An e -business plan for McDonalds

Contents
Contents .................................................................................................................... 2 Business Description.................................................................................................. 3 A. Opportunity and Implementation:.......................................................................4 B. Business goals and objectives.............................................................................5 Business Model...........................................................................................................6 Competitor analysis-KFC.............................................................................................9 Product.................................................................................................................... 9 Operations of McDonalds..........................................................................................10 Online order process and delivery: ..........................................................................10 McDonalds has introduced online order process to provide ease to its customers. Now, customers could enjoy meals at their home due to free home delivery by McDonalds. This has caused sufficient increase in the sales of McDonalds. McDonalds have got trained and qualified staff for managing the online order process and home delivery. Following are the steps which are followed from placing an order to home delivery........................................................................................10 Customers may go to McDonalds website for placing an order...............................10 Executive summary .................................................................................................11 Reference.................................................................................................................12

Introduction An overarching business concept since past ten years being employed by national and international business organization is termed as e-business. It was pioneered in the year 1997 by

IBM with a definition that it is The key of transforming business related processes by the easy use of technology of the internet. (IBM et al., 2000, p.1). This implies that business organizations employ information technologies to market their products, share information about their benefits to the customers, sale their products online and also involve in the process of online transactions. In this regard due to the exclusive advantages of e-business along with other businesses, fast food business organizations are also employing the strategy of e-business to promote their business globally. Market Analysis: McDonalds is one of the top fast food chain, it has over 40 million customers that visit it on daily basis. It consists of 30,000 branches spread over 120 countries. It earns 80% of the revenues from countries like Canada, Japan, Germany, France, Brazil, UK, US and Australia. One of the most important strength was to create an image in the minds of the customers and introduce those people to fast food culture. Its main core strengths are delivery speed, customer care and cleanliness due to which its business expanded. They soon created a corporate symbol, they made use of advertisement campaigns in establishing its name in the minds of million people. KFC and Burger King are the two main competitors of McDonalds. Business Description The chains of fast food are now very popular and everyone wants to go there. The main reason of people willing to go is the level of easiness and tastefulness they get in such chains of fast food. This is the reason why McDonalds is also getting large globally. McDonalds gives its customers a quality maintained excessive taste in food; super quick, while being welcoming, in hygienic restaurants and kitchens, with valuable food. McDonalds doesnt simple focus upon attending the customers that are nearby, but also in promoting long termed reputation of its brand. It owns only a 15% of the McDonald restaurants globally, while the remaining 85% are operated through its franchises. This organization follows a broad structure of training in addition to monitoring the franchises for ensuring that they stick on to the Service, Quality, Value and Cleanliness propositions the company has promised to the customers.

Mission Statement

The Vision of McDonald is for being the best global fast service experiencing restaurant. Considering itself as the best would mean giving off extraordinary service, quality, value and cleanliness, making each and every customer in our service smile. A. Opportunity and Implementation:

The management communicated the scope to the whole organization, which particularly focused on how the allocation process of resources like personnel, equipment and cash would be distributed. The ultimate goal is deciding how to design a home based delivery system for our customers. A firm who is managing its enhancing position inside the marketplace with respect to its growing alternatives is known as its opening. Improvement in the technologies, patterns and procedures could continue it. If the performance ability is present within the organization then it should take advantage of that opening which is present in the atmosphere and continue growing. There is enough area for Mc Donald's to expand as it is currently serving only 1 % of the population. Furthermore it reveals that more opportunities for McDonalds will be created as technologies increases. The chief proclamation would be saying that Im loving it!!!! Anywhere and everywhere- a main purpose behind a punch line like this is saying the customers would love tp dine in McDonalds on and off. Many joint investigations of opening is the initial stage of defining what kind of technical assistance would be required to establish a home delivery mechanism in the US form of globalization, ethics and diversity were that key considerations of McDonalds itself. To design a home based delivery system in the USA was the opening being available for McDonalds. By this way, McDonalds can be in the position for developing more potential customers, with a huge increase in the revenue and for the sales of this organization. McDonalds was also looking for a method to design techniques from whom the consumers could book their desire orders with the help of websites, and see what they have ordered utilizing only the latest technology.

It has always been an aspect of the McDonalds tactic to have a competition with the domestic chains of food and the global competitors as well for example Pizza Hut in addition to Dominos (the McDonalds Deliver at Home System, 2005). Just as the openings have been set in line and the action has been identified, the upcoming stage is answering the question that how will it be executed? Significantly the marketing plan should be very effective for tactical planning. Going to the upper stage of the instructions, the goals and aims of the organization shall be in discussion for the home delivery system in the US, which will help in developing an understanding for the main aims and problems under consideration for the organization in its business operation management.

