DHICT Assessment: Technology's Role in McDonald's Business Growth

This report analyzes the impact of technology on McDonald's business performance from 2011 to 2021. It examines market capitalization, net income, and operating expenses, using statistical techniques in Excel to calculate percentages, sums, means, medians, and maximum/minimum values. The findings indicate that technology adoption has helped McDonald's increase market capitalization and reduce expenses. The analysis includes labeled charts illustrating these trends. The report concludes that technology plays a crucial role in improving overall performance and productivity, enabling the company to gain a competitive advantage and increase market share.

DHICT Assessment

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Calculation of the data in percentage.....................................................................................3
Application of statistical technique and excel AutoSum features..........................................5
Labelled charts of the collected data......................................................................................6
Findings and analysis.............................................................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11

INTRODUCTION
In the age of competition to gain market share and also to earn competitive advantage
it is very vital for the organisation to adopt the advance technology in order to perform
business function. Technology helps the companies to enhance their performance and
productivity in effective manner. Technology has changed the life of many people but also
helps the organisation to operate in effective manner. Adoption of advancement technology
in the organisation assists in managing the business function in smoother way. In recent time
technology is becoming an integral part without which companies does not think to grow and
develop. The concept of technology plays a very crucial role and this context cannot be
understated (Muhammedrisaevna, Mubinovna and Kizi, 2020). Many big organisations are
acquiring the advanced software and rely on it to gain success and improve their operation.
With the adoption of technology various different task, work, workers are being aligned
together so that business performance can be improved and analysed. In the age of
digitalisation without internet, project management software, digital apps etc business can
operates their business. Technology has provided various benefits to the organisation some of
them are higher productivity, proper communication system, employee engagement and
interaction and many more. Having the right technology at right department, helps in saving
cost and time of an organisation. For conducting the present investigation and to see the
impact of technology on organisational performance and productivity the chosen organisation
is McDonalds (Benitez, Ray and Henseler, 2018).
This file would gather data which will be analysed by using various statistical
techniques. In this report central tendency as well as some other function will be calculated
using the excel sheet. Data is obtained from the authentic site of McDonalds and the
information which is obtained is market capitalisation, expenses and revenue of the company
from the year 2011 to 2021.
MAIN BODY
Calculation of the data in percentage
Table 1: Market Capitalisation of McDonald and it’s percentage share
Year Market capitalisation in
million dollar
Percentage of market
capitalisation

2011 10265 7.510
2012 8844 6.471
2013 9609 7.030
2014 9022 6.601
2015 10712 7.837
2016 10108 7.396
2017 13721 10.039
2018 13621 9.966
2019 14747 10.790
2020 15988 11.698
2021 20031 14.656
Table 2: Net income of McDonald and it’s percentage
Year Net income in million
dollar
Percentage of net income
2011 5503 5.506
2012 5465 5.468
2013 5586 5.589
2014 44758 44.782
2015 4529 4.531
2016 4687 4.689
2017 5192 5.194
2018 5924 5.927
2019 6025 6.028
2020 4731 4.733
2021 7545 7.549
Table 3: Operating expenses of McDonald’s in percentage form
Year Expenses in million
dollar
Percentage of
expenses
2011 18476 10.608
2012 18962 10.887
2013 19341 11.104

2014 19492 11.191
2015 18268 10.488
2016 16877 9.690
2017 13268 7.618
2018 12435 7.139
2019 12295 7.059
2020 11884 6.823
2021 12867 7.387
Application of statistical technique and excel AutoSum features
Year Market capitalisation in
million dollar
Net income in
million dollar
Expenses in million
dollar
2011 10265 5503 18476
2012 8844 5465 18962
2013 9609 5586 19341
2014 9022 44758 19492
2015 10712 4529 18268
2016 10108 4687 16877
2017 13721 5192 13268
2018 13621 5924 12435
2019 14747 6025 12295
2020 15988 4731 11884
2021 20031 7545 12867
Sum 136668 99945 174165
Mean 12424.36364 9085.909091 15833.18182
Median 10712 5503 16877
Maximu
m
20031 44758 19492
Minimum 8844 4529 11884

Labelled charts of the collected data
Figure 1: Graph of market capitalisation of McDonald for the years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
10265
8844 9609 9022 10712 10108
13721 13621 14747 15988
20031
Market capitalisation in million dollar
Market capitalisation in million dollar
Figure 2: Net income of the McDonald for various years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
5503 5465 5586
44758
4529 4687 5192 5924 6025 4731 7545
Net income in million dollar
Net income in million dollar

