Positive Ways McDonald's Responds to Evolving Customer Habits and Competition
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This case study examines how McDonald's is responding to evolving customer habits and increased competition in the market. It explores the factors that affect their innovation capabilities and competitiveness, such as changing trends, customer needs, and market conditions. The study also highlights McDonald's organizational culture and its impact on innovation. Additionally, it discusses McDonald's commitment to environmental sustainability and its efforts to reduce emissions, improve packaging and recycling, and promote sustainable food production.
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Running Head: MANAGEMENT
0
Management
B205B –TMA Question Answers
(Student details :)
7/8/2019
0
Management
B205B –TMA Question Answers
(Student details :)
7/8/2019
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Management
1
B205B –TMA Question Answers 1500 WC
The chosen case study is going to examine the positive ways in which McDonald's is
currently responding to evolving customer habits as well as increased levels of competition in
the market.
Answer 1
For staying ahead in today’s competitive environ, McDonald’s needs to work effectively on
their innovation abilities and competition spirits (THOMPSON, 2018). In this way, factors
like changing trend affect McDonald’s competitiveness and innovation capability largely. As
we know that, in the modern era, people typically live busy lives and hence give huge
importance to convenience while buying products and services. In this context, quick service
products like hi-tech mobile phones, drive-in car washes, and ready-to-eat meals are majorly
in trend. Apart from this, some major contextual influences which affect McDonald’s
competitiveness and innovative capabilities are as follows:
The mission of providing great personal experience while offering excellent value for
money affects both the innovation capabilities and competitiveness
Need for responding to evolving customer habits as well as increased levels of
competition within the food industry greatly influence the innovative capabilities of
the McD.
Adopted technology for enhancing the total in-house experiences of the customers
majorly impact the innovative abilities of the company (Neate, 2015).
On the other hand, competitiveness will always be affected by the advanced and
updated technologies used by the McD.
On-going market conditions in terms of economic and political environments affect
the McD’s competitiveness and innovation capabilities
Nature of the customers and their changing needs impact the McD’s innovative
abilities and competitiveness.
In the context of market research, it can be said that detailed and well-structured
market research is a critical contextual influence which effects McD’s innovation and
competitiveness
1
B205B –TMA Question Answers 1500 WC
The chosen case study is going to examine the positive ways in which McDonald's is
currently responding to evolving customer habits as well as increased levels of competition in
the market.
Answer 1
For staying ahead in today’s competitive environ, McDonald’s needs to work effectively on
their innovation abilities and competition spirits (THOMPSON, 2018). In this way, factors
like changing trend affect McDonald’s competitiveness and innovation capability largely. As
we know that, in the modern era, people typically live busy lives and hence give huge
importance to convenience while buying products and services. In this context, quick service
products like hi-tech mobile phones, drive-in car washes, and ready-to-eat meals are majorly
in trend. Apart from this, some major contextual influences which affect McDonald’s
competitiveness and innovative capabilities are as follows:
The mission of providing great personal experience while offering excellent value for
money affects both the innovation capabilities and competitiveness
Need for responding to evolving customer habits as well as increased levels of
competition within the food industry greatly influence the innovative capabilities of
the McD.
Adopted technology for enhancing the total in-house experiences of the customers
majorly impact the innovative abilities of the company (Neate, 2015).
On the other hand, competitiveness will always be affected by the advanced and
updated technologies used by the McD.
On-going market conditions in terms of economic and political environments affect
the McD’s competitiveness and innovation capabilities
Nature of the customers and their changing needs impact the McD’s innovative
abilities and competitiveness.
In the context of market research, it can be said that detailed and well-structured
market research is a critical contextual influence which effects McD’s innovation and
competitiveness
Management
2
Besides, contemporary business trends influence McD’s innovation practices. For
instance, quick take-away food, McCafe concept, McD breakfast menu, kids meals,
and unique combo food offerings show McD’s innovation capability and
competitiveness at a large extent (Panmore, 2017).
Moreover, competitive strategies adopted by the McD for gaining competitive
advantage within modern food market also influence the giant food chain’s
competitiveness hugely.
Answer 2
In this context, as explained by (Thompson, 2019) McD Company’s culture majorly supports
the firm’s industry positioning goals. While assessing the organizational culture, it was found
that McD is leading being the largest player in the international fast-food restaurant market.
