Individual Business Report

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This report analyzes the functional areas, hierarchy of management, and communication within Golden Bear, a toy manufacturer. It explores the drivers of globalization and their impact on businesses. The report also compares leadership styles, focusing on the suitability of democratic leadership for modern global organizations. Additionally, it examines McDonald's competitive advantage using SWOT analysis and Porter's Five Forces model, providing recommendations for improving its competitive edge. Desklib provides past papers and solved assignments for students.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1. Functional areas and hierarchy of management ................................................................3
2. Communication central to leadership and management and example of interdepartmental
communication ......................................................................................................................5
3. Current drivers of globalization and its impacts on business ............................................7
4. Compare two chosen styles of leadership and most suitable for modern global organization
................................................................................................................................................8
TASK 2 ...........................................................................................................................................9
Leadership style and functional areas of organization ........................................................10
Business analysis tool ..........................................................................................................11
Recommendation to strategies for improving the competitive advantage ..........................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14
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INTRODUCTION
Business is an idea which involves design of product and services to meet needs of
consumers. Also, companies make effort to fulfil those wants and earning profits. Effective and
careful running the business help to beat competitions (Erasmus, Strydom and Rudansky-
Kloppers, eds., 2016). This study is based on Golden Bear. It is manufacture and marketed toys
associated to many other shows involving Night Garden. Report will explain functional areas and
hierarchy management used within the organization. It will state drivers of globalisation and its
impact on business. Furthermore, study will explain that central of communication to leadership
and management as well as interdepartmental within the organization.
TASK 1
1. Functional areas and hierarchy of management
Functional Areas:
Various functions are performed and handled by differentiate portion within the business.
There is one explanation for abstracting operations into functional areas is to enable each to
operates within expertise area within firm (O'Cass, Heirati and Ngo, 2014). Therefore, Golden
Bear follow functional structure for building effectiveness and efficiency of business. In this
context, there are many functions such as management, marketing, financing, human resource,
operations etc. within the firm.
Management:
It is primary function in which manager's play key role for supervising the execution of
people. It involves many activities such as planning, organizing, controlling and leading. The
role of manager is to plan through setting long terms goals and short terms strategies which is
necessary to perform against objectives.
Marketing:
It is another major function of business in which they need to determine wants of
consumer and design products for fulfil those wants (Thrift and et.al., 2014). Marketing function
involves promoting the products and services, identify the ways of delivering the goods and
evolving pricing method to acquiring market share while remaining competitive by Golden Bear.
Financing:
It is also major function in which includes planning for acquiring and controlling funds of
Golden Bear. Therefore, finance manager plan for long and short term financial needs, marketing
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of goods and services, raise pay to people. This help to improve financial position of company.
Thus, finance manager seek to raise funds for implications of financing decisions and long term
health of Golden Bear.
Operations:
It is also very major function of business in which inputs are converted to goods and
services. It is the heart of quantity and quality of product and services that meet the wants of the
consumers (Pace and Gephart, 2017). Operation manager is responsible for overseeing daily
basis transactions that can include everything from ordering raw material to schedule employees
to produce tangible products in the Golden Bear.
Hierarchy of Management:
A company can have various managers, across different titles, authority levels and levels
of management hierarchy. There are mainly level of management such as top level, middle and
lower level.
Top Level Management:
Top level manager are responsible for handling and overseeing whole company. There
are examples such as directors, and CEO of top level managers. They are developing goals,
strategic plans, policies and make decisions on the focus on Golden Bear. In relation to, top level
managers play important role in mobilizing of outside resources. They are responsible to
shareholders and public.

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Middle Level Management:
Middle level manager is responsible for function of their functions of business. There are
many examples like general manager, branch manager in middle level managers in Golden Bear.
They devote more time to organizational and positional functions than top level managers
(Hierarchy of Management, 2018). The role of middle level manager is to define and discuss
info as well as policies from top to lower administration in the firm.
