Mcdonald's Value Chain Analysis

5751 Words Mar 31st, 2011 24 Pages

Management Information System: McDonald’s case study
Idris Sugiarto (21671532)
McDonald’s is no doubt the world’s most powerful brand in quick service restaurant industry in terms of market share and brand value. Committed in quality, service, cleanliness, and value, McDonald’s must deliver its product to consumers with consistency and efficiency. This report will explore how McDonald’s corporation maintains its operational excellence through support from integration of sophisticated technologies. It suggests that to be able to apply technology in organization, value chain process must be defined and by then, information technology can be utilized to link each process that forms a comprehensive information system. It further explains
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The fees include land and building rent, service fees, royalties

Management Information System: McDonald’s case study 2010

based on sales, and initial fees from franchisees (McDonald’s, 2009). The fees can vary according to type of site, amount of company investment, and local business condition (Euromonitor International, 2009a). In addition, U.S, Europe, and APMEA (Asia/Pacific, Middle East, and Africa) account for 35%, 41%, and 19% of total revenues respectively (McDonald’s, 2009). Although the main business of McDonald’s is restaurant business, McDonald’s Corporation is the largest owner of retail property in the world and the company earn majority of its revenue not from selling food but from collecting rent (Schlosser, 2002).

Figure 1.1 – Revenue source by restaurant ownership (Euromonitor International, 2009a)

Figure 1.2 – Revenue source by countries (Euromonitor International, 2009a)

Marketing towards children Since 1979, McDonald’s has been targeting children between 3-9 years old by introducing Happy Meal, give away toys for meal purchase (Euromonitor International, 2009b; Schlosser, 2002). McDonald’s mainly targeting children through TV advertising, public relations (charities and sponsorships), website with games content, and in 1993, print advertising on school’s halls and school’s bus with District11 in Colorado Spring being

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