Based on the chosen case study, an assessment of the McD’s organizational culture utilizes
its unique culture for attracting qualified employees and customers (Panmore, 2017). In
general, a corporation’s organizational culture comprises the habits, values, and traditions
which influence their employees’ behaviours. In this way, McD ensures their business
efficiency into production as well as service. The adopted organizational culture by the McD
impacts its innovation abilities to a large extent because it encourages learning at the
workplace. In addition, a continuing evolution of the company reflects McD’s effectiveness
while applying their corporate cultures to achieving the required levels of human resource
abilities (Panmore, 2017).
McD’s organization culture acts as a success factor within its international business
operations. It has been observed that McD’s organizational culture supports functional
effectiveness and efficiency for maximizing productivity. Besides, the service quality of the
food chain is also get enhanced from the impacts of McD’s unique and motivating corporate
culture (Thompson, 2019). Apart from this, McD’s corporate culture affects its innovation
largely because McD team emphasizes more on human resource development as well as
efficiency. It is well known that when an organizational culture supports the firm’s business
growth and success within the international market then it fosters innovation at a large extent
(Corporate McDonalds, 2019). Likewise, the above defined corporate culture of the McD
promotes its success in the global fast food restaurant market. The features of the McD’s
2
Besides, contemporary business trends influence McD’s innovation practices. For
instance, quick take-away food, McCafe concept, McD breakfast menu, kids meals,
and unique combo food offerings show McD’s innovation capability and
competitiveness at a large extent (Panmore, 2017).
Moreover, competitive strategies adopted by the McD for gaining competitive
advantage within modern food market also influence the giant food chain’s
competitiveness hugely.
Answer 2
In this context, as explained by (Thompson, 2019) McD Company’s culture majorly supports
the firm’s industry positioning goals. While assessing the organizational culture, it was found
that McD is leading being the largest player in the international fast-food restaurant market.
Based on the chosen case study, an assessment of the McD’s organizational culture utilizes
its unique culture for attracting qualified employees and customers (Panmore, 2017). In
general, a corporation’s organizational culture comprises the habits, values, and traditions
which influence their employees’ behaviours. In this way, McD ensures their business
efficiency into production as well as service. The adopted organizational culture by the McD
impacts its innovation abilities to a large extent because it encourages learning at the
workplace. In addition, a continuing evolution of the company reflects McD’s effectiveness
while applying their corporate cultures to achieving the required levels of human resource
abilities (Panmore, 2017).
McD’s organization culture acts as a success factor within its international business
operations. It has been observed that McD’s organizational culture supports functional
effectiveness and efficiency for maximizing productivity. Besides, the service quality of the
food chain is also get enhanced from the impacts of McD’s unique and motivating corporate
culture (Thompson, 2019). Apart from this, McD’s corporate culture affects its innovation
largely because McD team emphasizes more on human resource development as well as
efficiency. It is well known that when an organizational culture supports the firm’s business
growth and success within the international market then it fosters innovation at a large extent
(Corporate McDonalds, 2019). Likewise, the above defined corporate culture of the McD
promotes its success in the global fast food restaurant market. The features of the McD’s
Management
3
corporate culture which mainly affects their innovation capabilities can be explained as
below:
Individual learning (IL)
As explained by (Panmore, 2017), McDonald’s corporate culture gives great importance to an
individual’s lifelong learning. This concept or feature of incorporating individual learning
fosters innovation at the organization. This is because it is a belief that IL encourages quality,
productivity, along with the business effectiveness which ultimately promotes them for
contributing innovative ideas. In this context, for facilitating an individual’s learning, McD
provides training and development opportunities with the help of Hamburger University.
Here, McD offers global mobility, internships, as well as leadership development programs
for their workers and staff (Thompson, 2019).
Organizational learning
As found in the findings of the article written by (Panmore, 2017), McD’s organizational
culture promotes organizational learning. In this context, the company aims to utilize their
employees’ individual learning for developing organizational knowledge in order to bring the
business to new heights of performance through innovation. In this way, McD applies their
organizational learning feature of the corporate culture from programs, policies, and meetings
which promote employee knowledge and feedback sharing (Shenkar et al., 2014).
People-centricity
People-centric feature of the McD’s corporate culture allows the company to nurture more
and more innovative ideas of their organizational people (Garnett, 2014).
