McDonald's Information System

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20 minutes
Updated Oct 21, 2021
McDonald's Information System

In any corporation, the role of information in decision-making is essential. All effective decisions are made based on timely, accurate, and relevant information. A business lacking relevant information leads to poor planning, low priority of needs, inappropriate decision making, and inappropriate planning of programs, activities. The importance of information for making the right decisions has led to developing a management information system for organizations. The management information system in the decision-making process seeks to build something for the viable and effective use of modern information procedures in modern management practice. To show you how effective an information system can be, we take a look at one of the largest fast-food companies - McDonald's Corporation. For students studying management, economics, gastronomy, this information will be very useful. If you need coursework, dissertation, thesis help in this topic, we will advise on all complex issues.

McDonald's - Company Profile

Dick and Mac McDonald decided back in 1940 to found their own small, fast food restaurant, primarily aimed at drivers. The real success for the company came after the publication in 1952 of a note in American Restaurant Magazine. After this release, business people received the first requests to open establishments under their brand. The retail outlets of this brand serve more than 60 million people daily. According to figures published in Food & Wine magazine, $ 9 billion in profits from franchised stores alone made it the richest fast-food chain in the world.

New McDonald's restaurants of the company open almost every day, increasing the income of its founders two or even three times. These are not all the facts that we can tell about McDonald's, the legendary corporation, which until 2010 bore the title of the largest fast-food of our time. What's the McDonald's secret? Mcdonald's uses the best information technology, has created a successful transaction processing system, decision support system, point of sale system, an information system - that's what we'll talk about.

Information System - What Is It?

The information system is associated with an optimized process of collecting, processing, storing, and transmitting relevant and necessary information to support all management functions in any company. There are such types of information systems:

  • Communication systems or information transmission systems.
  • Information storage systems.
  • Information processing systems.
  • Complex systems that include all or part of the above systems.

From an academic perspective, a management information system and routine decision making are often described as the automation of human decision making, including decision support systems, expert systems, and a management information system (Laudon and Laudon, 2009). Implementing a management information system in an organization ensures that information is correctly conveyed to the appropriate departments and people. It helps to make decisions not only on the internal but also on the external level.

McDonald's Information System: An Overview of All Key Aspects

We will cover four aspects of the McDonald information system:

  • Database.
  • Computing tools.
  • Technical communication channels.
  • Information technology.

All these key points contributed to McDonald's management, business processes, and the fast-food industry. If you are writing a case study or essay, this information is perfect for your research. Remember - if you do not have enough time, inspiration, or knowledge to write papers, feel free to tell us "write my research paper." We will prepare an article as soon as possible, perfectly formatted and without plagiarism.

Database

McDonald's combines information from different sources in one database. Forms, queries, and reports created in the database allow you to quickly and efficiently update data, obtain a monthly report of expenses, search for relevant data, analyze data, and print reports, charts, and mailing labels.

The management needs to have reliable information about employees, a timely and high-quality supply chain, and pay suppliers for shipped raw materials. Many Mcdonald's service restaurants use Access databases to avoid errors in raw material supply, reduce the chance of lost documentation and become more automated.

The developed database in Access allows you to reduce the time needed to find the necessary information about raw materials, products, suppliers, raw materials supplies, and employees. When new data appears, the manager can enter them into the database and work with them in the shortest possible time.

Computing Tools

According to McDonald's top manager, Jack Greenberg, every six seconds saved in servicing the drivers translates into a 1% increase in sales. All fast-food restaurants now measure the speed of service to drivers and use the latest advances in computing and measurement technology to improve this indicator. For example, McDonald's restaurants will shorten the service time by eliminating the delay of drivers at the cashier's window. To do this, the company is experimenting with transponders on the windshield of a car, similar to those used to write off-highway tolls automatically. As McDonald's has shown, people cannot increase speed in the fast-food industry without effort. McDonald's looks for the right performance criteria, monitor them, and then systematically works to improve them, constantly coming up with new ideas and testing them in practice. This approach gives McDonald's a competitive advantage, as the introduction of new computing technologies can improve customer satisfaction.

