McDonald's and Subway Change Management Strategies

This assignment examines the change management strategies implemented by McDonald's and Subway. It analyzes how these strategies address factors such as improving service quality, ensuring health standards, expanding business growth, and fostering a competitive and productive environment. The discussion highlights the importance of leadership approaches and organizational development within these fast-food giants.

Understanding and Leading
Change

Table of Contents
INTRODUCTIONS.........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Comparison between McDonald and subway where there has been impact on an
organization strategy and operations...........................................................................................4
P2 evaluate the internal and external drivers of changes affect leadership, team and individual
behavior within an organization..................................................................................................5
P3 Measurement for minimize negative impact of changes on organizational behavior............7
D1 ...............................................................................................................................................8
TASK 2............................................................................................................................................8
P4 different barriers for changes and determine MacDonald and subway influence leadership
decision making .........................................................................................................................8
P5 Apply the different leadership approaches to dealing in a range of organizational contexts.
...................................................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTIONS
Understanding and leading change helps to meet the problems in the organisation and
implementing changes. Present report will consider two organizations for the effective
comparison between MacDonald and subway these two are from leading companies in Food and
Beverages sector. This present report will be discussing about the impact of organizational
strategy on the overall company. This well compared with each other as well. These internal and
external factors affect the leadership, team and individual behaviors. And which factors helps to
minimize the negative impacts from the companies. Besides, it will discuss about the different
barriers of change. Along with that it will discuss about different approaches of leadership which
helps employees to adopt changes in order to maintain the organization environment.
TASK 1
Part A: Responding to change
In every organization there are some factors which affects the organization activities. In
subway and McDonald there also have contains some drivers of changes that affects the
company leadership, team and individuals.
Different Drivers for change in the Subway
Capabilities: organization has different talented talent and individuals who enhance the
capabilities of the organization, different leaders will get the company enhancement. Leaders of
subway creates innovative and creative working environment in the company premises which
brings motivated environment (Goetsch and Davis, 2014). If leaders of the company not
contributed their role effectively than organization may face the negative effects of change. It
makes overall impact of the company environment. Subway respond to the change by making
good effective working environment.
Resources: resources are another significant factor which affects the organization. Due to lack of
resources it gives low productivity and low efficiency level in the company. Due to rapid
changes in the organization company needs to adopt the latest techniques and resources to beat
the needs of customers. These all resource makes company internal environment perfect
otherwise company fails to adopt dynamic changes and lose their customers attraction. In this
why subway respond to this change by arranging more resources which is helpful to making new
services or burger varieties.

Inventions: Every organization should adopt innovative and attractive changes in the
organization. Otherwise, it also impacts on the company brand value. Nowadays customers want
new changes and new taste which attracts them most. For that subway should adopt new
creativity and business strategies to invent new features.
Dissatisfaction: in the organization employee and the customers are needs to be satisfied with
the organization functions. Due to having the customer Dissatisfaction Company fails to attract
them towards the company. Due to dissatisfaction among employees it affects the individual and
leadership behaviour. Employees dissatisfaction may arise some issues and conflicts between
the employees so company needs to make strong environment in the workplace
Desire: Every organization should have some desire goals. This helps to achieve the target of the
organization. Desire is the first significant role in the organization. For that, they need to
accomplish the overall desire to achieve the overall (Hornstein, 2015).
Drivers change in McDonald
Technological Changes: Technology is the main driver of changes which brings new changes
and innovation method of processing. It makes new changes and environmental creativity for the
company. This may change the economic trends and developments. Company respond it
positively by acquiring new techniques and methods.
Market Competition: In this market driver it includes consumer confidence, local environment
changes, and competitive. Pressure may arise for the company.
Customers: Customers are the most significant feature in the market; every organization should
adopt some attractive products and services to grab the attraction of customers. Team and
individual steam members and individuals main aim is to grab the customer satisfaction. If
company fails to grab the attraction of customers it may affects the overall development of the
organization.
Investors: Investors are the second most significant feature which affects the company
leadership and individuals. So that overall, it makes big differences in between the prices.
Investors of the company need to be satisfied with the company environment. So that further
they will invest on the company (Lewis, Passmore and Cantore, 2016). Company makes new
strategies and innovation to attract new investors for the company.

