Management Information System (FIT20303)

Table Of Contents

1.0 Introduction

2.0 Company background

3-6
3.0 Analysis on the
Information system used

7-12

4.0 Conclusion
13-14
5.0 References

15

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1.0 INTRODUCTION
Management Information Systems (MIS) is the term given to the discipline focused on the
integration of computer systems with the aims and objectives on an organization.
Each KFC outlet use MIS in accounting, knowing production, and very useful in formulating HR
policies which helps them to rate their employees.
The development and management of information technology tools assists executives and the
general workforce in performing any tasks related to the processing of information. MIS and
business systems are especially useful in the collation of business data and the production of
reports to be used as tools for decision making.
With computers being as ubiquitous as they are today, there's hardly any large business that does
not rely extensively on their IT systems. However, there are several specific fields in which MIS
has become invaluable.
MIS systems can be used to transform data into information useful for decision making.
Computers can provide financial statements and performance reports to assist in the planning,
monitoring and implementation of strategy.
MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision makers. By
studying these reports decision-makers can identify patterns and trends that would have remained
unseen if the raw data were consulted manually.
MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer
a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can
provide predictions about the effect on sales that an alteration in price would have on a product
which is very useful for KFC future development. These Decision Support Systems (DSS)
enable more informed decision making within an enterprise than would be possible without MIS
systems.
Not only do MIS systems allow for the collation of vast amounts of business data, but they also
provide a valuable time saving benefit to the workforce. Where in the past business information
had to be manually processed for filing and analysis it can now be entered quickly and easily
onto a computer by a data processor, allowing for faster decision making and quicker reflexes for
the enterprise as a whole.

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2.0 COMPANY BACKGROUND

Kentucky Fried Chicken is one of the leading fast food Franchise concepts of today;present in a
variety of countries around the world and has been proficient to launch a renowned International
reputation in multiple continents. Starting in the United States in the 1930s, it has grown to
become a true multi-domestic company. KFC has focused on foreign markets since the 1960s
and has initiated a new challenge today in conquering Asia. KFC, known as Kentucky Fried
Chicken, is a chain of fast food restaurants based in Louisville, Kentucky.
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his
roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the
potential of restaurant franchising, and the first "Kentucky Fried Chicken" franchise opened in
Salt Lake City, Utah in 1952. KFC popularized chicken in the fast-food industry, diversifying the
market by challenging the established dominance of the hamburger. By branding himself
"Colonel Sanders", the founder became a prominent figure of American cultural history, and his
image remains widely used in KFC advertising. The company's rapid expansion saw it grow too
large for Sanders to manage, and in 1964 he sold the company to a group of investors led by
John Y. Brown, Jr. and Jack C. Massey.
KFC was one of the first fast-food chains to expand internationally, opening outlets in England,
Mexico and Jamaica by the mid-1960s.
Throughout the 1970s and 1980s, KFC experienced mixed success domestically, as it went
through a series of changes in corporate ownership with little or no experience in the restaurant
business. In the early 1970s, KFC was sold to the spirits distributor Heublein, which was taken
over by the R.J. Reynolds food and tobacco conglomerate, which later sold the chain to PepsiCo.
The chain continued to expand overseas, and in 1987 KFC became the first Western restaurant
chain to open in China. In 1997, PepsiCo spun off its restaurants division as Tricon Global
Restaurants, which changed its name to Yum! Brands in 2002. Yum has proved a more focused
owner than Pepsi, and although KFC's number of outlets have declined in the US, the company
has continued to grow in Asia, South America and Africa. The chain has expanded to 18,875
outlets across 118 countries and territories, with 4,563 outlets in China alone, KFC's largest
market.

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2.1 RESTAURANT STRUCTURE

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Area Mangers:
Area Managers are accountable for providing coaching, leadership and operational support to 8-
10 KFC Restaurants within a defined Area.

