Learning Outcomes and Assessment Criteria
| Pass |
Merit
|
Distinction |
| LO1 Evaluate the contribution of business systems to organisational performance |
LO1 and LO2
D1 Critically evaluate the external and internal factors that influence business systems within an organisational context and demonstrate how they contribute to sustainable organisational performance. |
| P1 Determine the overall context and the environment in which businesses operate. Defining functions, systems and processes.
P2 Evaluate the different types of business systems that are found in an organisation and assess how the contribute to sustainable organisational performance. |
M1 Conduct an in-depth evaluation of the business environment and business systems related to sustainable organisational performance. |
| LO2 Analyse the internal and external factors which have an impact on the systems and processes. |
| P3 Examine the internal and external factors that impact on business systems and processes.
P4 Analyse the constraints and the benefits of external and internal impacts upon systems and processes |
M2 Critically analyse the impact of the wider internal and external environment on business systems, supported by application of appropriate concepts and theories |
| LO3 Apply a range of analytical tools and techniques to business systems. |
|
| P5 Apply a range of techniques to test and improve business systems efficiency within the organisation. |
M3 Assess the effectiveness of applying a range of techniques to test and improve business systems efficiency. |
|
| LO4 Recommend improvements in organisational processes and systems. |
|
| P6 Make justified recommendations for improving existing business systems to enhance organisational efficiency and quality in an organisational context. |
M4 Present an evidence based evaluation of an organisation’s existing data infrastructure, making actionable and tangible recommendations for improvements. |
LO3 & 4
D2 Develop an evidence-based critical analysis of a business system strategy, presenting recommendations to improve systems efficiency within an organisation. |
HND Business Management
FATMA AL MOHANNADI
fatimaal@student.citycollege.edu.qa
Unit 34 – Business Systems
Lecturer: Kai P Kong
Submission Date: June 6, 2020
Contents
Introduction………………………………………………………………………………………………………………… 7
Business organizations transform over time in reaction to transformation in the world. However, new organizations are formed when new needs or technologies emerge. For any organization to succeed, there must be business systems in place that work in cohesion with the basic aim of achieving the organization’s goals. Depending on the nature of the organization, the business system can either be closed or open. The closed business systems are insensitive to the external business environment. Whereas the open business systems receive input from the external environment, it then processes the input internally and releases the output to the outside world, and then it seeks for feedback from the external world to determine its effectiveness. McDonald’s, one of the most famous food chains in the world, uses open-ended business systems. It receives its resources from the world, processes then internally, dispenses them to the world, and seeks feedback from the external world to know how they are performing. Therefore, this assignment will analytically review McDonald’s business systems in Doha with a critical review of the customer service process by discussing the contribution of business systems to the organization’s performance. 7
Contribution of Business Systems to the Organization’s Performance………………………………………. 7
New products and services………………………………………………………………………………………….. 7
Storage of information……………………………………………………………………………………………….. 8
Easier decision making……………………………………………………………………………………………….. 8
Behavioral change…………………………………………………………………………………………………….. 8
Internal and External Factors Affecting the Systems and Processes………………………………………….. 8
Internal factors…………………………………………………………………………………………………………. 9
External factors………………………………………………………………………………………………………… 9
Types of Business Systems and the General Environment of the Business……………………………….. 11
Payroll system…………………………………………………………………………………………………………. 11
Personnel business system………………………………………………………………………………………… 11
Accounts systems…………………………………………………………………………………………………….. 11
Inventory systems……………………………………………………………………………………………………. 12
Impact of Functions, Systems, and Processes on the Organization’s Performance……………………… 12
Internal and External Factors, Constraints, and Benefits that Impact the Systems……………………… 13
Internal factors……………………………………………………………………………………………………….. 13
External factors……………………………………………………………………………………………………….. 13
McDonald’s System Analysis Using Various Analytical Tools and Techniques……………………………. 14
PESTLE Analysis……………………………………………………………………………………………………….. 14
Economic factors………………………………………………………………………………………………….. 15
Sociocultural factors……………………………………………………………………………………………… 15
Technological factors…………………………………………………………………………………………….. 16
Ecological factors………………………………………………………………………………………………….. 16
Legal factors………………………………………………………………………………………………………… 16
SWOT Analysis………………………………………………………………………………………………………… 17
Strengths……………………………………………………………………………………………………………. 17
Weaknesses………………………………………………………………………………………………………… 18
Opportunities………………………………………………………………………………………………………. 18
Threats………………………………………………………………………………………………………………. 18
Value Chain Analysis…………………………………………………………………………………………………. 18
Primary activities………………………………………………………………………………………………….. 19
Secondary activates………………………………………………………………………………………………. 20
Recommendations for Improvement………………………………………………………………………………. 21
Conclusion…………………………………………………………………………………………………………………. 21
Reference List…………………………………………………………………………………………………………….. 22
Abbreviations
SWOT: Strengths Weaknesses Opportunities and Threats
KFC: Kentucky Fried Chicken
PESTLE: Political, Economic, Social, Technological, Legal and Environmental.
