Importance of Knowledge Assets for McDonald's

This report explores the significance of knowledge assets for McDonald's and how they contribute to organizational success. It discusses the relationship between data, information, and knowledge, as well as the importance of individual and organizational knowledge. The report also covers the process of identifying and evaluating knowledge assets, and the role of intellectual property rights in business growth.

McDonalds

Table of Contents
INTRODUCTION.......................................................................................................................................2
MAIN BODY..............................................................................................................................................3
TASK 1.......................................................................................................................................................3
TASK 2.......................................................................................................................................................6
TASK 3.......................................................................................................................................................8
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
INTRODUCTION
In the business world organizations constantly rated or evaluated on the basis on value of
assets that consisted the accumulation of intellectual resources such as workforce, data base,
documents, guides and policies, procedures and patents (Shujahat and et.al., 2019). Knowledge
assets proved beneficial for organization to report the shareholders regarding the physical assets
that owned, cash in hand, revenue and profitability in both past and in future. Knowledge assets
are the one of most important drivers for the success of organization and it can be in
unstructured, in tacit knowledge. It can be in form of structured assets, explicit knowledge found
in codified manner examples are patents, copyrights and intellectual proprietary that helps to
build distinctive image in the market place to remain competitive in marketplace. Respective
report is based on the McDonald’ is the American fast food organization, established in the year
1940 in the California, USA. Respective report is based on the significance of knowledge assets
for the organization as well as individual by elaborating the different sections for achieving the
desirable goals and objectives. further it includes the relationship in between the knowledge, data
and information with modeling techniques for identify the knowledge assets for achieving
desirable goals and objectives. it also includes the way an organization can create, store and
apply the integrated knowledge and significance of intellectual property rights (Shamim, Cang

and Yu, 2019). Finally, it includes the contribution of knowledge assets that occurred by
respective organization and requirement of it.
MAIN BODY
TASK 1
Explain the relationship between the data, information and knowledge.
For an organization data, information and knowledge plays very much important role by
assisting in taking the effective kind of decision in the right direction, to achieve the desirable
objectives it is significant to understand the relationship in among the data, knowledge and
information.
Data: Data in the own way acknowledge as the accumulation of differ kinds of discrete objects,
various objects and context. It has been analyzed that data has no reference without the space or
time. In other words it can be called as the collection of some objects or processes or
unprocessed information (Razzaq and et.al., 2019). If the inside the spread sheet of excel each
row fill with the data on its own way and not give information. While the organization store the
sells figure in the spread sheet it simply known as data but after categorization of data it provide
some sort of output. So it can be said that there are close relationship in the data and information
without categorization it only known as data.
Information: The process data known as information, from the collection of data an individual
can derive the concise and meaningful information (Pereira and et.al., 2019). It not be called the
information until it not provide the any result out of data. If the data is stored in the sales figure
of excel sheet can not give any sort of conclusion but by using the statistical or observation an
individual can achieve the results that helps in taking appropriate kind of decisions. Hence the
data and information share the close relationship with one another as without one another they
don’t have any identity.
Knowledge: After the data and information, knowledge come into the next stage. While an
individual provides the experience or judgment from the information organization as well as
individual get the knowledge. It has been evaluated that knowledge is the important result of

learning and internalization of information, data and level of experience. While an organization
get the result that southern region needs more advertisement and promotions from the collected
information then they put one of their best efforts to market it in potential manner (Ouriques and
et.al., 2019). Hence it can be said that all the three attributes share the close relationship with one
another and while they collaboratively working provide meaningful knowledge and information
for taking the effective kind of decisions.
Explain the relationship between the individual knowledge and organisational knowledge.
Individual knowledge refers to the management and engagement to the extent or degree
to which the knowledge worker involved with the knowledge management related activities with
oneself. The concept of individual knowledge is very much imperative and helps in nurturing the
productivity of employees, managing their knowledge and architecture, effectiveness and
innovation in potential manner. it has been analyzed that the role of individual knowledge is very
much crucial in the complex and dynamic organisational knowledge environment, as individual
plays crucial role in building firms knowledge by underpinning their development. At the initial
level the individuals collect the information by generating the new knowledge from within the
organization or from the external sources. Respective knowledge is very significant for
organization in acknowledging the surrounding environment and building strategies to remain
competitive in business environment (Nisar, Prabhakar and Strakova, 2019). It has been
analyzed that individuals is one of most important assets of the organization and they give one of
their best efforts in organisational development and enhancement by hording the important
information in order to remain competitive in the marketplace. it has been evaluated that the
success of the organization is indirectly prosperity of individual, in that regards individuals gain
maximum knowledge in regards of organisational competitors, market and consumers
preferences so that they can report one of best outcomes in development of organization to
achieve the higher level of profitability and sustainability in the marketplace. in context of
McDonald’s they heavily rely on the individual knowledge in that regards to motivate individual
provides the benefits and extra time and space to accumulate knowledge that proved beneficial to
serve the end user in one of best possible manner. hence, it can be said that individual knowledge
and organisational knowledge share the close relationship with one another to provide delighted
experience to end user.