Restaurant General Manager

The Restaurant General Manager is accountable for creating and running an energetic and
valuable work environment, which is committed to serving the best chicken at the fastest speed
and with a smile. The Restaurant General Manager reports directly to an Area Manager and is
accountable for successfully implementing and maintaining all Company policies and procedures
in relation to operations, customer service, cash handling, marketing, purchasing, human
resources, health & safety, administration, training and development

Assistant Manager
The Assistant Manager is responsible for assisting the Restaurant General Manager (RGM) in
creating an energetic and valuable work environment, which is committed to serving the best
chicken at the fastest speed and with a smile. Assistant Managers are also responsible for
ensuring all Company policies and procedures are followed in relation to operations, customer
service, cash handling, marketing, purchasing, human resources, health & safety, administration,
training and development.

Trainee Managers
Responsible for assisting the Restaurant General Manager and Assistant Managers in creating an
energetic and valuable work environment, which is committed to serving the best chicken at the
fastest speed and with a smile. Trainee Managers help with day-to-day running of the restaurant,
and need to ensure that all operations, customer service, cash handling, marketing, purchasing,
human resources, administration and training & development policies are followed.

Customer Service Team Members

Responsible for working the service areas and ensuring quality product, service
and cleanliness is delivered to all customers at top speed and with a smile!
Food Service Team Members
Responsible for putting the crunch in the coating and the zing in the Zinger the
cook’s main task is to prepare and cook the irresistible KFC products! The cook
must also maintain the cleanliness of the cooking area as well as the quality of
product and speed of preparation.

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2.2 THE KFC MANAGEMENT HIERARCHY CHART

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3.O ANALYSIS ON THE INFORMATION SYSTEM USED

3.1 KFC: Activity, Input Process and Output
The activities involved within this organization:
KFC products are the main raw materials (Chicken, mashed potatoes, seasoning) determined by
the head office supplier, usually raw materials (bread, beverage puree, vegetables, packaging,
etc.)
Input
o The menus are shown above the counter, instead there are also usual plastic panels menu’s in
front of the counter.
o The customers can makes an order after choosing the menus they interested in.
Process
o Customers queuing while waiting for their turns.
o The counters worker will take the order based on customers has chosen.
o The workers will ring up the order and assemble partially-prepared ingredients to complete
the order.
o The customer has to wait a few minutes while the worker was preparing the order.
o The menus / meals were prepared after a few minutes waiting and ask for the payment form
the counter.
Output
o The customers pick up the meals after making a payment. The customers will receive a
receipt from the workers.
o Take a seat as the place was a free sitting area.
o Enjoy the meals / dishes.

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3.2 SWOT ANALYSIS

Strengths
o Brand Equity
o KFC secret recipe of 11 herbs and species
o Very strong internationally
o Strong Franchises all over the world
o Interactive relationship marketing
o Strong trademarks recipes
o Ranks highest among all chicken restaurants
o Chains for its convenience and menu variety
o Largest multi-branded restaurant in the world

Weaknesses
o Lack of knowledge about their customers
o Lack of relationship building with employees, customers and suppliers
o Lack of focus on Research &Development
o KFC desserts portion is not as better as should be
o They only focus higher income level people
o Presence of Multinational competitors in the market e.g. McDonalds.

Opportunities
o They have the opportunity to expand their sweet products
o They can open more outlets to get maximum market share
o They can open temporary outlets in peak season in the hill stations like naran,
kaghan, swat etc.
o They can capture more customers by decreasing the price of their products
o Updating their restaurants, Balanced menu, customer focus and Increase
delivery service.

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Threats
o Rated 83 out of 100 in terms of competitiveness
o Increasing inflation rates directly affect menu prices
o Supermarkets and new competitors
o Health Trend away from fried foods
o Changing customer demands

3.3 TECHNOLOGY FEATURES BY KFC

Computer Information System
It is a touch screen machine to facilitate the computation the amount of food.
-Used as the calculation of the amount of food bought by customer at the counter payments.

