UBAI2043 IT FOR MANAGEMENT (May 2013) WRITTTEN REPORT MARKSHEET UNIVERSITI TUNKU ABDUL RAHMANFACULTY 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’ .T6 1. CHAN KAH HUI 09ABB02548 AC 2. LEE KAH YEE 12ABB07274 AC Date of Submission:3. MALVEENN PREET KAURGILL 11ABB05909 AC 22/7/20134. MOO CHOI NYUK10ABB00515 AC 5. SIM HWA KENG 10ABB00996 AC 6. YEE MIN NIE 12ABB07273 AC No Items Poor Satisfactor y Excelle nt Marks 1 Executive Summary (5%) 0 1 (Improper or None) 2 3 (Reasonably written) 4 5 (Exactly written) 2 Discuss the impact of IT/IS on ‘your selected industry’ (5%)0 1 (Improper or None) 2 3 (Reasonably written) 4 5 (Exactly written) 3 Introduction : (10%)Name of the company of yourselected industry and its briefhistory The company’s main activities 0 1 2 (Improper or None) 3 4 5 6 7 (Reasonably written with overview included) 8 9 10 (Exactly written with concise overview) 4 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 1 2 3 4 5 6 (Improper or None) 7 8 9 10 11 12 13 14 15 16 1 7 18 19 20 21 (Reasonably written) 22 23 24 25 26 27 28 29 30 (Exactly written with relevant examples and relation to business process) 5 The impact of Porter’s Five Competitive Force s model on the company (20%)0 1 2 3 4 (Improper or None) 5 6 7 8 9 10 11 12 13 14 (Reasonably written) 15 16 17 18 19 20 (Exactly written with concise analysis done) 6 Strategic use of IT/IS forcompetitive advantage (15%)0 1 2 3 (Improper or None) 4 5 6 7 8 9 10 (Reasonably written) 11 12 13 14 15 (Exactly written with concise analysis done) 7 Conclusion (5%)0 1 (Improper or None) 2 3 (Reasonably written with proper summary included) 4 5 (Exactly written with concise summary) 8 APA referenci ng (5%)0 1 (Improper or None) 2 3 (Reasonably formatted and reasonable standard compliance) 4 5 (Properly formatted and perfect standard compliance) 9 Formatting for the report (5%)0 1 (Improper or None) 2 3 (Reasonably formatted and reasonable standard compliance) 4 5 (Properly formatted and perfect standard compliance) Comments : Total Report Marks (100%) Lecturer / Tutor Acknowledgement: Name Signature
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McDonald‟s is a fast food restaurant that offers delivery services and drive-thru
services for customers‟ convenience. Today McDonalds operating more than 30,000
restaurants worldwide which consist of 80% owned by franchise and 20% are owned bycompany itself. Around 1.7 million workers are employed by McDonald‟s worldwide.
McDonald‟s used Information System to identify their own strength and
weaknesses by using the revenue reports, employee performance record and many more. By
doing so McDonald‟s will be able to improved their business process and operations.
The best system in McDonald‟s is the POS system “Scale of Point System”. By
using this system, McDonald‟s will be able to save time, error control point of sales syste ms
in restaurants also eliminate or reduce human error.
POS also reduce paperwork. Using this system McDonald‟s able to attract more
customers and keep customers and get what they need in the easiest way.
The other system that McDonald‟s used is Transaction Processing System (TPS).
TPS is a system that helps to serve customers better. Transaction Processing System used to
record McDonald daily transaction. This may help them to keep the useful information in
order to make a better decision in the future.
Besides, McDonald‟s also uses Made-For-You System. It can consider as a
backend system in McDonald. (McDonald, 2011) Made-For-You System can help McDonald
to raise their productivity and customer‟s satisfaction. (McDonald, 2011) It has been
implementing in order to create smoother, faster and more flexible kitchen system.
HBS- Hyperactive Bob System. 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.
McDonald also uses Management Information System (MIS) to maintain and
improve the internal control in the company.
McDonald have strong decision making plan. The new entrants are not easy to
enter the fast food market. Decision Support System (DDS) is used to model data and make
Information Technology is basically a broad and diverse field. Actually, it‟s not
farfetched to say that Information Technology is practically involved in every aspect of one‟s
life. Thus it‟s only natural that something as everywhere as I.T. plays a major part in business. Information System is a set of interrelated process that collects, process, store, and
distribute information to support decision making and control in an organization. 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, operational efficiency
and large amount of advertisement. Technology raises a company's capability to predict sales
and decide which commodities have high consumer demand. Personal computers, wireless
devices and the internet have McDonald‟s plugged into mainstream technology. McDonald‟s
inventive planning introduced Wi-Fi hotspots, internet terminals, and web-based games for
children into its stores. With Wi-Fi hotspots in McDonald‟s customers can check email,
access the internet and download presentations while having their food.
Information systems in the McDonald‟s are reducing the time that customers used
to waiting in line. So if they decrease period of waiting, they will boost amount of consumers
and decrease time charge. In addition they will also increase the excellence of management
and decrease human mistakes or errors. MacDonald‟s forward to control value of
management by decreasing the time of each method that they are made. This method led him
to be more successful and capable in process. Besides, MacDonald‟s also used advanced IT
in processing it systems. For example building a database and calculating time of process to
build up his work incessantly.
