Sunday, June 13, 2010
Conclusion
McDonald's is one of the largest fast food companies in the world. They continue their path for success by keeping their consumers in mind regarding their product selection as well as their prices. They encourage their employees to do a good job, usually promotes from within, and offers several scholarships to encourage education. Though McDonald's is a centralized, "wait and see" company they find ways to use technological products that will increase their productivity, service, and sales, everywhere from using the Nintendo DS to train staff to using New POS touch screen registers. McDonald's will certainly be around for plenty more years to come.
Monday, May 31, 2010
Mcdonald's Technology
McDonald's Corp. has helped revolutionize the way restaurants use technology, dating back to founder Ray Kroc's fascination with serving burgers and fries in a matter of minutes. Throughout the years, their fascination with advancing their company technology wise has become a great obsession for the the IT department. In the 1970's, due to there outstanding lead and large burger chains which lead the industry they were able to move from cash registers and completely install computerized points-of-sale (POS). This particular sector of there technology has greatly advanced to even the present times when there POS are all touch screen, in some restaurants, are also self serving devices.
The most recent development has been installing WI-FI hotspots in most of there restaurant globally. This model is made to introduce more young and tech-people into the restaurants creating some what of a starbucks feel, which by the way is free. The electronic payment model is made to quicken the ordering and payment of food, putting in a system that shortens the processing time, preparation time and payment.
Did you know, Mcdonalds uses a 100% biodiesel Technology. Doing this has helped reduce carbon emissions with the truck making the deliveries. To make this processes a reality, Keystone Foods who supply Mcdonalds with there meat worked very carefully with a fuel manufacturer in the UK, which they came up with the idea of using biodiesel to reduce there CO2 emissions per year. The B100(the biodesel fuel used) has been adapted to make this possible.
McDonald's uses Nintendo DS system as a e-learning training tool for their new recruit staff in over 3,000 of their restaurants. These gaming systems train the recruits and grade them on their performance, in which they can compare with other colleagues and view their progress. This new usage of technology allow McDonald's to use less paper and have their employees enjoy their on the job learning experience.
The technology used throughout the corporation is the ACS system. This contract renewed in January 2010, by the Chief Technology Officier of McDonald's, for another five years. ACS provides a full range of services to McDonald's, including mainframe and midrange server support, networking operations and engineering and data center facilities management. ACS also provides service desk functions, user access, executive and security administration, desktop support and messaging services, as well as end-to-end application performance monitoring service that improves diagnosis of performance issues across core technology stacks and will support development, testing and quality assurance processes.
What are some files used in McDonald's?
McDonald’s has a lot of information concerning its employees, competitors, supply information, costs and expenditure. Some of the information about employees would involve employee information, contact information personal information brief history on the person as seen as they were employed initially. The expenditure list would contain the revenue income, the expenditure for that year and all the years that McDonalds have been operational. They would also have some details about who supplies there meat bread and other resources need to produce there burgers. This would specifically include the amounts per shipment and how much has been used and if there are wastes or extras. Having the employee’s salary list per week and their total annual salary including bonuses will also be documented.
Who is responsible for the database? How do managers get reports? What type of reports?
The most recent development has been installing WI-FI hotspots in most of there restaurant globally. This model is made to introduce more young and tech-people into the restaurants creating some what of a starbucks feel, which by the way is free. The electronic payment model is made to quicken the ordering and payment of food, putting in a system that shortens the processing time, preparation time and payment.
Did you know, Mcdonalds uses a 100% biodiesel Technology. Doing this has helped reduce carbon emissions with the truck making the deliveries. To make this processes a reality, Keystone Foods who supply Mcdonalds with there meat worked very carefully with a fuel manufacturer in the UK, which they came up with the idea of using biodiesel to reduce there CO2 emissions per year. The B100(the biodesel fuel used) has been adapted to make this possible.
McDonald's uses Nintendo DS system as a e-learning training tool for their new recruit staff in over 3,000 of their restaurants. These gaming systems train the recruits and grade them on their performance, in which they can compare with other colleagues and view their progress. This new usage of technology allow McDonald's to use less paper and have their employees enjoy their on the job learning experience.
The technology used throughout the corporation is the ACS system. This contract renewed in January 2010, by the Chief Technology Officier of McDonald's, for another five years. ACS provides a full range of services to McDonald's, including mainframe and midrange server support, networking operations and engineering and data center facilities management. ACS also provides service desk functions, user access, executive and security administration, desktop support and messaging services, as well as end-to-end application performance monitoring service that improves diagnosis of performance issues across core technology stacks and will support development, testing and quality assurance processes.