Digital change:it is the most important factor which affects the company environment and
individual behaviour it is another significant factor which affect the leadership, team and
individuals behaviour.
Government: it is the another external factor which affects the company organization. For that,
company needs to abide all rules and regulations to maintain the healthy and secure environment
in the company. Government may affect the company operations activity of the company in
terms of high interest rates, government take its own decision which is mandatory for the
company to follow the same. McDonald and subway both the company needs to follow the
guidelines of the government. To respond this government drivers company adopt legal and fair
practises to run business smoothly.
Part B: The impact of change
Changes are the normal dynamic features which is almost present in the organisation.
Changes brings new services or products for company betterment. Besides, this changes may
change the entire objective and goals of the organisation. In the organization there are different
aspects which affect the company strategy and operations some of them given below:
Impacts of changes on McDonald strategies and operations
Mission and vision: the main aim of the organization is to provide quality of services to
their customers on the basis of their needs and wants (Doppelt, 2017). As per the customers point
of view, they always want quality of food and services with all hygiene factors. The main
objective of the organization is to serve the customer needs and get them satisfied and happy. On
the other side vision of the company is to expand the business across the world and get
maximum customer reach.
Process: this types of modification also change the company process, this process helps top
enhancement operation activities of McDonald and Subway. This brings innovation and
creativity in working process of employees.
People: it is related to the company task which creates new changes and innovation process.
On the basis of company mission and vision they make their business strategies
accordingly through which they make further start the operation to accomplish the overall
objectives. Company needs to adopt different innovative and attractive strategies to compete
with the rival firms.

McDonalds needs to expand its business further by adopting new product and services, it
helps company to adopt new customer reach and profit revenue. For taking any new strategies
and plans company needs acquire some important decisions and resources and also necessary to
make designs and layout of the objective (Cameron and Green, 2015). On the other side they also
need to invest heavy investment for the development and to attract the customer attraction and
earn good amount of profit revenue. These overall changes are affecting the company
environment in huge context. Through which they maintain their existing value stable and get
good market share.
Easy Access: Subway is the better location comparatively McDonalds. They focus on the better
effective location from where they get better results and customer reaches.
Health perception: every customer is attracted from good taste of foods and beverages, subways
have better quality of burgers and food products as compare to the McDonalds (KNOW, 2017).
Franchise fee: In terms of franchise for business growth in terms of subway they always consider
the location and overall aspect of advantages and disadvantages. While on the other side
McDonalds take care of the things and audit their environment every year on the basis of
requirements.
Overall both the organization try to achieve the overall objectives’ and for that they introduce
new changes to enhance the company practices.
Marketing and promotion strategies: promotional activities are the most significant function
in the organization in order to achieve the specific target in the company. Standard marketing of
subway is fix by $5 to attract the number of customers. Through which they sustain its market
goodwill as long in the market. On the other side McDonalds has also adopted various marketing
and promotional activities with most attractive tag line styles s to put smile on the customers
face, son these are the different approaches and strategies to grab the attention (Kuipers and et.
al. 2014).
P3 Measurement for minimize negative impact of changes on organizational behavior.
It is very important for the company to minimize the negative impacts from the
organization. MacDonald and subway needs to minimize their negative impacts by adopting new
better changes and enhancement strategies to attract the number of customers. To minimize the
negative impacts company needs to monitor the overall activity and procedures which they

follow or to revise customer feedback so that they can improve its customer service. Overall it
belongs to the company to attract number of customers. There are some ways through which they
get perform in better manner (Pugh, 2016).
Communicate with employees: To minimize the negative impacts from the company
environment is to communicate with the employees in better manner. It is very necessary for the
company to adopt all training and best motivated environment in which employees can easily
work in smooth manner. Overall it provides great opportunity for organization. It helps
organization to minimize the negative environment.
Planning to reduce negative impact: Company needs to adopt proper planning and processing
to ensure its environment risk less and fearless. Planning is the foremost function in the
management through which company can enhance their quality of services in more effective way
(Lozano, Ceulemans and Seatter, 2015
).
Initiate individual participation level: to initiative new creative and effective planning
company needs to take proper working environment through which they can motivate employees
for better protection. Motivated employee and workforce of the organization. Contribute their
best efforts towards the organization goals. It also helps to adopt changes and minimize the
impact of negative.
Overall, on the basis above changes actually company has to face lack of proper
communication between employee’s in the company, due to which they face heavy impact on it.
Besides, lack of resources in the company they may arise customer avoidance and low selling
income. This may arise negative impacts on the business operations.
D1
Planning is the foremost function of the organization McDonald needs to adopt effective
planning management to adopt uncertain changes and take better corrective action, effective
planning is very much efficient and useful technique. It is very effective and necessary for all
the companies to adopt effective planning through which company can measure their
performance accordingly.
Recommendation

