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Course Work Hub1504 12 151449223999 PDF
Course Work Hub1504 12 151449223999 PDF
Title
Introduction
The
field
that
involves
using
information
systems
comprised
of
processes,
technologies
and
people
for
resolving
business
issues
are
termed
as
Management
information
Systems
(MIS).
For
evaluating
information
systems
employed
for
various
organizational
functions
MIS
is
utilized
(Kenneth,
2011).
The
role
of
information
system
in
accomplishing
competitive
advantage
by
proper
utilization
of
core
competencies,
synergies
and
network
related
strategies
of
McDonalds
is
dealt
with
in
this
report.
It
will
also
describe
threats
caused
by
strategic
information
systems
and
recommendations
to
overcome
these
issues.
McDonald's
is
the
largest
fast
food
restaurant
chain
in
the
world,
which
has
in
fact
become
a
part
of
the
daily
life
of
47
million
customers.
McDonalds
is
spread
over
114
countries
and
their
outlets
count
32,000.
It
emerged
as
an
icon
and
represents
the
popularity
of
American
culture.
In
the
very
tough
US
fast
food
market
their
contribution
is
21
percent
share
(mcdonalds,
2010).
The
skill
to
act
according
to
requirements
and
wishes
of
customers
are
the
key
factor
behind
McDonalds
success.
Customers
prefer
neat
surroundings
with
friendly
and
fast
service.
McDonalds
give
priority
to
cleanliness,
quality
and
value.
Management
Information
Systems
(MIS)
The
system
that
offers
information
required
for
successful
organizational
management
and
to
accomplish
competitive
advantage
is
referred
as
management
information
system
(Mcleod,
2008).
To
allow
value
added
services,
to
facilitate
decision
making
procedure
and
In
McDonalds
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
McDonalds
outlets
as
part
of
serving
their
customers
better.
McDonalds
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
McDonalds
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
McDonalds
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.
Transaction
Processing
System
(TPS)
implemented
in
McDonalds
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.
Gathering,
amassing,
amending
and
accessing
the
transactions
made
in
a
company
is
termed
as
transaction
processing
and
keeping
the
confidentiality
of
transaction
details
are
essential
for
a
company
since
it
is
related
with
money
exchange
(Reynolds,
2011).
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
(Mcleod,
2008).
Very
large
number
of
food
products
are
sold
by
McDonalds
daily.
Hence
they
require
huge
amount
of
raw
materials
from
supplier.
Transaction
occurs
whenever
McDonalds
order
for
raw
materials.
Important
information
like
name
and
other
details
of
supplier,
quality
of
raw
material
and
bill
amount
etc
are
noted
using
TPS.
Decision
support
system
(DSS)
in
McDonalds
For
sorting
the
data
and
taking
appropriate
decision
on
the
basis
of
it
DSS
is
employed.
The
appropriateness
of
decision
depends
on
the
persons
capability
to
scrutinize
the
data
and
value
of
the
data.
DSS
comprised
of
computer
applications
that
consist
a
human
element
(Burstein,
2008).
It
is
possible
to
sort
huge
amount
of
data
and
choose
from
various
options
with
the
DSS.
It
also
helps
in
taking
non-routine
decisions.
Modern
world
is
world
of
technology,
considering
this
fact
McDonalds
wanted
to
offer
wireless
services
in
their
outlets.
As
part
of
it
they
collected
information
regarding
use
of
wireless
services
by
customers,
extent
of
sales
etc
and
the
collected
data
was
examined
by
the
decision
support
system
and
it
was
decided
that
wireless
service
will
be
offered
in
McDonalds
outlets.
equally
among
the
workers,
orders
are
directed
to
screens
at
various
food
making
tables.
It
helps
in
selling
of
more
foods
at
faster
speed
hence
increases
the
profit
of
the
company.
POS
"Point
Of
Sale
system"
To
make
employees
aware
about
when
they
are
going
to
be
busy
McDonalds
use
this
system.
To
observe
incoming
vehicles
towards
the
parking
lot,
this
system
employs
computers
and
rooftop
cameras
(msnbc.msn,
2010).
McDonalds
cut
costs
by
establishing
wireless
network
in
their
offices
since
it
save
reconfiguration
time.
For
better
implementation
of
McDonalds
office
oriented
and
restaurant
wireless
networks,
XDA
smart
phones
are
distributed
to
some
employees
to
substitute
the
usage
of
mobile
phones
and
laptops.
It
helps
worker
to
save
money.
Time
for
stock
room
operations
is
also
reduced
by
implementation
of
symbol
handheld
wireless
computers.
Making
ordering
devices
wireless
also
helped
McDonald's
to
gain
profit
says
Tiley
(Computing,
2010).
As
part
of
restructuring
supply
chain,
McDonald's
intends
to
make
stock
ordering
centralized.
For
computerization
of
stock
ordering
systems
it
will
consider
various
data
like
demographics
of
customers,
previous
sales
in
the
store,
forecasting
of
weather,
special
events
etc.
In
order
to
prevent
errors
occur
during
manual
ordering
and
for
minimizing
the
barebones
of
ordering
procedure
this
software
will
be
helpful.
Handhelds
PCs
at
McDonald's
For
enhancing
efficacy
of
employees
McDonalds
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
information
and
personal
details
regarding
customers
using
online
surveys
McDonalds
website
is
helpful.
