Management in McDonald's Australia

This article discusses the management function of McDonald's Australia and how it ensures sustainable and profitable associations with its stakeholders. It also covers the technical, human, and conceptual skills required for management in McDonald's Australia.

Running head: INTRODUCTION TO MANAGEMENT
INTRODUCTION TO MANAGEMENT
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1INTRODUCTION TO MANAGEMENT
Answer 1
The first Australian Mc Donald’s opened in the regions of Sydney suburb of Yagoona
after a decade of its establishment in the USA. It has been followed by a wide range of other
Sydney stores and in 1973 by one in Sprinvale Road in Melbourne. The launch of the first
Australian Mc Donald’s in the year 1971 had been identified as a prominent event. The majority
of print advertising for Mc Donald’s in 1972 appeared to be about recruiting employees for the
increasingly developing Australian business operation (Mcdonalds.com.au 2018). The Yagoona
outlet had been shut down in the 1994 whereby the drive-through was removed and the building
turned out as the GIO office. During that span, Macca’s store had been the single store with
limited lifespan. Though the first restaurant at Yagoona was non-descript in relation to Mc
Donald’s current organizational standards, however it was one of the initial steps towards its
thriving rapid service restaurant sector in Australia(Mcdonalds.com.au 2018).
Mc Donald’s Australia launched their flagship burger ‘The McOz’ in 1999 in time for
Sydney Olympics in 2000 where Mc Donald’s has been recognized as the official restaurant of
the games purposed to served more than 1 million meals to the athletes, officials and viewers. In
2005, Mc Donald’s had celebrated its 50th Anniversary where the organization raised over
$710,000 for CARE Australia through its restaurant chain in order to provide instant and
enduring assistance to individuals who have been impacted by the adverse effect of Tsunami
(Mcdonalds.com.au 2018). However, Mc Donald’s in recent times has been operating with
around 850 restaurants and above 85,000 employees across the nation. In recent times Mc
Donald’s Australia has introduced All Day Breakfast along with digital platform that is ‘Our
Food Your Questions to answer purchasers’ queries and questions about Macca’s
(Mcdonalds.com.au 2018).

2INTRODUCTION TO MANAGEMENT
Answer 2
Mc Donald’s operations primarily rely on its fundamental players such as franchisees,
suppliers, distributers and employees. The organization in Australia essentially refers to the
integrated interdependency of these primary players as the ‘three-legged stool’. The stool forms
the groundwork of the business and signifies its greatest strength as a business enterprise. Mc
Donald’s are highly committed in assuring sustainable as well as profitable associations with its
wide range of stakeholders, thus being critical for their business that their franchises, distributors
and employees all could gain from Mc Donald’s business expansion. Mc Donald’s Australia
comprises of over 9000 suppliers and are highly dedicated in ensuring that all suppliers of the
business gain from their association with Mc Donald’s (Verseman 2017).
Verseman (2017) revealed that Mc Donald’s franchise model further provides assertive
economic benefits by offering significant business opportunities for Australians. In recent times,
it has been recorded that around 250 Australians are executing individual business as Mc
Donald’s franchisees. The franchisee model further encourages significant entrepreneurial skills
within an established business model and further Mc Donald’s facilitates franchisees to establish
enduring as well as profitable businesses (Goulding & Lim 2014). Mc Donald’s Australia has
been providing diverse range of opportunities and avenues to recognize skills and further
develop leaders. Furthermore, at Mc Donald’s Australia the employers conduct their business to
the highest potential standards of equality, honesty and integrity. The organization further assists
their consumers to establish enhanced communities and further expand their value and size to
improve the sustainability of the nation. Mc Donald’s Australia with its increasing expansion
have been becoming highly focused on establishing its business in sustainable manner so that the
impact on the environment is condensed and its contribution to the communities within which
the company operates is assertive (Richards et al. 2015). Mc Donald’s Australia is immensely
dedicated in supporting its producers and manufacturers and their first preference essentially
relies on the source from within Australia whenever it is feasible and appropriate to do so. The
company uses a very high proportion of Australian sourced food with over 90% of company’s
food and packaging requirements manufactured in Australia (Mcdonalds.com.au 2018). The
company in 2011 has spent over $ 670 million on Australian produce which includes over 380