What are some files used in McDonald's?
McDonald’s has a lot of information concerning its employees, competitors, supply information, costs and expenditure. Some of the information about employees would involve employee information, contact information personal information brief history on the person as seen as they were employed initially. The expenditure list would contain the revenue income, the expenditure for that year and all the years that McDonalds have been operational. They would also have some details about who supplies there meat bread and other resources need to produce there burgers. This would specifically include the amounts per shipment and how much has been used and if there are wastes or extras. Having the employee’s salary list per week and their total annual salary including bonuses will also be documented.
Who is responsible for the database? How do managers get reports? What type of reports?
1) The database administrator is in charge of the management of the database. These reports are formed from a collection of information based on a particular subject such as payroll. These can be reports from general information about a person’s performance, or a group of people’s performance or even a report on the amount of people that work overtime and clock in for longer hours.
Is OLAP used? Is data warehouse used? Are data marts used?Yes, McDonald's use OLAP (online analytical processing: which is the manipulation of information to support decision making). A data warehouse (a logical collection of information from many different databases) is used at McDonald's utilizing software by ACS, Teradata, MicroStrategy, and Oracle. McDonald's also uses data marts. Data marts narrow down specific detailed information that may be needed for a specific department.
What types of data mining is used? Who is responsible? What software?
Data mining tools: software tools you use to query information in a data warehouse.
Data mining tools used in a data warehouse is SQL and multidimensional.
What are some hardware categories used in McDonald's? What brands of computer? What types of computers?
Supercomputer, workstations, PDA’s and E-payment devices are used in McDonalds. Apple computers and IBM play a great role in the way McDonalds computer or technology department runs and their technology department.
Who is responsible for the hardware and software? 
Generally the Information Technology department is responsible for the hardware and software, specifically, the Senior Director of IT Business Intelligence at McDonald's. ParTech is the Point of Sale equipment that is used, which includes, hardware, software, and service to McDonald's.
What types of system software is used? Is Linux used?
Microsoft is used by McDonald’s, in 2005, they announced that Microsoft will be utilized by there company, a specific component version will be made by windows to take orders and enable them make multiple forms of payment. Windows XP has been embedded and deployed, across many stores, and also have introduced the next generation of customer service innovation by bringing an open technology platform.
What types of application software is used? What brands?
Generally the Information Technology department is responsible for the hardware and software, specifically, the Senior Director of IT Business Intelligence at McDonald's. ParTech is the Point of Sale equipment that is used, which includes, hardware, software, and service to McDonald's.
What types of system software is used? Is Linux used?
Microsoft is used by McDonald’s, in 2005, they announced that Microsoft will be utilized by there company, a specific component version will be made by windows to take orders and enable them make multiple forms of payment. Windows XP has been embedded and deployed, across many stores, and also have introduced the next generation of customer service innovation by bringing an open technology platform.
What types of application software is used? What brands?
McDonald uses the Microsoft retail specific operating system by XP, which has been added to the new worldwide point-of-sale system. They specifically use the XP embedded, which also helps trim staff training costs. These points of sale have been installed through the thousands of devices worldwide.
What type of network do they have?
Dell and Gateway make house calls for fees starting at $160.Network used at McDonalds is Wi-Fi “AT&T Wireless' high-speed Internet access is up to 50 times faster than standard dial-up service. Data-transfer rates are up to 11 Mbps for wireless access, however, they also depend upon on the underlying transport rate (http://www.mcdonalds.com).”
What kind of interface do they use?
McDonald's system runs on a virtual private network, piggybacking off the Internet and featuring a Web browser-based user interface. (clickhere)
What kind of media?
Since McDonald's is a huge company and has several different locations they would have to use wireless transmission media.
What kind of communications software?
McDonald's uses Windows XP embedded as their operating communications software.
(to view article (clickhere)
What kind of connecting devices or components?
McDonald's uses a router as their form of connecting component.
How do they connect to the internet and at what speeds?
They connect to the Internet, through a wifi hotspot, which have been located at there restaurants. The wifi service at McDonald’s is provided by AT&T which has a data transfer speed of 11Mbps at the wireless access points.
Do they use Voice over IP?
