Case Study of McDonald's: Advantages and Disadvantages of Outsourcing App Development

This case study explores the questions related to McDonald's order app, advantages of cloud systems, Bluetooth network, social responsibility, and outsourcing app development. It also suggests the use of IT in other areas of the business.

Running head: CASE STUDY OF MC DONALDS
CASE STUDY OF MC DONALDS
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QUESTIONS
Everyone does not have a smartphone. Should McDonald’s delay its order app
until a greater number of clients own a smartphone? Should it develop and use
this technology outside of the United States first?
Smartphones are common nowadays among everyone. These appas have
changed the way that humans communicate with a particular business. Through social
dialogues and promotions, these apps can establish a secure realtionship with the
customers. Mc Donald should not delay the over app until more clients use a
smartphones. In the US alone, more than 80% of the general population owns a
smartphones (Kroenke, David and Earl McKinney). It will be wise for Mcdonalds to
check the success of the app by implementing in our state of the US first in beta and then
spread along.
With the help of AWS services and cloud systems, the company should definetly
develop its technology to migrate outside US but only after trying its beta trial within
the county first.
Some of the advantages of the cloud are mentioned. Are there other advantages of
the cloud that will benefit McDonald’s?
There are several advantages of the cloud that will benefit the respective
company. The first is in cost savings. Mcdonalds will be able to save in extra hardware
costs as most of the critical functions will be handled by the cloud. With digitalization,
the data security becomes a major concern. Cloud system eradicate these issues as if the
customer data gets compromised they can re download the actual data from another

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server. It will also provide Mcdonalds with extra mobility and scalability. The
employees will be able to access business data from anywhere anytime and the business
will be able to adapt well with the growing and changing requirements of the volatile
marketplace.
Read about Bluetooth on the Internet or in Extension 5. Why use a Bluetooth
network? What are some advantages of Bluetooth?
Bluetooth devices can be used for several reasons. Mcdonalds will be able to capitalize
on the technology as it is wireless, inexpensive, automatic, standardized and has a low
interference. Moreover, this technology is also used due to its low energy usage and the
ability to share voice and data over a personal area network. The network is also use as
it is upgradeable and is worldwide recognized as a universal wireless standard
(Mcdonald's - Official Global Corporate Website).
The advantages of Bluetooth that Mcdonald can benefit from are due to the ease
of setup of the Bluetooth devices. Regardless of the design and model, the bluetooth
device are compatible with a wide range of devices that support it which cab be used in
robotics that the company is planning on implementing. The short range of the device
makes it perfect for companies like McDonalds to implement them in their shops.
Do you or your friends use the Starbucks’ order app? If so, what makes it
attractive?
Yes, I and my friends use Starbucks’ order app o a daily basis. The main reason
that attracts people ile is the reward system. For every purchases, a free drink is

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offered with the syrup fdalbvouring as aan extra topping. For registered cards, this is
also true as the prople do not need to carry extra cash to the store to buy a coffee.
Does McDonald’s have a social responsibility to employ people rather than
machines?
McDonald does have social responsibility in employing people first rather than
machines as the former were responsible for making the company what it is today. But
with the rise in digitization, the transition to robotic workplace is unavoidable. To
combat this ethical issue, Mcdonalds have to make its employees understand the
benefit of incorporating robotics in the store and how it will change their job
designations but not compromise their job security (Mcdonald's: Burgers, Fries & More.
Quality Ingredients). The company will be able to succeed even more if they use a
combination of robotics as well as the general employees to offer premium services to
customers.
What are the advantages and disadvantages for McDonald’s to outsource the
development of the phone app?
With the development of its mobile app through outsourcing, MacDonald can
benefit by allowing its customers to enjoy their services at a higher price and quality. It
will allow the company to reduce extra fees and charges. Employees will not be charged
for health problems, vacations and weekends. The employee wages will not face ny
additional taxes. Mcdonalds will not have to invest money and time in the
infrastructural resources.

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The disadvantages of the proposed benefits are the cultural and time differences.
Freelance developers will be affected and the establish communications for the good
team to be managed. Some outsourcing developers are not expertised to check the
feedbacks and testimonials.
What are other uses of IT at McDonald’s that would help?
McDonalds can use IT in other areas of its business. Customer convenience can
be improved by redefining the delivery system. The IT systems can be used to establish
new systems for financial target sales and earning per share and even calculate the
return of share of the investments. Intelligent environments such as indoor positioning,
LED lighting and energy management systems. With data analystics and integration,
Mcdonalds will be able to increase its revenue system significantly.

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References
Kroenke, David, and Earl McKinney. Processes, systems, and information: An
introduction to MIS. Pearson, 2013.
Mcdonald's - Official Global Corporate Website.
https://corporate.mcdonalds.com/corpmcd.html. Accessed 2018.
Mcdonald's: Burgers, Fries & More. Quality Ingredients..
https://www.mcdonalds.com/us/en-us.html. Accessed 2018.