3INTRODUCTION TO MANAGEMENT
million hamburger buns, around 85 million English muffins and around 25 million kilos of beef.
However the standard of Mc Donald’s products in Australia has been identified at the global
level leading to exporting success (NewsComAu 2018). For example, Mc Donald’s export over
49 million kilos of Australian beef every year which is further used in Mc Donald’s restaurants
in South East Asia, Japan as well as the US (Telegraph.co.uk 2018).

4INTRODUCTION TO MANAGEMENT
Answer 3
The management function of Mc Donald’s Australia essentially ensures that all
restaurants and franchisees work towards the success and attainment of collective goals and
objectives. The prominence of the company is highly associated with innovation and well-
established consumer associations which further have been sustained by the management
functions (Mcdonalds.com.au 2018). The planning function significantly ensures that the
organization recognizes and chooses appropriate goals and objectives and further evaluates for
accomplishing organizational objectives. Mc Donald’s Australia has fundamentally emphasized
on this principal function of management as it ascertains that all the restaurants of Mc Donald’s
share and work towards collective objectives. The managers engaged in Mc Donald’s outlets
further gain from such an effective function by effectively implementing decisions made in terms
of organizational goals and purposes which the company desires to accomplish. Mc Donald’s has
critically planned the action to execute and further attempt to amplify accessible resources
(Verseman 2017).
Managers of Mc Donald’s depend on the organizing function in order to allocate or
delegate authority to other employees. It has been observed that any achievable organizational
structure promotes that customers and employees are identified as vital possessions of the
organization (Zhu, Anagondahalli & Zhang 2017). Mc Donald’s Australia has attainably
established an organizational culture which facilitates in improving employees’ ingenuity and
motivation towards the role they are assigned for. The mutual management approach adapted by
Mc Donald’s ensures that all retail outlets of the franchise situated in varied regions of Australia
operate in an effective manner (Ford 2015).
Strategic plans and organizational structure have been frequently been supervised to
ascertain they assist the organization to attain its goals and purposes. Regulation or controlling at
Mc Donald’s is sustained through diverse range of activities purposed at ensuring employees are
highly enthused and polices are distinct (Kim & Kim 2014). The line managers at each
significant franchisee are further regulated by gaining the assurance that the company will
conform to the range of suggestion provided by suppliers and distributors. CEO Andrew Gregory
must undertake leadership approach in management to successfully contribute to the success of
the organizational goals (Ford 2015). It has been noted by Reeve (2016) that the formation of a
distinct perspective along with a highly empowering organizational culture to proficiently ensure

5INTRODUCTION TO MANAGEMENT
that every stakeholder of Mc Donald’s comprehends the way individual roles tend to contribute
towards the attainment of the company’s values and objectives. CEO Gregory must use strategies
related to power, authority, affiliation and communication strategies to competently adapt this
function. However the primary activities underlying this function at Mc Donald’s involve the
coordination of employee conduct to successfully to guarantee that all activities are efficiently
collaborated and the upholding of employee motivation and dedication (Change.org 2018). Thus
in order to enhance the level of management and enthusiasm, Mc Donald’s Australia encourages
its employees to perform in teams and further organizes events in order to facilitate the
interaction of workers in various centres specifically for the stores which are located in similar
regions. The CEO of Mc Donald’s must enhance its policies on leading which can further be
attained by developing the autonomy of the franchisees which further aims to improve the
competence level of employees in each franchise to introduce new and improved strategies to
accomplish needs and requirements of respective markets (Reeve 2016).