McDonalds announcing the availability of WI-FI has made VoIP calling very realistic, with the use of Skype reduces traffic on subscription hotspots and 3G/GPRS. This provides the customers with that option.
How do they apply the four principles of network security?
Mcdonalds apply the four principles of networking security by not letting unauthorized users access to the network. They also have firewalls and make sure that any fake websites are flagged and they do not have the authenticity sign which prove that the website is real. They do this by creating the web server not to process or send out forged or unauthorized people or website on the network. They provided free Wifi to enable it available to everyone, who is in their restaurant the ability to access the internet and network easily and safely.
McDonald's uses a router as their form of connecting component.
How do they connect to the internet and at what speeds?
They connect to the Internet, through a wifi hotspot, which have been located at there restaurants. The wifi service at McDonald’s is provided by AT&T which has a data transfer speed of 11Mbps at the wireless access points.
Do they use Voice over IP?
McDonalds announcing the availability of WI-FI has made VoIP calling very realistic, with the use of Skype reduces traffic on subscription hotspots and 3G/GPRS. This provides the customers with that option.
How do they apply the four principles of network security?
Mcdonalds apply the four principles of networking security by not letting unauthorized users access to the network. They also have firewalls and make sure that any fake websites are flagged and they do not have the authenticity sign which prove that the website is real. They do this by creating the web server not to process or send out forged or unauthorized people or website on the network. They provided free Wifi to enable it available to everyone, who is in their restaurant the ability to access the internet and network easily and safely.
What is their domain name?
Mcd.com is McDonald's domain nameSunday, May 30, 2010
BUSINESS STRATEGY
Per McDonald's CEO, James Skinner, the company's business strategy is Plan to Win. The organization focuses on the five P's: People, Products, Place, Price, and Promotions. By the company focusing on these factors the business continues to thrive even in a struggling economy.
The McDonald's business structure is based upon a geographic structure. McDonald's divided its operations into five geographical divisions; United States, Europe, Asia/ Pacific / Middle East / Africa, Latin America and Canada...75% of McDonald's revenue are generated in the United States and Europe. So to McDonald's, the most important strategic approach for maintaining its leading edge is to keep their major markets at the same time expanding their business into the emerging markets. However, different customer groups in different countries may have different tastes and/or requirements. So each functional geographic unit of McDonald' was required to wholly response for producing and marketing its product in that region. Through this regional structure, McDonald's could not only satisfy the local consumers' needs in different geographical areas but also pursuing 'maximum local development'. Actually they produce and market slightly different types of products in different areas, and they even have different prices. McDonald's philosophy of quality, service, QSC, and V - quality, service, cleanliness and value is same for everywhere. And McDonald's targets the similar consumer segments that need fast service, affordable price and good standard hygiene. So their main products are similar in most countries, where they provide service, including beef, chicken, bread, potatoes and milk. As the consumers in different countries having different foods requirements, McDonald's keep launching new products for their regional consumers. China and France are good examples.
For China, chicken is a big eater in that region. Therefore, McDonald's business strategy is to try to adapt more Chinese tastes by adding more chicken meals into their menu to attract more customers. In France, McDonald's has boosted it sales by remodeling restaurants, i.e. hardwood floors, wood-beam ceilings, comfortable armchairs. Also by adding new menu items such as espresso, brioche and more upscale sandwiches. In addition, the Tours, France McDonald's has added self-service kiosk, which allows the customers to either control their kids or control their orders. By doing that McDonald's have successfully responded to the preferences of the local area while increasing their sales.
Moreover, in addition to the innovative menu, McDonald's is also rebuilding and even relocating some of their restaurants to make the environment more attractive. At the same time, McDonald's is differentiating itself by creating more relevant experiences such as allowing the customers to access the Internet with the wireless technology platform-for FREE. This innovative way not only attracts the teenagers, but also perfectly fitting the modern professionals' requirement. McDonald's is staying in touch with people's technological needs by allowing them to surf the net, social networking, video games, or even preparing business proposals or presentations. (Information sited from International Journal of Business and Management-March 2009 (www.ccsenet.org/journal.html)
The e-commerce that McDonald's use is Business to Cusumer (B2C)...for example when a customer makes a purchase from a business they use cash or credit and they get a product or service in this case it will be McDonald's fast food products.