Introduction
Business organizations transform over time in reaction to transformation in the world. However, new organizations are formed when new needs or technologies emerge. For any organization to succeed, there must be business systems in place that work in cohesion with the basic aim of achieving the organization’s goals. Depending on the nature of the organization, the business system can either be closed or open. The closed business systems are insensitive to the external business environment. Whereas the open business systems receive input from the external environment, it then processes the input internally and releases the output to the outside world, and then it seeks for feedback from the external world to determine its effectiveness. McDonald’s, one of the most famous food chains in the world, uses open-ended business systems. It receives its resources from the world, processes then internally, dispenses them to the world, and seeks feedback from the external world to know how they are performing. Therefore, this assignment will analytically review McDonald’s business systems in Doha with a critical review of the customer service process by discussing the contribution of business systems to the organization’s performance.
Contribution of Business Systems to the Organization’s Performance
Due to high technological advancement, the importance of information systems in businesses has drastically increased and most businesses have been forced to embrace them to gain a competitive edge. Currently, no one can envision a business without an information system (da Anunciação et al., 2019, 662). Using information systems in a business environment has several benefits and impacts the way the business runs its external and internal operations and short-term and long-term decision making. Some of the benefits of information systems are as follows:
New products and services
Any business enterprise that wants to secure and enhance its future has to put in place a wider viewpoint with the use of properly designed and developed information systems. A well-coordinated information system makes it easier to evaluate individual processes like information to output valuable services and products in an organized manner. Hence an information system gives an organization a competitive advantage by evaluating how the organization processes and distributes valuable services to its customers.
Storage of information
Each organization needs to keep count of its activities so that in case of an issue it can easily find the origin of the problem and its remedies. Information systems are very efficient when it comes to storing operational data, documents, communication, and histories. Storing data manually is costly and time-consuming especially when it comes to recovering a specific piece of information. A good information system stores data in a sophisticated and comprehensive manner which makes the retrieval process efficient.
Easier decision making
Without the availability of quality information, the organization’s management team consumes time and work to make decisions. Although with the implementation of information systems, it is easier to processes the necessary information required for proper decision making. The management team uses the information system to select the best cause of action for the organization.
Behavioral change
An information system helps employees and employers to communicate effectively and more rapidly. Even though emails are effective and quick to use, information systems are more resourceful they store folders and documents that can be shared and accessed concurrently. It means that information flows from top to bottom and vice versa. More so, low-level employees get involved in decision making hence elimination the importance of middle-level managers.
Internal and External Factors Affecting the Systems and Processes
Due to increased competition in the food industry, especially fast food, a very complex environment is made for MacDonald’s. Phoon (2019) claims that there are several external and internal environment facets affecting MacDonald’s customer service process. Internal factors are the dynamics within the company itself that affect the customer service process. Fortunately, these factors can be controlled by the company. Proper management of internal factors leads to the success of the business. On the other hand, external factors are the outside features affecting the organization are politics and technology.
Internal factors
One of the internal factors which impact MacDonald’s systems and processes is its commitment to diversity (Phoon, 2019). Since its establishment, the organization beliefs that diversity is not just an ethical or moral issue, but it is also a business aspect. As a result of its numerous branches in Doha, diversity is a major essential aspect of the internal culture. In Doha alone, MacDonald’s has more than 20 franchise which has made it to employ people from various regions with different cultural backgrounds, ethnicity, and religion. Additionally, the organization encourages the use of local sellers and considering its policies of diversity, it hires and maintains suppliers to believe in a diverse culture. The policy of knowing and understanding the local customs and traditions in Doha, integrating employees into the organization, and adapting to the local cuisines and tastes has made MacDonald’s to succeed in its business operations, for example, adding to the menu; McArabia.