Inclusion and diversity
Apart from all above, McD’s official HRM policy states that inclusion and diversity play an
important role in building a positive organizational culture at workplace hence it affects the
firm’s innovation abilities while optimizing HR capabilities efficiently (Enterslice, 2017).
Answer 3
It can be said that McDonald’s is an environmentally sustainable enterprise on the basis of
the research conducted by the writer of this paper (Retail ET, 2018). In this context, McD
3
corporate culture which mainly affects their innovation capabilities can be explained as
below:
Individual learning (IL)
As explained by (Panmore, 2017), McDonald’s corporate culture gives great importance to an
individual’s lifelong learning. This concept or feature of incorporating individual learning
fosters innovation at the organization. This is because it is a belief that IL encourages quality,
productivity, along with the business effectiveness which ultimately promotes them for
contributing innovative ideas. In this context, for facilitating an individual’s learning, McD
provides training and development opportunities with the help of Hamburger University.
Here, McD offers global mobility, internships, as well as leadership development programs
for their workers and staff (Thompson, 2019).
Organizational learning
As found in the findings of the article written by (Panmore, 2017), McD’s organizational
culture promotes organizational learning. In this context, the company aims to utilize their
employees’ individual learning for developing organizational knowledge in order to bring the
business to new heights of performance through innovation. In this way, McD applies their
organizational learning feature of the corporate culture from programs, policies, and meetings
which promote employee knowledge and feedback sharing (Shenkar et al., 2014).
People-centricity
People-centric feature of the McD’s corporate culture allows the company to nurture more
and more innovative ideas of their organizational people (Garnett, 2014).
Inclusion and diversity
Apart from all above, McD’s official HRM policy states that inclusion and diversity play an
important role in building a positive organizational culture at workplace hence it affects the
firm’s innovation abilities while optimizing HR capabilities efficiently (Enterslice, 2017).
Answer 3
It can be said that McDonald’s is an environmentally sustainable enterprise on the basis of
the research conducted by the writer of this paper (Retail ET, 2018). In this context, McD
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Management
4
adopts go green approach in the direction of achieving environmental sustainability within
the fast food restaurant market. It has been observed so many times that McD adopts new
eco-friendly business practices like environment-friendly recycling and packaging regularly.
In this context, McD aimed to acquire 100 % of their packaging from recycled, renewable or
certified resources by the year 2025 (Neate, 2015).
As mentioned by the source (Corporate McDonalds, 2019), McD believes that delicious and
healthy food can always be made sustainable for their producers, customers as well as the
environment. Being one of the globe’s leading fast food restaurant brands, McD is using their
scale for good in order to make the vision of environmental sustainability a reality. To find
the sustainability-oriented practices of McD, the writer has researched relevant up-to-date
info about McDonald's’ activities in relation to environmental sustainability (Corporate
McDonalds, 2019). In this way, McD has worked upon so many relevant areas of their
operations so as to foster sustainability practices in the long-term (Griggs et al., 2013).
The whole action of McD, being an environmentally sustainable enterprise can be explained
as below:
Climate action
As we know that climate change is the largest environmental problem of this era hence McD
has committed to reducing harmful emissions right along their value chain. Climate-related
actions are being implemented by the McD from farm to restaurant to consumers, in order to
achieve their science-based targets (Corporate McDonalds, 2019).
Packaging and Recycling
McD has set novel progressive goals for improving their packaging, reducing waste as well
as recycling as much as possible, for amplifying their positive influence upon this planet
(Corporate McDonalds, 2019).
Beef sustainability
McD has also been working in the direction of beef sustainability while working with
environmental groups, farmers, and governments effectively (Corporate McDonalds, 2019).
Commitment to the families
4
adopts go green approach in the direction of achieving environmental sustainability within
the fast food restaurant market. It has been observed so many times that McD adopts new
eco-friendly business practices like environment-friendly recycling and packaging regularly.
In this context, McD aimed to acquire 100 % of their packaging from recycled, renewable or
certified resources by the year 2025 (Neate, 2015).