Organisational knowledge:
Organisational knowledge is the summation of all kinds of knowledge that resides within
the organization that adds value in order to serve consumers in one of best manner. respective
kind of information should be gained from the intellectual property, knowledge of the product,
lessons of getting success and failure, consumer communication and many more (Milton and
Lambe, 2019). It has been evaluated that knowledge always learned, conserved or shared by the
individuals, in that regards it is major accountability of Human resources to assist in managing
the knowledge. It has been observed that both individual and organisational knowledge shares
the close relationship with one another as they passes through the definite path that is input,
process, output, conversion, group learning, dissemination and finally the organisational
knowledge and its application in the real world to remain competitive in the marketplace. in
context of McDonald’s by acknowledging with the whole process organization can get the
important information to serve the end users in one of best manner.
Apply analysis and modeling techniques to identify the knowledge assets.
It is very much potential for the organization to use various kinds of tools or techniques
that helps to identify the assets of knowledge in potential manner (Masa'deh and et.al., 2019).
here are the KM model which depict the process of defining the strategy for management to
build, dives and increase the knowledge assets in potential manner to remain competitive in the
marketplace. respective model rely on the Why and when aspects before bring the new strategies
and tactics into the market place. The major strength of respective model that it rely on the
strategic focus that put knowledge management into action for achieving the desirable outcomes
in potential manner. KM initiative is the one of most potential result of the responses of the
tactical and strategic changes that are one of most important attribute for the organization.
respective model provides the clear picture of the strategy behind the working and not included
the deeper kind of insights to take suitable instances in the given situation. In context of
McDonald’s to remain always competitive in the marketplace embrace the new tools and
techniques by building appropriate kind of strategies to achieve the definite goals and objectives.
Evaluate actual and potential knowledge assets.

Actual knowledge refers to the accumulated kind of intellectual resources of the firm that
consisted in the form of knowledge and its workforce in form of information, ideas, learning and
understanding and memory. It also consisted the workforce, database, documents, guides,
policies and procedures that are accountable for organisational knowledge assets in order to
remain competitive in the marketplace in potential manner. knowledge assets not only held by
organization but also resides within the consumers, suppliers and partners (Maravilhas and
Martins, 2019). It is very much potential for organization to access the actual knowledge of the
organization as it provides the knowledge actually what has with the organization that can be
used by them to give one of their best efforts. In context of McDonald’s in their actual
knowledge assets consist of the current assets, net property and equipments, long term assets that
increased constantly (Stock analysis on net, 2020). In their tangible assets consist of the physical
resources of McDonalds includes the restaurant location that is UCTI building with the average
capacity of sitting is 50 persons. It is occupied with the latest kind of cooking and storing
equipments. The another important resources includes the human resource that is one of most
important kind of resource for business as they recognize the employees satisfaction is one of
most critical aspect as they are concerned for achieving the 100% consumer satisfaction.
On the other hand the potential knowledge assets includes those expenditures that has the
high uncertainty surrounded with the future benefits. In context of McDonalds in their assets
includes the copyrights, their restaurants, the products that liked by the consumers and marketing
strategies that helps to reach at large no. of consumers in potential manner.
TASK 2
Explain what is required to create, store, apply and integrate the knowledge.
Knowledge management is very much potential for the organization to take the effective
kind of decisions in order to remain competitive in marketplace. it is very much essential to
capture, store and share the knowledge that is very much critical in context of Knowledge
management system (Mahdi, Nassar and Almsafir, 2019). It begins with the identification the
place the organisational knowledge is located and respective process known as the knowledge
map. Building the knowledge map is one of the important process includes the documenting the
workflow and process of taking effective decisions by evaluating the key knowledge workers in

