or services. Firstly. Thus. people are more concern about their health.
Therefore. the threat of new entrants is relatively low. One of the good examples of well-established companies is McDonald‟s. Hyperactive Bob system assists McDonald‟s in monitoring the entry of customers within the restaurant area. McDonald‟s does not have to fear of the threat of new entrants as there is a high barrier to entry. McDonald‟s is not an exception to this. Wendy‟s and Burger King often compete with each other in terms of price. 9 .Furthermore. a firm has to spend a big amount of capital in order to survive in this competitive fast food market. customer services. To start a new business. new entrants are unlikely to provide those high cost IT systems. the rivalry among existing competitors is relatively high. efficiency of the staffs and quality of products to maximize their profits. New fast food chain is hard to enter into the market as there are many well-established companies. McDonald‟s equipped with Hyperactive Bob system in which other fast food outlets don‟t. “Made For You” system . a low cost fast food restaurant with strong brand identity makes the new entrants even more difficult to enter as they have to face with fierce price competition. Point of Sale system (POS). Competitors like KFC. Management Information System (MIS). McDonald‟s. Pizza Hut. Last but not least. In order to survive in this competitive market. Most of the fast food outlets are well equipped with advanced technology to increase the efficiency. Decision Support system (DSS) and Transaction Processing system (TPS). Since McDonald‟s is using IT to support its operation such as Hyperactive Bob system.
purchasing and accounting. So the customer payment can faster process and not need to waiting long time. the customers of McDonald are more loyalty because they know the McDonald has a standard level of quality. McDonald will not be over or under order. McDonald has many suppliers. Point of Sale System is the system to place where a retail transaction is completed. As a result. The quality of food do not has big different in every country. Bargaining power of McDonald‟s customers is related customers‟ loyalty. (Wuorio) McDonald uses Point of Sale System to calculate the amount owed by the customer and provide options for the customer to make payment. McDonald wants to maintain their material in top quality. McDonald uses this system to maintain their sales and customers. modification and retrieval of all transaction data. So the McDonald‟s customers can enjoy the fresh and delicious food in McDonald. McDonald use Transaction Processing System (TPS) to collection. Point of Sale systems also offer a wide selection of features to improve control of McDonald and save time spent on inventory. Transaction data can be process in faster and safely way. However. 10 . McDonald uses “Made For Me” system when a customer places an order. The quality of hamburger will be not affect by time. thus it has the power controlling the cost of material. McDonald provides good service and delicious food to their customer. Relationship between McDonald and customer is good. (USE THE PORTER’S 5 FORCES AND COMPETITIVE STRATEGIES TO CARRY OUT THIS ANALYSIS. McDonald uses Transaction Processing System to handle errors in a safe and consistent manner. Point of Sale System (POS) is critical to gathering and applying information effectively in today's ultra competitive markets. McDonald does not have their factory to manufacture food. the food item will immediately appears in computer monitor in the kitchen and a tone sound to alert the kitchen staff.) DISCUSS HOW INFORMATION TECHNOLOGY CAN BE USED BY THAT COMPANY TO SURVIVE THE IMPACT AND SUSTAIN THE COMPETITIVE ADVANTAGE. so the price of material will be higher. McDonald can be manage quantity of material. McDonald also maintains the quality and taste of food in every country. Therefore the customer will not easily switch to other fast food restaurant.STRATEGIC USE OF IT/IS FOR COMPETITIVE ADVANTAGE. therefore their purchase the material direct from the local place.
The customer can be internet when they enjoy their beverage. Example like McDonald thought of providing wire service to customers use. It involve three resource are technology. 11 . McDonald‟ rivalry of competitor is relatively high. Decision support system is usually computer application with a human component. Management Information System is a system that provides information needed to manage organization effectively. Therefore the new entrants are not easy to survive in the market. and people. Decision Support System (DDS) is used to model data and make quality decision base on data.McDonald have strong decision making plan. Therefore the McDonald can be managing the competitors. Therefore McDonald uses Management Information System (MIS) to maintain and improve the internal control in the company. The new entrants are not easy to enter the fast food market. McDonald uses Management Information System to improve the profitability and information to help the management and employees understand the business performance and plan its future direction. McDonald use Management Information System to produce periodic report such as a daily list of employees and the hours they work or a monthly report of expenses as compared to a budget. (Targit Business Company) McDonald makes correct decision planning when used decision support system. information. McDonald can be analyzing the market well as other competitors when the opportunity is coming. (May Business School) When the employees understand their responsibility. they will perform good job and loyalty to McDonald. Internal control is more important that external control.
