Strategic Information System Analysis: McDonald's & Accounting

This report provides a comprehensive literature review of strategic information systems, focusing on their application within McDonald's. It begins by defining strategic information systems and their role in gaining a competitive advantage, then examines McDonald's organizational structure and the challenges it faces, particularly within its functional and global hierarchy. The report delves into the implementation of Enterprise Resource Planning (ERP) systems, specifically how McDonald's utilizes them. It includes a sales flowchart analysis and identifies potential control problems and fraud risks. Part 2 focuses on accounting software adoption, including Zoho, MYOB, and QuickBooks, and analyzes their market share, current leaders, and the challenges encountered by users, such as inefficiency, cost, and security concerns. The report concludes by highlighting the importance of training and implementing ERP models to improve accounting application performance.

Strategic information system 1
Strategic information system
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Strategic information system 2
Strategic information system
Literature Review
Introduction
According to Alireza, Amir, & Amir Talaei-Khoei, 2013, strategic management system is
defined as the information system that are developed to corporate the business advantages. The
primary purpose of implementing the strategic management system is to give the business
enterprise competitive advantage in the market. (Alireza , et al., 2013).
The main purpose of this study is to provide the critical literature review of strategic
information system concepts that allows a business enterprise to gain competitive business
advantage in the market. According to Grandlund 2011, the adoption of the strategic information
system is directed to the organizational structure installed by the top management in relation to
the enterprise business activities. The strategic information system indicates the approval
management systems such as accounting packages in an organization under the implementation
approach of Enterprise Resource Planning (Granlund, 2011).
Part 1
McDonald Company

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McDonald Company is a mult-nation corporation founded in early 1940s as a restaurant
operated by Maurice McDonald and Richard. The business enterprise was founded in Unites
States, in 1948 the company was renowned for its exceptional performance guided in the
production principles and management guidelines.
McDonald Company is currently one of the largest that operates restaurant chain,
whereby the company is providing restaurant services and products to more than 60 million
customers daily. However is currently operating in 120 countries with an estimation of 36, 900
outlets. Chicken products, hamburgers, cheeseburgers, milkshakes, soft drinks and breakfast
items are the products sold currently by the company.
McDonald Company is notorious in changing the marketing approach by excellently
changing the customer test. Based on the marketing approach, the company has mix its menu
with new products such as fish, salads, smoothies and fruits. The company has been having boost
in its profitability making due to large and expounded revenue ventures such as company sales,
rent and royalties. According to BBC report in 2012, McDonald Company is the second largest
private employee, employing 1.5 million people, this is after Walmart Company that is
employing 1.9 million people.
Claypo, N. & Jaiyen, S., 2015, conducted a research and found out that McDonald
Company opened its first resturant in Yagoona, Sydney. The company report states that, the
organization is opperating 900 branches and outlets in Australian market. The report indicates
that the company is an unlisted Australian Public Company, designates that the company is a
franchises business corporation with two third of its resturant services are owned by individual
business personels.
McDonald's Organizational Structure

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Organizational structure is defined as the strategic management instrument that explains
how a business firm is allocating its task, coordinates, supervises as well as directing its activities
towards the procedure of achieving its defined mission and vision. According to Mintzberg, an
organizational structure is defined as a viewing glass that exhibits the relationship between the
organization and individuals (Mintzberg, 1993).
McDonald Company is a multinational corporation operating in global restaurant market,
whereby in 2015 the company reformed its organizational structure in order to fit its international
business activities. The organizational structure at McDonald Company states the combination of
the marketing management systems in relation to the company global activities. The company
has primary ensure that its structure is defined toward accumulating the current market demand
and considering the emerging marketing factors. Therefore, McDonald Company is applying the
Global Hierarchy and functional based organizational structure in its business activities (Park, et
al., 2016).
Problems faced by McDonald Company under the functional and global hierarchy
organizational structure
Global Hierarchy and functional based organizational structure contributes fatal
challenges that can affect the business activities of the company. Lack of efficiency is considered
a primary factor that has affected the company activities. Inefficiency of business activities
implies the fact that the company is being managed by business individual who may have the
appropriate management skills and experience. However, the global hierarchy organizational
structure allows the company to separate its international business managers with their domestic
managers.

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System acquisition method
Enterprise Resource Planning
Kanellou & Spathis, defines enterprise resources planning as the business process that
allows the business enterprise to integrated business application systems to manage its business
activities (Kanellou & Spathis , 2013). According to Calisir, and Calisir 2004, enterprise
resource planning is a business management process that is purposefully redirected to improve
the business operation as well as gaining the company competitive market advantages.
McDonald competitive advantaged is obtained by the company involvement in intergraded
business management process (Calisir & Calisir, 2004). McDonald Company implementation of
Enterprise Resource Planning is basically coordinating the management information system to
intergrade the business management functions. The enterprise resource planning entails the
accounting information system that aid the company to meet the growing environmental market
(Stratman & Roth, 2002).
Sale Flowchart of McDonald Restaurant in Australia
The sales flowchart explain the primary steps that accompany the company products and
service after their production process. McDonald Company sales flowchart is primarily based on
proving excellent restaurant services. The client order the product and services from the
company website or from the counter, the sales person enters the order into the computer till. The
customer receives the ordered product and services after paying for them. For the case of drinks,
the company staff ask the client what drink to take and after which the employee gets immediate
response from the client.

