Introduction to Business and Management: A Case Study of McDonald's

This case study explores the key concepts of business management through the lens of McDonald's, a global fast-food giant. It delves into the three levels of an organization, examining their responsibilities and associated functional areas. The study also analyzes different leadership and management styles, highlighting the approach adopted by McDonald's. Furthermore, it investigates the impact of globalization on the organization and explores the company's commitment to corporate social responsibility (CSR). By examining McDonald's practices, this case study provides valuable insights into the complexities of modern business management.

Introduction to Business and
Management
1

Table of Contents
Introduction.................................................................................................................................................3
Identify and explain the 3 levels of an organisation and their responsibilities, including associated
functional areas, in light of the given case study/article..........................................................................4
Identify and explain the roles and styles of leadership and management from a theoretical perspective.
With reference to the case-study / article, interpret the leadership and management style adopted in the
organisation.............................................................................................................................................6
Explain relevant effects of globalisation facing the organisation.............................................................8
Explain your understanding of CSR and review two responses adopted by the organisation in light of
the case study/article..............................................................................................................................10
References.................................................................................................................................................12
2

Introduction
There are various key terms which took place in the success of the association such as equity
share, family members, management role or fiduciary, responsibilities of institutional,
confidential disclosure internally and etc.
According to Yakovleva (2017), equity basically refers to the stock options, ownership interest’s
warrants and etc. It does not require disclosing the equity which is held in the diversified
financial holding in some mutual funds (Yakovleva, 2017).
According to Fay, et. al., (2017), family member basically means to dependent children or
spouse. The interests of financial of family members may bear upon the various applications of
the university policy upon the financial conflicts of interest (Fay, et. al., 2017).
The relation in between of these key terms is to help the association in meeting its objectives and
goals inappropriate manner. It helps the McDonald to cope up with the employees for increasing
the equity share. The case study of McDonald will get used in for understanding the various
ways which greatly contributes to the success of the business.
3

Identify and explain the 3 levels of an organisation and their responsibilities, including
associated functional areas, in light of the given case study/article.
The various three levels of organisations are well explained below which greatly helps in the
success of the business of McDonald. It also includes the associated areas of functions. The very
first level is the business process modelling, second is process level and the third is activity level.
 Business Process Modelling- According to Cook (2017), it basically includes the analysis of
performance in an efficient manner. Each and every process of work gets documented in an
accurate form which generally includes the symbols, descriptions in written, symbols of
flowchart and etc. In the written form it shows that how the service or product is getting
controlled by the various employees. Flowchart and symbols greatly help in troubleshooting the
problems and suggesting some required improvements.
 Process Level-This process consists of various activities for supporting a major kind of services
which is getting provided to the customers. In this process, many of the experts in the various
areas of the organisational process analyse that how the process of business is getting done in an
interdisciplinary task force. The experts also suggest the ways for improvements. As same, they
also help with the various processes or methods which can greatly contribute to making the
business activities much more efficient and effective. It gets done by ending the most important
goal of satisfying the customer in an appropriate manner (Cook, 2017).
 Activity Level- It is very well known that each and every business requires including the
important activities. In this process the managers and the employees assists for creating a well
detailed explanation or description of the activities which has been performed. These kinds of
employees are known as the person who includes first-hand skills or knowledge of all the tasks
and includes some suggestions for improving their personal work. As same they follows the
understanding that how the activities gets performed by the other people for contributing their
efficiency. In the situation of cross functional forces of task they also suggest the various ways of
impacting their organisational activities. They include the different activities of business process,
production chain and etc. When the experts of task participate in the activities they involve
various ways for improving them. It greatly contributes in managing all the activities of the
business which proves very beneficial for the success of the business.
4

Organic vs. mechanistic structure- According to Montgomery, et. al., (2017), the organic
associations are easily able to adopt the changes and seem very flexible also. It is basically
structured as having the little kind of jobs, centralised decision making some of the layers of the
management and less supervision. Mechanistic associations are so simpler and easy to organise
in compare to the organic structure. But sometimes it gets hard to get arranged with the rapid
change (Montgomery, et. al., 2017).
5

