Innovation and Creativity INTRODUCTION

Innovation and Creativity INTRODUCTION 3 Overview of the organization3 Stage gate model.4 Porter 5 force analysis5 Change model 7 4 p's of innovation 7 Innovation positioning models 8 Business model support the products and services8 Issues of innovation. MacDonald is a American fast food organization that founded in the 1940 as the restaurant operated(Chen and Hou, 2016). Furthermore, It will examine the issues against the business theories like the stage gate model, porter's fiveforceanalysis, innovation positioning model, change

Innovation and
Creativity

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the organization ................................................................................................3
Stage gate model.....................................................................................................................4
Porter 5 force analysis............................................................................................................5
Change model.........................................................................................................................7
4 p's of innovation..................................................................................................................7
Innovation positioning models...............................................................................................8
Business model support the products and services.................................................................8
Issues of innovation. ..............................................................................................................9
Advantages and disadvantages of the selected models........................................................10
Gibbs' Reflection model ......................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Creativity is the word where the act and capability of convening something unusual and
original. Innovation refers to the implementation of new things where creativity is related to the
imagination. Whereas, the creativity has the capability to produce and introduce the new
products and services. Creativity procedure is the heart of the innovation & often all the words
has been used interchangeably. MacDonald is a American fast food organization that founded in
the 1940 as the restaurant operated(Chen and Hou, 2016). It is one of the largest restaurant
supply chain by its revenues and profits. It is basically famous for their hamburger, French fries
and cheeses burger.
This report will study the overview of the organization and its activities and also the
explantation and identification of the innovation issues. Furthermore, It will examine the issues
against the business theories like the stage gate model, porter's five force analysis, innovation
positioning model, change model and strategic innovation model etc. this report will describe the
Justification and evaluation of the models for the innovative issues and also the recommendation
and reflection on that.
Overview of the organization
MacDonald is a American fast food organization which is bounded in 190 by the Richard &
Maurice McDonald in California, United States. MacDonald's is one of the largest restaurant
supply chain by its profit and revenues. It serves across 69 millions customers daily across 100
countries. It is generally famous for its French fries, Hamburger, cheeseburger, chicken products
and desserts etc. There are 37,855 numbers of restaurant across the world and there are 210,000
number of employees working under it(Cruickshank, 2016).
There are so many more products which has been served by the MacDonald's such as soft
drinks, coffee, breakfast, wraps and milkshakes etc. the operating income of the MacDonald's is
8.823 billion and the net revenue of the company is 21.025 billion. The main things of the
MacDonald's corporation comes from the royalties, rent and fees and cost has been paid by the
franchisees and also the sales which organization has been operated. As per the analyse of the 2
reports it has been published in 2018 where it has been observed that MacDonald's in one of the
world's largest private employers 1.7 million workers.

Stage gate model.
A phase gate model is project management tool and techniques where the initiative and
project which has been divided in distinct and phase of the stages(Kandampully, Bilgihan and
Zhang, 2016). This model refers to the stage gate model each gate has the continuation with all
the departments and also the decision has been made on the information and forecasting at
available time. This process and model has been patented of trademark and generally focus on
the process of innovation. There are some steps which involved in the stage gate process such as:
Gates
At each of the gate the decision has been made to continue or not the process. The decision has
been made on the basis of the information and prognosis that is available at time and moment. In
most of the cases the decision has been made by the steering and manager committee for
launching the seafood burger in the market or not.
Stages
There are some stages if the stage gate process which consist the connection of each gate with
another gates.
Stage:0 discovering
It is one of the initial stage in the MacDonald where the initial preparatory has been determined
the project of the organization wants and also it is able to carry out or not. There are not only
who is involved in it but also the management who understand the ideas and purpose of
it(Amabile and Pratt, 2016).
Stage 1: Scoping
This stage contains the product evaluation and association in the market and also identified the
strength and weakness of the new seafood burger. This stage take all the possible threats.
Stage 2: business plan Concept
The concept of the business plan need the impervious competition where the innovation of the
seafood burger has been drawn up. This is one of the last stage of the development where the
crucial has been starting before the development of the actual product. This business plan
concept involve the new product analysis and definition of the product, creation of the business
plan, creating of the project plan, feasibility of the review etc.
Stage 3: development

