Mcdonalds Information System And Decision Making Information Technology Essay

This research will examine the use of Management Information System in McDonalds in the region of South Asia especially. Whenever we start to see the worldwide impact of McDonalds, we see it as the first choice in junk food chain restaurants due to its BigMac. However the case is different as it pertains to South Asia as KFC has made a larger market in this region. The factor for this failing for BigMac of McDonalds is the fact their information and research had flaws which didn't identify the fact that their beef products will not be welcomed by some South Asia countries with India topping the list. This shows the absence of information and data that could have helped McDonalds to unveiling different food products and meals in this area (McDonalds, 2011).

Management information system and decision making

In any company, the role of information in decision making is crucial. All of the effective decisions are made on the basis of timely, correct and relevant information. A business where in fact the relevant information is unavailable, it causes poor planning, poor concern of needs, unacceptable decision making, and defective scheduling of programs and activities. The need for information for proper decision making led to the introduction of management information system for organizations. The management information system in decision making is designed to develop something for the practical and effective use of modern information methodology in the modern management tactics (Laudon and Laudon, 2009).

Management Information System (MIS) can be involved with the streamlined procedure for collecting, control, storing and transmitting the relevant and required information to aid entire management operations in any business. Management Information System comprises of three resources




Academically, management information system and decision making is often referred to the automation of real human decision making including Decision Support Systems, Expert systems and Executive information system (Laudon and Laudon, 2009).

Criteria to choose data and information to support decision making

There is for certain criterion which must be implemented in order to choose data and information. The requirements include following things

Information required

Source of information

Reason that that one source accumulated the information

The problem which will be fixed by that information

Evaluation of different options for acquiring best information along with best format and function for information

Parts of information which will be used

Additional information required

Presentation of information in order to understand the situation and take decisions ((Laudon and Laudon, 2008)

Impact of Information Management System within an organization

The Management Information System has been used thoroughly by many businesses worldwide. The MIS is designed by the most notable management and is utilized as a tool for accumulating and assembling facts and results about all the key business processes including

Financial management

Inventory management

Technical foundation

Asset management


Time and price management


Work make management

The implementation of Management Information System in an organization ensures the correct flow of information to relevant departments and people without bottlenecks. This can help in making decisions not only at inner level but at exterior level too (Laudon and Laudon, 2008). The complete process of MIS provides the complete, reliable, timely and quality information to decision creators. The four types of computer established management information systems used commonly in organizations are

Transaction control system

Operating information system

Expert system

Decision support system

The Management Information System effects the organization in pursuing ways

The MIS in an company ensure the exact and timely transfer processing. The procedures become useful as there are fewer likelihood of duplicate data accessibility and maintenance.

The MIS in an organization assists with streamlining files and accounting management. The business procedures become standardized due to MIS.

MIS provides interactive support to managers that assist them in decision making.

MIS offers a systematic and easy way to dig out critical information according to specific requirements in preferred formats.

MIS due to its time saving feature permits the organizations to gain competitive advantages over others.

Although McDonalds has a market talk about in South Asia but it requires to do more research and gather information regarding the tastes to be released, customer anticipations and other relevant market information. After collecting this information, this food chain needs to connect this information proficiently to its employees to be able to really have the internal ideas for final decision making (O'Brien and Marakas, 2008). By collecting information combined with the data and information standards, the business will be able to have a larger level of perception into how business actually works.

Importance of information sharing within the organization

Every firm has different hierarchical levels constituting managers, professionals, employers, employees, administrative staff and lower staff. These levels within an organizational structure are developed for the sake of job information and designations in order to make every employee, supervisor and professional accountable of his/her actions. Various departments within an group have their own collections of information which are of formal and informal nature. This information usually consist of work information, company policies, rules and regulations, cover specific department, targets for specific team, goals for division plus much more (McLeod and Schell, 2006).

For any organization to reach your goals, conversation between different business departments or devices is vital. The harmonized communication within the business causes better knowledge of different jobs which can be being completed. The employees understand their perspective goals and the contribution of every department in completing those goals. The inter-departmental communication helps in creating a team force aimed towards attaining the goals. For obtaining goals, formal information must be communicated along departments in order to have opinions from the employees as they being part of the organization could come up with better feedback. Furthermore, the information sharing within the organization has importance in the next way

By showing information within the organization, inter-organizational communication and networking will improve. The communication between different organizational levels will support successful management of business and business businesses.