Identify and explain the roles and styles of leadership and management from a theoretical
perspective. With reference to the case-study / article, interpret the leadership and
management style adopted in the organisation.
There is various kind of styles and models of leadership in the management which gets the best
use of McDonald. Some of those leadership models are well explained below-
Autocratic Model of leadership-
 According to Norman (2017), it is also known as the transactional leadership. This model of
leadership basically gets used to the situation when the employees need to make any decisions
for implementing them. It helps in saving the time of discussions with others. This leadership
style mostly gets used in the military people. McDonald uses this leadership for the best
management of the business (Norman, 2017).
 Charismatic Leadership- It is just similar to the transformational model of leadership. In this,
the leaders inspire their teammates for becoming more enthusiastic and energetic as well.
McDonald uses this model for motivating the employees to perform better.
 Democratic Model- According to Khdair, et. al., (2017), the democratic model includes various
final decisions for which some of the team members also get included in the process of decision
making. It basically involves the team members and leaders also. This model of leadership also
allows their workers to show their creations, talents and innovations which greatly contributes to
taking some best decisions for the success of the business. By getting motivated employees tends
to work hard as they get so satisfied with their job. After which they also result in the better
production and benefits (Khdair, et. al., 2017).
Styles of Management
 Directive Management Style- According to Nordbye, et. al., (2017), this style of management
includes some directions by the manager of the association or the employees to perform well.
The managers of the association closely control their employees so that they do not face any
6

issues while performing well. As same the managers also motivate their employees by any kind
of disciplines and threats as well (Nordbye, et. al., 2017).
 AUTHORITATIVE- This style of management includes the primary objective of helping
employees with the long term vision and directions. The managers give their employees the clear
directions. As same it also gets motivated by the feedbacks and persuasion of the performance of
the task.
 Participative Management Style-It includes the objective of building the commitments &
consensus among the workers. In this manager encourages their employees to get involved in the
process of decisions making and also tries to motivate them by rewarding the efforts of the team.
 Coaching Style-It includes the long term development of professions of the employees. In this,
the managers encourage their employees for developing their skills and to get improved in
performing well.
In McDonald directive management style is playing an imperative role in the success of the
business. It reduces the negativity and risk factor of losing the quality workers from the
association.
7

Explain relevant effects of globalisation facing the organisation.
Definition of globalisation- Globalisation is well known as a trend or process for which is
getting used in increasing the interaction between various associations and people on the
worldwide scale. It gets done because of the advances in the communications and transportation
technology.
Globalisation greatly implies in the beginning of nationalistic & native viewpoints to an
attractive outlook of independent and interrelated world with the free transfers of capital, goods,
and services through the national frontlines.
Yip’s “drivers of globalization” – It is the team of various conditions of industry globalisation
drivers such as cost, market, competitive drives and government. These are known as the
underlying conditions in every industry which highly affects the potential of industry
globalisation that is the prospective for the firms for setting the complete worldwide and global
strategy as well.
According to Budge, et. al., (2017), the globalisation of markets and underlying the production
structure helps the business to grow faster. It is well known that the new economy of
globalisation refers to the more perfect, stable and longer growth by including the various jobs,
interests rates, lower inflations, explosions of the free markets at worldwide, knowledge via the
internet, new types of associations which affects the change of association (Budge, et. al., 2017).
Globalisation affects both negatively and positively on the business environment of McDonald.
Some of those effects are discussed below-
 The McDonald expands at the global level and includes the employees from various
backgrounds. It includes an excellent type of network or connection which helps in resolving all
the issues of the business at the real time. As same it also includes a greater variety of
distribution channel to make their products and services available to each and every customer in
an easy manner. So this is how it impacts positively on the business. At the other hand, it stands
as the reasons that are integrated associations than the various perspectives of all the workers. It
includes various kinds of risk obsolescence, terminations and isolations as well. Various
8

attractive ways get to include it with the help of different kind of people which greatly
contributes to the success of the association.
 It also includes the issue of morality. As because including the people from a different
background might affect in terms of complex identifiers such as religion, race, socioeconomic
position and etc. It includes the clashes of culture in the management as they are plenteous as the
various backgrounds.
Some kind of research also gets used herein as the theoretical model. It helps in finding out the
various ways which can eventually help in building up the successful empire.