Lower Level Management:
Lower level manager directs on controlling and directing in the firm. Supervisor, foreman
are examples of middle level managers within the Golden Bear. Lower level manager is
accountable for assigning tasks to employees, ensuring quality and quantity of production,
making suggestion, solving employees problems and supervising employees on daily basis
activities in the business.
Henry fayol's Management theory
This theory manages the 14 principles of management and this help to maintain discipline
at workplace. These principles are serves as a guideline for the decision making and management
operations of McDonald's. But there we discussed 5 principles that are as follows:
Illustration 1: Hierarchy of Management
Source: (Hierarchy of Management. 2018)
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ï‚· Division of work is important principle of this theory and this will give the proper
correction and division of work between employees according to their qualification.
According to this theory promote efficiency of the workforce and increase productivity.
ï‚· Authority and responsibility is things in an organization and management has the
authority to give order to their employees. According to this theory, use their power and
authority to gives to management of McDonald's the right order to give to their
subordinates.
ï‚· Discipline is the most important part of the management to make effective and best
productivity at marketplace. For management of McDonald's have to make strategies and
policies for their employees.
ï‚· Unity of command means that an individual employee are received order from their
manager and leaders. This help to make unity of command at workplace and in between
the employees and their team members.
ï‚· Unity of direction is command on their direction which is give by management and
follow by the employees of firm in order to work.
ï‚· Remunerations are help to motivate the employees of firm. By these employees are
highly motivated and try to give effective and valuable contribution to achieve goals. For
that management can use the motivation technique like financial and non-financial
rewards.
2. Communication central to leadership and management and example of interdepartmental
communication
Effective communication is central to grow as efficient and successful leader or manager.
It is beneficial that leaders and their teams learn to communicate accurately. Without
communication, teams are not complete their projects successfully (Marques, Fuinhas and
Marques, 2017). Effective communication also allow achieving success and growth. Effective
communication is the connection and inspiration for leaders. It is central for building alinement
and executing strategy. Also, it is rarely one of the most challenging leadership abilities. It is
more central which is beginning with the leaders.
Employee Relation:
Effective communication is central to leadership that help to build relation with their
subordinates in the Golden Bear. Through communication, members are easily shared their ideas
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and opinions in decisions making and problem solving for effective team work and achieve goals
of team as well as organization.
Formulation and Implementation of Strategy:
It is necessary to formulate and implement appropriate strategies which is assisted to
achieve goals of business. With effective communication, employees and leaders are exchanged
their ideas and opinions that help in formulating strategies for growth of business
(Nanjundeswaraswamy and Swamy, 2014). Ineffective communication occurs overlapping
activities and conflicts between leader and team members in the Golden Bear.
Employee Engagement:
Effective communication is central to leaders, because it helps to employees engagement
in every activities of organization. Highly employee engagement help in success of Golden Bear.
Leaders use communication channels which have power to directly impact morale. The high
morale will aid better to drive employee engagement in the firm.
Interdepartmental Communication:
It is process of communication with employees of every departments of firm. Therefore,
it is necessary to effective communication between each and every divisions of organization. For
example: it is needed to interaction between marketing and finance department in the workplace.
If there is no communication between both department, so that finance manager do not determine
that requirement of money to marketing managers for advertising, selling of goods and services
in the market place (Saeed and et.al., 2014) Without interdepartmental communication, there is
lack of motivation, trust and respect with all departments of Golden Bear. There are many kinds
such as formal letter, emails, memos for communicating with all divisions of organization.
3. Current drivers of globalization and its impacts on business
Globalization stand for global combination of international trade, investment and
information technology and cultures. It is the procedure by which firms develops global
influence and beginning operating on international level. There are many drivers of globalization
such as high competition, advancement technology, reduction of cross-trade barriers, increase
demand of consumers which can impact on business internationally.
High Competition:
It is major drives for bringing about globalization. Golden Bear generally tries hard to
gain competitive advantages in the market. The often raise in competition in the domestic market

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oblige to firm in relation to enter into international market (Al-Asfour and Lettau, 2014). There
are many firms that are entered into other nations for selling products and services to expand
their market share. In relation to that, price of goods and services are comparatively high, thus
company exports products in international markets. Many of firms have accomplished highly
international market shares via strategic alliances, joint ventures. These are major factors which
have added a lot in globalization and development of international economy.
