Technology Integration for Market Dominance

Introduction

The impact of technology on business enterprises is profound. With the emergence of new technology not only is production and service core aspects of a business, but also customer connectivity and outreach have forced organizations to integrate and conform to the trend of using technology for market dominance and relevance (Hakala, 2011; Truong, 2010). Nearly all businesses have adopted technology in their various departments with the intent of improving efficiency of services offered. According to Fitzgerald et al. (2014); Kowitt (2016), nearly all big and small businesses enterprises have integrated technology to enhance their service and growth as well as adapt to competitive market. Despite being in the food industry, McDonalds equally apply the use of technology to gain competitive advantage in the market.

Purpose of the study

This paper proposes an in-depth study on how the usage of technology by McDonald’s corporation as influenced efficacy of its services. As stated previously, technology has a wide application particularly in the food industry, from food conservation, cooking, baking, customer relation, ordering, to delivery but majorly advertising and marketing. In the context of this paper, investigation will be on how technology has had an influence on the services efficacy of McDonalds. In particular, the paper intends to survey the impact of social and digital media, digital kiosk, and computerized systems on the marketing strategy of the firm as well as its operation structure and cultural setting.

Objective of the study

To investigate the extent technology has improved efficacy of McDonald’s marketing strategy

To investigate the extent technology has improved efficacy of McDonald’s food delivery.

To analyze the extent technology has increased the levels of consumer service satisfaction at McDonald’s

To investigate the influence technology has had on customer relation and satisfaction at McDonald’s Corporation.

LITERATURE REVIEW

Technology is a core aspect and driving force in business organizations today. Recently, according to Lee et al. (2015), even the most established enterprises in the market are been forced to modernize, reimagine, and restructure their culture, beliefs, and policies to stay relevant. For instance, the taxi industry has experienced the most impact, with the growth of such companies as Uber and Lyft that utilizes mobile applications to reach customers and conduct their operations (Revenel et al., 2016). However, some have been slow in adoption of the same, more specifically, food companies. It is observable that all industries activities are influenced by external factors especially by the technological revolution, which results in either gaining a competitive advantage or losing out to the competition for late comers.

Recently, business organizations such as Froozer Limited has taken up the innovation to curb the losses, enhance customer services, and improve returns in revenue. Further, the study conducted by Sharma (2016) found that more people are becoming addicted to the internet and media platforms such as Mobile phone, TV, and computers and particularly social media; which has opened a significant opportunity for connectivity with consumers and marketing platform of the product. Technology has been widely used by companies to achieve their objectives and goals, in respect to marketing, customer relation, increase efficiency of productivity and service delivery (Clesbrough, 2013)

Marketing and Public Relations

In the past 30 years, both developed and developing countries globally have experienced a shift in their industrial production, where a more sophisticated form of technology has been integrated into manufacturing sector (Löfsten, H. and Löfsten, H., 2016). This advancement in technology has influenced not only the production department but also service delivery. The business growth is unachievable regardless of the advancement in production and services especially if there exists a mismatch in the market outreach where the product delays reaching the market or takes long to be absorbed (Hakala, 2011). Therefore, the competitiveness of the firm primarily depends upon its capacity to exploit technology to reach the consumers effectively. For instance, a Phone Company, need a faster and convenient means to reach phone enthusiast before its technological advances becomes absolute. Modern marketing tends to be more efficient, economical, and feasible. Recently companies have employed such method as directory services, co-branding, online marketing and advertising services for exchanges and matching services in the search for partners and advancement of their services (Lee et al., 2015). According to Ramanathan et al. (2012), recently, e-business and e-commerce have dominated the field; these are continuous optimization of business activities through technology. On the other hand, technology has encouraged the growth of relational marketing, which improves the relationship between the business enterprise and the consumer compared to traditional transactional marketing strategy comprising of 4P’s (Turner and Shockley, 2014). The basis of effective marketing is on this to attract and retain customer through their satisfaction. The internet has drastically increased the amount of information available to the consumers who have recorded a significant shift in the purchasing trends. Websites such as Amazon and Alibaba display user reviews and rating for the product, which companies have no control over it (Dhore et al., 2014). As demonstrated, customer satisfaction in service and product has become a high priority. Most companies nowadays have realized that doing business is more than just adding consumer, but preventing real damage to the brand (Roper and Davies, 2010). Organisations place more emphasis on consumer complaints and review more than customer service; rather they are part of corporate branding and reputation management. Many businesses have social media pages, websites, and other means to receive firsthand customer experience or review of their product and service.

