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A Study Of Change Management At Mcdonalds Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 5294 words Published: 1st Jan 2015

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McDonald’s is one of the biggest food organisation in the world, and has established it’s own operating restaurants and it’s franchises  which is about 28,700 selling points in 110 countries. Another most important aspect is Food business is much interested among young adults, children and adolescents. Therefore, The Company provides an enjoyable environment to their customers which is very secure and safe where all of their customers spend to joyfully and they can get less expensive food in a clean installation as well as the food company offers a unique interior designs and its own inner clown (Debre, 2005). Furthermore, McDonald’s put tremendous efforts to maintain healthy relationships with its suppliers and franchisees. The organisation continuously enhancing their services, supporting timely management and it’s capital operations to their partners. Therefore, this makes its suppliers and the franchisees loyalty I think, this kind of strategies will make their partners involve more effectively in work to achieve the organisation goals (Aswathappa, 2006). However, the food corporation continuously works with innovative ideas towards the needs and to grow during the operation without problems (Russell and Gubman, 2006). In this research paper, I am determined to find out key strengths and challenges of managing change at Mc Donald’s and will present a comprehensive documentation by discussing an important areas with examples about How this food company managed to survive competitively in the global business environment.

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The most surprising news is that from over 110 countries everyday approximately about 53 million customers eat at McDonald’s. Although McDonald’s has huge private franchisees to its chain of restaurants. However I think, the core management functions play a vital role to determine the success of the any organisation. Therefore, i would like to take an opportunity to discuss how the core functions influencing the organisational management with the impact of globalization such as controlling, directing, organising and planning.

McDonald is constantly leading as a present and future leader in the global food business environment. At the same time, it is very important that the company must have to focus on international and local investment and trade as this food corporation working more than in 100 countries. Moreover, the company should keep utilizing creative and new technologies to enhance the business and to promote new solutions and products to sustain its position as a global business leader in food business. Furthermore, McDonald’s should look at its common goal and also, take care of publicity and Customers satisfaction.

The demands McDonald, McDonald strongly urge for what he strongly component McDonald should win for that diversity with McDonald’s is thinking about the meet. With a daily reach of every culture daily scope McDonald McDonald’s just about access to almost all cultures, which many operations ambiguous / moral issues is clearly working. To solve more complex than the wider dissemination of a culture growing demand for spreading culture and morality. In this letter, we will examine how / external / internal factors impact the McDonalds impact of globalization, technology, innovation, diversity, one of four work ethics affect management.





Globalization is the process of interaction and integration between people, companies and governments of various n ations. It is a process driven by international trade and investment and international assistance is aided by technology. It affects the environment around the world, around the culture in society, political systems and affects the welfare of human betterment.



Goals and objectives


The purpose of this report for the purpose of change for an integrated portfolio of integrated change McDonald’s McDonald’s is present. The purpose of this study was found outside the driver for this purpose, the local fast food joint to identify the causes of change and this will be achieved through and insects. With analysis of the region I field army insect. It is also to identify and study the kinds of changes facing McDonald’s McDonald’s exchange rate I justify the purpose of SS cause. In addition, management of change within the repo repo I T IT change management process will introduce the McDonald McDonald, contextual change model using model reference currency. A number of books, magazines and newspapers to magazines to prepare this report information collected was deposited. The report will be divided into several sections and will include a summary of findings and recommendations is also as well as the findings and conclusions.




Collection and interpretation: The need for change


Now this report analysis of an insect plague, force field analysis force for change in the operational reasons will be identified. McDonald. McDonald’s policy is that U.S.A.A. politicians were invited by the U.S.A.A. government to ensure the health of their customers are. The company admitted that their suppliers have some heavy promotion of development roughly antibiotic chicken, beef and pork through the use of antibiotic drugs were stimulants. These chemicals were shown to be harmful is harmful to human health and food giant to help the authorities to curb the practice is said. McDonald’s has asked the suppliers to the meat industry to eliminate or phase out businesses lose custom. Company for the Ethical Treatment of Animals is working with people, animals and took the checkered (Greider, 2003) are killed reform.





McDonald’s has faced its share in the management of its activities have had to face difficulties. How about discussing the issue of using McDonald’s uses and how to manage their stock before the last work of its new stock management system the company benefited their implementation. Securities business will benefit.


