Examining The Is System Of Kfc Information Technology Essay

August 19, 2017 Information Technology

Purpose of the study: The Management of KFC Parramatta has requested an probe sing the usage of their Information System in relation to their concern ‘ determination devising for competitory advantage and to do recommendations for alterations and/or betterments as required.

KFC Parramatta is one of the subdivisions of a immense franchise that is celebrated worldwide. Bing a fast nutrient eating house it faces competition from many other similar eating houses for case Hungry Jacks, McDonalds, Dominos and every individual eating house be it little or large. Therefore their information system plays a large function in their determination devising procedure and their competitory advantage over their challengers. Knowing how to do betterments in their concern utilizing information systems is a major advantage and it is what a the profitableness of a concern relies on ( J.A Senn 1996 ) . Many retail concerns lack an information system doing it rather hard for them to do critical determinations therefore their rivals have a complete advantage over them and in most instances the retail concern loses many clients due to the deficiency of right information. Harmonizing to Tutor2u ( 2010 ) competitory advantage is “ an advantage over rivals gained by offering consumers greater value, either by agencies of lower monetary values or by supplying greater benefits and service that justifies higher monetary values. ” Information systems help accomplish this because they help the concern know what is required and when it is required ( Barney 1995 ) and by utilizing this the concern can do determinations such as how many staff to use during a specific twenty-four hours for case on Christmas ; how much stock is required ; what merchandise to stock most ; the mean concern net income during a certain period and its tendency i.e. whether the concern is traveling at a net income or lost and such information. The determination doing procedure normally relies on the higher degree direction non the director of the subdivision itself, nevertheless without information from the smaller subdivisions it is about impossible for the top degree direction to do a determination and that ‘s why a good information system has to be.


Taking the above information in head a research was conducted on KFC Parramatta. A hebdomadal interview was organised with one of the directors, Vinod Patel, largely on Fridays and Saturdays merely outside the eating house. The information collected was carefully analysed and organised and some of it is presented in this study in the signifier of graphs and diagrams.

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Research site:

KFC Parramatta is a local eating house located at Westfield Shopping Centre in Parramatta, New South Wales. Bing a fast nutrient eating house, all they sale is nutrient merchandises such as poulet Burgers, lily-livered nuggets, french friess and other related merchandises. It is really near to other nutrient tribunals in the same country and faces a batch of competition from nearby fast nutrient eating houses hance the demand for a good IS system.


From the interviews it was found that KFC Parramatta has an information system in topographic point. The information system was used about in all cases of the concern. The following are the cardinal countries where their information system is used:

Recording gross revenues informations ( the merchandise sold, clip it was sold, cost of the merchandise, figure of merchandises sold and amount sold )

Calculating the day-to-day wage for staff members depending on their figure of hours.

Analyzing the public presentations of the displacement supervisor and other staff members ( this is done automatically in the computing machine where it calculates the entire gross revenues and divides it by the figure of hours giving a gross revenues per hr figure )

Generating the day-to-day, hebdomadal and monthly studies on the public presentation of the concern.

It was found that the determinations are made in three degrees and as follows:

Operational degree ( shop directors ) : they make the determination on how many staff to use, delegating occupations to employees, responsible for the day-to-day direction of the concern and they handle client ailments.

Middle degree of direction ( country directors ) : they overlook the running of the shops and guarantee that nil is traveling incorrect.

Top degree of direction ( executive directors ) : they are the 1s that decide what merchandise to take from the market, what merchandise to add to the market ( as an illustration the director illustrated the broiled poulet ) , at what monetary value to sell it and where to turn up new eating houses.

Analysis of findings:

The gross revenues are done on hard currency or recognition card footing but everything is automated. The hard currency procedure is simple and less clip devouring as a staff member can easy take hard currency and give back the needed alteration. The recognition card sale footing is a little more clip consuming but about similar to the hard currency system. Additionally the staff member has to wait till the dealing is approved since the recognition card has to be checked to see whether the client has money in it or non. The order informations ( the merchandise sold, clip it was sold, cost of the merchandise, figure of merchandises sold and amount sold ) all goes into the waiter once it is approved and it is stored at that place. The staff members roll uping the information from clients can merely input informations and one time an order is placed alterations to the order can merely be done by the mandate from directors. This acts as a security step and prevents the staff member from redacting any informations after it is approved. Another security step was the being of a safe to maintain all the hard currency and every staff member is supposed to maintain the hard currency in the safe once it reaches a certain sum. Additionally being located in a shopping promenade there are security cameras and even security guards around and this helps maintain surveillance around the eating house. The information stored on the web waiter can merely be accessed by directors of that shop ( operational degree direction ) , the executor direction and the administrative degree direction since they are merely 1s that have a watchword needed to log in to entree the information. Since the information is all being stored straight on the web waiter there is a rare opportunity of the informations being inaccurate if any.