Service delivery

As it seems rather fundamental, efficient customer service is one of the essential metrics in business particularly food industry. This evaluation applies equally to both commercial and non-commercial operations such as Chain restaurants, hospitals, and learning institutions. In contrast to location, operation, and market size, the service levels that are below the expectations of the consumer will negate their perception towards the company regardless of the quality of the product itself (Nebenzahl and Jaffe, 2013). In that light, businesses are continually searching for means to enhance the customer experience. One aspect that technology is taking root in the industry is a food-ordering kiosk. Some hospitals environment employed the use where staff can swipe their badge or credit, place their order, and then indicate the time they want to pick the food (Turner and Shockley, 2015). This gives the customer control over how they want their order and period they have to wait therefore feeling empowered (Lee et al., 2015; Salmen and Morgan, 2016). Similar kiosks and technology are making its way to major food chain industry. McDonald’s and Wendy’s announced they could roll out and implement the interactive customer systems where the customers will order the food and then they will be allocated identification number, which will allow the employee to serve him/her efficiently (Kowitt, 2016). Moreover, mobile phones have revolutionized ordering items and making reservation particularly online. The client can access services and products any time within their conveniences; also they can receive notification on the availability of the product (Fitzgerand et al., 2014; Leong, 2016). This kind of application of technology fosters the efficiency of the company as well as enhances customer satisfaction. Radio frequency Identification (RFID) is another approach applicable in the food industry (this technology monitors the freshness of the food inventory). Research has found the correlation between the benefits of clear labeling of the expiry date (the freshness of agricultural produce) and consumer’s product perception. In the study by Suresh and Biswas (2017), consumers base their buying decision on the commodity’s freshness (label of expiry). Organizations have increasingly used these technologies to justify the item’s inventory especially the food chain industry. Nowadays, some service industries have an integrated food conveyor belt for delivery of dished to the consumer especially in cafeteria or self-service situations. After placing the order, the customer waits for the delivery through the belt, reducing the period of queuing and increase the speed of service for instance Yo Sushi restaurants (O’Toole, 2014). On the other hand, in an aim to deliver quality services and products, companies have adopted automated computerized systems (robotics) to improve on safety, effectiveness, and quality in monitoring and control (Salmen et al., 2016; Caldwell, 2013). Although the decision by restaurants and fast food industry such as Panera Bread (PNRA) to use automation and robotics systems, received negative review and attack by employees, some economist has complimented its efficiency and economical aspect (O’Toole, 2014). In the paper by the University of Oxford, researchers estimated automation of up to 92 percent in the food industry (food preparation and serving) in the near future. O’Toole (2014) in his articles claimed that artificial intelligence (AI) technology such as Watson platform could make strides with advance reasoning and understanding. For example, a food processing company in Spain employs robots to inspect lattice in a conveyor belt removing those that contravened the company’s standards.

Customer Relations

Previously, companies controlled the consumer’s reaction towards the services provided. Nevertheless, since the inception of social media platforms such as Facebook, Twitter, WhatsApp, and YouTube, frustrated and unsatisfied customer air their grievance on these platforms. The appendix shows images of McDonald’s page on three social media sites that include Facebook, Twitter, and Instagram where they interact with their clients who also post review on the company’s services and products. Customers nowadays are controlling the conversation around the services offered by the business entities (Lee et al., 2015). In particular, social media have enabled them to communicate their frustrations, condemn malpractices in the industry, and comment on the product quality to an increasingly connected population. In this perspective, companies have adopted a new outlook towards customer services and reputation management (Nebenzahl and Jaffe, 2013). In writing, Thrassou and Vrontis, (2009) expressed the need for inclusivity by companies regarding the consumer relation and they should strive to earn their confidence by treating them well.

RESEARCH QUESTION

Recently, advancement in technology has dominated business operation as well as people’s daily lives, reshaping, modernizing, and introducing new aspects of doing things. According to Fitsgerald et al. (2014), the use of technological innovation is imperative for business growth and development. Therefore, in this regard, the need to establishing the correlation between the company’s push to incorporate this advanced technology into its cultural structure. The subsequent efficacy it brings on its services will be the focus of this study. The paper will research on how technology has helped the McDonald’s to attain its goals, objectives, and desired outcomes efficiently especially its services towards the consumers’ satisfaction.