6INTRODUCTION TO MANAGEMENT
Answer 4
Management in Mc Donald’s typically focus on establishing management skills which
are technical, human and conceptual. Forms of technical skills are identified as the competence
to implement tools, mechanisms and specialized expertise to execute methods and procedures.
Majority of the technical expertise which CEO Gregory has been attained and can further be
utilized in an efficient manner under such management skill (Richards et al. 2015). Furthermore,
human competence are utilized to set up interpersonal associations, resolve human relation issues
and further build approval of one’s co-workers. These management skills can further be used in
order to associate to the employees with an approach that their conduct is reliable with the needs
and demands of Mc Donald’s. Conceptual skills tend to involve the capacity to view the
company as a whole and further to solve issues in a way which promotes the organization
through analytical, innovative and intuitive talents which constitutes the CEO’s conceptual
ability.
Furthermore, introductory management skills in MC Donald’s program for sustaining
success give diminutive level of consideration to technical abilities. Reports reveal that major
proportion of managers in Mc Donald’s employee base have obtained these competencies at a
greater level than conceptual skills (Change.org 2018). However in a section of advanced
management Mc Donald’s programs and initiatives for example the company’s financial
management, the focus lies primarily on the integration of technical, human as well as
conceptual skills instead of relying on customary technical approach. CEO Gregory moreover
claimed that the relative significance related to conceptual, human and technical capacity alter as
an employee advances from lower, to middle and further to senior management level in the
organizational structure of Mc Donald’s (Mcdonalds.com.au 2018). Regardless to the
importance of the three levels of management skills, conceptual ability have emerged as highly
essential at the senior most level of management (Verseman 2017). Furthermore, the
consistently elevated level of relevance of human skills and competence which will aid Mc
Donald’s to efficiently comprehend the reasons of people issues are identified as fundamental
cause for business disruption.

7INTRODUCTION TO MANAGEMENT
Answer 5
CEO Andrew Gregory must adapt skills of quality management in to facilitate Mc
Donald’s maximise the excellence level of its products within constraints such as costs and price
limitations. The CEO must implement an effective production line method in order to sustain the
consistency level of product quality (Richards et al. 2015). The consistency level tends to
persuade consumers’ expectations related to Mc Donald’s and its brand in this strategic decision
area of business operations management. Furthermore, Andrew Gregory must implement
strategic decision area of operations management in order to reduce inventory expenditure while
efficiently aligning its restaurant operations (Zhu, Anagondahalli & Zhang 2017). The CEO’s
management skill must emphasize on direct sales of Mc Donald’s product as well as regional
intermediaries along with suppliers to coordinate with the managerial base of Mc Donald’s to
successfully manage the inventory management.

8INTRODUCTION TO MANAGEMENT
Answer 6
Through the exceptional leadership skills of Mc Donald’s CEO Andrew Gregory the
company has initiatives to persuade and extra value meals to support Australian awareness and
efficiently invented McCafe (Mcdonalds.com.au 2018). Thus following to the period of inactive
growth, Mc Donald’s business with the strategic leadership skills of Gregory has returned to its
highly innovative roots through prominent initiatives such as barista made coffee situated in all
drive throughs, which have further guaranteed the company’s ability to surpass the rest of the
global business in recent years (Mcdonalds.com.au 2018). Managers from other organizations
must adapt the ability to persuade innovative strategies for consumers and acknowledge the
feedbacks and opinions of customers (Telegraph.co.uk 2018).
Thus managers from other non-profit organizations must efficiently focus on progress
and not perfection in order to liberate business from any kinds of innovation blockages or
constrains. Furthermore, enterprises with franchisees must further adapt competence to generate
money on their own accounts during times of discrepancies within the organization
(NewsComAu 2018). In addition to this, managers of non profit organizations must align long
term and short term decisions which are vital for the organization’s achievement and growth.
These organizations must draw similar approaches with Mc Donald’s prospective strategic plans
such as the 2020 vision plan (Ford 2015).

9INTRODUCTION TO MANAGEMENT
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10INTRODUCTION TO MANAGEMENT
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