it is necessary to have the development of the MacDonald and launching the new product is one
of the way to develop the organization. During all the stages, where all the plans from the
previous stages has been carried out and also the test has been conducted. The development of
the team also specify the milestones and stages for achieving the goals which has been set for the
seafood burger|(Ali Taha, Sirkova and Ferencova, 2016).
Stage 4: validation and testing
This stage covers some important part of the new seafood burger innovation because it basically
covers the validation and testing part of the burger. It foreseen the manufacturing part and
procedure of the seafood burger which has been accepted by the customers in the market. It
involves so many things for the new launch of the product such as the near testing, field testing,
market testing of the seafood burger in the market whether the customers like it or not.
Stage 5: implementation and Launching
The strategy of the market which comes during all the stage gate process where the seafood
burger is ready for launching in the market and also involve the fair amount of the hyps and
instance, advertising campaigns, etc.
Porter 5 force analysis
Porter's 5 force analysis is basically a framework and also a tool for observing and
analysing the competition of the business. It has been dreamed from the industrial organisation
where all the economic has been derived by all the five forces which easily determine the
intensity of competition and also the attractiveness of the company and industry itself(Davids
and De Munck, 2016). There are 5 forces which has been involved in the porter's five force
analysis such as;
Threats of new entrants
There are so many industries which get profits per year from which the high returns of
the MacDonald's attract new firms in the market. There are so many new entrants which
eventually decreases the profit of the other organization in the food industry. The entry of the
new firms is more difficult by the abnormal, incumbents and profitability which easily fall
towards the Zero. There are so many threats of new products launching and innovation because
its not easy to stand with the innovation for long time because there are so many firms who
launch similar products as of MacDonald's. It is a biggest threat for MacDonald to launch the
Seafood burger in the competitive market(Cui and Wu, 2016).

Threats of substitute
There are so many uses of the substitute products where different types of technology
has been used for solving the needs of economic. For launching the new seafood burger by
MacDonald's there are so many troubles which has been faced by the organisation and substitute
of the because it is necessary to have the loyalty of the brand in the customers.
Bargaining power of supplier
it is one of the main threat where the bargaining power of the suppliers in the market
creates inputs. Suppliers supply the raw materials which has been used in the products making
and there are so many other things which has been supplied to the MacDonald's such as labours,
components and services which helps to the organization for running systematically(Homburg,
Schwemmle and Kuehnl, 2015). It is one of the biggest threat for MacDonald's because suppliers
easily switch their cost and it impacts the inputs if the cost & differentiation. For this unique
seafood burger innovation by MacDonald get affected when the supplier charge high prices and
cost for the unique resources which has been used in making the Seafood burger.
Bargaining power of buyer
The bargaining power of the customers also affect the outputs of the MacDonald's market
because customers has the ability to put the MacDonald under pressure for the cost that has
charged by the firm. Its necessary to maintain the price of the innovation of the Seafood burger
because it affects the customer's sensitivity. So it is important to make the measures how to
reduce the power of buyer and it is only possible when MacDonald implements the loyalty
programs, MacDonald's
Competitive rivalry
It is one of the major threat for the MacDonald because the competitive rivalry has the
major determination of the competitive firms. It is a vital role for the MacDonald to make the
new seafood burger successful in all the situation because it is necessary to make a position in
the market. It is important to gain the competitive advantages through the new launch of
products. So there are so many strategies which has been used by the MacDonald for launching
the seafood burger in the market such as the expenses of advertising, promotion activities and
also make the ratio of launching the product(Christensen, Raynor and McDonald, 2015).

Change model
Lewin's change model is most famous approaches. There are three stages which has been
involved by the change model such as;
Unfreeze stage
The unfreeze stage involves the realization of the customers about the change of the product in
the market and also it deals with so many strong emotions and feeling of the customers. The new
change of seafood burger has been expected the direction of new burger which is healthier for
them.
Change stage
it is one of the crucial stage which is most important for the implementation of the seafood
burger in less time. When the change task of the product is longer then the employees are
inclined the relapse the bad habits and rituals.
Refreeze stage
The refreeze stage is all about the solidification changes which involves the changes has been
made after the implementation of the innovation of seafood burger. In this stage when the
customers are not satisfied with the taste and products the MacDonald's implement more changes
for the carrying the proper arrangements and also the evaluations and monitor for making the
adjustments(Chen and Hou, 2016).
4 p's of innovation
Product:- this stage relate to the making changes in the existing products and services which is
good for customers and MacDonald as well. The innovation of the seafood burger is also one of
them which has been offered by the organization.
Process:- Process stage relate to the ways which has been used at the time of delivering and
creating the seafood burger.
Position:- it improves the retailing logistics of the seafood burger in the market and from
launching the new healthier product in the market also improve the brand awareness and make a
positive brand image and improve the stability in the market of the MacDonald.
Paradigm:- the word paradigm refers to the changes which underlying the models of the
seafood burger and it also frames the organization stability.

