Analysis of McDonald’s leadership during the predicament
Emergencies such as the COVID-19 are sometimes unforeseen, thus proving difficult for companies to be well prepared. The pandemic has had enormous effects on businesses causing some to declare insolvency; hence, many people are rendered unemployed. The non-existence of the COVID-19 vaccine has forced corporations such as McDonald’s to change its methods of operations and adapt to new different situations to enable them to work. Being flexible to adjust to new changes is fundamental for management since the world economy is unstable (Dirani, Abadi, Alizadeh, Barhate, Garza, Gunasekara, & Majzun, 2020). Therefore, leaders have a duty of striking a balance between learning and adapting to new different business atmospheres.
A brief history of McDonald’s Corporation
Green (2015) highlights a brief history of McDonald’s Corporation. The latter is an American company dealing with the supply of fast-food in the world, and its primary specialty is hamburgers. Moreover, it serves sandwiches, salads, drinks, and French fries at low prices. Its first restaurant was established in 1948 by its co-founder brothers Richard and Maurice McDonald in San Bernardino, California, United States. Its command centers are in Oak Brook, Illinois. In 1954, Ray Kroc, a businessman, proposed to begin a contract program for the McDonald brothers. A year later, Kroc initiated the pioneer McDonald’s franchise in Des Plaines, Illinois. He also unveiled the McDonald’s Corporation in 1955 by buying out the McDonald brothers and being the sole proprietor in 1961. The company’s goal is to share knowledge and expertise in food safety and is committed to protecting the environment for future generations.
How McDonald’s CEO used leadership style, traits, and behavior during the pandemic
McDonald’s CEO, Chris Kempczinski, is a devoted leader who strives for its long-term existence amid the coronavirus outbreak. He shared a video message on the “five principles that guide McDonald’s ongoing response to COVID-19” to encourage and remind their employees that the company holds their best interests at heart (“Five Principles That Guide McDonald’s,” 2020). Kempczinski understands that communication is essential for the company to thrive and have good relations with its investors. In his voice note, he reminds their shareholders that they can rely on the company, to be honest in its management.
Top to bottom communication style employed by McDonald’s during COVID-19 and level of influence used for employees
The McDonalds Company CEO adopted an online platform, YouTube, to communicate with its labor force in attempts to maintain social distancing. He chose the top to support team communication style when he shared the voice note to his employees and relevant stakeholders. Besides, McDonald’s management team influenced their staff who wished to continue working to provide food to essential workers and the health care providers by offering reasonably priced food for their staff.
Challenges encountered by the McDonald’s management and how they solved it
The business faced a lot of difficulties as it was taking a new turn of events to be able to function in an economy affected by the virus. For instance, they closed some of their restaurants amid the breakout of the virus. However, being alert worked in their favor. The company quickly became accustomed to the new changes and forged forward to provide their services in a more secure environment. Schroeder (2020) indicates that the company was able to promptly implement the use of drive-thru and take-away for its clients to maintain the government’s directives of social distancing to curb the spread of the illness.
Ethics and work sustainability incorporated by McDonald’s during the COVID-19 crisis
MacDonald has an ethical policy that focuses on social progress. The company’s system has approximately 40,000 community touchpoints, where it gives food and simultaneously advances the community (“Five Principles That Guide McDonald’s,” 2020). They undertake these activities as a form of corporate responsibility to the people they serve.
The MacDonald’s has made significant moves that will conserve its financial elasticity. These steps include putting on hold buying of the company’s equity and amassing the money by $6.5 billion in the debt markets by the first quarter (Schroeder, 2020). Another step will be to cut down on expenses on investment ventures across the US. Similarly, diminish the number of new restaurant openings in most markets around the world. Altamirano and Collazo (2020) argue that top leaders must have a sense of emotional intelligence that will enable them to manage tragedies such as COVID-19.
My reflection and learning on how to improve leadership skills in the future
Conclusively, any organization is obliged to train its managers and employees on strategic management. Thus, the company should channel more resources to equip their workforce with the necessary expertise required to face whatever predicaments. Besides, the attained knowledge will aid them to steer the organization in the right direction amid impromptu misfortunes that befall their business. Thus, proper preparation strategies should focus on the magnitude, extent, and complication of the unseen disaster.