B. Business goals and objectives

The decision taken by the top mandate of Mc Donalds about the distribution to t their products in all over the city, so that people would b able to get munch of it. The charges of delivery for product was also decided that to taken by the consumer. There was a question about the enhancement of company and their customers. For the better supply a vision was created in US that flourish the ways of good supply of the products and also safe products that were unsafe due to the continual supply, on the other hand there was a net benefit for employees, biodiversity, their societies and surroundings (Products: Responsible Purchasing, 2006). The thought behind that was the caring part for their customers that the customer should not wait for the food so long and this method also increases the supply of Mc Donalds products. It was mentioned by People: Learning for life, in 2006 that Mc Donalds has aim to promote their verity, assortments, and insertions along with their employees, operators, owners and suppliers who were being in touch with Mc Donalds. The grand issue faced by Mc Donalds was the enhancement of values of shareholders which was due to the establishment of profits and shares in the industry. Mc Donalds can be in good books of customers if it put emphasis in leverage that builds unique talents all over the world.

C. McDonald Philosophy: "We take the burger business more seriously than anyone else." These words were made by McDonalds founder, Ray kroc, he was letting the whole World know the secret behind the great success of his fast food restaurant. Following are the principles which guide them: Quality, Service, Cleanliness These things are mainly focused by McDonalds. They dont compromise on these things. McDonalds ideology is to offer its customer with quality food which is served quickly and in a clean environment. They want their customers to be satisfied every time they show up at McDonalds. They know their responsibility which is to protect and enhance the image of McDonalds. They practice a collaborative management approach. They will make use of every opportunity to be creative and lead the market

Business Model

Franchise Model It owns only a 15% of the McDonald restaurants globally, while the remaining 85% are operated through its franchises. This organization follows a broad structure of training in addition to monitoring the franchises for ensuring that they stick on to the Service, Quality, Value and Cleanliness propositions the company has promised to the customers. Product Consistency McDonalds has a proper supplier and distribution network due to which it is able to maintain its quality and taste all over the globe. Act like a retailer and think like a brand McDonalds does not only think about current delivering sales but it also focuses on protecting its long term brand reputation.

Pricing Strategies:

McDonalds strategy is to offer good quality food to all its customers at a reasonable price. McDonalds have different kinds of menu items based on different prices by offering dollar menu, combination meals and happy meals. This differentiates McDonalds from other fast food restaurants. McDonalds also come up with different promotional packages which help customers in getting good quality food at a reasonable price. Quality Strategies: The main secret of McDonald's success is the eagerness to be creative, even while striving to achieve quality and consistency in the operations of all its outlets. Experiments in limited outlets is the key to maintain quality and innovate at the same time. Customer Satisfaction: McDonalds value its customer and make every possible step to satisfy its customer every time. This is the reason why McDonalds have strong policies over Price, quality and good hygiene. Customers feedback also helps McDonalds in making its services better. Delivery: McDonalds have a very strong online system by which customers can place their orders and get it at their home. McDonalds offer its customer good quality food at their home in quick time. It can be seen that there is the market opportunity for Mc Donalds to develop and gain the marketplace in e-business model base on the existing strong marketplace. Mc Donalds can fulfils the needs of customers needs by developing the ebusiness model (selling food online) as delivery Mac Donalds to customers with just a click on the Internet and the food will be served to the customers door. In order to have a right potential e-business model, firstly it has to be looking into the market analysis. Especially Mc Donalds will need to understand of the competitions and learn more about the e-market that they will like to enter. To be able analysis market, it is useful to apply Porters 5 Forces model. According to Johnson et al (2011) A market which is most likely to give maximum returns in term of profit will be a magnet for porter, the five forces outlines are as follows:-

1- The threat of entry 2- The threat of substitutes 3- The power of buyers

4- The extent of rivalry between competitors (Johnson et al, 2011).

The threat of entry

It needs to be look at the experienced industries and see their strength and weaknesses so that it can well prepare before new entrant. For example, in UK there are already huge hamburgers fast food delivery restaurants with varieties for customer to choose but those restaurants can be small business like family size restaurant or big business It needs to be look as products or services of other industries that offer what they are good and not good at. I.e. Customers can choose pizza, fish and chip, etc instead of hamburgers The buyers/consumers are powerful as they can demand cheap prices or product or service improvements, which can reduce the profits. As Mc Donalds already has their status on the high-street market. It will need to look on more careful on this matter for satisfying the customers needs Mc Donalds has already had its own suppliers for the high-street market; it can use the advantageous of using the same resources In UK, Mc Donalds rivalry in the high-street market is Burger Kings, KFC, etc. but these companies have not entered to e-business market yet. So most of the competitive rivalry will be those small family chains, which they will need to take a look and analysis their strengths and weaknesses

The threat of substitutes

The power or buyers

The power of suppliers

Competitive rivalry

Competitor analysis-KFC Product Fried chicken is an area of expertise for KFC which is offered in different varieties. Fried pieces of chicken with original recipe is a main product of KFC and because of this reason they are market leaders in the field of fried chicken. KFC develop their product according to the taste of the people of specific geographical locations. Price The final price of KFC products includes all the government taxes and excise duty and this is known as cost base price strategy. Their target market is middle to upper class segment of society as their products are priced on high side. Place KFC have their outlets in a busy markets near colleges, movie theatre, schools, shopping malls and specially those places where young people are high in number and those who are in rush.

