MANAGEMENT INFORMATION SYSTEM

IN

McDONALDS

SUBMITTED TO: SUBMITTED BY:

MR.TANVEER ISHU SINGLA - (16421056)

ISHA GOEL - (16421068)

SALONI AHUJA- (16421069)

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 ACKNOWLEGMENT
Every project big or small is successful due to the effort of a number of wonderful people who
have always given their valuable advice or lent a helping hand. We sincerely appreciate
the inspiration; support and guidance of all those people who have been instrumental in making
this project a success. We are heartedly thankful to our most respected and honored course
instructor of Management Information System, Mr. Tanveer for
his even willingness to give us valuable advice and direction; whenever we approached him
with a problem .His guidance and efficient teaching efforts have made this project possible.

ISHA GOEL

ISHU SINGLA

SALONI AHUJA

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 CONTENTS

SERIAL TOPIC PAGE NO.

NO.
1 Mc.DONALDS
 Introduction
 History
 History In India
 Vision
 Mission
 Product line
2 Information system- an introduction
3 Application of IT and IS in Mc.Donald
4 Types of management information system
 Strategic information system(SIS)
 Managing information system(MIS)
 Transaction processing system(TPS)
 Office support system
 Decision support system
 Payment system
 Point of sale system
 Ninetendo DS system
 Hyperactive bob system
 Made for you system

5 Advantages of IS in Mc.Donalds
6 Benefits of MIS in McDonalds
7 Other interesting issues about IS in Mc.Donalds
8 Other facts
9 Suggestions and recommendations
10 Conclusion
11 Refrences

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HISTORY:
McDonald's is an American hamburger and fast food restaurant chain. It was founded in 1940 as
a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized
their business as a hamburger stand, using production line principles. The first McDonald's
franchise using the arches logo opened in Phoenix, Arizona in 1953. Today, McDonald's is one
of the world's largest restaurant chains, serving approximately 68 million customers daily in 119
countries across approximately 36,615 outlets.

McDONALD’S INDIA HISTORY:-

McDonald's opened its doors in India, the 95th country, in 1996. The first McDonald’s
restaurant opened on Oct. 13, 1996 at Basant Lok, Vasant Vihar, New Delhi. It was also the first
McDonald’s restaurant in the world not serving beef on its menu. McDonald’s India is a locally
owned company managed by Indians.
McDonald’s is managed in India by:

 Vikram Bakshi, under Connaught Plaza Restaurants Pvt. Ltd in Northern and Eastern
Region(Headquartered in New Delhi) through a joint venture.
 Smita Jatia, under Hardcastle Restaurants Pvt. Ltd. in the Western and Southern
Region (Headquartered in Mumbai) which is a DL (Development Licensee)

McDonald's™ philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding
force behind its service to the customers in India. Following its philosophy of being sensitive to
local food and cultural preferences. India was the first country in the McDonald's system where
it served non-beef and non-pork products. More than 70 percent of the menu in India has been
locally developed with complete segregation of vegetarian and non-vegetarian products right
from the food processing plants to the point of serving the customers. At present, there are 300
McDonald's™ restaurants in India.

Mission Statement:-
To have the best employee stuff and deliver an excellent service

Vision Statement:-
"McDonald's vision is to be the world's best quick service restaurant experience. Being the best
means providing outstanding quality, service, cleanliness, and value, so that we make every
customer in every restaurant smile."

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PRODUCT LINE
McDonald's is the second largest chain of fast food restaurants in the world. They mainly serve:-

 Hamburgers
 Cheese Burger
 Chicken products
 French-fries
 Breakfast-items
 Soft –drinks
 Milk-shakes
 Desserts
 Snack wraps

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INFORMATION SYSTEM
INTRODUCTION:

The system that offers information required for successful organizational management and to
accomplish competitive advantage is referred as management information system. To allow
value added services, to facilitate decision making procedure and to resolve 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.

APPLICATIONS OF INFORMATION TECHNOLOGY AND INFORMATION

SYSTEM IN MCDONALD:

Information System is considered as one of the most important aspects of organizations and
companies in the world, due to the different impact of different aspects such as globalization,
improving communication technologies as well as the variability of the demands of the
customers.This project will focus on the different issues and aspects of McDonalds regarding IT
and Management Information System. Mid- and upper-level managers rely on a variety of
information systems to support decision-making activities, including management information
systems, decision support systems.