Advancement Technology:
It is also important driver of globalization. Improvement in telecommunication and
Information Technology has starred important in access the information and raise in economic
activities since 1990s. This impact on business in relation to exchange products and services,
utilization of resources effectively in the firm (Pace and Gephart, 2017). This technological
advancement has led to growth of different sectors of economies throughout the world. Also, it
helps to growth and expansion of business globally. With advance technology, Golden Bear has
designed, manufactured and marketed innovative and creative toys effectively. Therefore, they
are highly connected with many shows. Through this, they are building trust and reputation in
front for consumers.
Reduction Of Cross-Trade Barriers:
It is critical driver of globalization. In this context, every of nations limits the movement
of products and services across its boundary. It enforces tariff and quotas on the product and
services imported in nation. In relation to that, changes in regulations which make confusion in
business atmosphere internationally. The government has introduced free trade policy that is
gradual comfort in cross-border trade restrictions which is raised growth rate of an economy.
Increase Demand Of Consumers:
It is the main force of globalization which is also influenced on business. The demand of
products has increased while income and living of standard of people has also increased. Today's
world, consumers are more awake for every products and services in other nations that help to
increase sales and profits of Golden Bear. This force to work in association of many companies
with international players for serving to wants of the domestic market (Marques, Fuinhas and
Marques, 2017). If the consumer's income has decreased, so that demand of products has also
decreased. This is highly influenced on sales and profits of organization.
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4. Compare two chosen styles of leadership and most suitable for modern global organization
Leaders is the person who is influenced individual and group of people for achieving the
goals. In this context, there are many leadership styles in which most suitable style adopt by
leaders that result will influence on Golden Bear. Leadership styles involve, autocratic,
democratic, transactional, transformational, bureaucratic etc. within the firm.
Autocratic Leadership Style:
It is also called as authoritarian leadership which is characterised by individual control
over all decisions and little inputs from team members. These leaders create choices based on
their thoughts and decisions.
Democratic Leadership Style:
It is also called as participative leadership style in which members of team take more
participative role in process of making the decisions. Every team members are exchanged their
ideas and involving in discussion in team work (Nanjundeswaraswamy and Swamy, 2014).
Comparison Between Autocratic and Democratic Leadership Style:
Criteria Autocratic Leadership Style Democratic Leadership Style
Meaning It is style in which leaders are taken all
decisions individually without
consulting team members.
In this style, leaders are shared
judgement making power and
other duties with the team
members.
Authority In this style, centralized authority to
leaders.
There is decentralized power of
leaders.
Control There is high level of control in this
leadership style.
This style includes low level of
control (Saeed and et.al., 2014)..
In this context, democratic leadership style is the most suitable style for leaders or
managers of Golden Bear. It is more beneficial for leaders to get new ideas and creativity for
designing of product and services. Democratic leaders are excellent at solving complex problems
by discussing with team members. They rarely consider innovatively and promote other to same,
so that find solutions to complex and strategic issues of Golden Bear. This leadership style is
perfectly fit for business, because team members are more engaging will allow leaders to control
effective procedure of business.
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Democratic leadership style is most suitable, because employees are more supportive and
participative that become strong team for collective working is done in the workplace.
Democratic leaders ensure that team members work well with other individual for achieving the
team goals and objectives (Nanjundeswaraswamy and Swamy, 2014). Also, they are created
foster atmosphere through encouraging input and innovation of group members. Under this
leadership, creative designers succeed, because of support and nurture which is corporated.
In this leadership, team members freely exchanged their ideas and opinions in decisions
making process of Golden Bear. Therefore, this leadership is most suitable for creating job
satisfaction of employees ad foster participation in decisions making process of Golden Bear.
TASK 2
Aim of presentation
ï‚· To improve the competitive advantage of McDonald's.
ï‚· To identify the leadership style and functional areas of McDonald's.
Company Profile
McDonald's is an American fast food company as restaurant operated in California, US.