To manage stock efficiently, it requires a balance of meeting customers’ needs is needed between reducing waste. After customers “to reduce waste. The last element of the demand for accurate prediction is that food need not be done by forecasting threw away rejected once more efficient and often not be efficient control should be controlling shares of stock of raw material. However, it can be hard as a customer, because customer preferences often change. The McDonald’s need to focus on product expansion and many products are produced To reduce waste and become more challenging and are less focused. difficult.

All companies face business challenges every day. Major challenges facing McDonald’s stock management of. Stock list management. List Management Meeting ‘customers need to create a balance between customers, while at the same time together to reduce waste whilst. Lack of waste: is:


First, the stock was taken care of restaurant knowledge and information by using first and restaurant managers participated. The great amount of time because mangers cribs demand forecast spend. This prophecy. Also, it’s going one way and not one easy account and other factors (seasonal changes changes, holidays) do not have.


In 2004, McDonalds McDonald implement a new stock management team as the Restaurant Supply Planning Department Planning Department offers restaurant called shares was launched. Team, local restaurant, local restaurant managers, many factors that affect many stocks, including many in communicating with the demand expected in the forecast system to predict the menu items.


To ensure that content is used only new stock always used, but were mangers McDonald, fifo method uses cribs to address McDonald’s stock. Meet different people. Stock action is needed to be done for the management of various types were


a.Raw content. Former content. Example: vegetables, meat, packaging


Progress in b.Work. Goods are in the process of becoming a finished product that is being converted into products


c.Finished products. The products of these items are ready for sale venda


Management system using the stock list, stock enough for McDonald’s was able to ensure safe enough stock was available when needed.







Use Porter’s competitive forces model Porter to gain a competitive advantage


1. A good model to analyze competitive position analysis McDonalds that are living within your industry estimates using the known model



Porter’s five forces model to analyze the competitive forces including the need. Analyzed. These forces include the intensity of rivalry from competitors are the traditional rivalries, new market entrants to the market risk, options and threats products or services, bargaining power of customers and suppliers Laudon (Laudon, 2007) the bargaining power. See picture below;



Traditional competitors (competitive rivalry)



Traditional rivals, competition, rivalry ()

McDonald’s fast food shops traditional competitors other restaurants across the country, namely, ie including the number, Burger King, Taco Bell, C, F, is Wendy. Wendy’s. This is shown Professor Michael (2004) Waterson was demonstrated by the presence of a Burger King, for example, the likelihood that growth will be open from McDonald’s McDonalds. It this way. So you have seen can be seen that the risk of more intense competition from traditional rivals, but never do.



Internationally for the quality of McDonald’s McDonald’s quality reputation is known. It is known. It is particularly unusual, unique, because the highest quality standards are maintained at very reasonable prices. When you eat McDonalds, McDonald’s customers expect high quality food and food service. Ensures that customer expectations McDonald McDonalds are all met. Only the best best quality food products is not guaranteed that they serve the food to ensure quality standards are met and fulfilled any hot food hot and fresh that fresh, is served is not. Keys for quality submitted by a manager for McDonalds is TLC – – tender love and care, where all efforts are motivated directed to maintain this quality standard.


Why one needs a change was necessary





In the past, orders were served individual stock orders restaurant managers had the responsibility of managers. Restaurant, ordered the stock. Using their local knowledge Sort by stock, and as well as data from the shop sold the last days, weeks and months. For example, if last week’s sales figures revealed last week they were selling coffee that sold 100 units and net sales were up 10% increase, he expects this week to sell 110 units is expected.

New System





In 2004, McDonald’s list of restaurant management, restaurant supply scheme known as the Department shares a central role in the ceremony started Planning Department provides a specialist. The team with the restaurant manager, restaurant communications computer regularly on a regular basis to detect Learn about local events. Team’s new planning and forecasting system based on these factors makes (Manugistics is called) for the menu item over the possibility of forecasting the demand forecast (Mac egBig MACS egBig).





This case study looks at how McDonald’s check through their management systems and gain share is operating its activities has been successful.


However, none involved a simple way to calculate and account factors such as national promotion or national school holidays is to take. The restaurant manager restaurant manager, a very long long time, leaving less time for the quality of restaurant food, service and cleanliness to focus on.