The type of Internet business models that are used are:
The McDonald's business structure is based upon a geographic structure. McDonald's divided its operations into five geographical divisions; United States, Europe, Asia/ Pacific / Middle East / Africa, Latin America and Canada...75% of McDonald's revenue are generated in the United States and Europe. So to McDonald's, the most important strategic approach for maintaining its leading edge is to keep their major markets at the same time expanding their business into the emerging markets. However, different customer groups in different countries may have different tastes and/or requirements. So each functional geographic unit of McDonald' was required to wholly response for producing and marketing its product in that region. Through this regional structure, McDonald's could not only satisfy the local consumers' needs in different geographical areas but also pursuing 'maximum local development'. Actually they produce and market slightly different types of products in different areas, and they even have different prices. McDonald's philosophy of quality, service, QSC, and V - quality, service, cleanliness and value is same for everywhere. And McDonald's targets the similar consumer segments that need fast service, affordable price and good standard hygiene. So their main products are similar in most countries, where they provide service, including beef, chicken, bread, potatoes and milk. As the consumers in different countries having different foods requirements, McDonald's keep launching new products for their regional consumers. China and France are good examples.
For China, chicken is a big eater in that region. Therefore, McDonald's business strategy is to try to adapt more Chinese tastes by adding more chicken meals into their menu to attract more customers. In France, McDonald's has boosted it sales by remodeling restaurants, i.e. hardwood floors, wood-beam ceilings, comfortable armchairs. Also by adding new menu items such as espresso, brioche and more upscale sandwiches. In addition, the Tours, France McDonald's has added self-service kiosk, which allows the customers to either control their kids or control their orders. By doing that McDonald's have successfully responded to the preferences of the local area while increasing their sales.
Moreover, in addition to the innovative menu, McDonald's is also rebuilding and even relocating some of their restaurants to make the environment more attractive. At the same time, McDonald's is differentiating itself by creating more relevant experiences such as allowing the customers to access the Internet with the wireless technology platform-for FREE. This innovative way not only attracts the teenagers, but also perfectly fitting the modern professionals' requirement. McDonald's is staying in touch with people's technological needs by allowing them to surf the net, social networking, video games, or even preparing business proposals or presentations. (Information sited from International Journal of Business and Management-March 2009 (www.ccsenet.org/journal.html)
The e-commerce that McDonald's use is Business to Cusumer (B2C)...for example when a customer makes a purchase from a business they use cash or credit and they get a product or service in this case it will be McDonald's fast food products.
The type of Internet business models that are used are:
- McDonald's systematize their business, which as a result give consistency for customer experience across the word via the Internet.
- Also, by duplicating and documenting the way the business is running can be sold as an ebook that can help people understand how to successfully run a McDonald's franchise.
- McDonald's provides free WI-FI service to their customers so that they can grab a burger etc...and conduct business all at the the same time.
- The POS (Point-Of-Sale) at all McDonald's stores are touch screen, in addition, in some restaurants their are self service devices.
Which one of the three generic business strategies does McDonald's use?
Generic business strategies used at McDonald's is the differentiate strategy. McDonald's differentiate their services and products from their competitors because; at McDonald's there are many services that are provided for the consumers. Depending on the location of the store and the franchise owner behind it, at a typical McDonald's once can find the following drive thru, lobby, restroom, Breakfast menu, Lunch menu , and someone who is capable of speaking Spanish. McDonald's also provide service such as Wi-Fi; today in over 14,000 restaurants obtain free Wi-Fi service for the customers. This allows customers to enjoy their meal while working. “Company officials hope free Wi-Fi will help draw customer to visit a local restaurant during less crowded times, and will purchase McCafe coffee drinks or regular meals—value in our food, value in our services (www.dailytech.com).” McDonald's has successfully used a differentiated market segmentation strategy by targeting the family unit and particularly children with their “Happy Meal” and price (ivythesis.typepad.com).” “McDonald’s mostly target on children as audience, their commercials most of the time multiple audience specifically families (ivythesis.typepad.com).”
How does McDonald's utilize the Porter's Five Method?
McDonald's buyer power is high because there are several fast food restaurants that consumers can choose from. The supplier power is high because a majority of the products can be purchased from different suppliers. The Threat of substitute products or services is low because their recipes are unique to their band however there are other restaurants that offer burgers, fires, and shakes. Threat of new entrants is high because there are always new restaurants that open offering burgers and fries. And the Threat of competition is high because there are other types of fast food restaurants to eat from that offers some of the key menu items that McDonald's offers like the Dollar Menu.