In
1993,
in
stores
of
Wal-Mart
McDonalds
opened
their
outlets.
For
selling
their
food
products
McDonalds
use
Wal-Marts
registers.
At
the
counter
in
Wal-Mart
store
display
of
McDonalds
product
is
provided.
When
customer
purchases
McDonalds
products
the
orders
are
transmitted
to
kitchen
because
of
software
developed
by
Wal-Mart
and
McDonalds.
The
bill
for
McDonalds
is
appeared
on
receipts
and
records
of
Wal-Mart.
McDonalds
share
from
the
deal
is
balanced
during
end
of
the
day.
Supply-chain
software
is
employed
in
McDonalds
for
enhancing
inventory
management.
This
helps
in
sharing
of
supply
and
demand
information
among
distributors,
suppliers
and
restaurants.
Wi-Fi
Service
McDonalds
is
always
very
keen
to
make
their
customers
happy.
Considering
the
changing
requirements
of
customers,
McDonalds
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
while
eating
(mcdonalds,
2010).
Benefits
of
IS
for
McDonalds
Employees
performance
record,
expense
and
profit
report
make
McDonalds
aware
about
their
strong
point
and
flaws.
Understanding
this
will
enable
McDonalds
to
progress
their
business
operations.
Productivity
of
McDonalds
is
enhanced
by
implementation
of
information
system.
Information
system
helps
to
minimize
the
workload
and
time
required
for
each
operation
(informationweek,
2009).
Hence
information
system
make
McDonalds
more
efficient
and
help
them
to
gain
competitive
advantage.
Challenges
related
with
Managing
System
change
in
McDonalds
Implementation
of
strategic
information
system
is
very
expensive
and
complex
procedure.
It
will
completely
change
the
framework,
working
environment,
products,
procedures
etc
of
McDonalds.
Changing
to
new
information
system
or
technology
is
a
cumbersome
procedure
and
will
take
much
time
so
McDonalds
will
be
reluctant
towards
it.
Prior
to
application
of
SIS
thorough
plan
should
be
developed,
as
co-ordination
should
be
there
among
McDonalds,
management
and
technology
Challenges
related
with
maintaining
competitive
advantage
in
McDonalds
Conclusion
McDonalds
is
a
leading
fast
food
restaurant
giant.
The
contribution
of
information
system
in
attaining
competitive
advantage
by
McDonalds
is
explained
above.
The
report
gives
idea
about
information
system,
their
importance,
how
it
is
used
in
McDonalds
etc.
The
challenges
faced
by
McDonalds
and
how
they
overcome
that
issues
are
also
dealt
with.
Some
recommendations
for
McDonald
for
effective
implementation
of
IS
and
to
accomplish
competitive
advantage
is
also
described.
Recommendations
There
is
no
guarantee
that
competitive
advantage
once
gained
will
remain
forever.
Sop
McDonalds
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
McDonalds
should
consider
this
fact
and
act
according
to
it.
McDonalds
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
McDonalds.
Suitable
system
that
hook
up
altering
expenses
and
economic
condition
with
management
information
system
should
be
developed
by
McDonalds.
The
costs
and
earnings
should
be
thoroughly
examined
as
sloppiness
will
have
negative
consequences
on
performance
of
McDonalds
(M.
Gordon
Hunter,
2009).
New
inventions
in
technological
section
should
be
noted
and
apposite
ones
should
be
implemented
for
upgrading
the
information
system
of
McDonalds.
Modern
world
prefer
fast
services.
So
McDonalds
should
be
ready
to
offer
such
services
to
customers
to
enhance
customers
loyalty
towards
them
which
will
enable
them
to
increase
7
the
profitability
and
hence
attain
competitive
advantage
in
the
very
tough
fast
food
industry.
The
transactions
can
be
made
faster
by
Electronic
data
interchange
(EDI)
and
will
help
McDonalds
to
offer
better
service
by
transmitting
information
to
customers
or
suppliers
(Gary
P.
Schneider,
2010).
McDonalds
will
be
able
to
enjoy
the
advantage
of
minimal
cost
through
automated
reordering
procedures
and
information
provided
will
also
be
accurate.
This
will
allow
McDonalds
to
attain
competitive
advantage.
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
McDonalds.
McDonalds
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
McDonalds
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
cant
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
customers
which
will
surely
increase
the
productivity
of
organization
and
hence
will
help
McDonalds
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
McDonalds.
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
with
the
information
regarding
the
organization
at
correct
time
(M.
Jacobson
and
I.
Fiksdahl-King,
2009).
Increasing
the
profit
is
the
major
aim
of
any
organizations
and
even
McDonalds
have
same
objective.
For
that
more
and
more
customers
should
be
lured
and
convinced
to
purchase
the
food
products
of
McDonalds.
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
McDonalds
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
McDonalds
and
new
tools
should
be
used
to
determine
them.
New
technologies
are
developing
every
day.
So
it
is
necessary
to
update
your
system
according
to
it
(Frada
Burstein
and
C.
W.
Holsapple,
2008).
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
McDonalds
system
should
be
properly
implemented
in
domestic
offices
along
with
Head
office.
McDonalds
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.
References
Gamma,
Helm
and
Vlissides,
J.
(2009)
"Design
Patterns:
Elements
of
reusable
object-
oriented
software",
Addison
Wesley.
Kevin
Grant,
Ray
Hackney,
David
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