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 transaction processing and recording and financial
management is one of the most important aspects of the company where in IT is being applied.
In addition, it can also help to improve the customer relationship management(CRM), sales
and marketing activities by having a real-time transmittal of their restaurant inventory, point-of-
sale or POS as well as financial data.

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1. STRATEGIC INFORMATION SYSTEM
Information system employed for attaining competitive advantage in the industry is termed as
Strategic Information System (Hackney, 2010). McDonald’s 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 McDonald’s.

In McDonald’s 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
McDonald’s outlets as part of serving their customers better. McDonald’s 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 McDonald’s 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 McDonald’s 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.

2. MANAGING INFORMATION SYSTEM (MIS)

Management is essential for any type organisation regardless their size or complexity. MIS is a
very common information system used by many organisation .Management information system
is a system that is designed to support and run the organisation efficiently and effectively, by
providing essential information at right time. The MIS depends on three primary resources for
information.

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* Technology *Information * people

The people are considered as the most important resource within the organisation on the 8 belief
that, without people there would be no business because people are the customers. The main
three types of information that is generated by MIS include, detailed information, summary
information and exception information. The decision made by the help of MIS system is used on
a daily basis on multiple functional areas. MIS is used to produce list of labour, their working
hours and in some cases, it can be used to generate a report on monthly expenses for comparison
purposes.

HOW MIS IS IMPLEMENTED IN MCDONALDS?

The Management Information System also help the management and staffs of the McDonald’s
restaurant to forecast and prepare for their future by understanding the performance of the
business. . There is a list of criteria to choose information that can help in the process of decision
making. They include, required information, source of information, reason why a particular
source information is considered, the format and mode of information etc. MIS generally used in
McDonald’s restaurants for, Financial Management, Inventory management, Technical
Foundation, Asset Management, Forecasting, Time and Expense management, Procurement etc
(Laudon and Laudon, 2008). The information based on the decisions made by MIS system is
used to guide the employees and staffs by letting them know, what to expect and how to handle
different situations (O’Brien and Marakas, 2008).This enables McDonald’s to get a competitive
advantage over other fast food restaurants.

3. TRANSACTION PROCESSING SYSTEM

TPS system is designed to capture and analyse the information that is generated during
restaurant’s day to day transactions.It is done when transaction between two people occurs,data
is collected regarding the transaction and then processed and this is called “Transaction
processing”.Transaction process concerns with collection,storing,altering, and retrieval of data
regarding transaction within the organisation. 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.

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.

HOW TPS IS IMPLEMENTED IN McDONALD?

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 We think that McDonald’s are using the right information systems for their companies.

 For example-By using the TPS ,it let the employees have more time for their customers
and it also help them by saving time with applying this system , its faster and more
accurate to enter any data. 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.

 Sales of goods to customers, purchases of inventory from suppliers, and salaries paid to
employees are all financial transactions. Everything else is a nonfinancial transaction.
The marketing department, for example, might add some demographic data to its
customer database. The information would be processed by the firm’s TPS, but it
wouldn’t be a financial transaction.

4. OFFICE INFORMATION SYSTEM

Office information system is basically an information system that uses a collection of hardware,
software and networking systems to improve the work flow and improve the quality of
communication among the employees it is also knows as office automation. Computers and other
modern electronic gadgets are used to perform tasks and collect information rather than doing
things manually. This saves a lot of time and man power. It is also used to send information such
as emails, documents and graphics electronically to a bulk of employees at a time. McDonalds
restaurant uses a variety of electronic devices such as computers, electronic clock –in system,
networking devices, cameras, time keepers, electronic order screen etc.as the part of office
information systems.

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5. DECISION SUPPORT SYSTEM(DSS):-

Decision support systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from various
related information systems involved in organizational business processes, such as office
automation system, transaction processing system, etc.

DSS uses the summary information, exceptions, patterns, and trends using the analytical
models. A decision support system helps in decision-making but does not necessarily give a
decision itself. The decision makers compile useful information from raw data, documents,
personal knowledge, and/or business models to identify and solve problems and make
decisions.

COMPONENTS OF A DSS
Following are the components of the Decision Support System:

 Database Management System (DBMS): To solve a problem the necessary data may
come from internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).

 Model Management System: It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.

Support Tools: Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.

