Unit 4 Research Project BTEC Level 4 HND in Business

Aim

To analyse various different stages adopted by McDonald's for digital transformation and its impact on customers

Objectives

• To analyse various stages of digital transformation.
• To analyse the challenges of involving digital technology in McDonald’s.
• To determine the impact of digital transformation on the customers of McDonald’s.
• To recommend ways of analysing the stages of digital transformation.

Research Questions

Q1. What are the different stages of digital transformation?

Q2. What are the challenges associated with the involvement of digital technology in McDonald’s?

Q3. What is the influence of digital transformation on the customers of McDonald’s?

Rationale

The topic, “To analyse various different stages adopted by McDonald's for digital transformation and its impact on customers” has been chosen because since a few months, it has been observed that the average productivity rate of McDonald’s has been decreased and the reason has been associated as the fact that they are still making use of manual processing in some operations. So, it acts as a time consuming process. Digital technology and transformation can help McDonald's in maintaining the competitiveness in the market place. The customers have to waste their huge amount of time as well which is very disappointing for them. Therefore, there is a need of digital transformation in McDonald's so that the company can again become able enough to attract the customers, which will also help them in an increased rate of productivity.

Literauture Review

Various stages of digital transformation

Digital transformation- Digital transformation is the integration of digital technology into all area of business. Digital transformation is different look of every company they define to do changes in fundamental area of business. Digital transformation helps in operating the business and deliver value to customers. The ways businesses need to adjust their existing practise. Digital transformation is reworking of the product and strategies with in company by levering current technologies. In contrast, new investment in technology and process to drive new value for customers and employees to effectively complete in an event changing digital technology.

There are following stages of digital transformation:

1. Business as usual- Organization provides familiar environment for customers and employees as well as they start business as usual. They try to include new techniques and new technologies in business.
2. Present and Active- digital transformation is improved present activities and touch points of business. They active all new digital technologies and creativity of business (Skilton, 2016).
3. Formalized- they support for new resource and technology, they define business to proper formalization and introduces with new technology.
4. Strategic- Organization include strategic decision for business they decide to make new strategies which affect to improve planning for digital transformation ownership, efforts and investment.
5. Converged- a dedicated digital transformation team forms guide business who based on strategy and customers related goals. The infrastructure organization take shapes as roles, expertise, models, processes and system which support transformation.
6. Innovative and Adaptive- a digital transformation is way of business change executives and strategies recognize that change is constant. New system identifying what new technologies are effect to ecosystem and market trend.

Benefits of digital transformation

Digital transformation is beneficial in many fields like study , business, retails business etc. for example digital transformation is used in McDonald they provide service via digital media, McDonald also provide facility to customers to having app in mobile and placed order where in city (Kane, Palmer and Kiron, 2015 ). From digital transformation they identity location of store. Digital technologies change environment of organizations. The organizations also provide new feature in the digital technology. Digital technology create new opportunities to work differently and working differently creates new opportunities to infuse technology into the work.

Advantages of digital transformation

• Improved Customer Acquisition and Retention- Organization provides the customers to online service so there no chance for losing customers easily because the organization interact customers continuously. Digital transformation allows to organization to tap larger online market and delivering additional values for existing customers.
• Extended Global Reach- Companies provide an exact location about the customers and tracking IP address of customer's.
• Increased Sales and Overall Profitability- digital transformation increase 26 percent sale more profitable to average industry competitors. Digital marketing understand the customer behaviour and more accurate targeting of product and services.
• Enhanced Customer Experience- Digital transformation provides a better rate of experience to the customers to maintain their various areas of growth. Companies understand the need of digital transformation.

Challenges of involving digital technology in McDonald’s

There can be various factors and challenges that McDonald's have to face after the involvement of digital technology. Some very well-known and common examples of this can be considered as the fact that it is obvious enough that when they will involve the digital technology in their firms, the employees must not be aware of the ways of using it. So, this can be termed as time consuming as well. Also, this can for that time affect the processing and speed of the operations. Although after the successful implementation of the digital technology, there is a possibility that McDonald’s will receive higher rate of outputs but the implementation cost of the digital technology is costly. It is because while they will implement the digital technology and its different aspects, there will be various gadgets and technologies to be involved and that can seem costly enough. So, this can be classified as one of the challenging factors that McDonald's may have to face. Also, the employees should cooperate with the management.

The management should provide proper training and orientation to the employees regarding the use of digital technology because they must not be aware of using and implementing it (Skilton, 2016). Maintaining the privacy concerns and features is also equally important. In the initial phases, the employees must not be aware of securing the data and information, so the management should cooperate with them as they will also take some time to learn it. So, these can be considered as the challenging measures. If the employees take much time in understanding the use of digital technology, there might be the possibility that they will result in a slower processing. It will further disappoint the customers to a huge extent. So, these can be considered as the challenges that McDonald’s may have to face during the involvement of digital technology in their processing of the operations and services.