Another internal factor affecting MacDonald’s is integrity. Since its establishment, the organization has founded its operations on both personal and professional integrity. More so, its committed to the community and they believe in giving back to the society. Besides being committed to the community, it is also committed to protecting the environment. All the franchise in Doha have regulation towards preserving the environment by recycling, reducing the production of waste material and using less energy.
Also, MacDonald’s is an equal opportunity employer. As an equivalent opportunity proprietor, MacDonald’s warranties that the personnel and work chances are chosen, educated and endorsed without discrimination to sexual orientation, race, age, gender and disability. Employees are granted promotion according to their relevant performance, talent and skills. To support this, MacDonald’s sustains and promotes a working atmosphere which is free from bullying, harassment and unlawful discrimination.
External factors
Political factors are one of the external factors which has impact on MacDonald’s systems and processes. The political dimension being analyzed comprise of the administration approach to foreign trade, financial policies and stability of a nation, and national bureaucracy. When operating an international business like MacDonald’s it is important to understand that the political environment is different in various regions of world (Dixit, 2017). Therefore, it is important to keep within the confines of the government’s legal or political boundaries to run a smooth business.
Additionally, economic factors also affect the company’s systems and process since they are the ones dictating the consumer’s spending habits and the power to purchase their needs. More so, economic trends are bound to the government policies and are important issues to the markets and the business specifically because of how they affect the consumer’s spending capabilities. The consumer’s disposable income is usually high during the periods of relative prosperity, hence the desire to spend more money. In this period, prices become a lesser issue and this affects the way services are delivered. However, during the recession period, the power to spend more money decreases hence making price more important. The variations which take place during different stages of a nation’s economy and industrial development have a great influence on customer service delivery process. Additionally, differences in consumers’ incomes level’s hints the allure of systematic price differentiations. Therefore, it is of great importance for MacDonald’s to appreciate that, in countries like Doha with various classes of customers, it is important to set fair prices on their products and deliver great customer services.
Another external factors affecting MacDonald’s business are the technological issues. Rapid technological advancements have led to easily accessible international communication and travels causing lifestyle, fashion and social habits to change quickly. Perception and lifestyle changes causes change in customer demand and the manner through which customer services are delivered. Technological factors consist of forces that develop new technologies, new products and opportunities in the market. Therefore, it is important for any business enterprise to appreciate all these changes and incorporate them within their daily operations to maximize the effectiveness of customer service delivery. MacDonald’s successful operations in Doha can be attributed to the way the company has integrated technological changes into their customer service delivery. For instance, customers can place their order without waiting using the smart touch screen menu and pay using their credit card.
Types of Business Systems and the General Environment of the Business
A business system is a mixture of personnel, policies, computers and other equipment to coordinate the evets of an organization (Fainshmidt, et al., 2018). A business system dictates how data is acquired, processed, stored and disseminated. The general nature of a business system reflects the competence of the organization. MacDonald has installed several business systems in place to ensure smooth operations of the customer service delivery and the entire business in general. Here is a list of the different types of business systems at MacDonald’s: pay roll business system, personnel business system, accounts receivable system, accounts payable system, and inventory system. The objectives of these systems is to: satisfy customer requirements, reduce the cost of operation and increase profits, ensure smooth business flow in various departments, speed the process of service execution, and manage organization’s data efficiently and provide quality information for decision making.
Payroll system
MacDonald’s pay roll business system consists of all files, forms, procedures, personnel, equipment and computer support essential for customer services for example payments. More so, the payroll system manages all the company’s tax deductions, employee remittance, and update every payroll in relation to each employee. Additionally, the system give actual payment of employees, records the payment, modifies the payroll records and prepares payroll reports. The system must also produce tax documents including cheques and financial quarterly reports.
Personnel business system
The personnel business system at MacDonald explains different facets of the company’s work force. The output produced by the personnel system is used in assembling central and labor force report. The personnel business system synchronizes with the accounts systems to provide customer payment statements and invoices of the payments made.