Economic Accommodation:

Increase in the number of children in the 1950s due to increased per capita income. This time saw a good economic period in the number of suburbs in the United States increased U.S.A.A. growth districts and encouraged to increase the series promotes dissemination chain restaurants like McDonald’s restaurant. The company has opened restaurants in convenient locations where families in the performance of their car very cheap fast food meal can Debres ((Debre, 2005). McDonald’s restaurants in the U.S.A. by the number present in a large number of American suburbs and in 1965 the company decade of 1970 to avoid locations within the city center locations avoided. The company has gone outside the U.S.A.A in 1967 move into the U.S.A.A. and Canada and came to Puerto Rico. It raided in Europe and later forayed revealed that this address will not be successful if it continues to successfully work in the suburbs. This has been a commercial business development

Europe’s main markets in Europe suburbs and central cities (Debres city (Debre, 2005) did.




During 1950 and 1960 McDonald’s increased its popularity increased in the decade when the U.S.A.A. changed in my lifestyle change and the pleasures of post-war period began. The high number of Americans have decided that more children have chosen and a common three or more families of children with visual spectacle visited. McDonald family is oriented towards the market and focus young children, adolescents and young adults (Debres Debre, 2005) has focused on attracting. Today, customers receive the visit of these places appreciate food joints to eat a sense of freedom they think they see in convenience at a time step. Young established. Young Adult Self concept and self-service with minimum adult are very happy about the adults who have contact with a minimum in the restaurant. Customers also enjoy the noise fun, comfortable environment and McDonald’s restaurants (Debres Debre, 2005) a bright color.





McDonald to face difficult times during the late 1900s 1900 season and was quickly -2000 late 2000. The car company in the leadership of their products and services focus on product innovation. Company to bring these changes to beat the competition to control and maintain market created. McDonald’s has increased focus on customers and asked people to invite new ideas. These ideas are turned into new products and processes and the company, launched a new mantra in action: a guess, start small and scale fast Gubman (and Russell, 2006). The company has set up shop with a model number with a number one in the kitchen cooking produced a warehouse. New product and process innovation and tried and tested in some restaurant experts to participate in peer test. This helped them to

Market a new product Gubman (unching and Russell, 2006 LA first menu test)


Force Field  

Analysis Group Field



Field Force identified problems Lewin analysis helps to identify and planned efforts to change organizations in the deployment of the deployment. The analysis for the driving force behind both change and resistance (Harwell, 2000) recognizes the changing forces.

Force Field Analysis Group Field



Resistance to change driving force resistance

Resistance to change:


We all know that people are generally resistant to change. Less often from the comfort of familiar challenge of the unknown is acceptable palatability. Home. When human organization a human face to talk constituent components are confronted with new ways to adopt, it is not surprising that they can be very uncooperative co. It is said that “most people resist change this song” Most people that have not been successful in their opposition to any change ‘pockets. Your pocket. “


For resistance may be rational or emotional sources of change, but the fact is that if early elections in the first phase of the protest did not cause serious problems if the major focus in the organization, as well as in implemented, says the change, as quoted by Maurer correct claims “” resistance kills change “..”



So a first step in the management of change because people change and opposition know. Some of them happen, can not not like them can change the choice: uncertainty with negative impact on the interests alleged eagerly reported discomfort; Attachment established culture / talk to / following methods; alleged psychological contract alleged bleach , lack, lack of confidence that change, lack of need required; what is expected as the lack of clarity, confidence in expectations, a significant change being that the proposed change is unfair, faith, believe that while the weather is wrong .’s bad.

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Excessive change, cumulative adaptation, “The cumulative effect of changes in the lives of others, in the lives of others’ admitted, alleged encounter with ethics, reaction, reactions to the experience of past changes, disagreements like how they are managing Disagree with change is managed, etc. is going. Order., Some of the strategy to overcome some resistance, such as education, education and communication can be used, participation, partnership and participation, convenience, convenience and assistance, discussion, dialogue and compromise, manipulation, manipulation and cooperation, clear clear and ambiguous rape etc. and Jaffe & Scott, according to the resistance that is one step away from that person when people start their ends and as a past and their potential role ability to pay more confident that those who face the future … … For the best strategy to use partnered Use participation to reduce resistance is to reduce resistance to change. Change.


Once people believe that change is necessary, and that change in terms of doing the right changes, your right, this time with the implementation and sustainability of changes to move forward.



