MacDonald Analysis
The American based corporation kicked off its operations in December 1964, mainly dealing with franchising activities in the global restaurant. Contemporary it is the giant in the industry comprising of approximately 36000 operation points in more than 100 countries worldwide. The company has a customer base of around 69 million individuals in which autonomous local business people serve a large percentage. Its remarkable influence in the market can be attributed to its unique qualities that can turn their services into customer favorites. The essay will focus on analyzing the conditions that make MacDonald the leading foodservice retailer globally.
Fundamentals of Leadership, Including Leadership Styles and Traits
The reputation of the organization can be attributed to its pioneer CEO named Ray Kroc. He demonstrates outstanding qualities in developing the organization’s reputation to ensure that Golden Arches maintain its momentum all the time. One of the prominent quality defining MacDonald is consistency, which makes it be in a position to change based on market demands to maintain its influence in the fast-food industry. Management entails doing things appropriately, which is the primary essence of leadership. A leader has to demonstrate exceptional qualities such as incredible social intelligence with more preparation for change inclusive of all other factors that enable them to make accurate decisions (Lussier & Achua, 2012). This element of leadership has enabled MacDonald to turn into a full-time business across time horizons. The critical factor for the administration to adaptability to change is due to changing customer demands and awareness. For instance, due to the health awareness campaign, most of the customers have turned conscious about their lifestyle and preferences. The company, leadership, is the situation with the primary focus being the task control, coordination, and division in the entities. The leaders are expected to adopt changes based on the circumstances in the market
The consistency of the company has been boosted by its succession planning with the company focusing on hiring and retention of talents. The previous leadership knows to maintain young professionals with leadership potential and understand the organization’s culture fully. All they have to mentor the young professionals on winning ways that keep organization influence in the food and drinks industry. Succession planning has played a critical role in enabling MacDonald to maintain its competitive edge in the food industry. MacDonald’s succession planning is built under the culture of consistent improvement practice. The young professionals working under the organization were training and offered an environment to improve their skills in dealing with customer demands. It can inspire its staff members to be work towards achieving organization vision and by engaging them in critical decision making. For instance, the plans have reputable growth leaders such as Ram Charan, James Noel, Steve Dotter, etc. the strategy is very tactical since it works with people that understand the cultural spirit of the organization to ensure its consistency is the provision of services to its customers. It avoids disruptions in the market caused by a change in leadership that can throw a business into confusion (Kotter, 2012). The companies ensure this culture is maintained by adopting a book entitled “The leadership pipeline.” It describes viable ways of developing a leadership-oriented business based on thoughts that can identify personal skills to propel development.
Strategic thinking
The essential part of the company’s strategic thinking is in changing the quality of their foods and drinks to suit incoming customer preferences. The change in the quality of their products was based on the customer perspective. In the recent period, the fast-food industry has experienced a massive difference in demands that have compelled players to adopt change for survival in the competitive contemporary market. The company had to do away with some of their previously approved approach for meeting customer needs in their attempt to change to the casual fast method. The changes did not sway the company from its core competencies in terms of offering value for their products. The company has implemented the idea by adopting contemporary technology to turn its transactions fast and efficient. Also, the company had to narrow down their range of products for active management. The company has adopted lean production procedure to ensure their products are of high standard yet selling at the price that suits the consumer. It is part of their strategic thinking of expanding the profit margin such that input is less while the output is maximized. It is based on allocating resources efficiently to realize the best market value.
The second part of the strategic thinking is by the manager of the UK branch, Mr. Easterbrook, in the bid to maintain business influence in the industry. The idea of the manager at the time is attributed to a significant increase in sales and revenue for the company by his strategy of revamping the company Menu as well as operating in a healthy environment. He participated in the rigorous defense of the brand by refuting the rivals claiming that MacDonald products failed to uphold health standards for their consumers. In his revamping mission, he included other healthier options in the menu through is well conducted situational approach. It implies that strategic thinking adopted by MacDonald suits changes to existing situations. Its primary orientation is to influence the followers to maintain their confidence with the organization. It is an unusual approach for the adequate safety of the brand amid the increasing customer demands.