Accounts systems
MacDonald’s has two different accounts systems; the receivable accounts system and the payable accounts system. The receivable accounts systems monitor the flow of money. It provides a way of processing all data for credit cards and other different types of charges. The receivable accounts systems hold customers’ and employees’ information, including names, location details, financial costs like payment received and current costs. The information is used to customers in a form of a statement and it also provides important information to the company’s management team for proper decision making.
On the other hand, the accounts payable system monitors MacDonald’s debtors. The information structure in payable systems is similar to that of receivable systems. It holds the accounts of various suppliers to whom money is owed. Input information states the type of goods and services received by the organization while the output data includes payment issues and management reports.
Inventory systems
The inventory systems at MacDonald’s observes the state of stuffs held in an inventory. The systems provide reports on the amount of good available, as well as the amount of items to be purchased to refill the stock and what important items are needed for the continued business operations. Inventory systems are crucial for MacDonald’s because it helps the organization to maintain its costly inventories efficiently.
Impact of Functions, Systems, and Processes on the Organization’s Performance
The functions, systems, and processes of McDonald’s ensure that the enterprise works towards achieving their mutual aims and objectives. The company’s reputation is mainly associated with its functions. On the other hand, the organization’s systems and processes are responsible for developing the company objectives and monitoring the organization’s resources. When functions, systems, and processes are harmonized, the organization achieves efficient outcomes.
Also, it ensured that the company achieves its goals through constant monitoring and performance evaluation. Appraising the organization’s performance makes all the workers perform highly. McDonald’s also encourages high performance through different activities that are focused on ensuring that the policies are clear and the employees are motivated. Therefore, each manager at every branch is responsible for ensuring that employees perform according to the established standards. The established functions, systems, and processes at McDonald’s develop and maintain a positive brand image since they prevent the occurrence of fraud and moral misconduct in any of the franchises in Doha.
Internal and External Factors, Constraints, and Benefits that Impact the Systems
The organization theory explains how companies operate by discussing the internal and external factors affecting an organization. However, it is important to understand the internal and external factors affecting various organizations differ depending on the organization’s nature, region, stakeholder, strategic goals, and objectives. Therefore, there is no single formula for internal and external factors affecting business operations that will work across all establishments. Therefore, internal and external factors, constraints, and benefits that impact McDonald’s will be discussed in this section.
Internal factors
According to Leonidou et al. (2015, 596), corporate objectives are the most vital internal factors that affect business operations. Therefore, for McDonald’s to operate smoothly without internal issues, its objectives should synchronize its operational objective, which focuses on higher production, with its corporate objective, which advocates for lowermost unit charges. Additionally, McDonald’s power to make decisions that require hefty financial investment such as opening a new franchise is affected by its financial position.
Given the fact that McDonald’s is a hospitality business, the capacity and the quality of employees are the key aspects affecting its day to day operations. For example, its productivity targets are affected by the venture in employee training and the efficiency of the workforce organization, hence making human resources an internal factor affecting McDonald’s systems. Moreover, marketing issues have a great impact on McDonald’s systems. According to Peruzzini, Grandi and Pellicciari (2018, 36), the nature of the product defines the functioning set-up. Systemic variations in McDonald’s marketing mix, specifically the product, may put tension on operations.
External factors
The economic environment is an important external factor impacting McDonald’s operations because short-term sudden variations in demand affect capacity exploitation. Deviations in interest rates influence the cost of funding principal investment in action. Rival efficacy suppleness is another issue affecting McDonald’s business operations. Suppler, fast, and improved quality rivalries put pressure on McDonald’s to provide at least similar performance. Additionally, technological changes are one of the external factors affecting McDonald’s systems. The company’s product life cycle is short with high innovation rates, hence making the end product costly. However, expensive products are not good for McDonald as they affect the projected sales.
McDonald’s System Analysis Using Various Analytical Tools and Techniques
System analysis is the process of studying the business structure of an organization to identify its goals and objectives and to develop procedures and systems that will efficiently accomplish them. System analysis is a problem-solving technique that seeks to find the strengths and possible weaknesses in a business system. Additionally, it gives guidance on what the system should do to achieve its goals. In this regard, the following analytical tools were used to analyze McDonald’s systems: PESTLE analysis, SWOT analysis, and Value Chain Analysis.