9

Explain your understanding of CSR and review two responses adopted by the organisation
in light of the case study/article.
CSR (Corporate social responsibility) is well known as the concept of management from where
the associations integrate the environmental and social concerns in the business of McDonald.
Corporate social responsibility generally gets understood by the process from which an
association achieves the balance of environmental social and all the economic imperatives. It is
importantly required to draw a difference between the CSR as it can be charity, strategic business
management concept, philanthropy and sponsorships as well. Promoting the CSR requires the
various approaches which get perfect or set by the capacities and respective needs of businesses.
According to Cemek (2017), theories are basically formed for explaining, understanding and
predicting the phenomena. In various cases for challenging and extending there are existing skills
or knowledge within the set limits of critical assumptions of bounding. The theoretical
framework is well known as the structure which can support or hold the theory of the research
study. It includes four different kinds of responsibilities also such as environmental
responsibility, ethical business practices, economic responsibility and philanthropic initiatives
(Cemek, et. al., 2017).The explanation of these is discussed below-
Economic Responsibility-
 According to Schwartz, (2017), it basically focuses on improving the profits and revenues. In
order to become a good corporation, it first requires being profitable.
 Legal Responsibilities- An association the main responsibility is the requirement that gets
placed on by the law. After this, it requires ensuring that association is leading to the profitable
business by obeying all the laws perfectly (Schwartz, 2017).
 Ethical Responsibility-The legal and economic responsibilities are the two different obligations
of the association. After meeting with the basic requirements an association like McDonald
concerns itself with various ethical responsibilities.
 Philanthropic Responsibilities- If an association is meeting with the other responsibilities it
gives a chance for meeting the responsibilities related to the philanthropic. These are the
10

responsibilities which move above or beyond for what the company believes in right or simply
required as well.
Conclusion
In this case, study if McDonald, the explanation and identification of three different levels such
as business process modelling, activity level has been included in. All of these levels of the
organisations greatly explain about the functional areas and responsibilities of these levels. This
case study also includes the understanding of Organic vs. mechanistic structure. At the other
hand, the various roles and styles of the leadership have been explained in a well-behaved
manner. It also identifies the models or styles of management from the theoretical perspectives.
The interpretation of management and leadership style has been adopted in the McDonald which
greatly helps this business to reach on top. Various leadership styles such as the autocratic model
of leadership, charismatic leadership and the model of democratic leadership have taken place in
this study to understand well. At the other hand, the different style of management such as
directive management style, authoritative management style, participative style of management,
coaching style of management has been included under in. This study also explains the meaning
of CSR and its importance in the association. The various responsibilities of economic
responsibility, legal responsibility, ethical responsibility; philanthropic responsibility have also
been involved in this unit to understand well. All these responsibilities play a vital role in the
success of the business in various manners. The meaning of globalisation with its positive and
negative both the impacts on the business have been included herein. Yip's "drivers of
globalization" has been explained very well in this study with its importance in the McDonald.
11

References
 Budge, G., Mitchell, A., Rampling, T. and Down, P., 2017. A democratic approach towards
emotional wellbeing: Exploring individuals’. Sociology of Health & Illness, 30(4), pp.583-598.
 Cemek, E., 2017, September. POLITICAL CORPORATE SOCIAL RESPONSIBILITY IN THE
TURKISH BUSINESS CONTEXT. In 10th Annual Conference of the EuroMed Academy of
Business.
 Cook, S., 2017. Measuring customer service effectiveness. Routledge.
 Fay, J.J. ed., 2017. Key Terms and Concepts for Investigation: A Reference for Criminal,
Private, and Military Investigators. Taylor & Francis.
 Khdair, H.S., Awad, M.M. and Othman, Z.A., 2017. Formalizing the Software Engineering
Process Using a Graphical Software Process Modelling Formalism.
 Montgomery, D.C., 2017. Design and analysis of experiments. John wiley & sons.
 Nordbye, V. and Irving, J.A., 2017. Servant Leadership and Organizational Effectiveness:
Examining Leadership Culture among Millenials within a US National Campus
Ministry. Servant Leadership: Theory & Practice, 4(1), p.4.
 Norman, R.O., 2017. Principles of organic synthesis. Routledge.
 Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
 Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.
12

13