E-Business Applications for McDonald's: Advantages and Challenges

E-Business Applications 1
E-Business Applications
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E-Business Applications 2
Contents
Introduction.................................................................................................................................................2
Report..........................................................................................................................................................3
Recommendation and conclusion................................................................................................................7
References...................................................................................................................................................9

E-Business Applications 3
E-Business Applications
Introduction.
McDonald is an international operator and franchisor of quick-service restaurant offering
food items like soft drinks, breakfast menu, coffee and other beverages (Edward 2010, P. 68).
This restaurant was started in 1940 in California, United States. By 30th June 2017, McDonald
had more than 30000 branches worldwide. This restaurant offers products according to the
culture of the region in which it is situated (Hussein 2010, p. 48). During the year 2017, it was
rated the tenth largest brand worldwide outdoing its immediate competitor Starbucks with over
$20 billion. McDonald is one of the highest contributors to the government revenue with over
$10 billion per year. This is because of the many innovations which they have introduced
including selling their products online hence attracting a large number of people. This online
business has made their customers buy products whenever they want without necessarily visiting
the stores. McDonald argued that it should be classified as a food retailer because many of its
products are pre-packaged and sold to its customers in form of a supermarket rather than a
restaurant. This enabled them to pay 10% on its profits instead of 18% taxed on restaurants
(Kshema 2016, p. 37). McDonald not only compete for cheap and quality products but also to be
the leading source of media so that their customers can buy products whenever they want
through any platforms appropriate for them.
Report.
To enhance customer experience and also to survive in the competitive environment, this
company has been undertaking extensive research to identify the changes in consumer
perceptions. With the recent adoption of technology, McDonalds has realized that there is an

E-Business Applications 4
opportunity for the company to venture in E-business in order to attract more customers.
According to Clair & Andrew (2018, p.79), E-business entails the sharing of information through
online platforms. To succeed in this form of business, McDonalds has partnered with various
organizations to come up with EatUber which enables its customers to access the products
irrespective of their geographical locations.
According to Stephen (2012, p. 94), Operation strategies play an important role in
achieving organization’s goals. Managers of McDonald have worked tirelessly in making their
products fast available to their customers at a low price but get profit by reducing the cost of
production and expanding worldwide. The aim of this restaurant is not only to become the
biggest fast-food chain but also the finest (Achyut 2016, p. 78). The innovation of online shops
has made many companies to shift from brick and mortar strategy to using online platforms to
conduct their businesses. These are business serving their customers in a building unlike online.
Though most companies have developed a mixed reaction about these online shops McDonald
has maintained in operating both hence maintaining their customers (Clair & Andrew 2018,
p.79). This is because there are customers who prefer online shopping because they say it’s
faster, saves money and more informative. Others say shopping in stores is better because there
is physical interaction with the products and returns are easy. Therefore management at
McDonalds has come with a way in which they combine the internet with their in stores sales to
give customers their best in the world.
Though this technology has brought many positive changes within the business, brick
and mortar business also have some advantages over them. One of these is that in bricks and
mortar there are multiple methods of payment where customers can use cash, cards unlike online