Figure 3: Expenses of McDonald from the years 2011 to 2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
18476 18962 19341 19492
18268
16877
13268 12435 12295 11884 12867
Expenses in million dollar
Expenses in million dollar
Figure 4: Graph of percentage of market cap, income and expenses
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
7.511 6.471 7.031 6.601 7.838 7.396 10.040 9.966 10.790 11.698
14.6575.506 5.468 5.589
44.783
4.531 4.690 5.195 5.927 6.028
4.734
7.549
10.608 10.887 11.105 11.192 10.489 9.690
7.618 7.140 7.059 6.823 7.388
Percentage
% of market cap % of net income % of expenses

Findings and analysis
Technology plays a very crucial role in today’s competitive environment were things
are so uncertain which keeps on changing at faster pace. Adopting the right technology as per
the requirement not only helps in gaining transferring business operation but also helps in
improving the overall business performance of an organisation. There are so many business
sector in the world some of them are travel and tourism, educational, entertainment,
hospitality, fast food sector and many more and all these industry has acquired various
technology in their business operation (Xu, Lu and Papadonikolaki, 2022). Different devices
and networks are used by the companies in order to make interaction between the employee
and their jobs. There are different advantage of technology such as employee collaboration,
higher performance and productivity, reducing wastage, tracking performance and much
more. Now day’s organisations are shifting their traditional way of working with modern
manner and adopting various tools and machine to leverage their performance and
productivity. They are gaining more detailed knowledge about technology in order to be
optimally gaining advantage.
Data interpretation:
In this file an excel sheet is prepared which gathers data from the official site of
McDonalds. Market capitalisation, income and expenses from the year 2011 to 2021 is being
gathered. For analysis data different formula is being applied. In this statistical function is
used to measure the central tendency of the information as well as other excel formulas us
also applied for calculating sum, maximum and minimum value of the series. Different charts
and tables are being made with the help of spreadsheet. In addition to that count and mode is
not calculated because there is no need to calculate this.
Percentage: From the above gathered data it is analysed that in the year 2021 the
market capitalisation of the McDonald was highest which is 14.677%, means that more
customers are being served by the company by the adoption of advances technology in their
working space. In the year 2020 the expenses of the company is 6,823% which indicates that
having digital tools and software assist them to reduce their wastage and produce the good in
cost effective manner. McDonald has use the technology in very good manner which aids
them to improve their performance by reducing expense and enhance their productivity by
gaining more market cap.
Sum: With the accumulated pieces of data it is being analysed that the overall market
capitalisation which was gained by the McDonald from past ten year is $136668 million. The
total net income of the company from 2011 to 2021 is $99945 million and the expenses is

$174165 million for the company. With each passing year market cap is increasing which
assist that brand is using their technology in most effective manner.
Mean: It is that statistical tool which is used to calculate the average of the given time
period. From the assembled piece of data the average mean of market capitalisation is 12424,
net income is 9085 and expenses 15833. This means that company is gaining more market
capitalisation but the net income which they earn by using advanced technology is quite
lower than the expenses incurred. So if they continue use technology then this will aids them
to reduce expenses and earn more income by serving customer in more productive manner.
Median: Another tool is median, which shows the middle value of series. From the
table and charts it is analysed that market capitalisation is 10712, expenses is 16877 and net
income is 5503. In the year 2011 company revenue is at median point after that it fluctuate
but at lower rate. The expenses of the McDonald start fluctuating from 2016 and by that time
it keeps on decreasing.
Maximum: By applying the function of Max it is being analysed that the highest
market capitalisation of McDonald was in the year 2021 which was 20031 million dollar. The
maximum revenue was earned in the year which is 44758 and expenses were high in the year
2014. After 2014 company reduced their expenses by acquiring those technology which
reduce their cost of production and helps in delivering goods in more productive manner.
Minimum: It is that function of spreadsheet which tells the lowest value of the given
column. With the assumable information of McDonalds the lowest value of market
capitalisation 8844, income 1886 and expenses 1188. In the year 2012 the market share of
company was low but after that it keeps on increasing with the help of advanced digital
devices and networks. In the year 2020 the expenses of the was very lowest which means that
technology helps the organisation to reduce waste and improve their organisational
performance.
CONCLUSION
From the accumulated data from various tables and charts it is concluded that
technology is playing a very important role in today’s business environment in order to
improve overall performance and productivity. Having advance technology will helps the
company to reduce their expense and earn higher income which helps in earning greater
profit margin as compared to the competitor. From the above data it is also concluded that
organisation are adopting the strategy of digitalisation in order to gain competitive advantage

and earn more market share for their goods and services. Technology is business helps them
to align and track their work with workers so that better collaboration between them can be
made which enhance organisational productivity.

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