Mcdonald’s Is The Best And Most Profitable Company In The Fast-food Industry

INTRODUCTION

The company began its business in 1940, with a restaurant that was opened by Dick and McDonald’s in San Bernardino, California. Their introduction of the 'Speedee Service System' in 1948 established the principles of the modem fast food restaurant. McDonald's restaurants are found in 119 countries and territories around the world and serve nearly 47 million customers each day. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also operates other restaurant brands, such as Piles Card, and has a minority stake in Pro a Manager.

The company owned a majority stake in Chipotle Mexican Grill until completing its divestment in October 2006. The Golden Arches are the symbol of McDonald's, the global fast food restaurant chain. They were incorporated into the chain's logo in 1962, which resembled a stylized restaurant, and in the current Golden Arches logo, introduced 1968, resembling an 'M' for 'McDonald's'.

MCDONALD’s VISION AND MISSION

Vision of McDonalds: McDonald's vision is to be the world's best quick service restaurant experience.

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Being the best means providing outstanding quality, service, cleanliness, and value so that they make every customer in every restaurant smile.

•Quality McDonald's sees itself as a provider of the good and reliable quality of products to its consumers across the globe.

• Service It looks to differentiate itself through the level of service it provides to all its customers globally. It also ensures that across the globe the level of service is maintained at the superior level that McDonald's promises.

•Cleanliness - McDonald's respects the fact that food provides in a safe, hygienic, and clean environment is a duty and something that is desired by consumers worldwide.

Hence, this is one of the core factors that is stressed upon in the vision statement.

• Value - Through all its endeavors, McDonald's looks to provide superior value to all consumers and a value for the money that they pay for the service. Mission of McDonald's: Be the best employer for our people in each community around the world. Deliver operational excellence to our customers in each of our restaurants. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology. The mission statements ensure a goal to be kept in focus while playing to reach the final vision for the organization. Hence, these are measures to be kept in perspective while achieving the vision that has been mentioned above.

BUSINESS MODEL

McDonald's has primarily always served its customers through its large network of fast food restaurants. Its main power lies in Franchising. It has become a global brand because of its outreach in more than 80% of the world. The McDonald's corporation generates revenue from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. Its business model basically functions on 3 entities suppliers, franchisees and McDonald’s.

IT-ASSESSMENT

McDonald's has many channels to serve its customers. Its IT has also developed tremendously over the years. It has a website www.mcdonalds.com through which it provides its information of the menu, its nearest located restaurant, various deals and offers etc. The customer can even place an order from the same. It operates on Android and iOS mobile application which has similar features as that of the website. McDonald's uses IT to maintain its customer relationships through its various social media platforms such as Facebook, Twitter, Instagram, and YouTube. The company uses IT to send out newsletters which keep the customers updated. The company has recently made more initiatives that’ll lead to more revenue generation. In 2017, one such initiation is that McDonald's decided to deliver food in association with Uber Eats. McDonalds has more than 32,500 restaurants globally and operates from almost 117 countries. To maintain records and details of all these franchises and customer orders is a very complex process. McDonalds uses an efficient Information System for the same which collects, processes, stores, analyzes and dissects information for required purposes. It uses Transaction Processing System which helps keep a track of their suppliers. It has a system set up to ease the workflow and facilitate employee communication within the company. It also uses Information Technology to generate reports about their employees or expenses compared to a budget.

INFORMATION TECHNOLOGY-VISION AND MISSION

IT Vision of McDonalds: The vision of McDonald’s IT Strategic plan is to transform customer experience using emerging technologies and information to support innovative digital initiations made by the company and induce growth in our employee base. IT Mission of McDonalds: McDonald’s will strengthen its IT resources to ensure successful implementation of essential customer services using IT resulting to effective and efficient customer service by 2020.

GOALS AND OBJECTIVES

Goal 1: Digital Innovation In today’s age and era, we heavily depend on technology for all our needs. Every organization today is using the Internet as a platform to get a much larger customer base. During our study, we analyzed McDonalds presence on the Internet for its revenue generation. Also, today the usage of mobile phones and tablets has increased tremendously. People carry these appliances almost anywhere and everywhere. Hence it has become necessary for businesses to be available on these platforms for easy customer access. While accessing McDonalds website we observed that it retrieves to the app download page directly. It doesn’t let the customer place an order from the website or until and unless the customer has downloaded the app. Not every customer will be comfortable downloading an app for a single restaurant.