PESTLE Analysis
McDonald’s PESTLE analysis will identify external dynamics that present prospects or threats based on both internal and external environments of the business relating to economic, political, technological, sociocultural, ecological, and legal aspects. In the context of this system analysis, McDonald’s uses various strategies to increase the benefits of the opportunities in the business environment. These approaches are intended to address the exterior features in the business environment together with competitive rivalry from other similar business enterprises. As one of the leading fast-food chain enterprises in the world, McDonald’s practices its strengths to adapt to new changes in the business atmosphere. Such adaptation is essential to the long term survival and development of the business, especially amidst challenges like the current COVID-19 situation and tough aggressive from other similar companies like SUBWAY and KFC.
Political factors.
The aspect of political factors in PESTLE analysis indicates the effects of the governmental policies and actions on both the external and internal environment of McDonald’s business and the whole world’s economy. The rate and the path of business development can be determined by governmental interventions. In the case of McDonald’s, like a fast-food restaurant, the most important political factors are governmental rules for health and diet; changing public health strategies, and growing international trade treaties.
For instance, if the government insists on processing and serving customer organic health foods, through adjusting school meal plans, the organization can improve and provide options for healthy foods. For instance, McDonald is now serving its customers’ fresh juice and vegetable salads.
Economic factors
Economic changes, directly and indirectly, affects both the internal and external factors of a business. The local, regional and regional economies influence McDonald’s business environment through the following external aspects: the slowdown of the world’s economy like in the current COVID-19 pandemic; slow but steady business progression of developed states; and rapid business development in developing nations.
The slow but steady business progression of developed states is an opportunity for McDonald’s to develop and increase the stability of its fast-food business. For instance, the United States market continues to be the largest business funder to McDonald’s revenues but also, the organization benefits from the stable development and recovery form European markets. On the contrary, the slowdown in the worldwide economy due to the COVID-19 pandemic is considered as a threat to the organization in this PESTLE analysis.
Sociocultural factors
In regards to PESTLE analysis, social-cultural factors denote the social conditions which limit or support McDonald’s business operations. Social tendencies affect customers’ behavior and in return affect the external and internal factors of the business in terms of profits. In this case, the sociocultural external factors affecting McDonald’s are increased disposable profits, hectic lifestyle in the city, rising cultural multiplicity, and a healthy standard of living.
Increased disposable income and a busy lifestyle is an opportunity for McDonald’s because consumers are more likely to buy fast food than cook at home.
Technological factors
The aspect of technological factors affecting McDonald’s business environment relates to the influence of technologies and its related trends. The success of McDonald’s business operations relies on its adaption to maximize the benefits of technological resources and trends. The main goal, in this case, is to reach a higher level of research and development compared to other organizations running a similar business. Additionally, McDonald’s can apply atomization to increase product and service productivity. More so, the organization can make use of its mobile services to reach more customers, especially during this COVID-19 pandemic. In this factor of technological facet, McDonald has the main opportunities to develop its business.
Ecological factors
Ecological factors in PESTLE analysis mean the trends associated with the normal atmosphere and how these drifts affect McDonald’s internal and external business environment. These ecological trends are as follows: increasing interest in communal environmental programs; focusing on sustainable business policies; climactic condition changes in different regions. McDonald’s can enhance its environmental agendas and sustainability to strengthen its brand and commercial performance. In this regard, the above mentioned ecological factors create changes that support McDonald’s commercial steadiness and potential development. However, in some regions, climatic condition changes threaten business success.
Legal factors
Variations in legal systems and new laws affect the internal and external business environment of McDonald’s. Therefore, McDonald’s must consider the following legal factors in its business environment: tough legal policies in workplaces; tough animal welfare regulations; and high minimum wages.
Strict healthy policies inflict restrictions on the availability of fast food in some workplaces. The strict legal tendency threatens the smooth operations of McDonald’s. However, animal welfare is regulations are regarded as a threat and an opportunity as well. For instance, these policies hike costs in McDonald’s supply chain. Nevertheless, the same external factor generates an internal opportunity for McDonald’s to improve its business by putting in place all-inclusive animal welfare policies that can entice customers who are interested in animal welfare. On the other hand, the issue of high minimum wages is a threat to McDonald’s since it leads to higher operational costs.
