Information Systems Strategy McDonalds
Paper about McDonald’s geared towards information technology. Examples include CRM, internet of things, eCommerce, enterprise information system, etc..
Need the following:
Company Overview
SWOT Analysis
Use of information systems to support the overall strategy.
Use of information systems for a competitive advantage.
Michael Porter’s Five Forces Model
How can this company use emerging technology to maintain and sustain a competitive advantage?
Information Systems Strategy McDonalds Case Study
The McDonald’s Corporation was born from brothers Richard and Maurice McDonald from a single drive-in restaurant in San Bernardino, California in 1948 to the largest food service organization in the world. By 1991 McDonald’s owned $13 billion of the fast-food industry, operating 12,400 restaurants in 59 countries. Today it has grown to over 35,000 restaurants in over 100 countries. It serves more than 70 million customers per day and employs more than four million people.
McDonald’s offers a uniform menu that includes fries, the Big Mac, chicken sandwiches, chicken nuggets, hamburgers, the quarter pounder with cheese, salads, wraps, desserts, soft drinks, and other beverages. Because of changing consumer tastes over the years, they continue to expand its menu to include all kinds of extras including salads, fish, wraps, smoothies and even fresh fruit.
To ensure that they connect with the international markets, McDonald’s offers locally relevant food menus as well. In Germany, you can pick up a McSausage Burger. In Greece, a Greek Mac. In New Zealand, a KiwiBurger. In Costa Rica, a McPinto Deluxe, with rice, beans, and plantains (Kelly, 2012)
Information Systems Strategy McDonalds
McDonald’s is a global company facing national and international competition from other restaurant operators. The management has identified its competitors to be quick-service eating establishments, casual dining, full-service restaurants, street stalls or kiosks, cafes, specialist coffee shops, self-service cafeterias, and juice or smoothie bars.
Information Systems Strategy McDonalds Strengths
- McDonalds’ low-cost menu “Dollar Menu & More,” has been instrumental in driving customer
- McDonald’s purchases raw materials required for the menu in bulk, which helps achieve economies of scale and eventually benefits the customers through such low-cost food options.
- Market power over suppliers and competitors
Information Systems Strategy McDonalds Weaknesses
- McDonalds’ food has continuously been in the limelight for its quality and how it affects health. Documentaries such as “Super Size Me” garnered further negative publicity for McDonald’s.
- The maintenance of equipment at the older restaurants have affected the operations thus slowing down the service
- Marketing target audience focusing on kids through their advertisements that will grow into health-conscious adults
Information Systems Strategy McDonalds Opportunities
- Joint ventures with retailers (e.g. supermarkets).
- Respond to social changes by innovation within healthier lifestyle foods.
- Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modeling and profiles of shoppers) and prevent brand switching.
- Strengthen its position in the high-margined caffeinated beverages industry, dominated by Starbucks
- International expansion into emerging markets of China and India.
Information Systems Strategy McDonalds Threats
- The Mature/overstored industry
- Strength of competition
- More health-conscious consumers
- Changing demographics
- Fluctuation of foreign exchange rates; Economies
Recession or downturn in the economy may affect the retailer sales eats
1) Use of information systems to support the overall strategy.
2) Use of information systems for a competitive advantage.
- a) If applicable, write about:
- i) Overall cost leadership
- ii) Differentiation
iii) Focus
3) Michael Porter’s Five Forces Model
- a) Buyer power
- b) Supplier power
- c) The threat of substitute products or services
- d) The threat of new entrants
- e) Rivalry among existing competitors
4) How can this company use emerging technology to maintain and sustain a competitive advantage?
Information Systems Strategy McDonalds References
Kelly, N. (2012, October 12). McDonald’s’ Local Strategy, from El McPollo to Le McWrap Chèvre. Retrieved February 25, 2019, from https://hbr.org/2012/10/mcdonalds-local-strategy-from.
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