Assignment on Incremental Change

Section A
Activity 1A
1. At the time of identifying the requirements or opportunities of change, it is very
important to analyze the objective of the organization as to identify the influence of key
people and the importance of groups of people. It is also important to ensure that
opportunities or changes conform to establish organizational objectives, to applied right
efforts in the right place and make effective and efficient strategies (50MINUTES.COM,
2015).
2. Before identifying and implementing the strategic change in an organization, it is
important to know about types of strategic change. Types of strategic change are:
 Transformation
 Realignment
 Incremental change
 Big Bang
Activity 1B
1. The organization must review the existing policies and practices against strategic
objectives because it may no longer fit to achieve organizational goals. There are many
reasons to review existing policies and procedures. These reasons are:
 Existing policies are not as strategic as per the current business environment.
 Existing policies maybe not fit with new rules and regulation.
 It is also important to analyze the need for change (Appelbaum, et al., 2012).
2. Technological change can create some opportunities and advantages for the organization.
In this situation, at the time of implementing the technological change, it is very
important to review the following types of policies and practices:
 Data protection policies
 Information technology policies
 Employment practices
 Training and development
Activity 1C

1. The achievement of the objectives of an organization may be impacted by following
external trends or events:
 Fluctuations in economy and market
 Credit and financial condition
 Local infrastructure changes
 Changes in legal rules of the country
 Changes in technology
 Customer base ( Elsmore, 2017)
2. PESTLE analysis of McDonald’s UAE
Political factors
If seen, the political factor of the United Arab Emirates is different from the rest of the
countries, which affects its standing matter (50MINUTES.COM, 2015). These may
include the following points:
 The seven Emirates of the United Arab Emirates have their own government and
individual organizations that allow for flexible and effective management across
the country.
 Talking about its downside, the UAE is constantly feuding with its neighboring
states and governments over its oil reserves or land.
 The United Arab Emirates has healthy and strong trade relations with many
countries in the world (Berry, 2017).
Based on the above points, it can be said that McDonald's has a good market in the
United Arab Emirates and it can grow well in the future.
Economic Factor
The strength and growth of any country depend on economic factors. This is a relevant
factor in view of the standings of any country (Blokdyk, 2018). The following
economic ideas can be included as a context of the United Arab Emirates -
 If other countries look at the per capita income in the United Arab Emirates, then
it is much higher than the rest of the countries and the GDP rate is also very high.
 The unemployment rate is at a very low level here compared to the rest of the
countries.

 In the context of other countries, the percentage of foreign direct investment
(FDI) is also very high (Issa, et al., 2010).
Taking all these points into consideration, the market of McDonald’s is safe and growing
in this country.
Social factors
The social conditions also affect any business. Social factors are very interesting as the
social environment of the UAE. Social factors can include:
 The job of the people of the United Arab Emirates is highly payable, based on
which people there follow a comfortable lifestyle (Wallis, 2017).
 The effect of globalization has been seen on the UAE as well, now people of
different cultures are also seen here.
 Religion is an important matter in the UAE and its impact is seen in society as
well. For example, women there can be seen wearing a specific type of clothes.
Due to these social reasons and the high pay of the people here, McDonald's business is
growing very fast.
Technological factors
Today's era is the era of technology. Technical factors are mainstreams in today's world.
The United Arab Emirates is a wealthy country and has a largely middle-aged population,
due to which there is no difficulty in adopting the technology (Perera, 2017). But
thought more deeply, the following are the factors that influence UAE technology:
 The young population here is tech-savvy as compared to other countries, which
helps companies present in the UAE to adopt modern technology.
 The United Arab Emirates is a rich country from which modern technology is
adopted in abundance here.
 Modern technology has filled communication and revolutionized fast food
distribution (Yüksel, 2012).
This modern era and increasing technology have greatly helped McDonald’s and the
latest system of fast food distribution has elevated it to a very high position in the market.
Legal factors

In this part of the PESTLE theory, law-related rules will be studied. Under this, the effect
of the law and the rules related to the company is studied (Robertson, 2015). The
following legal factors affect the operation of a business in foreign countries -
 The increase in health regulations has affected its business.
 The United Arab Emirates is an Arab country and Halal meat is preferred here,
whose influence can be seen on business.
 Laws made for animal welfare and saving animals is also affecting business
(Miller, et al., 2011).
Whatever laws are made for children's health have had an impact on McDonald's
business. Animal welfare regulations have also had a negative impact on McDonald's
business.
Environmental factors
Environmental factors have a special place in any PESTLE analysis. These factors are
considered to be the last and long term factors. The environment has an impact on the
business as well as people. Environmental factors for the United Arab Emirates are:
 The climate of the United Arab Emirates is hot and dry due to which variations
are seen here.
 Due to the hot and dry climate, productivity is little here and farming is not easy.
 Some areas of the United Arab Emirates are near the sea, due to which it becomes
easy to trade here.
These environmental and ecological trends have a great impact on McDonald’s; with the
variations in climate is taking place which has a bad effect on McDonald’s business.
Activity 1D
1. Examples of each factor
Performance gaps
 The shortfall in production targets
 The shortfall in sales targets
 Quality problem complaints
Business opportunities