Credit Card Swipe Machine

Credit card payment service with flexible and customizable solution.
Punch Card
Time attendance system –
Time clock software replaces the old punch card machine with the clock-in, clock-out method to
record attendance.

Websites
To get information about the product, promotion, history of KFC and etc. www.kfc.com

WiFi
Certain KFC is offering the free WiFi as an incentive to attract customers to surf the net at KFC
premise and at the same time customer will buy some food or drinks.

Telecommunication
The Recipe Scaling and Food cost is features with vendor purchasing management
that was installed in all KFC branch locations. These locations were connected via
VPN using ADSL technology.

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3.4 TECHNOLOGICAL ELEMENTS

New techniques affect the quality of products and services in better way. Technology is very
important in order to compete with the competitors. Organizations have an eye on their
competitors and also new techniques which their competitors used.
KFC master franchisee, Cupola Malaysia (Pvt) Ltd. has been one of the early users of Sidat
Hyder – Supply Chain Management solutions which is the basis to manage all the Supply Chain
activities countrywide.
Complementing its SCM product line, Sidat Hyder Morshed Associates has developed a Quick-
Service Restaurant solution (QSR) to replace the existing RSS systems in use with KFC here in
Pakistan. The solution has been recently deployed at the first site now going LIVE in Karachi.
The front-end application runs on a touch-screen display and is fully integrated with the SCM,
there by offering an end-to-end functionality by catering to restaurant needs and the complete
cycle of over-the-counter sales, purchase & inventory management
Although KFC and McDonald’s has same cooking machinery but KFC has efficient delivery
system; they provide home delivery so quickly. KFC purchase machinery from Haney Penny
company, they are main suppliers of machinery throughout the world.

Internal Communication
Internally all the KFC Pakistan stores communicate regularly for the betterment of organization.
KFC Pakistan has a Paper Less environment in the organization. They use Telephone and E-mail
facilities to remain in contact with their Head Office Karachi to plan strategies, share ideas and
get instruction to maintain and improve the business because these two ways of communication
are very fast an very cheap as for as e-mail as concerned, they have no traditional way to
communicate like time consuming traditional mail system.

PoS system
POS (point of sale) is the physical location at which goods are sold to customers. A point-of-sale
(POS) software terminal is a computer replacement for a cash register. More sophisticated than
traditional cash registers, a POS (point of sale) software system includes the ability to track
customer orders, process credit cards, and manage inventory.
At all KFC stores in Malaysia PAR Technology Corporation’s Point of Sale system is used
including both software and hardware.
PAR provide the tools that KFC Malaysia need to increase order accuracy, improve speed-of-
service and raise customer satisfaction levels with software solutions that can span the entire
enterprise - from the front counter to the back office and beyond to integrate the total
organization.
PAR uses reliable Dell® hardware to run its Back Office Computer to unleash the power of
business.

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Transaction Record
KFC Malaysia uses a complete package of Point of Sale system to keep record of every
transaction occur. All KFC Malaysia stores nationwide use PoS and at the closing time of the
store they send a complete transactional record of that day by using PoS through internet.
Because of this head office maintain their accounts very well and take quick decision on the
behalf of these records.

3.5 THE IMPORTANCE OF THE SYSTEM

The emergence of a global economy, transformation of industrial economies, transformation of
the business enterprise, and the emergence of digital firm make information systems essential in
business today. Information system is a foundation for conducting business today. In many
businesses, survival and the ability to achieve strategic business goals is difficult without
extensive use of information technology. Including KFC. There are six reasons or objectives
why businesses use information system:
o Operational excellence
o New products, services, and business models
o Customer and supplier intimacy
o Improved decision making
o Competitive advantage
o Survival

Operational excellence.
Business improves the efficiency of their operations in order to achieve higher profitability.
Information systems are important tools available to KFC managers for achieving higher levels
of efficiency and productivity in business operations.
New products, services, and business models.
Information system is a major tool for KFC to create new products and services, and also an
entirely new business models. A business model describes how a company produces, delivers,
and sells a product or service to create wealth.