Innovation positioning models
it is one of the most useful brand positioning model where the launch of the products helps the
organization in making their brand position(Cruickshank, 2016). This contains some points for
positioning the brand such as;
Infrastructure-led positioning
This structure led to the powerful positions in the market and it is generally protecting
and building the innovation of seafood burger which led to the new position in the market and
also sheer the scale and mass.
Product And Services-Led To Positioning.
MacDonald choose their position itself by valuing the customers. It is one of the most
direct and indirect positioning of the business where this stage relate to the positioning in the
market where the product which has been invented is healthier for the customers and
organization as well.
Process-Led Positioning
This stage contains the competition in the market where it is necessary that the seafood
burger gives tough competition to the market and earn profit. Where the MacDonald secure their
product by making the trademark and patients of the burger.
Values-Led Positioning
Position of the MacDonald is totally based on the value of the organisation because the
services which has been provided is based on the approaches which helps in delivering the
seafood burger to the market(Kandampully, Bilgihan and Zhang, 2016).
Purpose-Led Positioning
when positioning the brand this stage helps in driving the position of the long term
benefits without creating any of problems and conflicts in the MacDonald and market.
Business model support the products and services
All the business models support the new product seafood burger in so many ways because it is
necessary to implement the models while launching and innovating any of products because
there are so many strategies which has been implemented and also it develops the new customers
for meeting the new needs of the market and also identify the needs and wants of the customers.
It also increases the productivity of the employees and organization as well.

It helps in increasing the sales and revenue of the product and also target the customers
according to the taste of the products and services, it also support the innovation of the products
for supporting by making the plan and budget of the new innovation(Amabile, and Pratt, 2016).
Issues of innovation.
Many types of issues have to face by Mc Donald in innovation of new product like sea food
Berger. Following issues has to face by organization :-
Limited funding and resources :- MC Donald has to face this issue during innovation
because for proper and high innovation has need to high funding and resources. Innovation also
consume more cost because for promote to products in market so organization has need to
provide effective advertisement for attract to people. Research of market to understand needs,
wants and taste of customers also consume more cost (Schumpeter, 2017). During innovation of
product, organization also has to evaluate and analyse competitor product and services so all
these things consume more cost. Human resource is also very essential and organization has to
face issues due to lack of capital and workforce.
Lack of training and development :- MC Donald innovates to new products like sea
food Berger so lack of training issue may create during innovation because if employees and
members do not get proper and systematic training related to their work so it creates issue and
members of organization can demotivate through this thing.
Lack of communication :- It is a major issue and it can create issue in innovation of sea
food Berger by MC Donald. This issue may create problem because if commination gap present
in organization, so employees and members can not get proper information about promotion and
it put direct effect profitability and productivity (Nagy, Schuessler and Dubinsky, 2016). Due to
lack of effective communication, innovation also affect because if management not focus on
customers satisfaction and elation so it creates major issue during innovation of product.
Pricing issues :- Mc Donald also may face issue of pricing because this issue can create
major problem. If it set and fix their product price at high and if people can not afford to sea food
Berger so this issue easily reduce sale and demand of products. This issue also create major
problem during innovation. It put direct effect organizational profit.
Poor leadership :- poor leadership is a type of issue in innovation process and if in Mc
Donald leadership is not present in proper and systematic manner that means leaders of
organization do not have skills and knowledge about lead to employees (Aplin, 2015.). So they