Few problems easily implemented without income, but Kurt’s Force Field Analysis Lewin Lewin great help in implementing the changes can be very helpful. Step 3 to change the process of change Lewin has, these are steps – “Unfreezing” The current state of the company present ‘- descongelacions “; making,” change “use”; “refreezing” “,” refreeze “in the company because its new desired state so as members work and her previous role of behavior and behavior on paper is not returned. Then comes the last final stage where changes are consolidated.


A McDonald’s food for some communities accepted food standards (Debres Standard (Debre, 2005).

B. late for McDonald’s that of 1990 lasted for decades in the business quickly -2000 faced recession faced recession. Income gains were dipping diving, and competition Gubman (and Russell, 2006) was increasing.

A McDonald’s management McDonald’s until they change their product with a very constant opposition to (Debres, Debre had refused to face opposition,


B. 1990 McDonald’s leaders capable way out of recession in the decade of business to solve problems arising contraction result were not able to locate. Only operations only company, focusing on distribution, and concentrate costs and ‘customers did not pay much attention on customer needs. The company should not be devalued their

Brand, but a degree of regional variation to allow local clients Gubman (attracting and Russell, 2006). McDonald McDonald’s restaurant to change local cultures are known for their needs must. The company changed its business to modify its methods and optimization does not like foreign cultures (Debres Debre, 2005) is not conducive to.

Strong change


Organizational change process in an organization’s resources to help test, the organization reviews its strengths and its weaknesses and. For those involved in change management, managing the biggest one of the biggest challenges to try to try to ensure that change is not just a temporary phase. Therefore, a permanent one for something to stop it going to be new and different from common usage and to be seen as, it should be, but for those newcomers to the organization’s general condition became normal . organization. That’s why it should become an integral part of day to day work. everyday work.



Types of organizational change




O rganizational Change Type:


The four types of organizational change model, there is a description of four types of organizational change model described by S. Nadler et al (1995) are: Tuning, reorientation, adaption or re – orientation, re-creation or adaptation (Jain, 2005) that . These models now have 4 reports describing the report describes and models that McDonald’s. McDonald’s is being used by identity.


Tuning —  

Author’s description – as the most common type of transition model tuning adjustments. Tuning is also at least, fast and least risky. The following companies less risky. “Such type of model predictions and the companies learn to avoid problems should stop. They should not just wait for the bus is expected to go before they do something wrong that some appropriate action in any appropriate has decided to fix. example, for example, dupont a client program has adopted to promote their customer marketing efforts. Under this program the company themselves blue – collar workers said that their clients once a month Visit clients. This was discussed during the visit were to employees ‘needs customers and customers in their dupont factory act as representative. This approach is very different from the traditional model, where companies usually’ customers usually expect complaints from customers, and try to wait for them to heal when they try to achieve a complaint (Jain, 2005).


Optimization – —

To some extent the model of organizational change organizational model is similar to tuning adjustments. However, the model problems of companies in foreign companies, or in response to pressure changes in their organization to implement. Example, for instance, General Motors and Chrysler quite experienced great change their strategy after Ford was under pressure was a great success with aerodynamic styling. Design. This success led both companies to expand their product lines to effectively compete with larger competition with Chrysler did (Jain, 2005).


Reorientation —  

The rate of change of such changes in business strategy reorientation and some anticipation. Even as researchers Researchers organizations bending structure as frame bending model to include this type of model should be mentioned is important redirected. However, funnel. However, companies should not have to completely break from their past and only a few relevant changes apply. This approach to a fast food companies to come with a little creativity to your customers (Jain, 2005) is between reaching very popular among people.


Re-creation is the model of organizational changes to bring the most intense and high-risk types have been identified type. These changes began as common as common due to the high pressure is a strong contender. For example, Mercedes is trying very hard to make great in the U.S.A.A. are the two most rapidly growing areas sharply increase its footprint effort. America. The company’s attractive market for light trucks, minivans market and a market share is and want to introduce minivans and four – wheel drive sports utility vehicles, sport utility (Jain, 2005) vehicles.


Analysis of this discussion shows that using McDonald’s McDonald’s reorientation reorientation model is changed .. Not change its entire business strategy is not great food, but for some reforms of his business success in new markets Debres (This ensures Debre, 2005).



