Business and Management Report: McDonald's and Globalisation

This report provides an overview of business management, focusing on organizational levels, leadership styles, and the impact of globalization and corporate social responsibility (CSR) on businesses. It examines the three levels of an organization – administrative, executive, and supervisory – and their respective responsibilities. The report delves into different management and leadership styles, including authentic, autocratic, laissez-faire, transformational, and participative styles, with a specific focus on McDonald's and its adoption of a participative leadership approach. Furthermore, it discusses the effects of globalization on businesses, highlighting the challenges and opportunities for companies like McDonald's. The report also addresses the importance of CSR, emphasizing the responsibilities of businesses towards society and the environment. Finally, it identifies key issues in managing contemporary businesses, such as leadership challenges, employee participation, and resource management.

Introduction to business and management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task..................................................................................................................................................1
Three levels of an organisation and their responsibilities......................................................1
Different management and leadership styles, types, roles and theories.................................2
Effects of globalisation facing organisations.........................................................................3
Corporate social responsibilities.............................................................................................4
Key issues in managing contemporary business....................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
This assignment has been designed to understand business management. Also, this
chapter will cover various theories that are used to manage companies. Furthermore, report will
also describe different roles, types and styles of leaderships (Alvesson and Willmott, 2012). It is
presented to develop understanding of changing environments in businesses. In today's world, it
is essential to manage enterprises and its success in a long term. This assignment will give an
overall view about business development for organisations like McDonald’s and its management
in long run. The following chapter also explains various strategies and management hierarchy
that can be applied in any entity.
Task
Three levels of an organisation and their responsibilities
There are 3 levels in any organisation that are:
Administrative: This is the top level to manage companies in which CEOs are main of them. It
also consists of board directors. The president of company is known as chief executive officer
and board of directors are selected by shareholders that represents entities. The roles of these
administrators are as follows:
 Top managers like Adam Pienkowski, who is the CEO of Mcdonald's identifies various
objectives, and plans of enterprises.
 Their work is to make available resources.
 They think, plan and decide as they can also be called as brain of the entity. The top management level authorities require conceptual skills.
Executive: it comprises department heads, branch managers and other juniors. Roles of all the
above are given as:
 People at this level give recommendations to top level management team.
 Their work is execution of planning done by seniors. They coordinate with all activities in departments.
Supervisory: It consists of foremen and other supervisors who are chosen by middle level
authorities. Their responsibilities are:
 Directing the lower level staff and employees.
 Improve morale of other workers.
 They make weekly and monthly plans of the work to be done in advance.
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Functional areas of business: McDonald’s is a large food retailer based in UK. Companies like
It, operates in different areas which are as follows:
Human resources: The main aim of HR department of any entity is to hire highly skilled and
talented workers who can perform tasks beneficently (Boddy, 2014).
Marketing: It includes professionals that are responsible for marketing products in proper way.
They conduct several market surveys to know what people need.
Customer service: This is to ensure quality of services that are provided to customers.
Planning is essential to manage businesses. There are different management hierarchies
that enterprises like McDonald’s use. Following are given below:
Strategic Planning: This is a type of planning through which entities such as Asda plans a
strategy. It is basically used to plan whole business rather than a specific unit.
Tactical planning: The tactical thinking is a short ranged plan to emphasise operations that are
running in present. It is applied by managers of firms to outline what should be done to get
success in that particular time.
Operational planning: The process of operational planning focuses on linking strategy related
goals to tactical strategic goals. It ensures about milestones to get success.
Different management and leadership styles, types, roles and theories
Managing business is one of the most important tasks for an organisation. It needs
coordination of human beings as an individual alone is not able to handle complexities of entities
(What is leadership, 2017). There are various theories available to explain how to take control
professions. Effective leadership is needed to administrate the concerns. Some of them are as
follows:
Authentic: Authenticity means being genuine and don't act like others. This type of leadership
focuses on gaining high profits no matter what (Combe, 2014). Companies follow this blindly as
a rat race.