Impact of digital transformation on the customers of McDonald’s

Digital transformation in McDonald’s can prove much beneficial for the company as well as for the customers. It is because when they will include the use of digital technology and replace the manual processes by the same, then there will be a possibility that their overall processing rate will increase to an extent. When the operations will be performed at a much faster rate, it is obvious that in a short span of time, they can become able enough to achieve all the targets and goals. When they will be able to deliver the products and services at a faster rate, the customers will get happy and it is obvious. No customer wants to wait in queue for receiving the orders etc. So, transformation of digital technology and replacing the manual one with the same can actually prove helpful enough in getting their orders, processing and delivery to the customers at a much faster rate. Technology can be used by McDonald’s in various creative ways (Kane, Palmer and Kiron, 2015). McDonald's have developed an application for satisfying and easing the requirements of the customers.

By means of the application, the customers can easily order the items and there in McDonald’s, a notification will pop out that there is an order. It can be considered as a very effective way because by such means, the customers can very conveniently order anything they want and it will reach their door step as well. They do not have to wait and stand in large queues for getting their orders. So, this feature can help in providing a higher rate of satisfaction to the customers. Also, it will help in maximizing the overall rate of popularity as well as productivity of McDonald’s. Also, on the application, on the home page itself, McDonald’s can ensure to put all the offers and discounts. Also, they can pop up the notification feature so that on entering every single discount or offer, the customers who have developed the application can get pop ups and notifications so that they can get to know about it. This will help the customers to stay aware of all the offers and deals. Therefore, it can be considered that involvement of these ways and means as a source of digital technology can help McDonald's in an increased rate of operations and in overall processing so that they can be able enough to maintain their competitiveness in the market and also can get a satisfied rate of the customers.

Research Methology

Research is considered as a way of searching all the information in a systematic way that it can be used in order to make the quality of the research more appropriate. Research methodology is classified as a theoretical framework which involves various different aspects and that are discussed as below:

Research design

Research design is considered as a strategy that helps in making the integration of the research in a better and coherent manner. It can be further classified in various types and some well-known examples of this involves descriptive, experimental, semi experimental, review etc.

The descriptive design considers the objectives of the case study or also, it can be associated with the realistic ones. In case of co relational, it deals with the observational researches. In this research, the researcher will make use of the descriptive one because it can help in analysing the influence of digital technology in the business objectives of McDonald's.

Research philosophy

Research philosophy is considered as a belief about the way that helps in providing a way in which the information should be collected and then being used as well. There are various types of research philosophies and these involve positivism, realism, interpritivism, axiology etc. In this research, the researcher will make use of positivism because it can help in providing a better analysis of the impact of digital technology in McDonald’s and its impact on the customer rate as well.

Research approach

Research approach is considered as a way that helps in making the research more appropriate and effective (Gonzales, 2016). There are two ways in which research approach can be classified and these involve the qualitative approach and the quantitative one. The qualitative approach deals with the theoretical frameworks that can be used in the research and the quantitative one deals with the statistical framework. In this research, the researcher use the qualitative approach because this can easily help the researcher in analysing the impact of digital transformation in McDonald’s and its effect the customers.

Data Collection

Data collection is classified as a way of gathering the data and the information in an effective way. It can be done by two ways, either by the primary method or by the secondary one. Primary collection of information is termed as that way in which the information is being gathered for the first time and it can be collected from means like focused groups, surveys, interviews and interviews (Bruce and Chiu, 2015). Secondary data is the gathering of data that has already been achieved by some external person, but that collected information can be further used by the researcher. Different sources from where the secondary data can be collected involves online, books, journals etc. In this research, the researcher will make use of the primary data as from interviews they will collect all the data. From the means of questionnaire, the researcher will collect the data from the samples taken.

Research limitations

Research limitations is considered as the factors that barred the researcher to maintain an effective quality of the research. Like if in case, the time for the research gets extended by the researcher so that the whole researcher can get more effectiveness and will be performed in an appropriate manner, there they should consider the fact that along with the time, there might be the requirement of various other resources as well such as cost etc. And if at that time, there will be less cost available, then it might affect the whole quality of the research because this will then considered as a challenge or barrier (Austen, Parkin and Irwin, 2016). So, it is important that the researcher completes the research in the specified deadline only so that any of such factors do not act as challenging one for the research and also, it might not affect the quality of the research.

