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Research and Development

McDonald's conducts research and development to understand customer wants and develop new products and services. This led to the successful launch of McCafe in 2008, providing specialty coffee options. Following McCafe's success in Europe, McDonald's announced offering similar drinks in the US to compete with Starbucks. McDonald's also invests billions remodeling stores to improve the customer experience. McDonald's uses management information systems to collect, store, and share operational data with managers. This includes daily employee reports, monthly expenses, and sales tracking. Key systems include the POS, MYS, and TPS, which improve efficiency, food quality, and supplier relationships. Camera systems also help kitchens prepare optimal food quantities based on customer volumes.

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62 views2 pages

Research and Development

McDonald's conducts research and development to understand customer wants and develop new products and services. This led to the successful launch of McCafe in 2008, providing specialty coffee options. Following McCafe's success in Europe, McDonald's announced offering similar drinks in the US to compete with Starbucks. McDonald's also invests billions remodeling stores to improve the customer experience. McDonald's uses management information systems to collect, store, and share operational data with managers. This includes daily employee reports, monthly expenses, and sales tracking. Key systems include the POS, MYS, and TPS, which improve efficiency, food quality, and supplier relationships. Camera systems also help kitchens prepare optimal food quantities based on customer volumes.

Uploaded by

Rafael Capunpon Vallejos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Research and Development

Companies are constantly in search for new and innovative products to offer their customers,
as well as new places and emerging technologies. McDonald's collaborates with its suppliers and
customers to ensure that they are aware of the necessary developments to set new quality standards.
A vital step in the process is research and development. They conduct their research in terms of
performance in key areas such as quality, service, cleanliness, and value, and it is performed for
strategic planning purposes.

This research and development demonstrates what customers want from the restaurant chain.
An example would be the launch of the new ‘McCafé’ specialty coffee menu in 2008, which is a
product of recent development and market research. This was created to provide new options to
existing customers as well as to attract a new type of customer. On May 5, 2009, following its
success with McCafés in Europe, MCD surprised Starbucks with its announcement to offer lattes and
mochas in its McCafés in the United States. In an attempt to woo rival Starbucks’ customers, MCD
promised to offer premium taste at bargain prices. This announcement came at a time when
Starbucks, hard hit by losses, was closing hundreds of stores in the United States. Furthermore, MCD
spent $2.1 billion to remodel many of its 32,000 restaurants and build new ones at a more rapid pace
than in recent years.

Management Information System

Management information systems (MIS) are integrated systems that provide information to
management for them to make informed decisions and operate their businesses effectively and
efficiently. It can be involved in the streamlined procedure for collecting, controlling, storing, and
transmitting the relevant and necessary information, which middle and upper-level managers rely on
to make decisions. Technology, information, and people are the three primary resources used in MIS.
Mcdonald's used a MIS system to generate periodic reports such as a daily list of employees and
their working hours, monthly expense report, to propose potential plans, to increase productivity, and
to provide managers and employees with information about the company's status, etc.

MCD has the following systems: POS (Point of Sale) System, MYS (Made for You System),
Hyperactive Bob System, and the TPS (Transaction Processing System). These systems have given
it a competitive advantage and ensured that customers in all of its restaurants receive fresh,
delicious, and hot meals. The POS system ensures maximum customer satisfaction by allowing
customers to place orders easily and with minimal errors. Restaurant sales and losses can be tracked
by the company. To improve efficiency, POS is integrated with MYS. The MYS is a communication
portal between the counter and kitchen. The cashier inputs the order into the system which the
kitchen gets on their screen in real time. Furthermore, MCD introduced the Hyperactive Bob System,
an artificial intelligence that manage the kitchens. Each restaurant has cameras installed at the
entrances and parking lots to monitor the number of people entering the restaurant. This helps the
kitchens prepare the amount of meat they will need to fulfill the orders. Lastly, since MCD sells many
hamburgers every day, they require a large quantity of raw materials from their supplier. When MCD
places an order for raw materials, a transaction takes place. TPS is used to record important
information such as the name and other details of the supplier, the quality of the raw material, and the
bill amount, etc.

REFERENCE

U. (2020, June 21). A Comparison of Management Information Systems of Wal-Mart and McDonalds

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