The idea of this strategic thinking is to boost business expansion from a customer perspective through an approach known as ‘drive-in-service.’ The method is critical to align with the incoming customer taste and references. MacDonald’s primary strategy is aimed at serving the customer as a single person instead of a cohort. Its strategic thinking can create that personal relationship with their entire customer to ensure each of them is served appropriately. In addressing the diet expectations, the company has already implemented food customization that entails exceptional quality suiting their customers. The manager denied allegations by rivals, and by applying strategic thinking, the company has succeeded in retaining and attracting diet conscious and affluent customers. The response of the manager is proof that the company is keen to engage transformative leadership able to castigate change. The integrity of its leadership is the key to the company maintaining its strategic thinking by conductive productive activities and dispositions. The company’s leadership is aware of the organizational culture while exercising a substantial level of royal and respect to its interests. The leaders are keen to set a strict vision and ensure that their consumers are involved in achieving the set objectives.
Communication and Leadership
MacDonald’s influence is due to the management level of skills encouraged in the organization that is with employees and potential customers. In an era where transparency and accountability are emphasized in the organization underscoring the need to approach communication as a valuable asset. It is not only an asset to the organization but also makes an integral part of the leadership competency (Lewis, 2003). MacDonald understands the value of effective communication hence has aligned its leadership based on this factor. In the company Executives, managers and supervisors are well placed in front lines to ensure that appropriate information has been distributed and executed. MacDonald considers communication as an afterthought in the implementation of organization strategy. The company has adopted technology to ensure close contact with its customers where they can access their behavior. Customers can able to channel their concerns in the form of complaints, suggestions, or complements through various sites such as email, websites, and mobile phones. The views presented by customers are taken into critical considerations and necessary changes made to suit preferences. The platform also provides for a follow up to ensure that customer services offered to align with the expectation of the consumer when purchasing. Leadership has adopted exciting approaches to deliver communication to ensure changes are adopted fast (Ensley, Hmieleski & Pearce, 2006). It saves time in the organization, which translates to better services to the consumers.
Emotional Intelligence
MacDonald’s use of emotional intelligence is a massive boost to its influence in the market with the ability of leaders to change their character depending on the situation factors. The company understands the use of the contingency theory touching on the adhering to the demands of the followers. The argument is based on dual supreme behaviors, inclusive of the task and relationship characters. MacDonald mainly focuses on relationship form of action, which entails leaders applying a particular communication such as double, one, or multiples ways. These forms of communication enable the manager to identify tasks that need changes to manage and identify the willingness of an employee crucial in determining the best leadership approach to affect control (Bradberry & Greaves, 2009). However, in other instances, MacDonald executes task behavior to inspire teamwork and collaboration to ensure their customer are offered the best services. Building teamwork in the organization places the managers in a position to reinvigorate and enhance productivity in the team.
Organizational Culture
The company works in disperse forms with many outlets located in various parts of the world, which makes it a giant in the world food retail industry. The administrator of the company contributes immensely to the work culture at MacDonald. The management places all necessary measures to ensure no barriers between leaders and employees. The company leadership usually cares about emotions and employees’ well-being.
One element in MacDonald’s culture is that the leadership emphasizes on training and control in any of the appropriate levels through Hamburger college. In the learning institution website, the entity teaches ideas by the pioneer CEO Ray Kroc to train employees on the legacy and values of the organization since its inception. It manifests that the company values its employees so high that it does not expect their replacement. It claims that whenever one goes should have the expertise to place the talent on profit. The training is not only limited to specific individuals; instead, for every employee in the organization. The move aims to distribute the cultural identity to all levels (Seifert, Yuki & McDonald, 2003). It adds values to imparted skills through continuous training while awarding individuals that are of high value.
The other element of its organizational culture that contributes to its overall breakthrough in the food market is based on its simplicity approach. The company is known for its ability to standardize its services into the smallest manner for a consistent tight grip on service quality as well as expanding operation expenses. It achieves the results by incorporating cost-effective, vibrant, and less skilled labor closely monitored by the supervisors. The expansion of the business can be attributed to affecting franchisees, and business individuals are real fans of the brand. The company is aware of the benefits associated with the system to average individuals and breaking down the duties into a more straightforward procedure. The leadership of the company works with the belief that people are less aware that not only top leadership that requires expertise but all the team users in an organization (Ahmad & Schroeder, 2003). It creates a pleasant atmosphere for every person hence positively influences the level of planning, execution, approaching challenges, adherence to hospitality, teamwork, and ultimately positive emotions.