Sampling

Sampling is considered as way of collecting random samples from a large population. There are various types in which sampling can be classified and these involve cluster sampling, stratified sampling, simple random sampling and systematic sampling. In case of the simple random sampling, samples are collected from random people and then data can be asked from them. In case of the cluster sampling, samples are taken in the form of clusters and then questions are asked for the same. In this research, the researcher will use systematic sampling because it can help them to analyse the effectiveness of digital technology in the business objectives of McDonald’s.

Timeline

Part 2

Introduction

Background of study

Digital technology has revolutionised business world by increasing growth opportunities. It is the transformation which is assisting organisation in managing systematic functioning of business operations. In accordance with digitalisation, it has been analysed that most of the food service organisation are digitalising their function by implementing transparent kitchen management where consumer order are directly displayed on screen in kitchen which reduced the risk of communication (Dengler, 2016). Further, digitisation of menu has reduced the cost of making alteration in menu. Thus, it can be said that digital technology has update business trends by enabling systemic management of organisational functions.

Aim

To analyse various different stages adopted by McDonald's for digital transformation and its impact on customers

Objectives

• To analyse various stages of digital transformation.
• To analyse the challenges of involving digital technology in McDonald’s.
• To determine the impact of digital transformation on the customers of McDonald’s.
• To recommend ways of analysing the stages of digital transformation.

Methodology

Research deign: There are various types of research design that is semi experimental, exploratory, experimental, descriptive among which researcher has chosen descriptive study design because it helps in analysing characteristics of a population which is sampled for study (Kumar, 2014).

Research Philosophy: There are various types of philosophy which are implemented to make study empirical and reasonable. Such as positivism, interpretivism, realism etc. Thus, in study on impact of digital technology the scholar has implemented use of positivism philosophy because it helps in relating properties and relations logically (Ormerod and Ulrich, 2013).

Research approach: It is the plan of entire study on the basis of which researcher carry out entire study. The nature of study is subjective ad therefore researcher has implemented use of qualitative approach which assisted the researcher in outlining theoretical concepts of study.

Sampling: There are different methods of sampling such as, cluster, random, stratified, systematic, probable etc. (Hogg, 2010) However, in this study the scholar has used systematic sampling method which is kind of probability method where researcher sample members from a larger population as per random starting point and a fixed, periodic interval. The sampled respondents are 20 potential consumers of McDonald's

Data collection: There are two data collection method that is primary and secondary where primary is based on current facts and findings where secondary is based on pats collected information (Rubin and Babbie, 2016). Thus, in this study the scholar will analyse both types of information where primary data will be collected through interview and secondary via online, books, journals, articles etc.

Data analysis: There are two method of analysing data that is qualitative and qualitative. However, in this study the researcher has implemented both the types of method that is 2 questions of questionnaire will be based on qualitative analysis and 8 questions will be based on quantitative analysis.

Ethical consideration: Adhering to ethics is the key concern of scholar because it helps in making research viable and reliable. Thus, when collecting data the researcher ensured that no customer is forced to share their confidential information. Apart from this the scholar cited and referenced the study to make its considerable for further researches on impact of digital technology.

Cost: Cost of research includes expenses such as, travelling, stationary, refreshments, permission and fees for seeking information from private articles.

Research limitation: Limitation of research are availability of resources, consumer response and time constraints.

Findings

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.

Discussion

Theme 1: Yes, respondents agree that digital technology impacts functioning of Mc Donald's

As per theme 1, it has been analysed that standard deviation is 0.87 which is below 1 which represents that participants in interview agree that is a significant relationship between digital technology and functioning of McDonald's (Sobh and Perry, 2016). From the analysis, it has been determined that technological advancement has established easy and systematic management of food services.

Theme 2: Kitchen management is the key changes of Digital Transformation

According to theme 2, it has been analysed that the views of participants over three given option states kitchen management is the key change of digital transformation which has revolutionized the functions of McDonald's. Further, form the analysis it has been analysed that standard deviation is .7788 which represents the effectiveness of digitalising kitchen with regard to consumer acceptance.

Theme 3: Consumer prefer eating at McDonald's

According to theme 3, it has been evaluated that majority of consumers prefer eating at McDonald's because it offers easy and fast food services. Further, as per the analysis it has been analysed that the consumer believe that effectiveness food restaurant lies in its digital order management and transparent kitchen system which helps in serving consumer satisfaction (Bang, 2017).

Theme 4: Respondents agree, that digital transformation is assisting McDonald's in managing growth and development.

According to theme 4, it has been outlined that digital transformation has boomed the business world and according to majority of consumers it is effective for firm's growth and development as it is assisting organisation in systematic management of consumer services. Further, from the standard deviation which is 0.75, it has been identified that digital technology has significant relationship between growth and development of food organisation (Huvila and Huggett, 2018).