Due to revenue, it is the world's largest restaurant chain which is serving over 69 million
consumers regularly in over 100 nations across 36900 outlets in 2016. Company is best called for
their hamburgers, French fires and cheeseburgers. Also, they characteristic chicken products,
breakfast items, soft drink, wraps as well as desserts. There are 235000 people employing in the
organization as 2017. In this context, company expand their operations by improving all
functional areas and improving competitive advantage in the industry. Company added the
salads, and fruit according to changing the consumer tastes and preferences in terms of health
conscious food. The revenue of company come from rent, royalties and paid fees by the
franchisee and sales in company operated restaurants. It is the world's second largest private
employers with 1.9 million workers and 1.5 million whom work for the franchisee.
In this context, company expand their operations by improving all functional areas and
improving competitive advantage in the industry. Company added the salads, and fruit according
to changing the consumer tastes and preferences in terms of health conscious food. The revenue
of company come from rent, royalties and paid fees by the franchisee and sales in company
operated restaurants.

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Corporate Social Responsibility of McDonald's:
It involves the details of CSR programs and initiatives engaged by McDonald's. In this
context, there are many categories of CSR activities such as supporting localised communities,
empowering workers, labour and human rights, employee health and safety and so on. The
claims of McDonald's is to be improving the lives of children and their families through support
of Ronald McDonald House Charities and other companies. The company is linked CSR as
strategy within the business which help to growth and development in food industry.
It is important for the management and their staff members this help to make proper and
effective responsibility firm. Management of McDonald's set the goals of Corporate Social
Responsibility such as supporting to sustainable production by collaborating to develop global
principle and committing to the purchase power. Their responsibility is to use the palm oil and
fresh food which are verified and that is support to make the effective and valuable sustainable
production. Company has power to help the global food marketplace and leads industry
sustainability.
This corporate social responsibility report is like fantasy and presupposes the have
continue global chain management of restaurant. This services are effective and valuable for
making effective brand image at marketplace. Their leaders are responsible process that involves
the more awareness on the issues that are make the differences. This harms to peoples in this
case management have to make and create decision for the improving their sales at marketplace.
It is important for making effective and valuable brand image ate marketplace.
Impact of Brexit on McDonald's:
The economic impact of Brexit of McDonald's in the UK. The closures affected 120 staff
but company will try to relocate them in other part of chain. The market was experiencing the
tough time. Post Brexit, overall business is in very good shape. With the Brexit, currency
translation and economic uncertainty which are faced by transaction of McDonald's. This
operates in the world so they have money, experience and skill of working but at the time of
Brexit. It is significantly impact on the supply chain of goods affecting the millions of peoples
and their needs. They use the fresh ingredients in their but they this process is need to be moved
quickly from to over stores. Brexit give negative impact on the foods process of McDonald's.
This would cause a downwards spiral of problem. At the time Brexit is their economic condition
is not well and have not proper money for purchasing raw material and any other resources. By
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this management is not able purchase raw material for the foods making process and not able
make strategies because at this time strategies and policies are also not working for effective
process. This give negative impact on the McDonald's and its foods process. By this
management is not able to achieve goals and objectives of firm at the time of Brexit.
Leadership style and functional areas of organization
McDonald is the world largest chain of fast food restaurant serving more than 58 million
consumers regularly. Company mainly sell hamburgers, cheeseburgers French items, chicken
products, soft drink and shakes. Also, they offer healthier foods such as salads, wraps and fruits.
In this context, company's leader make efforts to manage all activities like consumers services by
offering the high quality products and services. Therefore, leaders of McDonald's follow
situation approach in terms of style as well as path goal theory for leading and managing the
followers in the workplace.
