McDonalds
Analysis of Mc Donald’s
Information System
Prepared By
Ashma Upadhyay
Md Ifthakharul Alam
Nagendra Koirala
Praveen Bisht
Overview
• World’s largest chain of fast food restaurant, serving
more than 58 million customers daily
• Australia’s first Mcdonald’s opened in the year 1971 in
Yagoona suburb of Sydney
• Now, 780 Mcdonald’s in Australia employing 85,000
employee.
Organizational Structure
Products
Business Process and Information
systems of Mc Donald’s
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Customer relationship/service management
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Supply chain management
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E-Procurement
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Inventory management
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Knowledge management
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Performance and human resource management
Issue Analysis
Strength
Weaknesses
Strong brand value sustains the company’s
leadership position
Diversified geographic presence provides
opportunity to gain from economic
buoyancy in emerging markets
Large scale of operation compared to
peers
Legal proceedings affect brand image
adversely
Product failures such as Arch Deluxe
Opportunities
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Growth of franchisee operated
restaurants
Positive outlook for out-of-home eating
Market can boost top line in long run
Growing hot drinks market - another
favorable trend to drive top line
Threats
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Rise in the food prices
Intense in retail food industries
Growing consumer consciousness for
healthy food products.
E-procurement
• E-procurement is the business-to-business or business-toconsumer or Business-to-government purchase and sale
of supplies,Work and services through the Internet as well as
other information and networking systems, such as Electronic
Data Interchange and Enterprise Resource Planning
Mc Donald’s E-procurement
• McDonald’s requires an excellent and fast eProcurement system since its one of the largest and
fastest growing fast food chains
• eMac digital is the procurement hub that deals with the
procurement from the uniforms to the food products in
McDonalds.
E-procurement Process
• In the process of procuring a product, a typical McDonald’s franchise
restaurant places an order through E-Mac digital website.
• The order is sent to the suppliers. Suppliers order is processed and
managed by the logistics.
• The logistics sends the order of the products to the franchise
restaurants. It is the responsibility of the Emac and logistics that the
products are sent to the restaurant.
• All the above, steps are handled and executed by the E-MAC digital.
Knowledge Magement
• “KM is to discover, develop, utilize, deliver, and absorb
knowledge inside and outside the organization through
an appropriate management process to meet current
and future needs.” Ouintas (1997)
Structure of Mc Donald’s KM
KM process
The functions of Mc Donald’s Knowledge management
software:
• Reduce in-bound customer support
• Share company documents and procedures
• Eliminate staff training time
Advantages of KM at Mc Donald
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A completely web-based self-help system
Categorize information by area, product, etc
Built-in feedback loops
Customers can store their own favorites list
Popular search terms make it easy to find help fast
Active Response System integrates into any website form
What is CRM?
• The process includes collecting customer data,
analysing this data to make decision which helps
to make new customers and satisfy the existing
ones.
• CRM software provides an efficient and easy
tool for collecting and storing large volumes of
customer data that can easily be accessed by
various members of an organization.
Benefits of CRM
 Address customers needs when using online or Web
based applications.
 Provide records of works in progress and reporting on
customer service functions.
 Help organization manage customer performance and
take steps to improve performance.
 Enable organizations to forecast customer response
rates and retention.
 Allow managers to collect and organize customer
information and disburse to appropriate departments
like marketing or sales.
 Allows organization to create closer and more intimate
customer relationships.
Three key phases of CRM
 Acquire: process of attracting the customer for their first
purchase.
 Retain: making customers to buy the product again and
again
 Extend: Keep the potential customer
forever.
(Source: http://marketingteacher.com
CRM in MacDonald
 CRM systems are used in MacDonald for the top
management to provide crucial data, like customer
satisfaction and efficiency of service by the frontline
crews
 CRM software’s are used to gather information
about the number of customers buying from a
particular store per day and to provide important
data.
 CRM is able to gain new customers, retains existing
customers and extends the level of existing
customers in Macdonald.
WHAT IS SUPPLY CHAIN?
• Supply chain refers to the flow of materials, information,
payments and services from raw material suppliers,
through factories and warehouses, to the end customer.