The information posting within the business will help in the sufficient use of executive resources.

The sharing of information in an group between different departments will raise the overall potential to make rational, sound and up to date decisions involving blend of intricate factors. The sharing of information will also improve confidence and rate of decision making as well.

The time factor will reduce and even more work could be achieved as the task make will know every business dimension.

By knowing every office and its own role, the customer service will flourish as customer support agents will be able to answer every question easily. This will also improve the personnel relationships with the organization as every staff will understand the nature of work and individual contribution of every department.

The showing of information can help bring clearness in communication within the organization as every office would be able to understand common conditions and terminology.

With such sharing, the business businesses will establish higher degree of professionalism and reliability. (O'Brien and Marakas, 2008)

Although posting information has been promoted in the majority of the organizations but there's a need for information as it pertains to information writing. The organizations must recognize that employees must be self-assured that their personal information has been retained in privateness and secure from being reached by another employee. The privateness rights of each employee need to be retained. The organizations must take the employees in self-confidence regarding the talk about of information. On this, the employees must have a idea how their personal data' might be accessed or used by the business. Same is the situation with work related information sourcing, sharing and storing. Some of the work related information of other departments must be communicated in order to streamline the functions to attain the organizational goals. However there are certain decisions and solutions applied in team judging the necessity of the task. Such information must not be distributed unless proper consent has been given by higher management. The employees must only show such information with an available consent of higher officials (McLeod and Schell, 2006).

Similarly, the business need to streamline and point which information should go to which department. There should be filters in the bulk of information so the concerned staff or department receives the information only. The information of sensitive nature must be placed safe with secure privacy system so that only relevant higher management could access it.

Format for offering information

For any group, choosing information showing format must be predicated on underlying condition relating to which a data format should only be approved for information preservation if it's fully known to the business and the specialist in charge of preserving information. There are various information sharing types





Publicly standardized format

Published format


Mandatory statement

These and other forms can be found to organizations for offering information. However the organization must be sure that the format used must be clear to them in conditions of its performing. McDonalds must promote information sharing within departments in order to know their views so an improved product could be launched.

Use of information to aid strategic decision making

Decision making for any organization is the selection of plan of action. The process of decision making create a final choice and this choice can be an thoughts and opinions or an action. The decision making process must be routed down to minimum possible level in the business. But for every decision in an firm, proper and relevant information is necessary based on which research could be produced and further put in place. Producing data and information should not be an end alone but it ought to be made an integral part of the performance management, businesses and governance plans of a business. Organizations that pay central focus on the utilization of information while making decisions often end up making reliable selections. However, good quality data is an essential ingredient as it pertains to development of reliable decision. The info must be relevant and simply perfect for the purpose with timely and correct representation. In addition to this, an organization must grab a balance between the value of information required and cost of collecting such data (Haag and Cummings, 2009).

Use of information to aid strategic decision making could be performed by following this timeline

Identify your choice to be produced combined with the goals that group has to achieve through your choice. In this respect, determine the restrictions and scope of your choice. In case of McDonalds, they can use this system before starting the new product. They are able to make a decision if the new product should be launched in proper market or simply test market. On these lines, the company must be clear about their goals as well.

Get as much facts since you can about the decision an organization will take. McDonalds must go for precise information regarding their performances in Asian region to have the drift with their problem. After collecting these facts, the business must communicate these facts to employees of each department to be able to find the thoughts and opinions on the unveiling of the product.

After getting the facts, develop selections by expanding alternatives. McDonalds can transform the ingredients of these products to be able to get ready different flavors. Along with identifying alternatives, create as well.

This is the evaluation phase of every solution. McDonalds now need to consider the negative facet of every option (cost, problems, consequences, time needed etc) and the positives (time saved, money saved, creativeness, employees happy, customers happy etc).

In decision making, there's always some uncertainty about the choice made. So the risk comparison amidst the countless alternatives must be completed prior to making the choice. The decision with bare minimum risk and also other positive aspects would work in the long run.

Finally take your choice. After taking the decision, use it and then measure the implementation.