Path-goal theory :
This theory defines as being leader behaviour which can influence motivation and job
satisfaction of subordinates. It is the theory that behaviour of leaders is acceptable to follower for
future satisfaction. Path-goal theory presents that the perception of subordinates is affected by
behaviour, directive, supportive and participative of leaders. This theory at McDonald's having
goal set with motivator attached always appeared to the mode to have complete task by
individual. In order to that, leaders realizes that incentive was great but not as attractive as
compared to duties needed to be completed. Therefore, leaders at company is to given directive
leadership that appeared to be quite successful style. The rewards and performance of job role is
linked to ensure that leader of restaurant has cause to complete the task. After adopt other kind of
leadership, restaurant's leader follow path goal theory finally in the workplace. This theory help
to clarify the path, so that employees are easily going to that way. Path-goal assist to increase
motivation, positive attitude and achieving the goals of individual as well as organization.
Functional Areas:
McDonald's maintains functional areas in the structure of organization. For instance,
corporate operation, group for human resource management, supply chain management, finance,
information technology, marketing function etc. within the organization.
Human Resources: The HR manager needs to recruit and select the best candidate who
have ability to handle consumers services, marketing products and services, take care of quality
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and standard of goods and services within the McDonald's. Also, they are giving the training and
development to existence employees, so that they are providing the better products and services
to consumers.
Finance: The finance manager requires controlling all financial records, handle cash
flows for improving the financial position of McDonald's. They also make sure that [providing
appropriate funds to HR, marketing, information technology department in relation to advertise
the job vacancies, marketing of goods and services, developing the new technology for
increasing the sales and consumers satisfaction within the business.
Marketing: The marketing manager needs to ensure that conducting the appropriate
marketing research and collecting the proper informations about prices, products, competitors in
the marketplace. This help to create marketing plan for their new and existing products and
services for attracting the more consumers towards their McDonald's.
Consumer Service Department: The manager of this department requires following the
information and communication technology for sending the emails to consumers about their
queries and collect all records as well as giving the solution.
This help to create marketing plan for their new and existing products and services for
attracting the more consumers towards their McDonald's.
Business analysis tool
McDonald's apply the SWOT analysis for improving the competition in the marketplace.
This analysis help to assess fast food giant which can keep development on high-calorie diet. It
involves strengths, weakness, opportunities and threats of organization.
Strength:
ï‚· In location context, company present at the 35000+locations in more than 100 nations.
This is strength of the company which help to increasing the sales and profits of business.
ï‚· McDonald's tries to explore their strengths for increasing the competition in food
industry.
ï‚· The strong brand image and high brand loyalty are the strength of McDonald's. Company
has offers variety of products such as burgers, wraps, nuggets etc. which is also capability
of business.

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ï‚· Also, they are preparing hygienic food and faster services provided to the consumers and
excellent advertising as well as marketing which make top brand in the mind of
customers.
Weakness:
ï‚· In terms of innovation, company is not able to compete with leading players in the
industry.
ï‚· Organization is raising the capital to invest the channels which can impact on growth of
business due to high competition in the marketplace.
ï‚· The financial planning of company is not properly and appropriate, so that they use the
cash efficiently for reducing the weakness in the business
ï‚· McDonald's invest below in research and development the fastest growing players in the
industry.
Opportunities:
ï‚· The lower cost of shipping can bring down cost of products which providing the chance
to company. This help to increase sales and profits as well as market share.
ï‚· The new trends in consumer behaviour can open up new market of organization which
provides great chances to build new revenue flows and diversify into fresh product
categories.
ï‚· The lower inflation and interest rate on credit to consumers which can create
opportunities for business
ï‚· The adoption of new technology standard and authority free trade agreement that has
given chance for McDonald's to enter new emerging the market.
Threats:
ï‚· Due to recession and slow growth rate in the industry, create chance to capture new
consumers and enhancing their market share.
ï‚· Due to no supply of new and innovative products regularly, decrease the sales and profits
of organization.
ï‚· Threat can be occurred by New environment regulations under Paris agreement to
existing the product categories.
ï‚· Due to online channels, changing the consumer buying behaviour which can threat to
existence physical structure of McDonald's. This can relate to supply chain model.
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ï‚· The low quality of goods and limitation of false products which is also threats to goods of
McDonald's especially in emerging markets and low income markets.