MCDONALD’S SUPPLIERS
• Some of McDonald’s most significant supply partners in
Australia include:
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OSI – beef, chicken products and fish;
McKey - distribution;
Australian Food Corporation – beef;
Inghams Enterprises – chicken products;
Simplot – fries and hash browns;
McCain – fries and hashbrowns;
Fresh Start Bakeries – buns, English muffins,
hotcakes, McCafe cakes;
– Fonterra – cheese, shake and sundae mixes.
LOGISTICS AND ITS ROLE IN SUPPLY
CHAIN
• Logistics Management is that part of Supply Chain
Management that plans, implements, and controls the
efficient, effective forward and reverse flow and storage of
goods, services and related information between the point of
origin and the point of consumption in order to meet
customers’ requirements”
PROCESSES IN LOGISTICS
MANAGMENT
• Various processes involved in logistics management are:
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Transportation
Inventory maintenance
Order processing
Acquisition
Protective packaging
Warehousing
Material Handling
Information Maintenance and Transfer
Supply Scheduling
MAJOR LOGISTICS PROCESES IN
MCDONALD’S
• Transportation process
– McDonald’s has both the cold and dry storage
facilities with the capability to store products up to 22
degree C as well as delivery trucks to transport
products at temperatures ranging from room
temperatures to frozen state
– The specially designed trucks maintain the
temperature in the storage chamber throughout the
journey.
MAJOR LOGISTICS PROCESES IN
MCDONALD’S CONTD…
• Inventory Maintenance Process
– MacDonald’s follow “Just in Time” JIT system of inventory
management.
– McDonald’s use pre-cook batch of hamburgers and let
them sit under heat lamps and cook just in time when it is
need as the customer orders for it.
MAJOR LOGISTICS PROCESES IN
MCDONALD’S CONTD…
• Warehousing processes
– McDonalds uses eStore Logistics service in Australia
for its warehousing logistics needs.
– eStore Logistics Pty Ltd (http://estorelogistics.com.au)
is an Australian based logistics service provider that
has a highly sophisticated warehouse management
system (WMS) that can be easily customised for
specific business requirements.
MAJOR LOGISTICS PROCESES IN
MCDONALD’S CONTD…
• Transfer processes
– Food ingredients are supplied by two categories, Tier-I and
Tier-2 suppliers.
– Tier-2 suppliers comprise growers and processors who
include importantly, lettuce and potato growers, poultry
farms and companies which manufacture coating systems
that coat the vegetable and chicken patties.
– The ingredients are supplied to Tier-I suppliers who
process them, for instance, into vegetable and chicken
patties — this is done by Vista Processed Foods Pvt. Ltd.
— or potato products like French fries, potato wedges and
hashbrowns which are expertly churned out by McCain
Foods India Pvt. Ltd.
Organizational Impact of Recent
Systems
• Business strategy - collapsing time and distance,
enabling electronic commerce
• Organization Culture - encouraging the free flow of
information
• Management Processes - providing support for complex
decision making processes
• Work - dramatically changing the nature of professional
• Faster Check out: Helped to serve the customer quickly
• Auto Bag: Helps to run the CRM system.
• Mc Internet: A new approach to acquire customer
through KM strategy.
Overall Analysis
analysis of IS
 The information systems like CRM, SCM, KM and eprocurement support the business functions of
marketing, production, accounting, finance, and human
resource management through a variety business
operational and management practices
 McDonalds has adopted various business processes
and information system long time ago and it upgrades its
information system frequently.
 Information systems use in MacDonald is helping to find,
select, organize, disseminate, and transfer important
information and expertise necessary for business
activities.
Conclusion
 McDonald’s has been known for its excellent set of business
processes and information systems.
 Mc Donald’s operation has changed with the use of the
information system.
 Using the CRM, Knowledge management, SCM and Eprocurement has helped the organization to move forward.
 Mc Donald’s cultures and business strategies has used the
recent systems to capture the all market information.
 The implemented systems create opportunities and issues
that managers need to address in many aspects of their
business process.