Project Proposal: McDonald's NZ - Business Challenges and Solutions

This project proposal delves into the challenges faced by McDonald's New Zealand, focusing on customer retention issues and the need for improved business applications. The introduction provides background information on McDonald's operations in New Zealand, highlighting its extensive network of restaurants and its focus on adapting to changing consumer preferences. The problem statement identifies issues with customer retention and the absence of a comprehensive business application. The symptoms include customers opting for alternatives and declining revenue. Possible causes are identified, such as insufficient investment, lack of an information system, failure to adapt to changing consumer preferences, and an inability to leverage historical data. The project argues that exploring these problems will enable the organization to analyze its current situation and develop a plan for implementing information systems, securing investment, and regaining market growth. The proposal includes references to relevant academic sources.

Running head: INTRODUCTION TO MCDONALD'S, NEW ZEALAND
Introduction to McDonald's, New Zealand
Name of the Student
Name of the University
Author’s note

1INTRODUCTION TO MCDONALD'S, NEW ZEALAND
Table of Contents
1. Introduction and Background......................................................................................................2
1.1 Background of the Organisation............................................................................................2
1.2 Statement of the Problem.......................................................................................................2
1.3 Signs or Symptoms of the Problems......................................................................................2
1.4 Possible Causes of the Problems...........................................................................................3
1.5 Benefits of Exploring the Problem........................................................................................4
References........................................................................................................................................5

2INTRODUCTION TO MCDONALD'S, NEW ZEALAND
1. Introduction and Background
1.1 Background of the Organisation
McDonald Restaurants Limited is considered as the new subsidiary of the international
fast food restaurant chain in New Zealand. The restaurant was firstly built in 1976. With the
growth in the number of outlets and the reach of the business, the company has opened more
than 160 restaurants on a nationwide basis. It thus serves more than one million people each
week.
With a large number of outlets in the country and worldwide, the franchise is primarily
responsible for the selling of cheeseburgers, hamburgers, soft drinks, French fries, breakfast
items, milkshakes, desserts and many more (McDonald's New Zealand, 2019). McDonald mainly
focuses on changing consumer tastes and thus plans over strategies that would be able to suit the
needs of their valuable customer. With the change over such changing tastes, McDonald has
recently introduced new services and menu that includes fish, salads, wraps, fruit and smoothies.
The company also operates its McCafe and George Pie chains along with their stores. The
primary operations of McDonald in New Zealand are based in Greenlane, Auckland from where
a major portion of services is being provided.
1.2 Statement of the Problem
McDonald is facing a serious problem based on customer retention and lack of a proper
business application that would track down each of the necessary details of their business.
1.3 Signs or Symptoms of the Problems
Based on the scenario of the problem, the signs or symptoms that could be discussed are:

3INTRODUCTION TO MCDONALD'S, NEW ZEALAND
1. The loyal customers are choosing different options to serve their appetite for food
(Swimberghe & Wooldridge, 2014). They are also finding it to be extremely hard to tackle the
rising prices and degraded quality of food.
2. The business of McDonald is also not able to meet as per the weekly or monthly
requirements in terms of revenue earned (Xu, 2014). This information is mostly derived from the
tracking of previous revenue generated and the expected revenue that might have been generated.
1.4 Possible Causes of the Problems
The most possible causes of the discussed problems faced by McDonald are:
1. Low amount of investment within the New Zealand outlets can be considered as the
primary cause of the problem (Mohsin & Lengler, 2015). This is mainly due to the poor form of
strategic planning within the systems. this further results in lack of implementation of tools
meant for business growth.
2. Due to lack of funds, these outlets are not able to implement an Information System
that would help in keeping a track over each of their activities. This leads to critical problems in
terms of keeping a track of their inventories.
3. They are not able to gain a hold over the changing preferences of their customers (Li et
al., 2014). Consumer preferences are one of the most important concern and this is where a
major amount of lack is being faced by the management team at McDonald.
4. Without a proper form of implementation of an Information System at their outlets,
they are also not able to check their historical records and then compare it with the present
business scenario.

4INTRODUCTION TO MCDONALD'S, NEW ZEALAND
1.5 Benefits of Exploring the Problem
Based on exploring the problems faced by the management team at McDonald, it could
be discussed that the organisation would be able to analyse their present business scenario. This
would help them in preparing a plan for a project implementation over the implementation of
Information Systems within their outlets (Chin, Evans & Choo, 2015). A proper sanction of
investments should be made in order to help the business to regain their growth in the highly
competitive market.

5INTRODUCTION TO MCDONALD'S, NEW ZEALAND
References
Chin, C. P. Y., Evans, N., & Choo, K. K. R. (2015). Exploring factors influencing the use of
enterprise social networks in multinational professional service firms. Journal of
Organizational Computing and Electronic Commerce, 25(3), 289-315.
Li, Q., Wang, T., Li, P., Liu, L., Gong, Q., & Chen, Y. (2014). The effect of news and public
mood on stock movements. Information Sciences, 278, 826-840.
McDonald's New Zealand |. (2019). Retrieved from https://mcdonalds.co.nz/
Mohsin, A., & Lengler, J. (2015). Exploring the antecedents of staff turnover within the fast-food
industry: The case of Hamilton, New Zealand. Journal of Human Resources in
Hospitality & Tourism, 14(1), 1-24.
Swimberghe, K. R., & Wooldridge, B. R. (2014). Drivers of customer relationships in quick-
service restaurants: The role of corporate social responsibility. Cornell Hospitality
Quarterly, 55(4), 354-364.
Xu, Y. (2014). Understanding CSR from the perspective of Chinese diners: the case of
McDonald’s. International Journal of Contemporary Hospitality Management, 26(6),
1002-1020.