TYPES OF DSS
Following are some typical DSSs:

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Status Inquiry System: It helps in taking operational, management level, or middle level
management decisions, for example daily schedules of jobs to machines or machines to
operators.

 Data Analysis System: It needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.

 Information Analysis System: In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems, market
analysis etc.

 Accounting System: It keeps track of accounting and finance related information, for
example, final account, accounts receivables, accounts payables, etc. that keep track of
the major aspects of the business.

 Model Based System: Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or
management.

How decision support system is implemented in Mc.Donalds?

By using the DSS it helps the company choose or make the right decisions based on the quality
of the data McDonald’s has used WiFi in their restaurants to gather information about customer
practice and lengths of stay and sales, i think they were really brilliant with this idea with using
this system they can easily know how much the customers are staying and the more they stay
which means they are satisfied. And i think by using the MIS the managers of McDonald’s can
easily look for future oriented .

6. PAYMENT SYSTEM:
McDonald's is always looking for new and innovative ways to use technology to improve
customer service "McDonald is expanding its use of an electronic system that lets customers pay
for their orders using a cash-free keytag system originally developed for Mobil gas station .The
Speedpass is a transporter that can be kept on a customers key chain." When a purchase is made,

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the gadget automatically sends a signal to the credit card account,so that the purchase can be
included on the customer's next monthly bill. This process will allow McDonald's to move
rapidly when dealing with orders and purchases.

In addition to that, the financial data that had been gathered from the POS will be helpful in
knowing the performance of individual store as well as the overall performance of the company
in the world that will be important in order to show the financial condition of the company to
their stakeholders

7. POS (POINT OF SALE) SYSTEM:-

Its computer software used in a touch screen that Mcdonald’s restaurants use or handheld
devices. This system helps McDonalds to track the real time transaction and used to speed the
business process to ensure fast and accurate order for example sending the order to kitchen
screen and processing the credit card payment and other process that must be accurate. Also, the
cashier immediately knows what payment is due and the kitchen knows the coming up orders
and for how long a customer waited. 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 McDonald’s.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.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.

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.

McDonald's has developed and adapted the NewPOS system to help them to manage their
supply chain, staff productivity and to speed up customer services.Recently they have
added customer operated touchscreens. This helps speed up the ordering process in their
busiest stores.

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NP6 SYSTEM
In 2008, the development of this system was taken in-house, allowing the McDonald's IT team to
adapt it to the chain's specific needs. The new system is called NP6.
McDonald's has developed and adapted the New POS system to help them to manage their
supply chain, staff productivity and to speed up customer services.
Recently they have added customer operated touch screens. This helps speed up the ordering
process in their busiest stores.

NP6 FEATURES
The NP6 is a touch screen system. It mainly uses pictures of the meals, which are easier to
recognize at speed than the seven letter abbreviations the old system used.
There is no need to work out the correct amount of change to give a customer, as the NP6 will do
this for you.
There are different menus loaded on the system for different situations, e.g. breakfast, favorites
and an employee discount menu.
Once orders have been placed on the NP6 they are automatically sent through to the kitchen, so
that’s one less thing for the employee working the cash register to worry about.
It can take new employees a few days to get used to it, even if they have worked with a POS
system before, but McDonald's provide fantastic training so it won’t take long to master it.
The system has been designed to be as intuitive as possible and really is one of the easiest to use
once you have completed the training.
.

8. NINTENDO DS SYSTEM
Nintendo DS System is an electronic training tool used to train new employees when they join
McDonald’s. The same system is used to record the progress of each individual employee as the
time go though. There are designated crew trainers who evaluate each employees to understand
their capabilities and skills. They conclude their evaluation either suggesting improvement or
showing satisfaction on each employees. This data is 10 initially recorded in paper and then
stored over internet and made in accessible for the particular employee and the management. By
this management will be able to take appropriate actions, for example, if an employee require
more training, he/she can be given more training. If someone is outstanding can be trained for
promotion such as a crew trainer or a manger. This system helps to save space and time by not
requiring to storing lot of paper works and time by enabling the easy access of information
online immediately.
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9. MADE FOR YOU SYSTEM:-
In this system” the meal prepared after the person orders the meal not before” [1] which mean that while
you are make the order the worker in front of the screen click on the what you order and the order goes
immediately to the kitchen where the chef made the meal just on the time he saw the order not before so
that the meal be more tastier and fresher arrives to the customer in a few minutes.