Technical Communication Channels

McDonald's communication channels include face-to-face, media, outdoor information, and public events. So, for example, to attract public and media attention to McDonald's, for many years now managers have been holding a charitable campaign "McHappy Day," the proceeds from which go to the charitable foundation "House of Ronald McDonald." As special guests, the managers invite musicians and actors, Hollywood, politicians. In Japan, McDonald's offers discounts to visitors who participate in the government's emission reduction program. The quality decision was the offer of fashionable youth clothing of its brand in the American market. McDonald's aimed to attract young men and women to its restaurants. T-shirts with Macdonald's logos have become very fashionable and are successfully sold at a fairly high price of $ 55.

Information Technology

Dynamic Yield's information technology has helped the American foodservice chain adapt its service to changing consumer preferences. McDonald's has improved the Drive-Thru ("McDrive") electronic menu offerings to automatically select content to display on screens based on several factors. For example, on a hot day, the system advises buying a soft drink or ice cream. Leaders did not leave the ordinary self-ordering system without AI either. Thanks to smart algorithms, terminals can recommend dishes to consumers depending on the choice already made, the workload of the restaurant's kitchen, the time of day, which simplifies the decision-making process.

McDonald's Information System - Example Essay

Perhaps in the course of studying the article, you are confused about the flow of information. Therefore, we have put together a sample essay on the McDonald's information system. Based on our ideas, you can create a successful essay. However, if you have any difficulties, you can always arrange a custom paper and use the help of experts.

Topic: The Role Of The Information System In The Existence Of McDonald's

The use of the information system in modern business is essential for all organizations. Applying various methods and techniques can improve business operational efficiency and help develop a new system that can create a competitive advantage. To prove my idea, I will research the world-famous McDonald's corporation's information system and functional areas.

Previously, McDonald's focused its business functions on competition and did not use technology tools. However, over time, the development of systems related to TPS, MIS, and IT has led to a change in the entire operational practice of the enterprise. To increase the efficiency of sales, the company focuses on the use of information systems. According to McDonald's CEO Chris Kempczinski: "The more technology you use, the better your operational efficiency.

McDonald's organizations use today's information systems such as TPS, MIS, Executive Information Systems. Transaction Processing Systems (TPS) are used when hamburgers are ordered from suppliers. The system records the names, addresses, and quantities ordered in its system. Recording all this information helps inefficient inventory management and provides proof of transactions that have taken place.

The impact of using MIS is related to the management of the system. If the MIS application in the system is effective, its marketing, financial, and production operations are automatically improved. This shows that McDonald's has gained its effectiveness through the application. MIS has made it easier to track and monitor transactions. The system defines the relationship between managers and staff. This collaboration is used to achieve the goals that the organization has set for itself.

Made for you system: this is a system that uses state-of-the-art technology to manage systems. This system is very efficient and helpful. Using this system, when placing an order, the image immediately appears on the monitors of the kitchen staff.

POS system: this system is also called a point system. McDonald's is a busy restaurant, and it uses a POS system for that. With this system, the data on the placed order is transmitted instantly. This allows the cashier to evaluate the payments that he should receive. Kitchen managers are also instantly aware of incoming orders.

Using the information system benefits McDonald's in many ways. This enables them to improve business processes and operations. Therefore, to gain a competitive advantage, enterprises must use all resources and continue to innovate in systems to maintain excessive competition from competitors.

Tasha Kolesnikova
Content Team Member

I studied sociology and marketing at Europa-Universität Viadrina (Germany) and Universidade da Beira Interior (Portugal). When I was a sophomore, back in 2018, I decided to put what I've learned into practice, so I got my first job in digital marketing. I currently work in the content marketing department at Studybay, building strong, effective, and respectful communication between the platform and our clients.