the firm. In the whole process the significance of knowledge workers is very much important as
they are the sole who create, use and disseminate the knowledge. The major individuals are the
scientist, engineers, writers and educators that show the path to organization to move in the
definite direction. To create the knowledge map includes the documentation the workflows and
various steps to take the appropriate kind of decision by evaluating the key knowledge workers
in the organization. once the identify the location of the knowledge in the form of specific kind
of individuals or groups that needs to be captured (Loon, 2019). Capturing the knowledge and
information includes all the relevant kind of documents and potentially organizing them to
collect meaningful data out of it. There are many more other aspects also includes in it that is
conducting interview with the selected group or individuals. In context of McDonalds they are
very much concerned about the collection and procurement of information from the various
locations and prioritize the requirements of the organization in order to remain competitive in the
market place. In that regards they use various kinds of tools and techniques that are advance in
the nature to provide one of the best experience to the end users.
Consider the importance of intellectual property rights.
Intellectual property contributes majorly on the national and state economies, in the
today’s competitive world Dozens of industries rely on the enforcement of their patents,
trademarks and copyrights (Gunjal, 2019). While the organization use IP they can be able to
purchase products and services in safe manner and enchant guaranteed products to end users. it
has been observed that there are number of benefits occupied by the intellectual property that
are:
Changes in the global economic environment have the influenced on the business models in
which intellectual property is the central element for providing one of the best value and growth
to the organization to remain competitive in the marketplace. while organization aimed to
expand or enlarge business opportunities the value of intellectual property also rises as US and
other kind of international accounting practices put pressure on the firms to recognize the value
of the identifiable assets to get the potential opportunities. Due to changes in the economy,
proper evaluation of the intellectual property followed by the measures to protect the value
become the key element for the success and viability of the business firms. In context of
McDonalds by using the intellectual property they bring new kinds of products and services in

the market by identifying the market trends and helps to overcome from risk. It has been
analyzed that McDonalds is one of the leading brand name in the market place and known for its
unique taste and serving style (Gloet and Samson, 2020). To remain always unique and
competitive in the marketplace respective organization majorly focus on the utilization of the
intellectual property rights that not only provides the talented work force but also the profitability
and sustainability in the market place in potential manner. to illustrate the major benefits of
respective tool need to analyze in the more detail that are as follows:
It helps in accessing the exclusive rights to creator or investors for bringing the new products and
services that are rare in nature to provides one of the best products and services in potential
manner in market to achieve one of best outcomes. in context of McDonald’s while they bring
new attributes such as chicken and its sandwiches, French fries, breakfast items and desserts and
many more. They on May , 1961 first filed for the US trademark on the name of McDonald’s by
using description “Drive in the restaurant services” which contributes in renowned their services
to achieve one of their best outcomes. the another major benefit occurred by the intellectual
property it that by using it individuals should be encouraged to distribute the knowledge and
information instead of keeping it in confidential manner (Gaviria-Marin,Merigó and Baier-
Fuentes, 2019). it helps to reach at large no. of consumers by identifying the needs and wants of
specified consumer base to remain competitive in the marketplace. in context of McDonald’s to
reach at large no. of consumers organization use the copyright and some sort of tools such as
trade marks to publicize the knowledge and information to the end users. finally the one of most
crucial advantage that achieved by organization that they remain away from the any kind of
legal issues that spoil their dignity and affect on their level of performance.
TASK 3
Explain the contribution of knowledge assets have on the organization.
Knowledge management defined as the organisational intellectual assets or property and
various kinds of approaches for the building, capturing and cooperating business in proper
manner (Dingsøyr, 2019). for operating business in successful manner required to produce the
products in effective manner as knowledge management plays very important role in the
organization to take effective kind of decisions. It enables to organization in creating the strategy

about the market, products and selecting the human resource that contributes one of their beet
efforts in organisational development and enhancement in potential manner. knowledge
management improves the knowledge of individual to create the new ideas and thoughts to
attract the large no. of consumers in the market, such as respective organization have differ kinds
of restaurants available in the market named as McDrive, McCafe, create your taste restaurants
and many more. In that regards by accumulating the knowledge and information from the
market in regards of consumers and their preferences to provide one of the best experience to the
end users. with the help of knowledge management organization can be able to save cost and
time as it provides the direction to put the resources in the right direction to remain competitive
in the marketplace. besides, this the people’s knowledge is one of the important factor to
improve the experience of consumers as it rely heavily on the using the advance kind of tools
and technology which is vital factor now a days. In the competitive environment organisations
try to find out the new things to invest in the new products and schemes to enlarge business
opportunities in potential manner (de Souza Moraes and et.al., 2019). In their new schemes
consist of the McHappy day, McDonald’s Monopoly donation and McRefugee that helps to
work in the welfare of society and people who loved the products of respective organization. all
these efforts directly contributes in building the distinctive image in the marketplace for the long
time.
Evaluate the knowledge requirement for the organization.
Knowledge management is the very much important for the organization in learning
implementation of new ideas as often knowledge management neglected within the organization.
concerning knowledge management demonstrates about the implementation in effective manner
within the organization for achieving the desirable goal and objectives (Cepeda-Carrion,
Cegarra-Navarro and Cillo, 2019). it is very important to apply the theoretical framework that
shows the basic conditions for implementation of the knowledge management to remain
competitive in the marketplace. it has been evaluated with the help of knowledge management
organization can be able to access the property, rights, human resource and other kinds of assets
that directly enhance their value in order to remain competitive in the marketplace. one of the
simplest form of the knowledge management consist of the conscious kind of getting or
achieving the right kind of knowledge by identify the right people in the right time as it assist in