10.HYPERACTIVE BOB SYSTEM :-

This system “based on the computer vision and artificial intelligence systems employed by
robots, to manage the kitchens at so-called quick-service restaurants”Hyperactive Bob System or
HBS is a simple information system which provides very vitalinformation for the staffs and
employees of a restaurant. In this system they use a cameras on the roof of the building that
monitor the entrance of the McDonald’s restaurants and the parking lots to see the number of
people are coming to the restaurant when the workers are busy to know how fast they need to be
to make the meal and what amount of meats, chickens, fries and other things they use needed and
to make an expectation of meals that must be ready at a period of time if there is lots of people to
have their satisfaction.

For example, if there is a visual showing ahuge 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.

These information is later used to forecast what kind of business to expect on similar days or
situations (Tenkanidyur, 2014).

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ADVANTAGES OF INFORMATION SYSTEM IN McDONALDS

 Handhelds PCs at McDonald's

For enhancing efficacy of employees McDonald’s 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 5 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
McDonald’s 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 card’s costs and its sluggish dealings, McDonald’s
implemented smart card technology. Payment through card is made as easy and fast as cash
payment. McDonald’s 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 McDonald’s 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 McDonald’s to conserve the nature and other
children’s charities are included in McDonald’s website.
Though it is not possible to sell food products on McDonalds’s website, they can earn money by
sales of products associated with sponsorship of McDonald’s. To gather 6 information and
personal details regarding customers using online surveys McDonald’s website is helpful
In 1993, in stores of Wal-Mart McDonald’s opened their outlets. For selling their food products
McDonald’s use Wal-Mart’s registers. At the counter in Wal-Mart store display of McDonald’s
product is provided. When customer purchases McDonald’s products the orders are transmitted
to kitchen because of software developed by Wal-Mart and McDonald’s. The bill for

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McDonald’s is appeared on receipts and records of Wal-Mart. McDonald’s share from the deal is
balanced during end of the day. Supply-chain software is employed in McDonald’s for
enhancing inventory management. This helps in sharing of supply and demand information
among distributors, suppliers and restaurants.

 Wi-Fi Service:
McDonald’s is always very keen to make their customers happy. Considering the changing
requirements of customers, McDonald’s 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

 ARTIFICIAL INTELLIGENCE :-
Artificial intelligence is a natural fit for McDonald’s. While the fast food giant has yet to
replace human workers with robots, it has already started bringing cognitive technology to
the drive-thru window. During a keynote speech last year, Microsoft CEO Satya Nadella
announced that one of the company’s partners was working with McDonald’s on an app
that takes advantage of Microsoft’s cognitive technology to convert drive-thru orders into
text. Once ordered have been converted, they can then be fed into an integrated POS system
for faster processing. McDonald’s is said to be using Microsoft’s speech algorithm to clean
up the audio quality of drive-thru orders, which is ultimately necessary to accurately turn
audio into text.

With artificial-intelligence technologyMcDonald’s plans to do something no other

restaurant of its kind has ever done before; open a store run entirely by robots.The
restaurant will still employ a small team of human employees to insure all of the robots are
working correctly, the food and cleaning supplies remain stocked along with removing the
money collected by the robots. Visitors to the restaurant will see these new robots working
in harmony at a speed of 50 times faster than the average McDonald’s employee, with no
chance of error. If the test launch for the store is a success, people can expect to see robots
working in McDonald’s restaurants all over the country and the world.

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 CUSTOMER RELATIONSHIP MANAGEMENT:-
It is a comprehensive approach which provides integration of every area of business that touches
the customer namely marketing sales, customer service field support through the integration of
people, process and technology.

CRM FOR INTERNAL CUSTOMERS

 Each outlet is headed by a Restaurant Manager. He is responsible for the daily operation
and customer interaction.
 Delivery crew member carries basic operation of restaurant. Ensure customer satisfaction
at the restaurants.
 In order to motivate there employees they give them star as per their performance.

CRM FOR EXTERNAL CUSTOMERS

 McDonald’s India provides fast friendly service.

 McDonald’s restaurants provide a clean comfortable environment especially suited for
families.
 McDonald’s menu is priced at value that the largest segment of the Indian consumers
affords.
 McDonald’s does not sacrifice quality for value – rather McDonald’s leverages
economies to minimize costs while maximizing value to customers .

McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger

fastfood restaurants, serving more than 58 million customers daily.McDonald's primarily
sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft
drinks, shakes, and desserts. In response to obesity trends in Western nations and in the
face of criticism over the healthiness of its products, the company has modified its menu
to include alternatives considered healthier such as salads, wraps and fruit.

BENEFITS OF INFORMATION SYSTEM

McDonalds used information systems to increase the productivity and provide its customer the
food with a very good quality that improved their kitchen with an advanced technology so that
the meal arrive fresher, tastier and hotter each time they order it. Also, McDonalds used the
information system to reduce the effort, cost and time they need to do their processes.
Furthermore, by using this information system, McDonalds have the ability to maintain its
customer and attract more customers.

 Employees performance record, expense and profit report make McDonald’s aware about
their strong point and flaws.

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 Understanding this will enable McDonald’s to progress their business operations.
 Productivity of McDonald’s is enhanced by implementation of information system.
 Information system helps to minimize the workload and time required for each operation
competitive advantage.

Other interesting issues about Information System at McDonald’s:-

1. First issue is to know who has access to the information system because it is important to
protect this system from potential competitors so it is better to implement a more secure
information system in the future that is more difficult to hack into it, as there is a lot of
company’s would want access to the information’s of McDonald’s.

2. Second issue is to know where the data is coming from; if it is collected from the
customer, then the customer better be informed of this and they should agree to give this
information about themselves so it will mean more accurate computations of this data

3. Third issue is measurement errors, so in future it is better to implement superior ways of

presenting the information which the system provides and better ways of applying this
information to make more money, for example it would be better to have the system give
me information which I could.

4. Fourth issue is to teach or train the employees who have access to McDonald's
information system, how to use that information system in a way to benefit.

5. Fifth issue is how to make sure that the same information system is being used the same
way in every McDonald's branch all over the world.

OTHER FACTS ABOUT MCDONALD’S:

 Using ADSL broadband connections to authorize transactions, McDonald's has been able
to reduce the time to process card payments from thirty seconds to just four.

 But it's not just in the restaurants that new IT is expected to help the company's business.

 McDonald's is using wireless technology to make savings in its IT infrastructure and

increase productivity.

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  But McDonald's has no plans to introduce radio frequency identification (RFID) tagging
into its supply chain management system.

 'We've looked at RFID twice, but at the end of the day it's not worthwhile at the current
time,' says Tiley.

 The high cost of specially designed tags and readers for freezer environments makes
RFID introduction unfeasible

SUGGESTIONS AND RECOMMENDATION:-

There is no guarantee that competitive advantage once gained will remain forever. Sop
McDonald’s 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 McDonald’s should consider this fact and act
according to it. McDonald’s 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 McDonald’s.

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 McDonald’s.
McDonald’s 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 McDonald’s
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 can’t 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

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 customers which will surely increase the productivity of organization and hence will help
McDonald’s 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
McDonald’s.
 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 9 with the information regarding the organization at correct
time.
 Lessening of expense and maximizing the profit- Increasing the profit is the major aim of
any organizations and even McDonald’s have same objective. For that more and more
customers should be lured and convinced to purchase the food products of McDonald’s.
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 McDonald’s 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 McDonald’s 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.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 McDonald’s system
should be properly implemented in domestic offices along with Head office. McDonald’s
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.

CONCLUSIONS:-
It is very obvious to understand the management systems used by McDonald’s restaurant, is
very helping and effective part of the operation of the store. McDonald’s is growing industry,

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and it is willing to adopt new tools and styles of management that are more effective than the
contemporary ones. The decisions made every day at each McDonald’s stores will have its
significant consequences and after effects on the business performance. The report has clearly
identified the problematic areas, corresponding to the contemporary style information
systems, it also suggests new methods and ideas to avoid such problems. A combination of
well-trained staffs and by suitable technological advantages, McDonald’s can grow up to its
dream for becoming the most desired restaurant for the people.

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 REFERENCES

 http://streetfightmag.com/2017/02/01/5-quick-serve-restaurant-
brands-using-artificial-intelligence-to-change-the-way-we-eat/

 https://www.academia.edu/17499185/A_descriptive_analysis_of_
McDonalds_Information_System

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