Figure 1: An illustration of a monthly gross revenues study of KFC Parramatta

From the study it can be seen that KFC Parramatta makes more gross revenues on Thursdays. One of the chief grounds for this is because of the long hours they are unfastened. This graph is merely one of the few generated by their information system. Without the information system, it would be so difficult to analyze informations and do a gross revenues graph and therefore it is of import that an information system exists.

Figure 2: An illustration of the concern operation and determination devising procedure

Data is automatically recorded on to the chief waiter


Reports are analysed used to do decisionsuntitledj0196400

gross revenues

Data is automatically converted into:

Daily, hebdomadal and monthly Reports

Stock studies

Main jobs with the system:

Although the information system at KFC Parramatta is designed absolutely, there are minor defects that could turn out critical if non addressed.

1 ) One of them is the manual ordination of stock. Stock at KFC Parramatta is ordered twice a hebdomad on Tuesday and Saturday and this is done manually. The shop director counts the stock manually and orders as required. This leads to clip ingestion as the shop director has to manually number each and every box. Additionally, during the research it was besides found out that during one of the busy yearss they had run out of stock for french friess and poulet because the director had forgotten to number the stock the twenty-four hours before and failed to put an order. This lead to holds with client orders since they had to wait acquire stock from another shop nearby. How did this impact the concern? Many clients left angrily as they could non defy the waiting holds. A few of the patient 1s waited for an hr before they could acquire what they ordered. Loss of clients meant loss of net incomes and even a one hr hold in such a large eating house causes a major crisis and leads to loss of net incomes. Located following to many other similar eating houses, some of the clients even bought from nearby eating houses as they could non defy holds. This meant the other eating houses gained a little competitory advantage over them during that period.

2 ) Another cardinal country is the readying of the day-to-day roll. The day-to-day roll is prepared manually by the shop directors. They do this by naming a squad member and corroborating their displacements for the following twenty-four hours. The jobs associated with this? First, every squad member has to be called and this means an added disbursal. Furthermore the roll is non available online and as one incident happened two squad members may describe for a individual displacement.


Figure 3: Example of automatic stock telling systemKFC Parramatta should acquire at that place telling system automated. They should supervise their stock utilizing barcode scanners, how much goes in and how much goes out. When the stock goes below a certain degree the system automatically orders stock. This would assist them in acquiring their stock in clip and before the demand for it, maintaining them on the safer side. Harmonizing to me below is an illustration of what I would sooner implement something as follows:

Estimated needed stock

( 8 boxes )

Current stock

( 8 boxes )

System orders more stock ( 3 boxes )

Stock goes below estimated required degree ( 5 boxes )

Additionally they should hold a system where the rolls are prepared online and this manner squad members can see what twenty-four hours their displacements are on, plan their timetable from a convenient location, notify everyone of last minute alterations and this manner they can forestall many jobs. This keeps the other squad members aware of their responsibilities and who they work with.

Finally they should set up a client relationship direction system ( CRM ) . “ CRM, or Customer Relationship Management, is a company-wide concern scheme designed to cut down costs and increase profitableness by solidifying client satisfaction, trueness, and protagonism ” ( Reynolds, 2010 ) .In instance a hold happens their clients are loyal to them. This can be established by conveying in a point system for case purchasing at KFC Parramatta earns you some points and after you have collected adequate points you get to choose a repast of your pick and utilize your points to purchase it.


In decision, KFC Parramatta has the potency of being the best eating house in their country if they somewhat modify their current information system. Adapting to some new alterations in the information system, an machine-controlled ordination procedure and client relationship direction systems they can derive an absolute competitory advantage over their challengers. Using the information system sagely has lead to it being one of the supreme commanding officers and with a little more alterations they can do determinations more rapidly and accurately, and this can take them to holding more clients than other local eating houses. The automated ordination system will guarantee they get the goods on clip and with clients being loyal to them they can maximize their current net incomes.

( 2110 words )


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