Memory consumption of the device could be another issue. And then the customer has to show more patience of waiting until the app has been downloaded. A better take to all of this would be making the website responsive. And this responsive website should allow the customers to quickly place an order from the nearest located McDonald restaurant. This will make it easy for the customer to place an order, the customer will not have to stand in long queues or even have any conversation with the employees at the restaurant. Digital Wallet: For placing orders, currently, the app required the customers to feed in the card details every time they place an order. A more convenient and customer friendly option would be if they could maintain a wallet of their own. So there is no hassle of entering information again and again. This is also a more secure option.

While doing this, we can even give some customer advantage to the regular customers so that they feel privileged by giving cash back and free orders. Digital Menu: Digital Menu refers to a menu that automatically changes as per the current conditions that the customer is in. These conditions mainly refer to weather conditions or what time of the day it is. For instance, if the customer currently is at a location where the weather is too cold, the menu should automatically be customized in a way that it shows items which will comfort the customer, as in hot beverages or hot snacks. Similarly if it’s breakfast time, it will automatically customize the menu to food items that should ideally be consumed at that point of the day, like coffee, pancakes, etc. Geofencing: The idea is to have a pop up on the mobile phones of the users as and when they reach within half a mile of the restaurant. For instance, when the user has reached within half a mile radius of the restaurant, the app should automatically notify the customer that his/her coffee is just a click away.

So if the customer actually places an order, it will be ready the minute he/she reaches the restaurant. Here there is no hassle of waiting in the queue or placing an order and waiting for it. Instead it’ll already be ready and the customer has to just go and pick it on their way to their destination. This innovation will act like an add on feature to McDonalds existing mobile application.

SWOT ANALYSIS

The SWOT analysis allows us to gauge the strengths, weaknesses, opportunities. and threats existing for a firm. This analysis gives us a clearer understanding of the current position of McDonald's in its immediate environment.

STRENGHTS

Extremely high brand-value since it is one of the leading fast food chains over decades
Widely distributed around the world  Since it is one of the oldest fast-food chain, experience and competency are ranked higher.
Leadership in the quick service industry. WEEKNESSES  Higher inertia to change
Preferences of the customers are changing day by day under the fast food category
The market share is decreasing to an extent compared to the previous days  Unhealthy food menu.



OPPORTUNITIES

Diversify the fast food industry segment
Taking the existing ventures to other quick servicing industry

THREATS

Very close competition in market share and revenues.
Many fast food chains are emerging with new categories so handling that pressure could be difficult after a point.
The target audience is defected from the core product category.
Environmental forces.



BUDGET OUTCOMES AND MEASURES

We know that the goal of McDonalds is to deliver good quality and hygienic food, provide unmatched service in all of its outlets, all while maintaining low prices. We have Implemented our new strategy keeping in mind these core values. The new IT strategy will be considered a success if:

The customers find it useful and regularly use the new ordering methods.
The employees find the new features helping them do the job with ease and improve productivity.

McDonald's success lies in its numbers, if it increase the no of meals served by not compromising the quality or service then the new strategy must be considered successful. And finally, an increase in monetary profit will be a significant measure of the new IT strategy performance.

RETURN OF INVESTMENT

• There can be an increase in the revenue from the existing customers.

• New customers will be added to the list which will lead to more revenue generation and profits on different scales

• Due to the implementation of new the IT strategy reduction in cost will be taking place in all the departments

• Inventory cost will be reduced

• Reduction in the resources which includes the labor and the capital cost.

• Operational cost will be reduced to a much lesser no due to the technological efficiencies.

• Reduction in other domains like logistics, procurement will show up drastically.

• Applying the appropriate discounting rate for the consumer benefits and attraction.

CONCLUSION

In conclusion a good IT strategy plan is very important for an organization like McDonald’s Corporation for maintaining its large scale of operations effectively. Especially, with the boom in technology in the last few decades, it has become even more important for companies to execute their strategies carefully. A very important part of the strategy is to get ready for any future changes and to be well placed to face the challenges brought by these changes. This is why; an IT strategy should be capable of minimizing the threats and maximizing the opportunities which are brought by these changes. The McDonald's brand has earned the reputation of great food and service over the years. It is coupled with the product quality which has been the cornerstone of McDonald’s strategies for the past few years. McDonald’s sees itself as one of the best and profitable company in the fast-food industry. It has to be very careful when it comes to their rivals Burger King, Subway, Taco-Bell and other quick service restaurants, because the competition in this segment of industry is very high and a good IT strategy could be the deciding factor here.