Mcdonalds Case Study
Case McDonald's
McDonald's has worked hard to become more than a restaurant chain. It has become a marketing icon and is part of the routines of millions of people. Its success is so far reaching that it has developed its own culture and identity. McDonald's has become a symbol of the success and desirability of American popular culture.
TECHNOLOGY INVESTMENT AND ANALYSIS
Networks
Networks are particularly important to McDonald's because they provide a mechanism to manage the franchises spread over large geographic areas. Networks reinforce the centralization of power by enabling headquarters to communicate with the franchises. This ensures standardization and quality control through the analysis of inventories and franchises. Networks achieve these functions at a comparatively low cost and without the time constraints of more mainframe-based communications.
Smart Card Technology
Both McDonald's and Burger King are testing smart card technology in selected markets. The cash value of each card is stored on a computer chip or magnetic strip on the back of each card. Value can b e added to the card through machines that accept cash or through ATM-like machines that add value by transferring funds out of a customer's bank account. Customers can use the cards, instead of cash, to make their food purchases. Corporate goals for smart card implementation include cost savings in relation to money handling, reduced shrinkage, and increased loyalty through incentives and premiums. Smart cards eliminate the need for merchants to communicate with banks for authorization of purchases.
McDonald's is testing this technology at 870 restaurants across Germany. A payment system lets customers pay for goods using stored-value smart cards. Customers at McDonald's Deutschland, Inc. restaurants will be able to pay for goods by swiping smart cards through small countertop terminals. They also will be able to add value to their smart cards by downloading
McDonald's has worked hard to become more than a restaurant chain. It has become a marketing icon and is part of the routines of millions of people. Its success is so far reaching that it has developed its own culture and identity. McDonald's has become a symbol of the success and desirability of American popular culture.
TECHNOLOGY INVESTMENT AND ANALYSIS
Networks
Networks are particularly important to McDonald's because they provide a mechanism to manage the franchises spread over large geographic areas. Networks reinforce the centralization of power by enabling headquarters to communicate with the franchises. This ensures standardization and quality control through the analysis of inventories and franchises. Networks achieve these functions at a comparatively low cost and without the time constraints of more mainframe-based communications.
Smart Card Technology
Both McDonald's and Burger King are testing smart card technology in selected markets. The cash value of each card is stored on a computer chip or magnetic strip on the back of each card. Value can b e added to the card through machines that accept cash or through ATM-like machines that add value by transferring funds out of a customer's bank account. Customers can use the cards, instead of cash, to make their food purchases. Corporate goals for smart card implementation include cost savings in relation to money handling, reduced shrinkage, and increased loyalty through incentives and premiums. Smart cards eliminate the need for merchants to communicate with banks for authorization of purchases.
McDonald's is testing this technology at 870 restaurants across Germany. A payment system lets customers pay for goods using stored-value smart cards. Customers at McDonald's Deutschland, Inc. restaurants will be able to pay for goods by swiping smart cards through small countertop terminals. They also will be able to add value to their smart cards by downloading