INTRODUCTION TO E-BUSINESS

ITS 450
ASSIGNMENT 1
NOR AZIRA BT AHMAD AZZUDIN (2014852288)
NURUL IZAH BT MD SALLEH (2014410118)
FATINI BT BADROL (2014493744)

LECTURER NAME: MADAM NUR AYUNI MOHD IHWAN

SUBMIT DATE: 11/10/2015

COMPANY BACKGROUND

McDonald's is the world's leading global food service retailer with over
36,000 locations serving approximately 69 million customers in over 100
countries each day. More than 80% of McDonald's restaurants worldwide are
owned and operated by independent local business men and women.
Overall vision is for McDonald's to become a modern, progressive burger
company delivering a contemporary customer experience. Modern is about
getting the brand to where we need to be today and progressive is about
doing what it takes to be the McDonald's our customers will expect
tomorrow. To realize this commitment, they are focused on delivering great
tasting, high-quality food to our customers and providing a world-class
experience that makes them feel welcome and valued.

Activity

Inbound Logistic

Description

Raw material, recipe and meal offer provided

by HQ (mc Donald).
Order from branch (manager) sends to HQ to
refill stock.
HQ will send to every branch (mc Donald).

Operation

Raw food and recipe provided and specify.

Operate worldwide and have a franchised
every region.
Food prepared when the branch open.

Outbound Logistic

Customer come to branch to enjoy the meal.

Customer searching for the branch (mc
Donald).

Marketing & Sales

Targeting mainly to the single and working

person.
Can save time to prepare meal.
Marketing and advertising same with other.
General and centralize to the HQ.

Services

Give services to customer during ordering

session.
Information provided widely through
marketing, advertising and menu display.
Give faster services and fresh meal to
customers.

VALUE CHAIN
Primary activity

Support activity.
Activity
Firm infrastructure

Description
Applied flat organizational structure.
Each branch controlled by a manager and all
branch controlled by HQ.
All branch need to achieve sales target and
need to pay for royalty fee.

Human Resource
Management

Employee provided with food allowance.

Scheduled training must be involved by staff
in all level.

Technology
Development

Research and development are actively

doing to fix with trend, culture, taste and
demand.
Feedback from customers received to
evaluate organization performance and
maintain the quality.
Social media, website and printed material
are used to promote the business, announce
about organization activity, promotion and
update.
Make business process, report, operation run
smoothly.

Procurement

Raw material order from HQ and delivered to

all branch (mc Donald).
No need to order from outside supplier and
can control the product price.
Quality can be maintained.

Functions of each functional areas for McDonalds

1. Productions

McDonalds deals with Halal certified food suppliers.

They source their local ingredients through manufacturers that
have not only been inspected thoroughly by the relevant
authorities, but have also been certified Halal by JAKIM
(Department of Islamic Development Malaysia)
MacFood Services (M) Sdn Bhd is the main food manufacturer
and it applies strict quality control standards and testing when it
comes to producing high quality products.
They operate clean and hygienic facilities that comply with the
Halal requirements when it comes to producing ingredients.
JAKIM conducts periodic inspections to ensure that there is no
cross-contamination with any najis (filth) within their storage,
preparation, handling and packaging facilities.
Each ingredient of their foods undergoes comprehensive safety
checks and quality inspections.
It is mandatory for the employees to take typhoid jabs from
medical centers recognized by the Government before being
employed at the restaurant.

2. Customer service
McDonald answering complaints, enquires or positive feedback
from their customers.
Customers can give any complaints or feedback through their
website and also social media (Facebook).
Providing after sales care that consists on the employee asking
the customer if he or she is satisfied, both with the companys
goods and the service that it provides.
Minor complaints are solved by staff on duty that apologies for
the problem provide the help or assistance required to check the
customer satisfied.

3. Logistic/ Distribution
McDonalds ensuring all the goods that the customers want by
delivery order appropriately stored before delivery.
Ensuring the goods that want be delivered is in correct quantity
and the goods are safely packed and correctly labeled to avoid
negative feedback from customers.
Checking the vehicle to make sure it is safe and secure and
delivered at the right time and planning vehicle routes.
Inform the sales staff of delivery schedule so that customers can
be informed.