SWOT Analysis
SWOT analysis reveals how McDonald uses the systems in place to gain a competitive advantage and become the most successful food franchise in the world. The analysis will identify McDonald’s strengths, weaknesses, opportunities, and threats that affect it the most.
Strengths
Global presence
One of the biggest strengths of McDonald’s is its global presence. The brand retails in more than 1,000 franchises and self-owned outlets throughout the world. Since McDonald’s has a worldwide footprint, it has gained a competitive advantage over its competitors.
Brand equity and image
Another McDonald’s competitive advantage is brand equity and image. The reason why McDonald’s is the most popular in the worldwide market is its capability to build a very high level of reliance among its clients. The basic reason for being well-known in the world is its brand image, hence increasing product sales. The more developed the brand image of a product, the higher the company profits and sales.
Customer service
McDonald’s places more emphasis on great customer service. The company strongly believes that quality customer service attracts numerous new customers while retaining old customers. McDonald’s has also invested in various technologies that serve and involve customers.
Investment in digital expertise
McDonald’s has invested in robust digital technologies to help advance its level of customer service. The organization has installed numerous digital solutions to attend to the customers, for example, point of sales and online platforms for ordering foods.
Weaknesses
Quality of food
The quality of food being served at McDonald’s has become an issue in various franchises. For instance, in 2017, it was found out that McDonald’s in New Delhi, India was serving substandard food.
Franchise problems
Ninety percent of McDonald’s business system is franchise-based and destined to give upsurge to franchisee related problems. Moreover, quality control systems are difficult to manage due to large systems being reliant on franchisees.
Opportunities
Customer engagement opportunities
For McDonald’s to engage and retain more customers, it should use technology to attract the millennial generation, who are highly enticed by technology.
Market expansion in Doha
Doha is among the fast-growing markets globally and provides great opportunities for growing profits and sales. Generally, Asia provides a major market that can be infiltrated deeper.
Threats
High competition
Competition in the food industry is growing tremendously, leading to high customer service and marketing costs. The high marketing and promotion strategies lead to increased financial expenditures, hence reducing net profits.
Value Chain Analysis
The theory of value chain analysis proposes a framework that helps in discovering business tasks that develop profits and competitive advantage to the business. The framework splits events that create value into two groups: main activities and support activities. The main activities consist of a set of events that contributes to the development of value directly. Whereas, support activities comprise of tasks and functions that envision to support the main activities.
Primary activities
Operations and inbound logistics
Given the fact that more than 80% of McDonald’s restaurants are individually owned and operated as franchises, they have the following set-ups: development licenses and conventional franchise. Development license entails providing licensees to the entire business as well as the real estate interest. In the progressive license contract no capital invested by McDonald’s. However, royalty is funded by the proprietor following the percentage of sales in carrying the first fees upon the establishment of a new branch or award of a new license.
On the other hand, conventional franchising requires the franchisee to pay rent and royalties on the percentage of sales together with the initial fee when setting up a new restaurant. In this kind of franchising, McDonald obtains a long term lease or possesses the land and the structure for the restaurant and the franchisee pays for the signs, décor, seating, and all other equipment.
Outbound logistics
There are various formats of how McDonald operates, for example, counter-service, drive-thru, sit-down, and ski-thru. The sit-down method is the common form of obtaining meals whereby the waiter or the waitress takes the customers’ orders and delivers food to them once it’s ready. On the other hand, the counter-service outlet requires self-service. Moreover, McDonald’s is praised for the invention of ski-thru and drive-thru methods of food delivery. The ski-thru located in a Swedish ski resort. Also, McDonald’s offers home delivery services in Doha.
Marketing trends
For McDonald’s to communicate messages to the target customers and its representatives, it uses both print and digital media. The organization spends a lot of money on advertising. McDonald’s marketing budget is normally high because it involves spending money on sales promotions, public relations, experiences, and events.
Service
Quick customer service provision is one of the main competitive advantages of McDonald’s restaurant. Although, the policy of paying minimum or marginally above minimum wage is a threat to the organization since it is not capable of hiring more employees to offer fast service delivery.
