McDonald's SUCCESS STORY ON IMPLEMENTING INFORMATION SYSTEM
04/11/2019
OUR TEAM
1ST SEM MBA STUDENTS
PRESENTING ------
IMPLEMENTATION AND SUCCESS OF INFORMATION SYSTEM IN FOOD INDUSTRY
AGENDA
BRIEF INTRO TO FOOD IND. AND HISTORY OF McD
VISION, MISSION, OBJECTIVES AND STRATEGIES
USE OF INFORMATION SYSTEMS IN McD
Agenda
FOOD INDUSTRY PROFILE
WHAT IS THE ROLE OF FOOD INDUSTRY ?
Company
Intro
Food industries involves series of industrial activities directed at the processing, conversion, preparation, preservation and packaging of foodstuffs.
The food industry today has become highly diversified, with manufacturing ranging from small, traditional family-run activities; to highly labor-intensive, capital-intensive and highly mechanized industrial processes.
INITIAL STAGE
- Mcdonald's was found in 1937 by brothers Richard and Maurice McDonald at San Bernardino, California.
- They used Assembly line procedures in their kitchen for mass production. PRICES WERE KEPT LOW. SPEED SERVICE & CLEANLINESS became key factors for their success.
- By 1950 their revenues reached $3,50,000
- Due to their success, Franchisees started showing interest.
TRANSITION PERIOD
- Ray Kore, distributor for milkshake machines, expressed interest in their business and finalized a deal with McDonald brothers in 1954.
- He established a franchising company, the McDonald system Inc.
- In 1961, Mr. Kore bought McDonald's share for $2.7 million and changed the name of the company to McDonald's corporation.
- In 1965, McDonald's went public..
CURRENT STAGE
- Currently, McDonald's operates in 121 countries and having more than 30,000 restaurant and serving 53 million customers everyday.
- TO SERVE GOOD FOOD IN A FRIENDLY AND FUN ENVIRONMENT
- TO BE A SOCIALLY RESPONSIBLE COMPANY
- TO PROVIDE GOOD RETURNS TO ITS SHAREHOLDERS
- TO PROVIDE ITS CUSTOMERS WITH FOOD OF HIGH STANDARD, QUICK SERVICE AND VALUE FOR MONEY
McDonald's
"TO BE THE BEST AND LEADING FAST FOOD PROVIDER IN THE GLOBE"
McDonald's
"TO BE THE WORLD'S BEST QUICK SERVICE RESTAURANT EXPERIENCE, PROVIDING OUTSTANDING QUALITY, SERVICE, CLEANLINESS, AND VALUE"
SO THAT WE MAKE EVERY CUSTOMER IN EVERY RESTAURANT SMILE
- International growth
- Forward Integration
----- Distribution through Franchisees
----- Local sourcing, Cold chain, suppliers
- Market Penetration and development
----- McDelivery
----- Aloo Tikki, Salad
McDonald's
TRANSACTION PROCESSING SYSTEM
MANAGEMENT INFORMATION SYSTEM
INFORMATION SYSTEM in McDonald's
- Information system, an integrated set of components that collects, processes, stores, analyzes and disseminates the information for a specific reason.
- Business firms and other organizations rely on information systems to carry out and manage their operations, interact with their customers and suppliers and compete in the marketplace.
- McDonald's everyday sells a huge amount of hamburgers.
- McDonald's should order raw material from its supplier.
- Each time McDonald's prepare an order with its supplier, a transaction happens and the TPS records relevant information such as supplier name, address,the quality of the items purchased and finally the invoice amount.
- Decision Support System is used to model data and make quality decision.
- Decision Support Systems are usually computer applications with a human component.
- They can shift through large amounts of data and pick between the many choices and supports the non-routine decision.
- McDonald's management mainly uses DSS to analyze the market and come up with a solution to problems.
- They also use DSS in order to gain competitive advantage over other fast food franchises by analyzing large amount of data and seeing what is the best course of action needed in order to ensure they are on top.
Management information system implementation in Mcdonald's
- MIS system is used to produce periodic reports such as a daily list of employees and the hours they work, or monthly report of expenses.
- McDonald's uses MIS to provide profitability and information to help managers and staff to plan its future direction.
MYS - "MADE FOR YOU" SYSTEM
- MYS has implemented in order to raise a productivity and ensure customer satisfaction.
- Serves as a communication portal between the counter and kitchen staff.
- When an order is placed, the cashier inputs it into the system and automatically it goes to the computer screen in kitchen.
- The elements of the sandwich are displayed for the kitchen staff to start working on.
POINT OF SALE SYSTEM
- Due to the extreme demand on Mcdonald's, management decided to implement a POS in order to ensure maximum customer satisfaction by allowing customers to to order quickly with minimum error.
- POS is incorporated with MYS to further ensure efficiency.
- With POS each command inputted in the computer is instantaneously conveyed to each workstation.
- Payment due is displayed immediately.
- Kitchen staff will also be able to know what the order is and the duration the customer has been waiting.
- Brand equity... worldwide
BUSINESS:
- Consistency of food
- Successful items: Fries, Happy Meal, Aloo tikki, Egg McMuffin
PROMOTIONS:
- Overseas market
- Balance sheet position
STRENGTHS
WEAKNESS
- Declining market share
- Weak product development
- Quality and taste of products
- International expansion
- Only serving 1% of worlds population
- Growing dining-out market
OPPORTUNITIES
THREATS
- Mature or over-stored industry
- Strength of competition
- More health conscious customers
- Fluctuation of foreign exchange rates; Economies
CONCLUSION
CONCLUSION
- Maintain good management information system
- Work for development of the company
- Serve good food for customers
- MIS takes important role in growth of company
- MIS in Transaction process helps inventory management
- MIS helps to take decision related to employees