1.0 Executive Summary
McDonald’s is the world’s largest chain of fast food restaurant serving more than 58 million customers daily. The firm has an excess of 30,000 restaurants worldwide employing 1.5 million people. The business began in 1940 with a restaurant opened by two brothers namely Richard and Maurice McDonald in San Bernardino, California and then was bought by Ray Kroc who is now the founder of the McDonald’s corporation. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. The pioneers of the franchising countries in order are United States, Canada, Costa Rica, Panama, Japan, the Netherlands.
Today, the Philippines is also one of the countries that have a franchise of McDonalds with 300 restaurants nationwide. As of 2005, McDonald’s Philippines is a 100% Filipino owned company which is built by George T. Yang the first golden arches in 1981 from its first restaurant along Morayta, Manila. McDonald’s Philippines is now in the pursuit of being a multi-billion peso company continuing to expand and serve the Filipinos all over the country.
McDonalds have many different systems that provide specific systems. Understanding the system functions will give you an understanding of why McDonalds has become a great success. These are: Point of Sale System, which gives customer satisfaction and it is greatly use especially the counter area where cashiers are using because it capture total sales and gather information. Next, Knowledge Management System, it is use by the management team wherein they provide rapid feedback about profitability and information also it is use to plan for the future purpose. Third, Transaction Processing System involves collecting, modifying and retrieving the daily transactions of the organization. It includes payroll, keeping employee records and the actual disbursement of money to its employees. All of these aspects of TPS is stored and secured safely due to the fact that these transactions involve the exchange of money. An example of McDonalds using TPS would be ordering of raw materials from its suppliers to maintain customer satisfaction. Each time an order to a supplier has been placed, a transaction has occurred. Since each transaction is carefully noted, TPS also proves to be useful in decision making because it analyze daily transactions to see which items on their menu are performing well. Transaction processing system records the relevant information such as supplier name , address , the quality of the items purchased and finally the invoice amount. Fourth, Supply Management System in which it is a management of a network of interconnected businesses involved in providing products or services for customers. In this system, McDonalds use it to store, delivery of raw materials, work-in process inventory, and finished goods from its point of origin to its point of consumption. McDonalds hold their SCM to standards such as quality, safety, efficiency and sustainability. Fifth, Decision Support System wherein McDonalds executives use it to make better decisions by using historical and current data from Internal Information Systems and external sources. Decision Support System is used to make model data and make quality decision based on the data. It can sift large amounts of data and pick between many choices and supports the non-routine decisions. Lastly, Management Information System where used to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget. McDonalds used MIS because the purpose of MIS is to provide profitability and information to help managers and staff understand the...
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