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Examining The IS System Of KFC

Purpose of the survey: The Management of KFC Parramatta has wanted an investigation regarding the use with their Information System in relation to their business' decision making for competitive benefits also to make recommendations for changes and/or advancements as required.

KFC Parramatta is one of the branches of an enormous franchise that is famous worldwide. Being a fast food restaurant it faces competition from many other similar restaurants for example Hungry Jacks, McDonalds, Dominos and every single restaurant whether it be small or big. Therefore their information system performs a huge role in their decision making process and their competitive benefits over their rivals. Knowing how to make advancements in their business using information systems is a major advantage which is just what a the profitability of the business relies on (J. A Senn 1996). Many retail businesses lack an information system rendering it quite difficult to allow them to make critical decisions therefore their competition have an entire edge over them and generally the retail business manages to lose many customers due to the lack of correct information. Regarding to Teacher2u (2010) competitive benefits is "an edge over opponents gained by offering consumers better value, either through lower prices or by giving better benefits and service that justifies higher prices. " Information systems help achieve this because they help the business enterprise know what is required so when it is necessary (Barney 1995) and employing this the business enterprise can make decisions such as how many staff to hire throughout a specific day for example on Christmas; how much stock is necessary; what product to stock most; the average business profit during a certain period and its own trend i. e. whether the business is certainly going at a earnings or lost and such information. The decision making process usually depends on the bigger level management not the supervisor of the branch itself, however without information from small branches it is almost impossible for the top level management to make a decision and that's why a good information system must exist.

Methodology:

Taking these information in mind a study was conducted on KFC Parramatta. A each week interview was organised with one of the professionals, Vinod Patel, typically on Fridays and Saturdays just outside the restaurant. The information collected was carefully analysed and organised and some than it is presented in this report by means of graphs and diagrams.

Research site:

KFC Parramatta is a local restaurant located at Westfield Shopping centre in Parramatta, New South Wales. Being truly a junk food restaurant, all they sale is food products such as hen burgers, poultry nuggets, fries and other related products. It is very near to other food courts in the same area and encounters a great deal of competition from nearby fast food restaurants hance the need for a good IS system.

Findings:

From the interviews it was found that KFC Parramatta comes with an information system set up. The info system was used almost in all instances of the business enterprise. Listed below are the main element areas where their information system can be used:

Recording sales data (the product sold, time it was sold, cost of the merchandise, variety of products sold and amount sold)

Calculating the daily purchase workers depending on their number of time.

Analysing the shows of the move supervisor and other workers ( this is done automatically in the computer where it calculates the full total sales and divides it by the amount of hours providing a sales each hour figure)

Generating the daily, every week and monthly records on the performance of the business.

It was discovered that the decisions are made in three levels and the following:

Operational level (store managers): they make the decision how many staff to hire, assigning jobs to employees, responsible for the daily management of the business enterprise and they manage customer grievances.

Middle degree of management (area managers): they overlook the going of the stores and ensure that nothing is going incorrect.

Top level of management (professional managers): they will be the ones that decide what product to eliminate from the marketplace, what product to add to the market (including the supervisor illustrated the grilled fowl), at what price to sell it and where you can discover new restaurants.

Analysis of conclusions:

The sales are done on cash or bank card basis but everything is programmed. The cash process is easy and less time consuming as a staff member can certainly take cash and present back the required change. The charge card deal basis is a little more time consuming but almost similar to the cash system. And also the staff member has to hold out till the purchase is approved since the credit card needs to be checked to see if the customer has profit it or not. The order data (the merchandise sold, time it was sold, cost of the merchandise, quantity of products sold and amount sold) all switches into the server once it is approved and it is stored there. The workers collecting the info from customers can only input data and once an order is placed alterations to the order can only be achieved by the authorisation from managers. This acts as a security strategy and prevents the employee from enhancing any data after it is approved. Another security strategy was the living of any safe to keep all the money and every employee is meant to keep carefully the profit the safe once it grows to a specific amount. Additionally being found in a shopping mall there are security cameras and even security guards around which helps keep security surrounding the restaurant. The data stored online server can only be seen by managers of this store (functional level management), the executor management and the administrative level management being that they are only ones that contain a password had a need to log in to access the info. Because the data is all being stored directly on the web server there is a rare chance of the info being inaccurate if any.

