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Management within McDonalds

Paper Type: Free Essay Subject: Information Systems
Wordcount: 2380 words Published: 2nd Jan 2018

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This report include a background of McDonalds, explanations of the topics from the weekly lecture slides, which of these option can consider to McDonalds, what option can be consider differently and a summary.

McDonald’s is one of the leading restaurant chains in the world, touching the lives of people everyday. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948 the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries.

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As per the information of the McDonald’s history, the major revenue came from hamburgers, which were sold at a nominal price of 15 cents. The restaurant gradually became famous and the McDonald brothers begin franchising their restaurant in the year 1953.The first franchise was taken by Neil Fox and under it; the second Mc Donald’s restaurant was opened in Fresno, California. It was the first to introduce the Golden Arch design. The third and fourth restaurants were opened in Saginaw, Michigan and Downey, California, respectively.

The latter is the oldest Mc Donald’s restaurant still in operation. In 1954, an entrepreneur and milkshake-mixer salesman, Ray Kroc, acquired the franchise of McDonald’s restaurant for outside California and Arizona. In effect, Kroc opened his first and the overall ninth restaurant in Illinois, Chicago, and gave birth to Mc Donald’s Corporation. In 1958 the restaurant chain sold its 100 millionth hamburger. In 1960, Kroc renamed his company as ‘McDonald’s Corporation’. In 1961, Kroc convinced the McDonald brothers to sell the business rights to him for a sum $2.7milion.

Later that year, the Hamburger University was opened, which gave away McDonald’s restaurant Bachelor of Hamburgology degrees to students. In 1963, the mascot Ronald McDonald was born as a part of a marketing strategy in US. In 1967, the first restaurant outside US was opened in Richmond, British Columbia. In 1974, the 3000th restaurant opened in Woolwich, United Kingdom, which is the first of the country. Happy Meal was introduced in US in 1979. In 1984, the company became the main sponsor of the Summer Olympics. The year was also marked by the death of Ray Kroc.

In 1988, the first restaurant opened in a communist country in Belgrade, Yugoslavia, followed by the first Soviet restaurant in Moscow (1990). In 1992, the largest McDonald’s was opened in Beijing, China, having over 700 seats and was later demolished. In 1993, the first sea-going restaurant was established, aboard the Finnish Cruise-ferry Silja Europe, sailing between Helsinki and Stockholm. In 1994, McDonald’s bagged the Catalyst Award for its program for ‘fostering leadership development in women’. In 1996, the first Indian restaurant was opened.

In 2003, the company launched the ‘I’m lovin’ it’ campaign. In 2005, McDonald’s started its McDelivery service in Singapore. In 2006, the chain announced that it will publish nutritional information on its packaging of all its products, for the benefit of the customers.

Considering the huge success and brand McDonald’s has become, the food chain is spread across the world in almost all the major cities of the globe. Being economic and user friendly, the success rate of the company cannot be doubted.

These are some issues and a briefly background of them. Data Delivery is all about effectively delivering business data – both structured and unstructured -to people. That doesn’t mean just some of it, but all of it. Data Delivery solutions enable companies to do just that with selectivity, integrity and control to executives, associates, customers, suppliers and business partners. Data Delivery recognizes that the universe of data critical to the business extends beyond a data warehouse and BI analytics. It also includes integrated reporting solutions, regulatory compliance and risk management reporting, master data and meta-data management and data quality management and governance. The purpose of RCG IT’s solution is to establish the data delivery infrastructure, data management practices and data delivery processes for disseminating essential business information.

Why BI project fail: Too many Business Intelligence (BI) projects fail to deliver on their promises because expectations are frequently not met, and the hard measure of success, Return on Investment (ROI), either goes unmeasured or falls woefully short. It’s no good pointing the finger of accusation at the soft ware vendors or at consultants, organizations have a responsibility to their employees and stakeholders to make sound investments and maximize ROI, and in this respect many BI projects must be re-evaluated. When BI implementations that fail to deliver the anticipated ROI, there are a number of possible explanations. There is a chance that expectations will have initially been set unreasonably high, in which case the project was really doomed from the start.

Management change: You must address the whole business change, not just the individual components. Business change is complex because of the interdependencies between the business environment, the organisation, its people and supporting technologies; any change in one aspect will affect one or more of the others. Cultural change is the most important consideration. For example, about 80% of the effort and resources required for successful IT-related change are – or should be – deployed on the ‘soft’ aspects of business change, such as changing behaviours and providing training at the right time; only 20% is required for the IT.Similarly, the cost of a new building is only a small part of the total cost of change required for new ways of working.

Risk Management: Risk management includes, proactive and reactive planning, triggers, monitoring and control, risk combination, Monte Carlo distribution, RM is an integral part of the overall process of Project Management

Acceptable Policies: An Acceptable Use Policy (for email usage) is an official company statement on how it expects its own employees to conduct messaging on its own businessemail system. The policyshould detail the company’s position on how its email users should conduct communication within and out with the company, whether for business or personal use.