Autocratic: It demands autocratic leader to control everything without asking others in decision
making. Usually the top authorities of an enterprise have the rights to use this style.
Laissez- Faire: This type of leadership is not suggested as it have leaders that do not control and
supervise its employees which results in high costs, fewer feedbacks bad services etc.
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Transformational: It is a different kind of activity in which staff members are leaded by people
whom objectives are to change the perspectives of workers towards objectives and goals of
company.
Participative style: Companies uses this style of leadership to make employee friendly
environment at workplace as the organisation considers them as a main part in success of
business.
Management and leadership styles adopted by Mcdonald's:
Mcdonald's is a large food restaurant chain operates in many countries. Currently, its new
chain can be opened in Poland too. The CEO of this company is thinking to do some
modifications like adapting Polish culture. It is also taking initiatives in different times. The
organisation believes to follow various leadership styles according to particular time. For
instance, In McDonald's there is a specific kind of leadership technique used that is Participative.
By this, they involve their employees to decision making in terms of sales, food quality and fast
services. Hence, the staff of this restaurant food chain is also satisfied and give their hundred
percent to the firm and contribute to the success of entity. The company also focuses on conduct
timely training sessions to make them familiar with new technology through which it is able to
enhance skills of its workers and get good outcomes from them. It leads customers to get quality
and hygienic food, faster delivery as staff members know how to use technology to deliver stuff
at right place on given time. This makes hospitality much better and convenient for customers.
Effects of globalisation facing organisations
Today, the environment of business is being changed and entities especially like
McDonald’s, which is a big food market chain, need to ensure to be competitive for every other
retailer and it has made its position among them by ranking in list of other retailers. However,
there are various factors that affect business in the ever changing world. These are globalisation,
electronic business and corporate social responsibility (CSR). Consumers have become more
aware about cultural and social values and they expect same to be retained by companies
especially when it is a large organisation (Leahy, 2012). It is known as corporate social
responsibility of companies. Now, the people are more conscious while making purchase. They
not think of just high quality products in fact, buyers keep an eye on how a firm take stand to
maintain cultural and social values. The economic process has been changed due to several
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reasons like increased wealth and power of large entities. Furthermore, there are also cultural
issues that influence the process of economy.
There are many factors that affect the business of McDonald’s. Globalisation is one of
them that impacted products and their standards. However, it did not affect the firm a lot in terms
of economy as it still offers low cost fast foods. The economic process in fact proved to be
beneficial for firms like McDonald’s as it helps to make it move towards other markets.
Currently, due to this fast food retail outlet thinking to expand its business in several more
countries. Even it has already made plan to grow in Poland markets with implementing new
strategies. Technology made it simpler for organisation in order to shifting its business
internationally (Van Assen, Van den Berg and Pietersma, 2008). Further, the globalisation
usually proves beneficial for larger entities as they have adequate resources and capital to invest
in expanding business in local as well international markets. Although, the companies may face
some minor issues regarding building new strategies and implementing them in new markets
because it is time consuming task and requires proper market research of particular zone. For
this, enterprises have to hire new and more skilled staff to know about specific customers that
follow different culture. Additionally, the firms need to analyse buyer’s needs of various regions.
After doing this research, organisations are likely to apply innovative ideas to execute plans
regarding quality services and products for consumers. Moreover, they are also required to focus
on customer satisfaction at the same time.
Corporate social responsibilities
A company has various responsibilities like social and economic when it applies
numerous strategies in order to get robust success. Even the small entities are also responsible
socially. It is actually a main element to formulate strategy. Furthermore, strategic decisions
have many consequences in terms of economy and social aspects (McDonough, 2017). The
corporate social responsibility (CSR) includes liabilities in the sense of providing high quality
goods to society, pay taxes on time, and give products on nominal charges. In other words,
companies need to aware about what they are selling to people. They have to ensure that the
items are sold by them should not harm to society and culture in any aspects.