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Customer/supplier intimacy.
When a business serves its customers well, the customers generally respond by returning and
purchasing more. This raises revenue and profits. The more a business engages its suppliers, the
better the suppliers can provide vital inputs.
Improved decision making.
Managers of KFC having the right information at the right time to make an informed decision.
These raise outcomes less costs and raise customers. Information system made it possible for the
managers to use real time data from the marketplace when making decision. Example: KFC
provided the list of menu together with price, on the advertisement in the website so that the
customer can find the details about the menu.
Competitive advantage
When firms achieve one or more of these business objectives chances are they have already
achieved a competitive advantage. Doing things better than your competitors, charging less for
superior products, and responding to customers and suppliers in real time all add up to higher
sales, and higher profits. Example: Toyota Production System focuses on organizing work to
eliminate waste, making continues improvements, and TPS is based on what customers have
actually ordered.
KFC's competitive advantage is its supply chain and distribution system. This allows the fast
food giant to cultivate relationships with business partners and establish a footing in regions
where the competition is still struggling.
Because KFC's supply chain and distribution system is so well set up around the world, it has
less difficulty than other fast food giants in establishing a presence, especially in less saturated
areas where there is still much opportunity for growth. KFC is also able to compete effectively
because of its famous trade secret: the 11 herbs and spices that it uses in the products sold all
over the world.
Day to day Survival.
Business firms invest in information system and technology because they are necessities of doing
business. These necessities are driven by industry level changes. Example: KFC introduced the
web site for order the items from the company. Information technology has become more of a
commodity, when coupled with complementary changes in organization and management, it can
provide the foundation for new products, services, and ways of conducting business that provide
firms with a strategic advantage.

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4.0 CONCLUSION
As we all know , Management Information Systems (MIS) is the term given to the
discipline focused on the integration of computer systems with the aims and
objectives on an organization. Every KFC in Malaysia outlet use MIS in
accounting, knowing production, and very useful in formulating HR policies which
helps them to rate their employees. MIS systems can provide predictions about the
effect on sales that an alteration in price would have on a product which is very
useful for KFC future development. These Decision Support Systems (DSS) enable
more informed decision making within an enterprise than would be possible
without MIS systems.
MIS systems let the KFC management:
o To capture information and store it, whenever they are making bills it helps
them to count sales per day, per week and per month because a copy of the bill is
stored in the computer.
o Access stored information easily and manipulate it for the needs of their clients’
while billing or taking order they just enter the code of the product requested at
that time and the quantity demanded.
o Control flow of information into, around and out of the systems.
o Work within legislation such as the Data protection Act.
o Manage resources this is a very important function as every day inventory is
recorded and therefore resources could be managed.
o Produce reports for themselves so that they can compare their own
performances with their own and other.
o Maintain records needed for quality control so that the success story of all the
employees can be appraised.
o Respond confidently to the demands of the Common Inspection Framework
MIS help them because they now easily check when the last stocking was done.
Manage and track employee records of work, achievement and progression for
promotions.
o Record and track outcomes.

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o Manage marketing information to further improve sales.

o And a host of other information related functions.
If Management Information Systems are flexible, and relate to the needs of the
organization, the clients and the curriculum that they are delivering, then they work
well and effectively. One has to be sure that, whatever systems you use, they suit
your purposes and can be customized to do so, are easy to use and allow rapid data
entry with rapid and flexible access for reporting purposes.

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5.0 REFERENCE
http://www.answers.com/Q/What_are_the_advantages_and_disadvantages_of_MIS
http://www.ehow.com/about_5494879_advantages-disadvantages-information-management
systems.html
http://elogiboyau.centerblog.net/
http://www.sap.com/index.html
http://www.kfc.com/
http://www.oracle.com/us/corporate/press/017527_EN http://it.toolbox.com/home/search/?
r=jd+edwards

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