As mentioned by the source (Corporate McDonalds, 2019), McD believes that delicious and
healthy food can always be made sustainable for their producers, customers as well as the
environment. Being one of the globe’s leading fast food restaurant brands, McD is using their
scale for good in order to make the vision of environmental sustainability a reality. To find
the sustainability-oriented practices of McD, the writer has researched relevant up-to-date
info about McDonald's’ activities in relation to environmental sustainability (Corporate
McDonalds, 2019). In this way, McD has worked upon so many relevant areas of their
operations so as to foster sustainability practices in the long-term (Griggs et al., 2013).
The whole action of McD, being an environmentally sustainable enterprise can be explained
as below:
Climate action
As we know that climate change is the largest environmental problem of this era hence McD
has committed to reducing harmful emissions right along their value chain. Climate-related
actions are being implemented by the McD from farm to restaurant to consumers, in order to
achieve their science-based targets (Corporate McDonalds, 2019).
Packaging and Recycling
McD has set novel progressive goals for improving their packaging, reducing waste as well
as recycling as much as possible, for amplifying their positive influence upon this planet
(Corporate McDonalds, 2019).
Beef sustainability
McD has also been working in the direction of beef sustainability while working with
environmental groups, farmers, and governments effectively (Corporate McDonalds, 2019).
Commitment to the families
Management
5
In the form of happy meals, McD is working for a healthier generation by using more and
more vegetables, fruits and dairy products so that they can do something good for their
consumers and their families (Bass & Dalal-Clayton, 2012).
Producing sustainable food
McD is using their scale for creating a food system where ordinary people, animals as well as
the whole planet thrive (Kushwaha & Sharma, 2016). In this way, McD is an environmentally
sustainable enterprise as they use high-quality ingredients and support sustainable sourcing
for promoting animal health and welfare at a large extent.
Therefore, McDonald’s is highly demonstrating environmentally sustainable practices by
protecting our planet and supporting people and communities (Kushwaha & Sharma, 2016).
Answer 4
In order to reflect on the experiences of working on my TMA, I would like to mention about
my developed academic and research skills. My whole experience of working on TMA
provided life-long learning and understanding for my personal and professional development.
I learned a lot of topics related to the module while exploring the concepts of innovation and
entrepreneurship. I learned about different organizational culture and theories related to them.
Apart from this, my learning throughout the module contained contextual influences on an
organization’s competitiveness and innovation capabilities. I also realized the importance of
reflection as it is the best way to learn by doing in reality.
In the context of course concepts and topics, I would like to mention that theoretical and
practical skills were gained by me from the perspective of future career endeavors. In whole,
this module of innovation and entrepreneurship offered great learning and understanding
related to several aspects like academic skills, business topics, and research skills which will
be helpful during my future professional growth and success.
References
Bass, S. & Dalal-Clayton, B., 2012. Sustainable development strategies: a resource book.
London: Routledge.
5
In the form of happy meals, McD is working for a healthier generation by using more and
more vegetables, fruits and dairy products so that they can do something good for their
consumers and their families (Bass & Dalal-Clayton, 2012).
Producing sustainable food
McD is using their scale for creating a food system where ordinary people, animals as well as
the whole planet thrive (Kushwaha & Sharma, 2016). In this way, McD is an environmentally
sustainable enterprise as they use high-quality ingredients and support sustainable sourcing
for promoting animal health and welfare at a large extent.
Therefore, McDonald’s is highly demonstrating environmentally sustainable practices by
protecting our planet and supporting people and communities (Kushwaha & Sharma, 2016).
Answer 4
In order to reflect on the experiences of working on my TMA, I would like to mention about
my developed academic and research skills. My whole experience of working on TMA
provided life-long learning and understanding for my personal and professional development.
I learned a lot of topics related to the module while exploring the concepts of innovation and
entrepreneurship. I learned about different organizational culture and theories related to them.
Apart from this, my learning throughout the module contained contextual influences on an
organization’s competitiveness and innovation capabilities. I also realized the importance of
reflection as it is the best way to learn by doing in reality.
In the context of course concepts and topics, I would like to mention that theoretical and
practical skills were gained by me from the perspective of future career endeavors. In whole,
this module of innovation and entrepreneurship offered great learning and understanding
related to several aspects like academic skills, business topics, and research skills which will
be helpful during my future professional growth and success.
References
Bass, S. & Dalal-Clayton, B., 2012. Sustainable development strategies: a resource book.
London: Routledge.