can not get proper direction and guidance. It also creates issue during innovation of sea food
Berger.
Advantages and disadvantages of the selected models.
Porter's five force analysis
The advantages of this model is it helps the MacDonald in gauging the competition in the
market from innovation of seafood burger and also operate the industry and lower the
competition and earning good profits. It also helpful in the planing of the new products where it
requires huge investment and also MacDonald made investment for innovating the product. It
also deals with all the suppliers and buyers.
Whereas, the disadvantages of this model while innovating is that there is no organization
which perfectly fit and it only take the big factors into the accounts and easily ignore other
factors which is also necessary. It is not useful in all the situation of the MacDonald(Davids and
De Munck, 2016).
4 p's innovation
the benefits of the 4 p's is gives space to the innovation and where it influence each other
stages. It is one of easiest tool for determining the services and position which has been served in
the market.
The disadvantages of the 4p's is it is the biggest strength and weakness of the model and
it hold the underdeveloped markets and also the poor market which affect the innovation of the
new product by the MacDonald.
Change model
The advantage of the change model is it easily allows the MacDonald for developing and
rivals the skills and products which brings higher profit for the company. It allows to makes the
changes and make the innovation of their new products and make the team and groups which
easily handle the conflicts(Cui and Wu, 2016. ).
Whereas, the disadvantages of the change model is it does not resistance the employees
in effective ways and when the change management is bad then it negatively affects the
MacDonald and its new product.

Gibbs' Reflection model
Graham Gibbs was the person who created the Gibbs' reflection cycle in 1988 for the
purpose of providing a structure and framework to learning from an experience. It basically
facilitates a system for evaluating and analysing the experiences after-which it offers an
individual to learn new thing from the experiences and facilitates the planning process. For
innovating a existing product or for creating an altogether new product or service, manager of
McDonald's generates idea when it experiences something in the business environment (Smith,
2016).
The model comprises six different stages of new learning that are described as follows :
Illustration 1: Gibbs model of reflection
(Source : Gibbs' reflective cycle, 2019)

Description :
This is the first stage in the Gibbs' reflection cycle in which the experience is described.
In this stage of the cycle, several questions are answered such as what happened, how did the
person had an encounter with the situation, etc.
Being a manager of McDonald's, I while trying to explore and understand the changing
preferences of the customers and while doing the industry analysis, I discovered that people are
shifting their base to more healthy lifestyle and are preferring more nutritious, high protein and
low calorie food. Thus, for meeting the demands of the customers, I was clicked with the idea of
creating some innovative food product which have the essence of McDonald's along with healthy
and highly nutritious fillings.
I also realized that for surviving in the market, it was very necessary to keep making
innovations in the products and services of the company so that company does not lose its unique
identity in the market and remains a leader in the industry. I performed a detailed market
research with my entire team through which I gained the in depth insights and current trends in
the global snacks and fast food industry. Me along with my team saw how the competitors of
McDonald's are innovating their products and services for engaging their customer to the
maximum limit and how their share in the global market was increasing. Thus, for maintaining
the competitive factor alive in the company, I came up with an idea of infusing creativity and
innovations in the product range of food chain through which it can beat its competitors.
Feelings :
It is the second step in the cycle of Gibbs Reflection model. This phase in the model is
concerned with the feelings and thoughts of the person about the situation it experienced and in
what way does the individual has impacted the situation encountered or its experience with the
situation. This stage includes questions such as how the person was feeling during the situation,
what were the feelings of the individual before and after the circumstance or the situation, what
is the perception of the person currently etc (Wight, Kellett and Pieters , 2016).
I while experiencing the market realities, felt that business dynamics significantly affects
the functioning and operations of the McDonald's. I , however, felt good that me along with my
entire marketing team were able to recognize the threat of shifting preferences of the customers

