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MCDONALD

By Larry Barrett, Sean Gallagher  |  Posted 2003-07-02 Email Print this article Print
 
 
 
 
 
 

McDonald's planned to spend $1 billion over five years to tie all its operations in to a real-time digital network, but the project failed before it even got off the ground.

'S BASE CASE">

MCDONALD'S BASE CASE

Headquarters: McDonald's Plaza, Oak Brook, IL 60523
Phone: (630) 623-3000
Business: World's largest fast-food restaurant chain serving more than 46 million customers each day at more than 30,000 locations in 121 countries.
Chief Information Officer: Dave Weick
Financials: $893 million net income in 2002; $2.1 billion operating income; $15.4 billion revenue.
Challenge: Implement worldwide digital network and enterprise resource planning system for financial data, human resources and supply-chain management applications.

BASELINE GOALS:

  • Increase sales by at least 3% to 5% in 2003.
  • Improve operating income by 5% to $2.2 billion by 2005.
  • Cut capital expenditures to $1.2 billion in 2003, down $700 million.
  • Cut the length of time needed for managers to collect and analyze individual restaurant sales and inventory from more than one week to a little as a minute.


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Senior Writer
larry_barrett@ziffdavisenterprise.com
Larry, of San Carlos, Calif., was a senior writer and editor at CNet, writing analysis, breaking news and opinion stories. He was technology reporter at the San Jose Business Journal from 1996-1997. He graduated with a B.A. from San Jose State University where he was also executive editor of the daily student newspaper.
 
 
 
 
 
 
 
 
 
 
 

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