 Effective planning is possible when manager of the company can communicate proper
plan to other employees as well. It is the responsibility of the manager to maintain proper
coordination between the all employees to ensure the effective planning.
 It is the responsibility of leader to motivate employees in order to achieve planning goals.
 Another important factor is that it is the duty of the manager to measure the all internal
and external factors to minimize the uncertain activities and earn good amount of profit
revenue.
 Employee needs to adopt changes in the organization and make itself capable fort doing
the things in effective manner.
Leaders and managers is the responsibility to communicate the changes with all employees as
per the changes so that employees are satisfied with the organizations. It helps company to adopt
effective changes in the organization (Cummings, Bridgman and Brown, 2016)
TASK 2
P4 different barriers for changes and determine MacDonald and subway influence leadership
decision making
McDonald and subway has different image which bring new changes in strategies. On the
other side it makes new productive changes which are necessary for the organization to adopt to
satisfy the customer needs and wants. In the organization there are many situation arise when
employees get affected from new changes and they does not understand the meaning of actual
strategies. These barriers are most disruptive for the employees. In this case behavior of the
leader has been change according to the time. These new changes help leaders to take new ideas
and adopt problem solving approach through which they become more capable and experienced
which is very good for the organization (Muthalagu, 2017). It makes overall changes and takes
decision accordingly. In subway leaders are very talented and enthusiastically towards their
work. In that organization larder if they take decision for particular changes changes comes
definitely. Organization must need to maintain strong leadership and team power to resist the
changes. It provides flexibility in working environment. There are various challenges company
have face at the time of new changes due to having lack of coordination among employees also
give a big barrier in the functioning of the organization. Communication can be the barriers for
the organization, for that, it is the duty of manager to maintain the good communication channel

between all employees and team mates to achieve the task in effective manner. before making
any decision and planning it is the function of manager or leader to take suggestions from the
employees on a particular topic. It creates interest in employees which makes management
stronger. Maintaining the balance between internal or external factors it provides help to enhance
the productivity level of the organization. On the other side, the next barrier for the company is
stakeholders which are the very crucial for the company. For that, McDonald and subway have
the duty to make all stakeholders happy whereas they can be the big barrier in the organization
which affects the leadership power. Government plays a very important role in every sector. This
can be the barrier for leadership decision making (Ceptureanu and Ceptureanu, 2015). Due to
changes in legal regulations or in policies company needs to change their pricing or policies to
adopt those governmental forces. This impact on the decision making process of company. There
is various risk and uncertain factors involves in the organization which affects the leadership
decision making process. Furthermore, past decision will also influence company leadership
process.
In the organization all the factors which is related to the financial sector will also impact
on the leadership decision making process adversely. This can be give negative impact on rhe
production process, for that company needs to adopt better cost effective strategies to overcome
the issues of financial terms. Otherwise this impact on the leadership and may enhance rhe
employee turnover in the company. The barriers will be seen them in the decision making
process which may be affect on the working of employees (Samuel, Found and Williams, 2015).
P5 Apply the different leadership approaches to dealing in a range of organizational contexts.
In the organization the most effective and necessary is leadership approaches. Without
any changes organization cannot achieve the development objective. A change gives more
improvement and development growth to the business. To resist the changes company needs to
adopt different approaches of leadership to manage those changes in the organization which
helps to achieve the overall target of the company (Doppelt, 2017). There is some leadership
theories discuss below:
Laissez Faire: This is the first leadership approach which helps to focus on direct
supervision on employees. This helps to provide continue outcome to the employees. These