Generic business strategies used at McDonald's is the differentiate strategy. McDonald's differentiate their services and products from their competitors because; at McDonald's there are many services that are provided for the consumers. Depending on the location of the store and the franchise owner behind it, at a typical McDonald's once can find the following drive thru, lobby, restroom, Breakfast menu, Lunch menu , and someone who is capable of speaking Spanish. McDonald's also provide service such as Wi-Fi; today in over 14,000 restaurants obtain free Wi-Fi service for the customers. This allows customers to enjoy their meal while working. “Company officials hope free Wi-Fi will help draw customer to visit a local restaurant during less crowded times, and will purchase McCafe coffee drinks or regular meals—value in our food, value in our services (www.dailytech.com).” McDonald's has successfully used a differentiated market segmentation strategy by targeting the family unit and particularly children with their “Happy Meal” and price (ivythesis.typepad.com).” “McDonald’s mostly target on children as audience, their commercials most of the time multiple audience specifically families (ivythesis.typepad.com).”
How does McDonald's utilize the Porter's Five Method?
McDonald's buyer power is high because there are several fast food restaurants that consumers can choose from. The supplier power is high because a majority of the products can be purchased from different suppliers. The Threat of substitute products or services is low because their recipes are unique to their band however there are other restaurants that offer burgers, fires, and shakes. Threat of new entrants is high because there are always new restaurants that open offering burgers and fries. And the Threat of competition is high because there are other types of fast food restaurants to eat from that offers some of the key menu items that McDonald's offers like the Dollar Menu.
The buyer and supplier power can be reduced by offering a specific type of product at a competitive price that the competitors does not offer, for instance the yogurt parfait.
McDonald's handles switching cost and entry barriers by providing good, quality products that are given at competitive prices to their customers, with excellent service. As well as offering unique menu items like the Yogurt Parfait or by providing free Wi-Fi service to their customers. By providing these values it encourages customer loyalty to the McDonald's brand and makes it harder for new businesses to open within the fast food industry.
What major business initiatives are used or being considered with McDonald's?
The major business initiatives that are being used is A customer relationship management (CRM) system.
* The software that is being use is the CRM System Infrastructure...which gathers data and sends all the information to McDonald's database for instance a lot of people are more health conscious these days in that they want to eat more health. In lieu, of that McDonald's has added salads and other lighter options into their menu. If a mother comes in, she is not only buy the happy meal for her children, she will also be likely to buy herself a meal too .the lighter options also encourage existing customers to come back more often, because there is a greater variety of choices.
*It’s a top-line initiative, because the aforementioned process will bring back the customers who loves the taste of McDonald's but who also is concern about their health...in addition, it will bring new customers to McDonald's base on who wants to eat healthy. This as a result will increase the revenue.
What type of IT organization is used?
The McDonald's Corporation is the perfect example of a centralized IT organization structure. The centralized are early adopters of the “wait and see” philosophy in the technological field, waiting for the technology to be proven, before they decide to adopt and integrate the technology into their organization. McDonald's before investing in any new technology have to have a demonstration that there will be a significant return on investment (ROI) before they decide to adopt the technology. Being a mature company in the fast food industry, McDonald's does not need to look for significant growth because there is little possibility of increasing their market share.
Payment System
"McDonald's is always looking for new and innovative ways to use technology to improve customer service (www.qsrweb.com)." "McDonald is expanding its use of an electronic system that lets customers pay for their orders using a cash-free keytag system originally developed for Mobil gas station (www.ecommercetimes.com). The Speedpass is a transporter that can be kept on a customers key chain." When a purchase is made, the gadget automatically sends a signal to the credit card account,so that the purchase can be included on the customer's next monthly bill. This process will allow McDonald's to move rapidly when dealing with orders and purchases.
Marketing Mix
McDonald's utilizes the marketing mix to their advantage. Their website is registered to several search engines, e.g., Google, Yahoo, AOL, and many more. They use viral marketing by using consumers eat their products to encourage others to do so as well. McDonald's also has games such as monopoly which influences consumers to play in order to receive free item or win cash money. Viral Marketing generates more people to purchase food during this time period. McDonald's also uses online ads to advertise their products. Facebook is preparing a status based updates for its user, this application will be offered to marketers such as McDonald's. Affiliate programs are in place where they can advertise their products to consumers on other companies websites. Also, McDonald's displays online ads to sell their products. In March of 2008 McDonald's displayed over 295 million online ads in just one month. (http://www.centernetworks.com/)
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