Mcdonald's Value Chain Analysis
2010
Management Information System: McDonald’s case study
Idris Sugiarto (21671532)
McDonald’s is no doubt the world’s most powerful brand in quick service restaurant industry in terms of market share and brand value. Committed in quality, service, cleanliness, and value, McDonald’s must deliver its product to consumers with consistency and efficiency. This report will explore how McDonald’s corporation maintains its operational excellence through support from integration of sophisticated technologies. It suggests that to be able to apply technology in organization, value chain process must be defined and by then, information technology can be utilized to link each process that forms a comprehensive information system. It further explains how the use of Point of Sales (POS), Geographic Information System (GIS), online order system, and electronic payment will enhance effectiveness of decision making and supply chain efficiency.
10/5/2010
Management Information System: McDonald’s case study 2010
I.
About McDonald’s Corporation
In late 1948, two brothers, Richard and Maurice McDonald’s invented the “Speedee service” system that radically changed the method of preparing food. The system applies scientific management theory previously used in factory assembly line where workers are performing only one task to achieve greater efficiency (Schlosser, 2002). By 2009, McDonald’s had operated 32,478 restaurants in 117 countries and served 60 million customers per day (McDonald’s, 2009). There are many factors that contribute to this success. However, this report will focus on McDonald’s value chain model that delivers values from the suppliers to customers and how technology may help to facilitate the process. The next section will discuss McDonald’s business model, people, organization, technology factors, value chain model, and application of technology in McDonald’s value chain process.
1
Management Information System: McDonald’s case study 2010
II.
McDonald’s
Management Information System: McDonald’s case study
Idris Sugiarto (21671532)
McDonald’s is no doubt the world’s most powerful brand in quick service restaurant industry in terms of market share and brand value. Committed in quality, service, cleanliness, and value, McDonald’s must deliver its product to consumers with consistency and efficiency. This report will explore how McDonald’s corporation maintains its operational excellence through support from integration of sophisticated technologies. It suggests that to be able to apply technology in organization, value chain process must be defined and by then, information technology can be utilized to link each process that forms a comprehensive information system. It further explains how the use of Point of Sales (POS), Geographic Information System (GIS), online order system, and electronic payment will enhance effectiveness of decision making and supply chain efficiency.
10/5/2010
Management Information System: McDonald’s case study 2010
I.
About McDonald’s Corporation
In late 1948, two brothers, Richard and Maurice McDonald’s invented the “Speedee service” system that radically changed the method of preparing food. The system applies scientific management theory previously used in factory assembly line where workers are performing only one task to achieve greater efficiency (Schlosser, 2002). By 2009, McDonald’s had operated 32,478 restaurants in 117 countries and served 60 million customers per day (McDonald’s, 2009). There are many factors that contribute to this success. However, this report will focus on McDonald’s value chain model that delivers values from the suppliers to customers and how technology may help to facilitate the process. The next section will discuss McDonald’s business model, people, organization, technology factors, value chain model, and application of technology in McDonald’s value chain process.
1
Management Information System: McDonald’s case study 2010
II.
McDonald’s