4. Human Resource
Recruitment and selection for new employee.
Council Restaurant Manager to make final employments decision.
Provide basic training to newly hired employees.
Performance appraisal for employee to evaluated in order to
determine how or she is performing.
Provide incentives for employees in cash and non-cash based
incentives, for example attendance, annual and medical
allowance, crew of the year, branch of the year etc.
Carrying out company welfare policies
Checking health and safety and keeping accident records

5. Administration
Arrange schedule and manage video conferencing meetings
Manage data entry into FileMaker and prepare reports as needed
Produce (print and bind) campaign reports.
Arrange for food and refreshments periodically at client or staff
meetings
Order office supplies

Coordinate with technology support services on initial troubleshooting for occasional technology concerns

6. Finance
Formulate relevant targets for the business and report actual
performance.
Finance department produce invoices, checking payments
received from selling and chasing up overdue payments.
Preparing the payroll and paying staff salaries.
Producing the financial reports for each year.
Ensuring the company generates sufficient funds in order to
maximize shareholder wealth.
7. Marketing
Perform market research for targeting potential customers and
obtaining feedback from them.
Advertising through TV, radio, cinema, online, using poster sites
and in the press for example in newspaper and magazines.
Producing product that can attract potential customer, for
example the product that McDonalds markets for the young
children is the happy meal.
Make a price of the products cheaper than its competition.
8. Sales
Monitor customer, market and competitor activity and provide
feedback to company.
Provide detailed and accurate sales forecasting and tracking the
same.
Compile the information and data related to customer and
prospect interactions
Achieve desired market share in defined areas. Keep team
members highly motivated and support them accomplished
desired results.

9. Research & development

Research and development are actively doing to fix with trend,
culture, taste and demand
McDonalds frequently talks to customers, they value this as a
key aspect in the development of McDonalds restaurants.
Research is undertaken for purposes of strategic planning, they
conduct their research in terms of performance in key areas such
as; Quality, Service, Cleanliness and Value.

10.

ICT
Using systems and software in the process of ordering from
customers at the restaurants.
Training the employee using the new system.
Saves time for customers who are so busy to come to
McDonalds restaurant, they just need to access the website and
click to order.
Repairing the system when required.
Can enhance the staff quality.

LINKS BETWEEN FUNCTIONAL AND AREA

FUNCTIONAL AREAS
Sales and Production

Sales and Finance

Distribution and Finance

Distribution and Sales

LINKS
The
link
between
sales
and
production orders in a make to order
environment. When customer comes
to make order, the sales will take
order from customer and the product
will make the product for example
burger. When production have not
enough raw material, they must tell
sale about their problem
To ensuring the company generates
sufficient funds, the sales must
achieve desired market share in
defined areas and
Keep team
members
highly
motivated
and
support them accomplished desired
results
in
order
to
maximize
shareholder wealth
McDonalds ensuring all the goods
that the customers want by delivery
order appropriately stored before
dispatch and the finance must know
when goods have been dispatched so
that invoices can be produce and
checking payments received from
selling can be made.
Inform the sales of delivery schedule

so that customers can be informed.

Sales and marketing
Perform market research for targeting
potential customers and obtaining
feedback from them and sales will
monitor
customer,
market
and
competitor
activity
and
provide
feedback to company.
Finance and all other areas
Finance will monitor the achievement
and spending of financial targets for
all departments.
Human resource and Finance
The human resources will train staff to
make new products and also improve
old products making them more tasty
and enjoyable. This will help them
bring in more customers making them
the best fast service restaurant
experience. So, to improve their old
products, they need to invest more
money. Finance will provide the
money to the Human resource.
Finance n HR also link between each
other in giving the bonuses and salary
to the staff.
Customer
service,
sales
and McDonald
answering
complaints,
marketing
enquires or positive feedback from
their customers. Providing after sales
care that consists on the employee
asking the customer if he or she is
satisfied, both with the companys
goods and the service that it provides.
R&D and production
Research
and
development
are
actively doing to fix with trend,
culture, taste and demand. Then the
production must produce a good
product with a good taste and the
customer will satisfied.
Human resource and other areas
Recruitment and selection for new
employee and Provide basic training
to newly hired employees for all
departments.

References
http://www.aboutmcdonalds.com/mcd/investors/company_profile.html