Change Management Process


Although researchers know that I changed a stable S, He, who recently have begun to understand the dynamics change. Principles for managing change. Are still in theory of change management is emerging and existing companies are currently testing a number of series – and error – using the address change process (Mclagan McLagan, 2002) procedures to deal with. One popular model of change is changing Lewin’s three steps: unfreeze, transition, infection Refreeze. Refrozen. The first phase includes steps to open more employees to change and reduce her anxiety level. In this stage, employees begin to get ready to become a more ready to hear about new changes listen. The second phase includes early employees, which can be done on trust by human resource professionals or professional managers involved in introducing new ideas or human resources department. The final phase of development at the end of stage employees change their behavior in organizational behavior and tax Weick (and agreed to accept the staff include Quinn, 1999).



McDonald’s to use this model can apply major changes in the organization of relevant McDonald’s management. The first company that already describe the benefits of employees may change gradually implementing changes in facilities and staff to persuade workers to use new policies and practices. Thus doing so, the new company will quickly adjust to new areas in local culture. Too. Similarly, it would be better, will the company compete with other players in the market equipped. Human Resources Human Resource Department for the company with the objective of which is the effect that employees are advised of changes to optimize organizations can use to adjust the lawyer can.


Summary of findings, conclusions and recommendations


Research clearly shows that despite the huge popularity McDonald met, this McDonald’s, which still needs to be changed continuously Gubman (and Russell, 2006) to enhance change. Pest analysis organization that monitors the conduct of companies reflects the political pressure on the pest companies .. McDonald’s to ensure access to healthy food policies for obtaining raw materials should ensure procurement of materials and their uses changed suppliers when necessary (required Greider, 2003). The company has received U.S.A.A. economic success in America but in Europe it is a different European market-driven (Debres Debre, 2005) should have. Thus, management must recognize that the business model may not be applicable in all areas of the world. Their environment, their atmosphere so high customer company (Debres Debre, 2005)) will not change is not appreciated by, but to consistently maintain their products and services and maintain a new Gubman (living and should Russell’s , 2006).

Army forces also showed resistance to change as McDonald’s McDonald’s management changes introduced only when faced by opposition consistently shows analysis of the field analysis. The company should immediately adopt a foreign culture and customer focus more on customers ((Debre, 2005) Debres needs. As noted above discussed, the company’s organizational model of organizational change model type reorientation as is using and will use Lewin Lewin’s three stages of the process of change uilitzeu necessary changes in relevant organizations Weick (to receive and bring Quinn, 1999).



Despite their efforts, still remains Britain’s McDonalds McDonald’s unhealthy food, increase in obesity in Britain associated with employment growth and employment, without prospects, need time – Word image constructed by the organization. Organization.

His nationally recognized for its ability accredited diploma through the development of staff training efforts, QCA is valid, refuses to recognize them has been compromised by universities refused to recognize.

Books and films, promotional films McDonald McDonalds which is the target of severe criticism of the negative aspects of the organization’s propaganda. Organization.

“Company” healthy company, “options” that’s healthy criticism has been criticized, for example in salad dressing, high fat content for a salad ..

McDonald has seen the McDonalds instigated litigation petition, because the company’s electric power generation company’s financial public legal proceedings was considered aggressive.


‘McDonalds as a small short-term approach, because it is positive McDonalds has responded to consumer demand and provides a comprehensive expansion of its territory affected by the recession hit a low cost to get takeaway option provides is.

Company image and appeal of the problem has been addressed that attract consumers to a wider scope wider range offering a larger increase in business.

Instead of expanding into new areas to expand the existing market development through moving step plan to develop, with opportunities in emerging markets economies, due to, for example, increased use of car to drive cars, use – restaurant through more premium.

Overall, in general, a good organization organization works to expand your business potential margin expansion and broadening its offer through the covered areas is already ambivalent.



McDonald McDonald for their products and services constantly change constantly to stay ahead of the competition put Gubman (and Russell, 2006) is. The company must meet soon for the local market is very conducive to attract local customers that you more easily accepted in this area can. Phase three phases of Lewin’s model of change in the mindset of bringing Lewin model can be achieved McDonald Weick (and Quinn, 1999 age old stereotypical thinking management of McDonald’s management). His view can replace with contemporary theories can, but they can protest and are sticking like, old ways of customs operations tend to live with. But still, this change will benefit the organization in a very long term, as the globalization of the market and more players can change may have begun reluctantly

For the development of the company proved the company’s market is fatal.




















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