in the market earlier than others which in case if would have not recognized, have resulted into
significant loses for the company in the near future as organization would have not been able to
meet the expectations and requirements of the customers. Thus, it was a good feeling that I
encountered with such situation which helped in planning my marketing strategy that
complements the conditions prevailing in the global market. The reason behind my good feeling
with the experience was that discovering of the changing taste of customer earlier in the market
would aid the organization in building and enhancing the competitive edge over its rivals in the
market. This would help the brand in changing its reputation from being a fast food chain to a
healthy food offering company (Goldingay and et.al., 2016). I felt good and satisfied with the
way in which I divided the work within my team to carry forward the findings from the research
and to put forward the ideas regarding how can company can produce highly innovative and
healthy food which is capable of attracting the attention of the target customers around the world.
I was certain that if the company makes innovation its product range, it is going to work
for it. In the last, I was pretty happy that I confronted such situation which is going to help me in
fulfilling my organizational duties with much more efficiency.
Evaluation :
Third stage in the Gibbs' Reflection Cycle model is evaluation. In this stage, an
individual has the opportunity of evaluating the things regarding what things were effective and
what things were ineffective. For making the reflection more reliable, it is necessary for the
person that it emphasizes on both positive and negative aspects of the situation encountered by it.
In other words, it basically covers the questions such as the good and bad things about the
situation, what factors went well, what did not go that well, what was the contribution of that
person etc (Martin, 2016).
There were good and bad things which I discovered while I experienced the situation of
changing preferences of the customers towards healthier lifestyle. The good thing was that this
element was recognized at an early stage which has now provided the business opportunities for
the McDonald's to target the other segment of the market such as fitness freaks and health
conscious people who tend to count every calorie they eat. Such increase in the target market of
the company would aid it increasing its sales volume and profitability. All these things

collectively would assist the company in maintaining its market leader reputation in the
international market.
The bad thing about the experience which I felt and noticed was that such changing
preference at rapid rate is a threat for the company. Always matching with the changing
preferences of the customers is a task for the organization as it involves huge financial
investment in the R & D, arrangement of resources for the new product development, workforce
engagement, budget limit etc (Pianpeng and Koraneekij, 2016). All these things are to be
considered which I discovered that the company will have to arrangement for creating an
altogether a innovative and creative food product for meeting the demands of the customers in
the international market.
Analysis :-
Being a manager, i evaluate about all situation during innovation of sea food and i enjoy
to whole innovation process because I analyse about many types of situation and during
innovation many issues also create like budget related issues because during innovation I make
budget but it is not accurate. So analyse about budget ideas and also develop skill through
communicate with other people.
But I make and built relationship with people and understand their needs, wants and taste.
So this thing helps to know about different choice. Many people knows me due to innovation
because I research to market so I also get many ideas. Other competitor's product also analyse by
me during innovation so I get ideas to improve and develop sea food Berger. I also analyse to
market related to latest technologies that provide helps to me in develop and improve product.
Conclusion :-
Being a manager I gain many different types of experience. I concluded that innovation is
very lengthy and difficult process but it is very interesting as well. Through innovation I met to
many different types of people in market and understand their needs and taste. I need to develop
and improve my communication skill and leadership skill. I also has need to evaluate
performance of employees and members of organization and give reward and incentives to them
because o observed to them that they do not take interest in innovation.
Leadership skill is important to develop in me because de to poor leadership skills my
subordinates can not get proper and systematic guidance and direction about proper work. I also

has need of motivation skill because employees and members do not take interest in innovation
and promote of new product. I also get negative experience that customer preference changing
frequently so this thing also put direct effect on productivity and profitability because
organization also has to conduct research on frequent basis and produce product according to
them. I have to provide training to employees time to time so this is my negative experience.
Action plan :-
It is a last stage of Gibbs model and through this I develop my skills and all situation that
create problem in current innovation of sea food Berger. So action plan make preplan for future
situation. I need to make plan about develop to skills so it develop my communication skill
through increase interaction process and also attend to seminar and listen to great speaker. This
all things helps to develop communication skill in me and I will easily attract to customers and
people in future during innovation. I do many things to develop motivation skill because I start to
evaluate performance of members in organization time to time. Than I provide reward to them so
it helps in provide motivation to them. Leadership skill also very weak and evaluate during
innovation of sea food because members of organization can not get proper direction so I
develop skill of leadership in me and than provide proper and systematic guidance. I also put
major focus on give creative ideas for innovation.
CONCLUSION
Creativity is the word where the act and capability of convening something unusual and
original. Innovation refers to the implementation of new things where creativity is related to the
imagination. Whereas, the creativity has the capability to produce and introduce the new
products and services.
This report will conclude the overview of the organization and also different types of
models which has been applies at the time of innovation of the products and services such as the
stage gate models, change models, porter's five force analysis, 4 p's of innovation and innovation
positioning model etc. further, it will conclude the support of the models for the products and
services. Moreover, it will conclude the justification of all the models that has been applied in the
organisation.

REFERENCES
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Online
Gibbs Reflective Cycle by Graham Gibbs. 2017. [ONLINE] Available through :
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