MacDonald is very sensitive and tactical when it comes to spreading of the norm to the participants in the organization. The company is well aware that practical training on the standard should be based on identifying and implementation concrete guidelines and approaches that play a critical role in defining its culture. In this measure, MacDonald can achieve the ideals and procedures that are the reflection of culture and norms. The company first practices it to ensure that franchisees are available in all locations guided by the core charges of the organization based on service, quality, value, and convenience (Project Management Institute, 2017). The core values are well articulated to the managers influenced by the core practice of MacDonald institution that is Hamburger College. The essential ideal for this practice is to ensure uniformity in all departments and operations points of the company. The training in the college entails core values of the organization range from the execution of tasks, interacting with the customer using verbal & nonverbal cues supervised by the department top personnel. Therefore, the culture is built under the system of control to achieve more centralized characteristics that influence provisions of individuality and code of conduct.
Problem Solving and Decision Making process
MacDonald works with the issue of challenges and finding solutions when their objectives are under threat, such as strategies not working to expectation. The functions are carried by the management that works through a prescribed procedure. The company is a firm believer in change from ‘do and repeat’ to ‘think and solve.’ The set skills and knowledge standards at MacDonald are found in the automated side instead of the normal one in a variety of ways. The do and repeat approach is usually handled by the artificial intelligence-enabled points, robots, apps as well as human resources with the ability to approach problems as well as emotional experts.
The organization management is focused on pursuing the features that are appropriate in the coming generation that is McEmployees, and the know-how required to be instilled in them. The source of motivation could be WaWa, referring to a chain of convenience operation points found in the East Coast playing the role of kiosks in the past period. According to the management of the points, the employees can interact easily with customers in respective destinations to identify areas that need urgent measures (Qureshi & Hassan, 2013). It implies that any person qualified to work in them must fully aware of every operation in the facilities as well as approaching it in a Wawa manner. Its primary orientation is to contact typical challenges while handling relevant machinery comprising of equipment and resources associate to solve unseen inconveniences. In MacDonald company, it is popularly known as “Train to Delegate,” majoring in inquiring on the right way while practicing listening skills. It entails assessing customer emotions then arriving at the most appropriate conclusion to address the reality and situation. The company enables this approach by streamlining its decision-making process. The organization is well aware that one person can’t make every decision and predict the results. It is upon every staff member to possess known on handling cash receipt register and addressing every dietary concern raised by the customer. For instance, every employee should be aware of necessary activities such as the level of calories in a particular product, detecting problems in it, and apply the most appropriate measure in addressing the issue in the Wawa approach.
Ethics and Professional Code of Conduct
The primary orientation of MacDonald is engaging in business activities that adhere to set ethics and adherence to the laws as it appears in organizational value. The core emphasis on each value is inspired to be ethical, honest, and reliable as defined in its standards of business code of behavior. The set standards play a critical role in arriving at healthy decisions in their business activities. MacDonald expects a high level of positive conduct within the organization hence has to certify that they ready to adhere to the set organizational standards. The company has programs to train its employees on ethics in issues such as anti-bribery regulations as well as other provisions in its policy document. Apart from the directives to adhere to the US Foreign Corrupt Practices Act (FCPA0, the company also possesses a Global anticorruption policy. The measures are meant to direct all the employees on relevant regulations on anti-bribery provisions comprising of FCPA (Crane, Matten, Glozer & Spencer, 2019). It applies to activities such as illegal payments to the third party or the government agencies to fulfill particular business interests. The company is keen to monitor and enforce the company policies on the employees through MacDonald global compliance office.
Conclusion
MacDonald’s leading influence in the fast-food industry can be attributed to the range of success elements that they depict. In the leadership element, the company practices transformative leadership that inspires management to implement change based on the situations. The strategic thinking of the company is based on customer perspective aimed at giving priority to customer needs and values. The emotional intelligence of the company is the core value for its success, entailing accessing individual behavior to determine the best communication to inspire appropriate action. MacDonald possesses the quality element of communication and leadership, where the top management works to do away any barrier with its employees. Organizational culture is built around values that conform to the customer demands that are price, quality, convenience, and place. Problem management and decision making in the organization entails a combination of strategic intelligence and human resources to ensure correct decisions aimed at objectives are implemented.
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