Theme 5: Yes, there is relationship between digital technology and consumer satisfaction

According to theme 5, it has been identified that majority of participants agree that there is a relationship between technological advancement and consumer satisfaction because it helps consumers and firm in easy interaction. Further, from the analysis, it has bee derived that digital transformation of McDonald is the source which is assisting firm in managing consumer order without miscommunication and confusion.

Theme 6: Digital transformation has made easy kitchen management for organisation

According to theme 7, it has been analysed that as per participants digital order management is the source which is helping McDonald's is responding fast to consumer orders. Further, it is the process which has reduced the chances of confusion.

Theme 8: Transparent kitchen system and order management is advancement of digitalising food service management.

As per theme 8, it has been analysed that digital order management and kitchen is the most effective implementation of McDonald's which has assisted the firm in gaining trust of buyers and serving satisfaction (Jinbang and Rihong, 2010). The standard deviation is 0.85 which represents effectiveness of digitalising food service management with regard to consumers.

Theme 9: Yes, consumers are satisfied with the digital menu display of Mc Donald's

As per theme 9, it has been analysed that digitalisation of menu system by Mc Donald's is the biggest advantage of the firm because it is the technique which is assisting firm in managing customer satisfaction. According to majority of consumer, it has been identified that it is system which helps them in segregating food like, burger, beverages, vegetarian, non vegetarian etc. Further, as per the views of consumer it has been discovered that it is the system which make easy of the buyers to make choices because it is clearly and is available on one screen (Dengler, 2016). However, according to 6 respondents it is a cost effective system but is time consuming because there are situation where customer stands in queue just to give order.

Theme 10: Take away order management can be changed in services of McDonald's

According to theme 10, it has been discovered that there are various recommendation and changes which can be made in services of McDonald's in order to set improvement such as, changes services providing system because McDonald's offers self services which sometime is tome consuming and hamper consumer satisfaction. Apparently, as per majority of consumer, it has been identified that it is necessary for the consumer to change take away order management because this leads to waste of time which hampering firm take away facility. It is the procedure where the consumer are allowed to take away food from outside of the outlet but still have to wait for the order to get ready after reaching location. Thus, as per this, it can be recommended that the take away facility needs to be digitalised where customer gets access of order food online and picking from outlet.

Conclusion

Research project is tool which helps the scholar in increasing ability to investigate different topic and recording their details. In this the study my focus was on collecting information and developing knowledge over different aspect of digital technology which has created boom in the world of business. From the study, analysed that it is important for the people to explore different aspect of topic in order to develop critical understanding over research topic. Further, from the study, I learned about effective of systematic sampling method which is similar to probability sampling method where small population is chosen from larger population from a random starting point and a fixed, periodic interval.

In accordance to used research methodology I would like to concluded by stating that methodological tools and techniques offers different types of research strategy to scholar which is according to tittle of study. However, from this research, the scholar can also make use of exploratory research design which assist the researcher in exploring knowledge over one selected topic. This helps in making in-depth knowledge over information and views of scholar and respondents.

In my opinion, the best learning part of study was discussion and analysis where I was focused on analysing views of different sampled participants which helped me to understand impact of digital transformation on services of McDonald's. Apart from this, I learned about methodological tools which can be beneficial for different types of studies such as research approach, design, collection technique etc. Further, in my opinion gathering and discussion different views of scholar helped me in deriving various aspects of research topic which is effective for academic purpose.

Thus, in accordance to overall investigation, it can be said that there are different research methods which can be used to make research effective such as implementation of stratified sampling, inductive and deductive approach. Hence, in accordance with entire study various recommendation can be made deriving influence of digital technology on functions of McDonald's which are as follows:

• The firm should enable online order management for improvising its take away services.
• McDonald's should focus on digitalising menu and order system on restaurant table in order to make order management convenient for customers

APPENDIX

References

• Bruce, D. L. and Chiu, M. M., 2015. Composing with new technology: Teacher reflections on learning digital video.Journal of Teacher Education.66(3). pp.272-287.
• Gonzales, A., 2016. The contemporary US digital divide: from initial access to technology maintenance.Information, Communication & Society.19(2). pp.234-248.
• Kane, G. C., Palmer, D., Phillips, A. N. and Kiron, D., 2015. Is your business ready for a digital future?.MIT Sloan management review.56(4). p.37.
• Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D. and Buckley, N., 2015. Strategy, not technology, drives digital transformation.MIT Sloan Management Review and Deloitte University Press.14.
• McDonald, K. C., 2015.Flat world navigation: collaboration and networking in the global digital economy. Kogan Page Publishers.
• Skilton, M., 2016.Building the digital enterprise: a guide to constructing monetization models using digital technologies. Springer.

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