Once the business follows this technique, it'll become part of each tactical decision making. The aggregate of the information can further be used to predict fads and patterns. In case of McDonalds, they may take up this process and use the info and information in future before launching their new product in issues area. By pursuing these steps, McDonalds will have a an information pool from all business procedures including financial, individuals tool, inventory, logistics, quality control, resources etc giving out a perfect bottom part to McDonalds in making future tactical business decisions (McDonalds, 2011).

To support the tactical business decisions, there are several decision making tools and techniques which is often used. An organization can either use one or a combo of these tools depending on amount of information and risks in decision making process. The decision making tools and techniques come in various varieties and can help the business in taking the center strategic business decision. A few of these tools are

Cost benefit research model

Weighted matrix

BCG Matrix

Decision support system

Decision trees



PMI- Pluses, minuses, interesting points

Pareto's Analysis

Six thinking hats

Mind mapping

McDonalds can use all these tools and techniques in order to expand their market share in Asia region. The need is to do research in every dimension and talk that information within the business. There should not be any bottlenecks within the organizational communication. Your choice making process would become easier if all the above steps are streamlined within the given amount of planning and starting the product. By building up credible information in the information pool, McDonalds will be able to expand its procedure and market easily.

Evaluate and screen Management Information System

The Management Information System in an organization primarily depends upon the quality of information and its own source that happen to be people, research and other sources. However this system is maintained within an organization utilizing the Information Technology and Information Systems. Nowadays, credited to adoption of Management Information System in every organizations, the financial investments in Information Technology and Information Systems have increased. Using the growing need for Management Information System in organizational infrastructure development, the performance and evaluation of new technology being found in these systems remains a focus for management. The analysis process of Management Information System requires the appraisal of techniques that are being used in the info system development. The evaluation process takes into account the technology which an enterprise is using to integrate information systems between and within organizations. The analysis purpose includes the expenses, benefits and hazards associated with the diffusion or adoption of certain technology for information systems and impact analysis through management information system within an organization (Oz, 2008).

Information is a vital asset of any group which helps determine the venture in creating services and services. Information helps the business to either withdraw from the marketplaces or enter into new market segments. But information shown in organic form does not serve the reason. For making the most of the value of information, it is captured, quantified, examined, compiled, manipulated, distributed and made accessible. All of this requires the strong basis and network of information systems (Laudon and Laudon, 2009). Along with considering cost for expanding the information systems, the business must consider the next factors in monitoring and analysis of the management information system and its components

Number of users

Modularity of the system

Ease in integration of new components in the system

Ease to remove outdated component

Amount of information to be processed

Type of information to be processed

Computing vitality required by different organizational departments

The anticipated efficient life of components or system

User friendly components for individuals involved

For any firm, the management information system must be maintained in a way to minimize downtime. The organization must screen the handling time of information to be able to make sure the successful execution of management information system. A essential consideration in terms of monitoring the management information system is the user's usage of information in the framework whatever users can access the information. The business must be sure that the machine grants usage of different data through the use of user-level agreement for access in order to avoid any legal issues regarding personal privacy of the info. For this, the organization can create unique information for each consumer of the management information system with relevant user-level permissions providing proper clearance.

The venture can administer the MIS by using specific passwords to be able to delineate each consumer with their level of gain access to rights. Furthermore, identification of jobs performed by each individual will be possible with this password system. The user identification process can also help in increasing data, its way of measuring and analysis about the performance of any user (McLeod and Schell, 2006).

One of the most crucial facet of monitoring the info system is maintaining the communication between your IS personnel of the business that are involved in the technical point of view, and the machine users who connect their needs or concerns in prosaic terminology. The business need to monitor this situation through the elimination of the language obstacles between your IS personnel and system users with endurance, negotiation and understanding.

The company must maintain a centralized body to provide assistance, information and services to the users of the systems. The info which is being stored by an enterprise builds up an up-to-date pool for all users. The archived of the info should not only be a place for storage of information but it must be up to date every once in awhile to make it useable for current needs and requirements. An information system is more than software or hardware and folks who design it, utilize it and keep maintaining it are the integral part of this system. The personnel of IS must be matched with training department in order to update their skills for better software of the information system and its own maintenance (Haag and Cummings, 2009).

McDonalds after growing the pool of information needs to monitor it so the company could examine the information to be able to predict the trends and patterns of the future. As the problem McDonalds had to face was because of the lack of reliable and traditional information, so need of the hour is to create a strong management information system.

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