types of leadership approach helps to monitor the individual activity and working performance
and provide instants feedback to the employees as well. But on the other side this leadership
style may impact negative effects on experienced employees due to this theory may they get hurt
and demotivate. For that areas this leadership approach will not very much effective. Because
experienced persons does not need direct supervision and monitoring (Kuipers and et. al. 2014).
Autocratic: this is another leadership approach which helps manager to rake important
decision making process. In which manager does not need any suggestions this decision making
process such as management and employees. In this leadership approach manager posses the
complete authority and decision making power to the department and then implement the
decision should abide by the subordinates. The employees do not have right to ask and pint on
any decision. This leadership is very much productive and effective for the organization. It also
helps enhance the supervision level of the employees in the organization. This leadership
approach also helps to innovate new leaders in the management and also top management can
find new talented manager for the organization.
Participative: this leadership approach take initiative of all employees, manager or staff
of the organization in decision making process. Although final decision making is lays in the
hands of top management. This leadership approach helps to create new talented and skill full
leaders in the organization (Muthalagu, 2017). Besides, this will boost the working efficiency of
employees towards the organizational goals. Overall it makes better working environment in the
company premises. It also helps to enhance the confidence or motivation level of employees.
New ideas of employees and participation spirit of employees gives them best knowledge and
experienced to fulfill their career goals as well. This leadership approach helps to adopt changes
and manage in effective manner. This will make company environment energetic and motivated
for employee’s betterment.
Transactional leadership approach: These kinds of leadership approach involve the
high amount of communication process to transfer the information from one person to others.
Effective communication between employees and managers should be very important through
which h they can easily flow he necessary information from each other. It helps to achieve the
overall target in effective manner. The leaders and managers in this style motivate their
employees and staff members towards effective working in effective and efficient manner. With
the help of better communication among employees may increase their productivity level. This

will help to set the clear vision and mission of the company, also ensure the all activities weather
performs well or not. This leadership is required where the active involvement of employees is
high overall it gives moiré opportunity and development growth to the company. It also helps to
set the particular goals and target to achieve for the betterment of organization (Hornstein, 2015).
Overall it leadership approaches helps company to make resist changes and then manage
its in better manner in order to achieve the overall target of the organization. Leadership
approaches helps to give the role and responsibilities of leaders towards the employees’
development. Overall it makes new changes and better enhancement talent among employee to
make new product and services McDonald and subway should adopt these leadership approaches
and style to manage the changes in the management functions, these helps to maintain the
performance level of employees and sustain the employee interest towards the work. Leadership
approaches and style assists to retain the employee morale and increases their faith on the
organization (Lozano, Ceulemans and Seatter, 2015).
Proactive approach: Proactive leaders are more focused on their task and try to finish it in
efficient manner rather than fixing the changes. They will perfect to handle sudden changes in
the organisation.
Reactive Approach: this reactive leader react quickly to fixing the problems and find out the
best problem solving approach. This makes problem easy and flexible in the organization.
CONCLUSION
From the above discussion, it can be explained the understanding in leading changes. It
concludes that there are several changes and uncertain risks are involved in the external as well
as internal environment, to manage those changes organization has to adopt some approaches
and styles to resolve the issues on the organization. These changes made affect on the
functioning of subway and McDonald and gives negative impact on leadership behavior. They
used different types of leadership approaches in order to minimize the risk and negative factors.
These approaches and methods help organization to resist the changes and make new decision
making process. Further it gives the overview of the company and their functioning performance
in order to achieve the customer satisfaction level. Besides, this explained the internal and
external factors which affect the working environment of the company or in order to give
solutions as well. Overall, it explains the importance of understanding between employees and

managers should be good and attractive for the company betterment. Furthermore, McDonald
needs to adopt quality of services to ensure the health factors also need to expand the business
growth to reach the customer satisfaction. This helps company to adopt changes and make their
environment completive and effective. Along with that subway needs to adopt leadership
approaches in order to make completive and productive environment.

REFERENCES
Books and Journals
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KNOW, T.Y.N.T., 2017. Past, Present, & Future of.
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