Secondary activates
Secondary or support activities play a vital role in facilitating and coordinating primary activities. Here is how McDonald’s benefits from the secondary activities of the porter’s value chain.
Organization infrastructure
The organization’s infrastructure signifies various activities for example management, accounting, handling of legal matters, strategic management, and planning. Proper infrastructure management helps McDonald’s to maximize the benefits of the whole value chain. When the organization’s infrastructure is properly managed, competitive positioning is strengthened.
Human resource management
McDonald can evaluate the activities of human resource management by analyzing its various aspects of for example training, recruiting performance monitoring selecting, and other individual management practices. Proper human resources management by McDonald’s helps to reduce competitive pressure resulting from motivation, workforce skills, and commitment.
Technology development
As a result of rapid technological development, most fast-food restaurants rely on technological support. The integration of technology in human resources activities, distribution, production, and marketing requires McDonald’s to appreciate the significance of technology development.
Procurement
Procurement is a process that entails buying inputs that range from machinery, supplies, raw material, equipment, and other material necessary for the production of finished products. Therefore, McDonald’s should prudently ruminate its procurement actions to enhance outbound and inbound operations.
Recommendations for Improvement
Even though McDonald’s is a powerful brand name with great strategies in place, there are some recommendations for the company. Besides looking at the system and SWOT analysis, there are various things McDonald’s should do to enhance customer services. McDonald’s should understand that people matter. When designing their systems, products, and processes they should match the customers’ needs. They should put more emphasis on designing their employees’ performance and develop systems that enable them to deliver quality services.
After doing the systems analysis, it was evident that more customers are not satisfied with the speed of customer services being offered as they had to wait on long queues before they get served. Additionally, McDonald’s should hire more employees and allow them to work in shifts. For example, it can increase the number of employees over the weekend or during lunch hours when more customers are present.
Conclusion
Analytical review of McDonald’s restaurants in Doha is very helpful and effective since it gives an overview of how the organization runs its operations. Moreover, the organization is growing and ready to adopt new systems that are more effective as compared to contemporary ones. These systems play an important role in the success of McDonald’s food business since it offers excellent customer services to ensure that it maintains its global dominance in the food industry. Apart from the systems ensuring quality and timely customer services, they help in management and decision making. However, besides it being a global brand, the organization has some weaknesses that can be resolved with proper management and there is more room for the business to grow into other parts of the world especially in Africa.
Reference List
Akcam, BK 2020, ‘Improving order processes with information technology: McDonald’s case’, Journal of Information Technology Teaching Cases. doi: 10.1177/2043886919885938
da Anunciação, P.F., Martins, A., Bernardo, A., Costa, C.L. and Duarte, M., 2018. The Importance of Information in the Generation of Competitive Value: Analysis of Investment Impact in Information Technologies. In Handbook of Research on Strategic Innovation Management for Improved Competitive Advantage (pp. 651-667). IGI Global.
Dixit, D 2017, ‘Global marketing strategies of McDonald’s corporation (with reference to India and Russia)’, International Journal of Applied Research, vol. 3, no. 1, pp. 870-875. http://www.allresearchjournal.com/archives/2017/vol3issue1/PartL/3-1-133-625.pdf
Fainshmidt, S, Judge, WQ, Aguilera, RV & Smith, A 2018, ‘Varieties of institutional systems: a contextual taxonomy of understudied countries’, Journal of World Business, vol. 53, no. 3, pp. 307-322. doi: 10.1016/j.jwb.2016.05.003
Leonidou, LC, Christodoulides, P, Kyrgidou, LP & Palihawadana, D 2015, ‘Internal drivers and performance consequences of small firm green business strategy: the moderating role of external forces”, Journal of Business Ethics, vol. 140, no. 3, pp. 585-606. https://doi.org/10.1007/s10551-015-2670-9
McDonalds n.d., Our business model, viewed 22 May 2020, <https://corporate.mcdonalds.com/corpmcd/about-us/our-business-model.html>.
Peruzzini, M, Grandi, F & Pellicciari, M 2018, “How to analyse the workers’ experience in integrated product-process design”, Journal of Industrial Information Integration, vol. 12, pp. 31-46.
Phoon, CP 2019, ‘An overview of corporate governance with risk management insight of McDonald’, MPRA Paper 97197, University Library Munich, Germany.
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