Aim of the study

The research intends to undertake an investigation of the extent and impact of technology on McDonald’s efficacy in marketing strategy, food delivery, customer relation, and level of consumer satisfaction. The researcher will strive to establish the improvement achieved since the incorporation of technology into the organizational culture and its influences. The study, therefore, will aim to identify the main contribution of the technology to the marketing of the products, engagement with the customer, mechanism of food ordering and delivery as well as a consumer’ experience and levels of satisfaction. For the study to achieve this, the following question must be answered.

How has McDonald’s integrated technology into its operation?

What are some of the improvement in services, realized by the technological integration?

What are marketing achievements gained through advancement in technology?

Are there any other prospects of technology that could increase service efficacy within organization?

How has this use of technology influenced consumer’s satisfaction levels and attitudes towards the company?

RESEARCH METHODOLOGY

Introduction

This section illustrates a summarized detail on how the study will be conducted and the approach followed in the aim of fulfilling the research objectives. In particular, it will focus on the data collection methods and tools to be used during research, also the technique of data analysis.

Research design

Many scholars have suggested the use of qualitative research approach especially in the exploratory study (Hair, 2015). In this method, the research will tend to exploit and understand the extent and influence of technology in the operation of the company therefore necessitate qualitative approach. Additionally, the research intends to use questionnaire and secondary data where data will be analyzed statistically, therefore quantitative approach is admissible. In the context of the study, both methods (quantitative and qualitative) will be integrated into the aim of insightful and conclusive results.

Data collection methods

Primary data

In writing, Myers (2013) indicated three main tools used in primary data collection consisting of an interview, observation, and questionnaire. Using these data collection mechanism, the research will focus on collecting data from the employees, consumers, and shareholders of the firm from different regions, capacity, and role. In this study, the researcher will use the interview and questionnaire methods of collecting data under qualitative approach. In the writings, Seidman (2013) illustrate interviewing as effective means of obtaining a true and in-depth meaningful level by getting the whole consumer, and provider of the service stories behind the experience of the technology. The interviewing aspects of qualitative research seek to describe and meet the core theme of the study, the influence of technology on the efficacy of McDonald’s services. In the context of this research, an interactive approach between open-ended and in-depth interviewing tool will be employed. This approach facilitates faster collection, and easily analyzable and comparable data. Further, the interviewee is open to disclosing how technology has affected his/her experience as a consumer, as well as enabling the interviewer to have a holistic understanding of both consumer and provider (McDonald's management) point of view (Minichiello et a., 2008). On the other hand, questionnaire as a research tool offers both quantitative and qualitative approach (Pattern, 2016). This format provides a cheap and faster means of primary data collection while maintaining high levels of objectivity in the study.

Secondary data

The study will employ the secondary data collection tool where existing scholarly articles, media coverage, and reports pertaining the area of study will be used. This will provide both qualitative data obtained through newspapers and interviews, and quantitatively collected through survey and statistics reporting (Stanley & Nayar, 2015; Trzesniewski et al., 2011).

Feasibility of Data Collection

This research will administer a more straight-forwarded and logical questioning in quest of minimizing biasness, also allowing participants to be randomly selected. Here, the validity, and trustworthiness of the data in maintained by employing as much as possible, the use of well-structured questions hence minimizing ambiguity, leading and emotive aspects of questioning (Thomee, et al., 2015). Furthermore, further validation is achieved by matching and counterchecking correlation of primary and secondary data that has been collected (Campbell, 2012).

Sampling

McDonald's is a huge company operating 36899 restaurants employing over 380’000 workers worldwide. For insightful study of how the technology has influenced its operation efficiency, sampled participants are obtained in a probabilistic means. The study intends to engage four restaurants located in close proximity, interviewing and administering questionnaire to ten managers and employees of the company. Moreover, 30 customers of the company will be interviewed who are selected randomly, also 50 questionnaires administered to different participants.

Data analysis

Notably, the research intends to incorporate both the quantitative and qualitative approach. Therefore, the paper will review the data from both primary and secondary collection method through descriptive analysis and use of Micrososft excel from drawing of graphs and charts (Bryman, 2015).

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