Figure 1: A good example of a monthly sales article of KFC Parramatta

From the record it could be seen that KFC Parramatta makes more sales on Thursdays. Among the main known reasons for this is due to long hours these are available. This graph is merely one of the few generated by their information system. Without the information system, it would be so hard to analyse data and make a sales graph and therefore it is important an information system is available.

Figure 2: An example of the business procedure and decision making process

Data is automatically registered on to the key server

Graphs

Reports are analysed used to make decisionsuntitledj0196400

sales

Data is automatically converted into:

Daily, regular and regular Reports

Stock reports

Main issues with the machine:

Although the info system at KFC Parramatta was created properly, there are minimal flaws which could verify critical if not dealt with.

1) One of them is the manual ordering of stock. Stock at KFC Parramatta is ordered twice weekly on Tuesday and Saturday and this is done by hand. The store supervisor matters the stock personally and orders as required. This brings about time use as the store administrator has to manually count every single box. Additionally, during the research it was also discovered that during one of the occupied days they had go out of stock for fries and chicken breast because the administrator had forgotten to count the stock the day before and didn't place an order. This business lead to delays with customer orders since they got to hold back get stock from another store near by. How performed this affect the business? Many customers left angrily as they could not withstand the holding out delays. A few of the patient ones waited for an hour before they could get what they purchased. Lack of customers meant lack of profits and even a one hour wait in such a major restaurant causes a significant crisis and leads to loss of revenue. Located next to numerous other similar restaurants, a few of the customers even bought from close by restaurants as they could not resist delays. This meant the other restaurants gained hook competitive gain over them during that period.

2) Another key area is the preparation of the daily roster. The daily roster is ready physically by the store managers. They do that by dialling a team member and confirming their shifts for the very next day. The problems associated with this? First of all, every team member must be called which means an extra expense. Furthermore the roster is not available online and as you incident took place two team members may survey for a single shift.

Recommendations

Figure 3: Exemplory case of automatic stock buying systemKFC Parramatta should make it happen ordering system computerized. They should monitor their stock using barcode scanners, how much goes into and how much is out. Once the stock should go below a certain level the system automatically orders stock. This would help them in getting their stock in time and prior to the need for it, keeping them on the safer part. According to me below can be an exemplory case of what I would preferably execute something as follows:

Estimated required stock

(8 boxes)

Current stock

(8 containers)

System requests more stock (3 boxes)

Stock goes below approximated required level (5 bins)

Additionally they must have a system where in fact the rosters are prepared online and this way associates can easily see what day their shifts are on, plan their timetable from a convenient location, inform everyone of last second changes and this way they can prevent many problems. This continues the other team members aware of their responsibilities and who they use.

Finally they should set up a customer relationship management system (CRM). "CRM, or Customer Relationship Management, is a company-wide business strategy made to reduce costs and increase profitability by solidifying client satisfaction, commitment, and advocacy" (Reynolds, 2010). In case a delay happens their customers are devoted to them. This can be established by bringing in a spot system for case buying at KFC Parramatta earns you some details and once you've collected enough details you can select a meal of your decision and use your details to buy it.

Conclusion

In summary, KFC Parramatta gets the potential to be the best restaurant in their area if indeed they slightly enhance their current information system. Adapting to some new changes in the info system, an automatic buying process and customer marriage management systems they can gain an absolute competitive gain over their rivals. Using the information system sensibly has business lead to it being one of the supreme commanders and with a bit more changes they can make decisions quicker and accurately, and this can lead them to having more customers than other local restaurants. The automatic ordering system will ensure they get the products on time and with customers being loyal to them they can maximise their current earnings.

(2110 words)

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