What are the impacts of the IT security breaches: For many businesses, the internet has replaced traditional paper-based ways of exchanging information. However, the Internet brings its own security issues which businesses must consider. People from both inside and outside business may try to gain unauthorised access to applications and information, compromising data and applications, either unintentionally or maliciously. One of the commonest security breaches is the mishandling of log-in details or passwords by employees. Typical instances of security breaches occur when passwords are written down, shared with other people or not changed frequently

Globalization: There are many different definitions of globalisation, but most acknowledge the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. It is like moving towards living in a borderless world. There has always been a sharing of goods, services, knowledge and cultures between people and countries, but in recent years improved technologies and a reduction of barriers means the speed of exchange is much faster.

Globalisation provides opportunities and challenges. Bigger markets can mean bigger profits which leads to greater wealth for investing in development and reducing poverty in many countries.

Risk: In business today, risk plays a critical role.

Almost every business decision requires executives and managers to balance risk and reward. Effectively managing the business risks is essential to an enterprise’s success.

Select System: Select Information Systems is an established IT Consultancy with a large portfolio of private and public clients. Many Clients are using software which designed and developed to satisfy their demanding, business requirements, employing technologies which integrate with their chosen, existing IT architecture.

Outsourcing: Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers

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According to globalization, McDonald’s training programs are delivered in up to 40 languages, with the primary languages being Chinese (Simplified and Traditional), English (both International/Commonwealth and U.S.), French, German, Italian, Japanese, Portuguese and Spanish for the top markets. The training materials consist of two elements: core content which applies globally for maintaining consistent food quality and services worldwide, and locale-specific content based on local menu items, food safety regulations and labour practices. The company continues to invest and support initiatives to adapt its products and services to different locales to ensure its global.

McDonald’s outsourcing: Fourteen McDonalds in Oregon and south-eastern Washington have been linked to the call center operated by SEI-CCS Inc. a Fargo, N.D.-based company that works closely with McDonald’s. The call taker in Grand Forks enters your order into a computer and relays it back to the home restaurant, where it pops up on a screen in the kitchen. Meanwhile, a digital camera photographs your car as you drive through. The photo pops up on a separate screen next to the order at the drive-through cashier’s window to match the order with the car. A total of 50 McDonald’s are expected to be on line within a few months, including seven more of Adams’ restaurants and five in the Portland area, he said.

McDonalds Management change: The changes have been implemented for enhancing the promotional and advertising campaign of the company and to make the company more competitive and adjust the organization to the existing changes emerging with its internal and external environment not bring it to its downturn.With the change management process implemented by McDonald, there is certain resistance or conflicts that have been encountered. The following are resistance faced by McDonald and its plausible solutions to be taken: perception or reaction of McDonald’s employees and customers, McDonald’s organizational culture and absence of support. Therefore, it is concluded that, changes of management is not bad as long as the changes made can really enhance the competitiveness and strength of an organisation.It is effective, if and only if, a thorough investigation and evaluation of the organization’s performance has made. And if the study suggests that there is a need for change, then that is the only time, the organisation should imposed required changes to be done. Because, change of management system is very critical or crucial, one wrong move, the company, might faced its biggest downturn instead of strengthen and expand its business portfolio and survive to the stiff competition in the business arena. It is recommended that McDonald must see to it that the changes are well planned and implemented carefully, because these will the basis for the success and/or failure of any organisation.

McDonald’s project failed: A project’s scope is too monolithic and gargantuan. In 2001, McDonald’s planned to spend $1 billion over five years to tie all of its operations into a real-time digital network. Eventually, executives in company headquarters would have been able to see how soda dispensers and frying machines in every store were performing, at any moment. But after just two years, the fast-food giant threw in the towel.

As a manager at McDonalds, I would have added in all the restaurant global, delivery service, where McDonald’s car or motorbikes will deliver food to the customers indoors. This will raise McDonalds profit and make the customers very happy. Also a healthier diet actually these days will make McDonalds world wide the biggest food restaurant and keep the company to the top. For example in Greece much more people would prefer McDonalds if the food was healthier, because Greek people have on their mind that McDonalds food it is not healthier, maybe introducing a kind of a healthier menu in Greece will bring more customers to McDonalds in Greece. Also, management changes are an excellent way of introducing new menu, but I believe these days it is not necessary for McDonalds to be over advertising. It is better to find a way to launch healthier diet and to deliver them than keep advertising. Because McDonalds is already known and profitable. Last but not least, a good marketing research to overlap with other companies or restaurant might increase McDonald’s customers.

To sum up with, McDonalds is the biggest food restaurant, it is following the best way to launch new products and come up with the best solutions to any kind of problem. There are just a few issues that need to be differently according to my opinion. Last but not least if McDonalds’ follow these kinds of issues and in a correct way it will continue being the best food restaurant for years.


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