ï‚· There are number of players coming in industry which can down pressure on profitability
and overall sales
PORTER'S FIVE FORCE MODEL
In this model, there are five forces are involved which are impact on profits and sales of
McDonald's.
Forces Description
Revelry of Existing competitors ï‚· There is high level of forces of existing
competitors burgers king etc. which
impact on sales of McDonald' in the
marketplace.
Threats of New Entrance ï‚· There is average threat of new entrance
which is based on high cost of brand
development, capital cost of firm.
Bargaining Power of suppliers ï‚· The bargaining power of supplier is
very low which is based on large
number of suppliers, high overall
supply etc. which impact on
McDonald's.
Threats of substitute ï‚· There is high availability of substitute,
low switching cost and high cost ratio
of substitutes within market.
Bargaining Power of buyers ï‚· The bargaining power of buyers is also
high forces in terms of low switching
cost , large number of providers etc.
Recommendation to strategies for improving the competitive advantage
Due to high competition, it is difficult to increase competitive advantage by any
organization. Therefore, company should follow strategy like Porter and sustainable competitive
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advantage for improving the competitive edge in the industry. In this strategy, there are three
ways to company for achieving the competitive advantage such as cost leadership, differentiation
and focus.
Cost leadership:
It means firms provide reasonable value at the lower price. McDonald's do cost
leadership through continuously improving operational efficiency which usually means paying
their workers less. They can involve the pursuit of economies of scale, ownership technology,
advantageous access to raw material and other factor. In this context, if the McDonald's can
accomplish and sustain overall cost leadership, so that they will improve their performance in the
industry.
Differentiation:
Company should achieve differentiation through providing the unique or high quality
product. Firm can charge premium price with this strategy which means normally has higher
profit margin. They should achieve differentiation with invention, quality and consumers
services. McDonald's should follow differentiation strategy to be unique in the food industry
along with some concepts which are broadly by buyer. It is rewarded for their uniqueness with
premium price.
Focus:
McDonald's should follow this strategy for focus on target segment and other division in
the business. Therefore, company should follow this strategy for gaining sustainable competitive
advantages. There are two variants such as cost and differentiation focus in this strategy. Focus
strategy rests on choice of narrow competitive scope within the industry.
In this context, McDonald's should follow this strategy for improving and achieving
sustainable competitive advantage in the food industry. With the help of it, increasing the growth
of firm in the future. They should focus on target and other segment, achieve differentiation and
cost leadership for improving the competitive edge.
CONCLUSION
This report has summarized that different functional areas such as marketing, operations,
management, financing etc. and hierarchy of management which involves top, middle and lower
level of management within the organization. It has concluded that high competition,
advancement technology, increase demand of consumer etc. are drivers of globalization which

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impact on growth and success of business. It has discussed that communication is central to
leadership to build relation with employees, their involvement in the management of
organization. Furthermore, assignment has completed that autocratic and democratic leadership
is different from other and leaders has followed democratic leadership which is most suitable for
growth of business.
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REFERENCES
Books and Journals
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
O'Cass, A., Heirati, N. and Ngo, L.V., 2014. Achieving new product success via the
synchronization of exploration and exploitation across multiple levels and functional
areas. Industrial Marketing Management. 43(5). pp.862-872.
Thrift, N. J. and et.al., 2014. Globalization in Practice. Oxford University Press.
Pace, M. L. and Gephart, J. A., 2017. Trade: a driver of present and future
ecosystems. Ecosystems. 20(1). pp.44-53.
Marques, L. M., Fuinhas, J. A. and Marques, A. C., 2017. Augmented energy-growth nexus:
economic, political and social globalization impacts. Energy Procedia. 136. pp.97-101.
Nanjundeswaraswamy, T. S. and Swamy, D. R., 2014. Leadership styles. Advances in
management. 7(2). p.57.
Saeed, T. and et.al., 2014. Leadership styles: relationship with conflict management
styles. International Journal of Conflict Management. 25(3). pp.214-225.
Online
Hierarchy of Management. 2018. [ONLINE]. Available through. :
<https://courses.lumenlearning.com/boundless-business/chapter/types-of-management/>.
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