In case of McDonald’s, it has adopted this responsibility on a very serious note. Like, it
has been indulging in various activities like supporting charities, arranging public service
campaigns etc. The cited firm is liable to pay taxes on time, keeping an eye to promote hygiene
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in its restaurants and also, it is working in the direction to maintain low prices for its buyers and
new customers as well. Secondly, it has adopted legal responsibilities which regulate it to
comply with ethics and laws of government. Additionally, McDonald’s is now also planning to
establish its market in Poland (Jeston and Nelis, 2014). For this, it is adopting Polish culture to
make sure to maintain its cultural responsibilities in this particular region. Furthermore, this
enterprise has grown with time in building trust among customers and even in the people who do
not frequently purchase its fast food. Instead of being a fast food chain, this organisation has
always maintained hygiene content in its products. It is still working continuously to manage this
quality for buyers. It also spreads positivity among people. For example, its tag line “m lovin' it”
gives positive vibes to audiences.
Key issues in managing contemporary business
It is difficult to manage concern without proper planning and implementation of it.
Contemporary business means to change with the time. It is responsibility of owner of
organisation to understand changing consumer needs with time and act accordingly to develop it.
However, there are many issues to maintain such corporations that are as follows:
Leadership issues: In order to promote growth in corporate units like McDonald’s, there can be
arise problems related to leadership. It needs better commanding power in leaders so that they
can guide employees well and solve their issues related to improve performance and
productivity.
Less participation: Many times workers are to be seen less interested in implementing new
strategies and ideas as it requires more concentration and some modifications. So it can become
an issue that restricts handling of business.
Lack of resources: It is very important to have enough resources when needed any alteration.
Lacking these can minimise productivity and resulting late delivery of goods.
CONCLUSION
From the above report, it can be concluded that managing business is relatively difficult
task for any organisation. In order to achieve goals and targets, firms like McDonald’s have to
deal with several obstacles that can come in the way of its success. There are various issues
which may occur to develop an enterprise by the time. One of the main issues is lacking
leadership skills in companies. It is very essential for firms to have skilled leaders who can lead
employees towards effective and efficient performance. It is his responsibility to increase morale
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of workers which can be down several times due to some major alterations planned in
companies. Other crucial points are globalisation and corporate social responsibilities. It can be
easily said in the context of McDonald’s that this enterprise have some fine and capable workers
and senior staff members who took firm's success to the next level. They have plans ready to
deal with problems like globalisation and used it to earn more revenues and profits for the entity.
CSR is also used widely in this enterprise (Armstrong and et. al. 2015). The company
maintained social values and cultural diversities in different regions where it operates. Overall, it
can be said that McDonald’s has become a big fast food restaurant chain internationally.
Moreover, it is now a big brand and stands at the top of other retailers in this industry.
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REFERENCES
Books and Journals:
Alvesson, M and Willmott, H. (2012) Making Sense of Management: A Critical Introduction
(2 nd edn), London, Sage Publications.
Armstrong, G. and et. al. 2015. Marketing: an introduction. Pearson Education.
Boddy, D (2014) Management: An Introduction. 6th Ed. Harlow: Pearson.
Combe, C (2014) Introduction to management, Oxford, Oxford University Press.
Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
Leahy, T (2012), Management in 10 words, London, Random House Business.
Van Assen, M Van den Berg., and Pietersma, P. (2008) Key Management Models: The 60+
Models Every Manager Needs to Know (Financial Time Series). Harlow, Prentice Hall.
Online
What is leadership, 2017. [Online]. Available through
<http://www.managementstudyhq.com/types-of-leadership.html>
McDonough, J. (2017) Changing tastes: Adam Pienkowski, CEO of McDonald’s Poland.
[Online]. Available at <http://www.theceomagazine.com/business/adam-pienkowski/>
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