McDonald does also have a system where it allows customers to order online andaccept his home order from nearest brunch. This occur through a screen that shows the
customer place when he/she order in the McDonalds restaurant. Then they deliver the order
in less time.
Cost effectiveness. By using Information systems technology in McDonald's has
provide a hand to computerize the business method and make them uncomplicated.
Consequently, business become really cost effective money which made by machines. This
„I‟m Lovin‟ It‟ is a tagline known by everyone including kids, teenagers, and elderly
people. McDonald‟s is the world‟s number 1 fast food corporation found by Richard and
Maurice McDonald in San Bernardino California in 1940. McDonald‟s started to growrapidly in 1960‟s. Due to high demand of cheap takeaway food, McDonald‟s has continued
to expand its business to 117 countries since the first restaurant opening in Australia during
1971. The company focuses on providing high quality of food and customer service through
its product line. McDonald‟s also offers delivery services and drive-thru services for
customers‟ convenience. Today McDonalds operating more than 30,000 restaurants
worldwide which consist of 80% owned by franchise and 20% are owned by company itself.
Around 1.7 million workers are employed by McDonald‟s worldwide.
Their main selling products are hamburgers, double cheeseburgers, big Mac burgers,
DISCUSS THE IMPACT OF PORTER’S FIVE COMPETITIVE FORCES MODEL
ON THE COMPANY OF YOUR CHOICE.
The Five Forces Model formed by Michael E.Porter helps McDonald‟s to stay in this
highly competitive food and beverages industry. The Five Forces Model consists of bargaining power of buyers, bargaining power of suppliers, threat of substitute products or
services, threat of new entrants, and rivalry among existing competitors.
Firstly, the bargaining power of McDonald‟s customers is low. This is because in this
hustle and bustle of the big city where everyone is living in such a fast paced lives,
McDonald‟s becomes their main choice to satisfy hunger as it is well known for its fast and
convenient services. 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. Thus,
McDonald‟s does not worry about customers‟ loyalty. To be able to gain advantage in
competitive edge, McDonald‟s uses IT such as “Made For You” system to send customers‟
order directly to kitchen crew. This system can increase efficiency and the customers can get
their orders in short time.
Secondly, the bargaining power of McDonald‟s suppliers is high. McDonald‟s does
not have its own factory to manufacture food. Since McDonald‟s attempts to provide
consistency in their food serving sizes, McDonald‟s relies on single supplier on each product.
For example, the main supplier is MacFood Services (M) Sdn Bhd while the bun supplier is
HaviFoods Sdn Bhd. Not only these, McDonald‟s depends on beverages industry like Coca
Cola and Minute Maid. McDonald‟s uses Transaction Processing System (TPS) to deal with
these suppliers by recording the important information related to suppliers such as name,
address, contact number and invoice amount.
On the other hand, the threat of substitute products or services is high. McDonald‟scan be easily substituted by other fast food chains such as Burger King, KFC, Wendy‟s,
Subway and Carl‟s Jr as the customers can easily switch to other products. Since the
customers‟ switching cost is low, there is nothing to stop them from purchasing substitute
products. Nowadays, people are more concern about their health. As a result, they tend to
look for healthier food as alternatives. The threat of substitute services is high because most
of the competitors also use Point of Sale system (POS), drive-thru, delivery service same like
In conclusion, the success factor of McDonald‟s can be divided into four categorise .
The first is consistency, second innovation and third global, but local and availability. First factor is consistency. No matter where you are and which brunch of
McDonald‟s you‟re visiting, you‟re going to experience the similar experience wherever you
are. Consistency, of course is the main factor of success to any franchise system and this is
why McDonald‟s is very success in their business. Customers know what to expect and can
take console in that information when making a choice on where to eat. These attempts
towards process replication and effectiveness not only set the basis for McDonald's
achievement from the viewpoint of customers' expectations, but also help McDonald's stay on
top in a traditions where generating at a fast speed is universally accepted.
The second factor is innovation. In the beginning, the concept of consistency and
innovation tend to disagree with one another. But in surprise, this two characteristic tend to
work together to allow McDonald‟s growth. Being consistent on the centre workings of your
business doesn't mean the items or product you sell, or even the way you deliver them, have
to be consistent. There should be a fine line between consistency and innovation. However, if
you take the required moves, and put the work in to the lead of time, you can tweak your
product without causing disturbances, and possible better serve your customers. Innovation
caused from alertness to customers and franchisees has played a big role in McDonald's
fending off stagnation over the years. Additionally, 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. A few examples of products that were introduced after being
developed by McDonald's franchisees Filet-O-Fish, Big Mac, Hot Apple Pie, Egg McMuffin,
McFlurry. These menu innovations have allowed for McDonald's to embrace creationcontributions for all meal times, and the snack times that fall in between, allowing for better
profitability. But McDonald's takes huge concern not to cause the customer experience when
a fresh piece is launch.
The third success factor of McDonald‟s is global, but local. Although McDonald‟s is
a multi-national gigantic, it adjusts its business and menu to go well with home markets. This
„global, but local‟ approach allows it to adapt its offers to suit the local appetite. For example,