These attempts towards process replication and effectiveness not only set the basis for McDonald's achievement from the viewpoint of customers' expectations. 12 . Innovation caused from alertness to customers and franchisees has played a big role in McDonald's fending off stagnation over the years. Consistency. and the snack times that fall in between. but local and availability. Customers know what to expect and can take console in that information when making a choice on where to eat. and put the work in to the lead of time. A few examples of products that were introduced after being developed by McDonald's franchisees Filet-O-Fish. you can tweak your product without causing disturbances. First factor is consistency. and possible better serve your customers. In the beginning. the success factor of McDonald‟s can be divided into four categorise. the concept of consistency and innovation tend to disagree with one another. but also help McDonald's stay on top in a traditions where generating at a fast speed is universally accepted. Additionally. Big Mac. McDonald's creation contributions have developed over the years next to the savours of their customers thanks in part to some alert and inventive franchisees. The first is consistency. There should be a fine line between consistency and innovation. but local‟ approach allows it to adapt its offers to suit the local appetite. These menu innovations have allowed for McDonald's to embrace creation contributions for all meal times. or even the way you deliver them. Hot Apple Pie. Egg McMuffin. second innovation and third global. of course is the main factor of success to any franchise system and this is why McDonald‟s is very success in their business. But McDonald's takes huge concern not to cause the customer experience when a fresh piece is launch.CONCLUSION In conclusion. The second factor is innovation. you‟re going to experience the similar experience wherever you are. have to be consistent. This „global. it adjusts its business and menu to go well with home markets. Being consistent on the centre workings of your business doesn't mean the items or product you sell. But in surprise. this two characteristic tend to work together to allow McDonald‟s growth. allowing for better profitability. However. No matter where you are and which brunch of McDonald‟s you‟re visiting. if you take the required moves. McFlurry. Although McDonald‟s is a multi-national gigantic. For example. but local. The third success factor of McDonald‟s is global.
shopping centers and strip malls normally have a McDonald‟s built in or within walking distance. McDonald‟s menus have vegetarian and non-beef options.in some countries. We can find McDonald‟s Restaurants in anywhere either it is in suburban town or in cities. in India. Besides. Some stores have places McDonald‟s restaurants within for consumer availability. 13 . where Hindus don‟t eat beef. Convenience is the main key factor of McDonald‟s success. McDonald‟s sells beer and. The fourth factor success factor is availability.
com/2004/09/18/hyperactive-bob-spieson-hungry-food-customers/ Kristiellis (n. 2013. 2013.microsoft. 2013. Retrieved july 20. J.html Franklin County Times.d) (2003).Made for You. McDonald's Lean Food Preparation System . from http://mcdonaldsmis.mcdonalds. July. from http://www.com/en/landingpages/decisionsupportsystem/dss Wuorio.d.ehow. benefits of IS. from http://www.d). 2013. Retrieved July 13.aspx?fbid=18has6TvdEh 14 .).targit. McDonald‟s controls inventory worldwide with system.org/wiki/McDonald's McDonald‟s.leansimulations.asp McD Information System .blogspot.REFERENCES Althea Thompson (n.).). Retrieved July 13.d) (2012).(2004).) .d.com/p/mcdonalds-is_04.Retrieved 1. from Microsoft Business: http://www.edu/info/whatis-mis/ McDonald’s.html Squall (2011). Key Success Factors of McDonald's. 2013. Retrieved 2011.com. 2013.History: The McDonald’s Story. Retrieved July 13. Retrieved 1. 2013.com/business/en-us/resources/technology/business-software/7-reasonsto-switch-to-a-point-of-sale-system.blogspot.my/abtus/corpinfo/history. 2013. (n.html Squall (2011). HyperActive Bob spies on hungry food customers.2013.d. (n. Retrieved from TARGIT : http://www. Improve decision makingwith DSS. from http://www. Retrieved 1.html Targit Business Company.html May Business School. July. from http://mcdonaldsmis.com/p/mcdonalds-is_04. from http://mcdonaldsmis. (n. 2013.wikipedia. from https://en. Retrieved July 13.d. from http://mays.com/p/benefits-of-is. Retrieved 1.d. McD Information system.com/list_7427367_key-success-factors-mcdonald_s. from http://www.Decision Support Systems.blogspot. from http://supermarketnews. Retrieved July 13.July.com/archive/mcdonalds-controls-inventoryworldwide-system Martin Boersema (2012). (n. (n. July.).tamu.org/2012/04/mcdonalds-lean-foodpreparation-system.franklincountytimes.(n.