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The control problems in the system and sorts of fraud that are possible in this
system
Sales flowchart is a functional management tool that exhibits the steps of sales from
production to the customer. However, some shortcomings like poor customer relations, complex
sales process and frauds may adversely affect the company’s activities. The hotel administrator,
for example may fail to provide immediate response to the customers (Hyvönen, et al., 2006).
Customers too may find it very hard to follow the installed sales procedures and frauds, which
employees or clients with little or no skills may undertake, could bring about such effects to the
company.
Part 2
Adoption of accounting software packages

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The major element of Enterprise Resource Planning is the Accounting information
system. It is described as the structure used by a business organization to collect, manage
process, retrieve and report the financial operation as they are used in substantive decisions
(Kanellou & Spathis , 2013). Accuracy in all the business financial transactions are used by the
company management to determine the direction of their company (Claypo & Jaiyen, 2015).
According to Sampaio & Bernardino, the Zoho accounting software is an element of
enterprise resource planning used by SMEs in Australia. It is an accounting software that contain
distinctive and diversified financial transaction features. Zoho accounting system allows the
business organization to update its date to up-to date. Internet financial transaction is also an
exceptional component of Zoho accounting package, it allows the company to apply the could
saving accounting model. According to Mayasari, 2015 companies have also adopted the MYOB
accounting package in their business activities. MYOB accounting system is gaining its
competitive advantages in Australian market because it has the ability to interface both online
and offline company transactions (Sampaio & Bernardino, 2016).
Australia is one amongst the nation that adopted the use of accounting packages; this is
because many companies producing the accounting packages are based in its market. The Intuit
accounting package was the first accounting element that was adopted firstly by many business
organizations in Australia (Strese, et al., 2016). Intuit QuickBooks accounting package provide
accounting services such as debtors and creditors transactions to business enterprises. Rajasa,
and Faturachman, 2015 in their research concluded that many SMEs in Australia have improved
steadily because they have adopted the use of new accounting information system (Rajasa &
Faturachman, 2010).
Current Market share of accounting Software’s

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Curtis, 2015, indicates that many business organization in Australia decided to abolish
the manual accounting and recording approach in 2000. Due to many business companies
involving themselves in new accounting system, every business organization was trying to create
room to adopt the accounting systems in order to meet the market demand. The adoption of the
new accounting system under the implementation of strategic information system has led to
business competitions (Curtis, 2015). Business organization adopt the desired accounting
package that suits their business activities. On the other hand, the companies that produces the
accounting packages tend to compete by producing accounting systems that have different
features, and thus performing distinctive business activities (Ikkala, & Ten Brinke, 2002).
According to the study, MYOB accounting package contain an exceptional feature of
cloud saving model, this points out that the many SMEs have major focus to use the MYOB
software. The research concludes that over 25,000 SMEs in Australia are using MYOB
accounting package, this represent 65% of all the business enterprises in Australia (Calisir &
Calisir, 2004). According to Datanyze the current market share of ZOHO accounting package is
considered to be 2% (Datanyze, n.d.).
Current leaders of accounting
According to Thong & Yap, 2016, SMEs are considered to be the current leaders of using
acounting packages. Many buisness organizaion have adopted the application of new accoutning
systems in their business activities (Thong & Yap, 2016). QuickBook and MYOB accounting
packgaes are the most applied accounting information system used in the marekt, whereby Zoho
accounting package is considered to have a growing market demand because of its features
(Thong & Yap, 2016).
Challenges encountered by accounting application users

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Inefficiency of accounting application and software is due to the lack of trained
subordinate. Business organizations in Australia are encouraged to implement on the training
programs to their employees, Training programs allows the subordinates allows the employees to
acquire relevant skills, this would help to improve the accounting application efficiency. Cost is
also another factor affecting the acquisition of accounting information system (Kanellou &
Spathis , 2013).
The small business enterprises in Australia have failed to use the accounting packages
due security factors. Mind Your Own Business (MYOB) application packages are majorly
subjected to the security complements such as hacking (Seethamraju, 2015). The research
indicates that 47% of the MYOB accounting packages are affected by security issues, business
enterprises that use the accounting package are encouraged to create a factorial firewall that will
prevent system hacking (Ehie & Madsen, 2005). Mayasari, 2015 research conlcudes that Small
Medium Enterprise are encouraged to implement the Enterprise Resource Planning business
model in order to extend their decision of using the accounting application packages (Mayasari,
2015).
References

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Alireza , A., Amir , H. & Amir Talaei-Khoei, 2013. A Systematic Literature Review on Strategic
Information Systems Planning: Insights from the Past Decade. Pacific Asia Journal of the
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Claypo, N. & Jaiyen, S., 2015. Opinion mining for MacDonal Company Restaurant reviews
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