Management
6
Corporate McDonalds, 2019. Using our scale for good. [Online] Available at:
https://corporate.mcdonalds.com/corpmcd/scale-for-good/using-our-scale-for-good.html
[Accessed 08 July 2019].
Enterslice, 2017. Introduction and Types of International Business Environment (IBE).
[Online] Available at: https://enterslice.com/learning/international-business-environment-ibe/
[Accessed 02 December 2018].
Garnett, T., 2014. Three perspectives on sustainable food security: efficiency, demand
restraint, food system transformation. What role for life cycle assessment? Journal of Cleaner
Production, 73, pp.10-18.
Griggs, D. et al., 2013. Policy: Sustainable development goals for people and planet. Nature,
495(7441), p.305.
Kushwaha, G. & Sharma, N., 2016. Green initiatives: a step towards sustainable development
and firm's performance in the automobile industry. Journal of cleaner production, 121,
pp.116-29.
Neate, R., 2015. McDonald's: a brief history in 15 facts. [Online] Available at:
https://www.theguardian.com/business/2015/may/02/mcdonalds-a-brief-history-in-15-facts
[Accessed 02 December 2018].
Panmore, 2017. McDonald’s Organizational Culture Analysis. [Online] Available at:
http://panmore.com/mcdonalds-organizational-culture-analysis [Accessed 08 July 2019].
Retail ET, 2018. Go green: McDonald's switching to environment-friendly packaging and
recycling. [Online] Available at: https://retail.economictimes.indiatimes.com/news/food-
entertainment/food-services/go-green-mcdonalds-switching-to-environment-friendly-
packaging-and-recycling/62524710 [Accessed 08 July 2019].
Shenkar, O., Luo, Y. & Chi, T., 2014. International business. London: Routledge.
THOMPSON, , 2018. McDonald’s Organizational Structure Analysis. [Online] Available at:
http://panmore.com/mcdonalds-organizational-structure-analysis [Accessed 02 December
2018].
6
Corporate McDonalds, 2019. Using our scale for good. [Online] Available at:
https://corporate.mcdonalds.com/corpmcd/scale-for-good/using-our-scale-for-good.html
[Accessed 08 July 2019].
Enterslice, 2017. Introduction and Types of International Business Environment (IBE).
[Online] Available at: https://enterslice.com/learning/international-business-environment-ibe/
[Accessed 02 December 2018].
Garnett, T., 2014. Three perspectives on sustainable food security: efficiency, demand
restraint, food system transformation. What role for life cycle assessment? Journal of Cleaner
Production, 73, pp.10-18.
Griggs, D. et al., 2013. Policy: Sustainable development goals for people and planet. Nature,
495(7441), p.305.
Kushwaha, G. & Sharma, N., 2016. Green initiatives: a step towards sustainable development
and firm's performance in the automobile industry. Journal of cleaner production, 121,
pp.116-29.
Neate, R., 2015. McDonald's: a brief history in 15 facts. [Online] Available at:
https://www.theguardian.com/business/2015/may/02/mcdonalds-a-brief-history-in-15-facts
[Accessed 02 December 2018].
Panmore, 2017. McDonald’s Organizational Culture Analysis. [Online] Available at:
http://panmore.com/mcdonalds-organizational-culture-analysis [Accessed 08 July 2019].
Retail ET, 2018. Go green: McDonald's switching to environment-friendly packaging and
recycling. [Online] Available at: https://retail.economictimes.indiatimes.com/news/food-
entertainment/food-services/go-green-mcdonalds-switching-to-environment-friendly-
packaging-and-recycling/62524710 [Accessed 08 July 2019].
Shenkar, O., Luo, Y. & Chi, T., 2014. International business. London: Routledge.
THOMPSON, , 2018. McDonald’s Organizational Structure Analysis. [Online] Available at:
http://panmore.com/mcdonalds-organizational-structure-analysis [Accessed 02 December
2018].
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Management
7
Thompson, A., 2019. McDonald’s Organizational Structure & Its Characteristics – An
Analysis. [Online] Available at: http://panmore.com/mcdonalds-organizational-structure-
analysis [Accessed 08 July 2019].
7
Thompson, A., 2019. McDonald’s Organizational Structure & Its Characteristics – An
Analysis. [Online] Available at: http://panmore.com/mcdonalds-organizational-structure-
analysis [Accessed 08 July 2019].
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