sharing the information to put into action for improving the organisational performance in
potential manner. in context of McDonalds they are very much concerning for accumulating the
potential knowledge of market, consumers, trends of market and many more other information in
order to build the one of best strategy and tactics to achieve one of best outcomes. with the help
of knowledge management presently the respective organization successfully enlarge the
business opportunities in the wider marketplace.
Evaluate the knowledge’s framework for enabling the knowledge sharing.
It is very much important for the organization to adopt the framework that helps in the
sharing the knowledge and information to the potential individual as well as organization. the
one of most important contributor in knowledge sharing by using the SECI model which is one
of the most important cornerstone of creation of knowledge and transfer to it (Ardito and et.al.,
2019). Respective framework used four ways that combined and converted and showing the way
knowledge and created in the organization to remain competitive in the marketplace. the
respective framework is based on the Two types includes:
Socialization: Respective steps shows the tacit to tacit to pass the knowledge by using the
practice, guidance, imitation and observation on continuous basis. It is very much potential for
organization to share the knowledge after collecting it in potential manner.
Externalization: It depicts the tacit to explicit, respective deliverable deemed the specifically
difficult but particularly conversion mechanism. The tacit knowledge can be virtually difficult to
codify that hinders the self interest in achieving the organisational goals and objectives.
Combination: It depict the explicit to explicit that is one of most simplest form. Codified
knowledge sources merged for creating the new knowledge and information to remain
competitive in marketplace (Al Ahbabi and et.al 2019).
Internalization: It depict the explicit to tacit in which explicit sources are used and learned for
modifying the user’s existing the knowledge for achieving the desirable outcomes.
In respective model the knowledge is continuously converted and build as for user practice, for
collaboration, interact and learn in meaningful manner to achieve the desirable goals and
objectives in order to remain competitive in the marketplace. by using respective model

organization can be able to move forward in the definite direction to remain competitive in
marketplace.
Recommend improvements to the current framework.
It is very much potential for the organization to make major improvements in the models
or frameworks that are adopted to move in the definite direction for achieving the desirable goals
and objectives (Abbas and Sağsan, 2019). it has been recommended that organization must have
to collect potential knowledge and information that directly helps in taking effective kind of
decisions in potential manner. it has been recognized that a great deal of efforts for put into the
investigation of the practical applicability, but in the current scenario the model directly related
with the strongly to organisational culture both in national or local level. The issue is the whether
organization culture is more than the just a element of the KM model but it just act as the
limiting factor of model. In that regards it is very much potential for organization to build the
culture that helps to organization in corpora ting with various changing situations in the business
environment to conduct the business activities in most successful manner. in that regards for
McDonald’s crucial to put focus on the culture as it important attribute in achieving the
organisational goals and objectives in potential manner.
CONCLUSION
From the above report it has been concluded that to remain competitive in marketplace it
is very much essential for organization to occupy the knowledge assets as it directly contributes
in organisational development and enhancement. Before embracing the knowledge assets it is
very much important for the firm to accumulate potential knowledge and information in regards
of it such as its significance for organization as well as individual to make the appropriate kind
of decision making. It has been analyzed that knowledge assets is one of most important or
greatest asset anyone have. As it assist in the professional field to obtain the actually they want to
achieve. It also helps to make the better kind of decisions in the life by improving the standard of
people around them. it also provides the economical view of the organization and its assets that
show the clear path to invest the money and resources in one of best possible manner. in that
regards it proved very much beneficial for an organization to accumulate the knowledge assets
by adding the quality in products and services in order to remain competitive in marketplace.

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