Promotion They advertise their product through different media such as television, radio, billboards and flyers as it helps them to promote their product among chicken lovers. Overall, KFC is serving as the most significant competitor for McDonalds in terms of burger. One of the specialty of McDonalds over KFC is that McDonalds adopt changes and alteration in its menu according to the culture of the country where it is serving like in India where KFC faced a lot of protest and restriction on its sale. But as McDonalds add the vegetarian items therefore got fame in such countries too where non vegetarians are religious ban. Along with this the cost of KFC items is much higher than the budget of the common people whereas McDonalds had sometimes introduced a new product at such a low rates as Rs. 20. In this way KFC could only

attract the people of elite families whereas due to the low cost of the products McDonalds products could be enjoyed by large number of people. The specialty for introducing vegetables in the kids meal and other non vegetarian items, fruits and games, McDonalds is getting fame among children and their parents.McDonalds more fame over KFC is its franchisee model due to which it could expand its business far and wide. Additionally, in the larger cities and metros McDonalds is well established and should experience a steady growth if it continues to fulfill the changing needs of its consumers which it has been doing over the past.

Operations of McDonalds Online order process and delivery: McDonalds has introduced online order process to provide ease to its customers. Now, customers could enjoy meals at their home due to free home delivery by McDonalds. This has caused sufficient increase in the sales of McDonalds. McDonalds have got trained and qualified staff for managing the online order process and home delivery. Following are the steps which are followed from placing an order to home delivery.

Online order process Customers may go to McDonalds website for placing an order. 1- Website has all the information about deals and products of McDonalds with their respective prices. 2- There are separate sections for DEALS, BURGERS, DESSERTS, DRINKS etc. on the website. 3- After choosing your desired meal, there is a CHECK OUT page where you have to give your order summary. 4- Your total price would be shown to you and you would be asked for voucher if any. 5- Then, there comes a delivery page where you would have to give your personal details i.e. your contact no. and home address. 6- You would have to mention about your order that is it delivery or carry out.

7- McDonalds accept ONLY cash on home delivery. Their policy is cash on door step.

Delivery Process: Now, we have delivery process 1- McDonalds delivery is delivered on bikes. They have qualified riders. 2- They take the order and try to reach the required place as soon as possible. 3- They reach their destiny within half hour time. 4- Meal is delivered on the door step. 5- Cash is received on presenting the pay slip. 6- In case there is a vehicle breakdown or any other such issue, McDonalds have trained their riders to call help and in response to that help other riders would be sent to the required place immediately. Taking order and delivery of food is a big responsibility and it reflects the image of a brand. Therefore, McDonalds hire employees after giving them proper training on how to communicate, behave and respond when there is trouble. Executive summary The entire extract of the study says that the authority and characteristics of the and communication technology (ICT) can be determined in many aspects in the working hubs, using the internet sales to the clients consistency only a part of the capable way developed by ebusiness (Wu, Mahajan and Balasubramanian, 2001). To gain the completion edge over the other organizations, some organizations are boosting the merging of internet selling ideas into the regular business plans. In this regard McDonalds with the integration of e-business could be able to achieve its objectives successfully as nowadays, e-business is considered as the functional element of the business and it is capable of expanding the business far and wide. Through employing e-business McDonalds could be able to get connectivity a large number of agents who could assist in promoting the business. In this manner this integration has provided the cost-effectiveness and also minimize the labor requirement for several operations of the business Sweene (2007).

According to Hardaker and Graham (2001) the integration of e-business assist in developing coordination among company, employees and customers through improving communication of orders, stock levels and demand feedback. The problems and dangers can be minimizing by using the minimum resources as well maximizing the profits of the interlinked interaction chain in the business. McDonalds have the aims to work on daily bases. Thats who the perfect combination of work shows the bases of benefiting entire interaction and work plan. In this way the McDonald, by using the e-business plans in the organization can complete the needs of the clients in good and benefiting way. Due to the e-business have the ability to boost up the process on interaction and feedback throughout all the parties such as company itself, clients, supplying bodies and franchises which helps in developing the organization across the world in a good way.

Reference
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