Leading Change in Organizations: Shell and McDonald's Analysis Report

This report delves into the complexities of leading change within organizations, using Royal Dutch Shell and McDonald's as case studies. The report begins with an overview of both companies, detailing the types of changes they have undergone, followed by PEST and SWOT analyses to identify external and internal factors influencing their operations. A comparative analysis of the drivers of change affecting both companies is presented, alongside an evaluation of the long-term implications of these drivers. Recommendations for effective change planning and impact analysis are provided, including the use of force field analysis. The report also explores different leadership approaches and change management models, offering insights into how organizations can successfully navigate and lead change initiatives. The report highlights the importance of understanding the political, economic, social, and technological factors that shape the business environment and impact leadership decisions.

Understanding
and Leading
Change

Table of Contents
INTRODUCTION...............................................................................................................................3
Project part 1 .......................................................................................................................................3
1. Overview of Shell organisation and McDonald organisation and type of change they went
through............................................................................................................................................3
2. PEST and SWOT analysis of the Shell and McDonald's...........................................................4
3. A comparison of the drivers of change affected Shell and McDonald's......................................5
4. Evaluation of the long term implications of drivers of change in the Shell organisation and
McDonald's organisation.................................................................................................................5
5. Recommendation for planning effectively for change and analysis of change impact...............6
Project part 2........................................................................................................................................6
1. Brief introduction of the McDonald's organisation.....................................................................6
2. Force field analysis......................................................................................................................6
3. Different leadership approaches and models of change management to dealing with change...7
CONCLUSION....................................................................................................................................8
REFERENCES....................................................................................................................................9

INTRODUCTION
Understanding and leading changes helps the participant to handle the issues or problems
that will generated from implementing and initiating changes. In this process participants will
understand and lead the changes accordingly and also examine the political, psychological and
organisational issues which will developed from changes. Royal Dutch Shell is a oil industry
company. Its common name is Shell. Shell is one of the gas and oil 'supermajors'. It is a world's
third largest company. McDonald is a fast food company and founded by Richard and Maurice
McDonald in 1940. This report will include the various ways in which change impacts on an
organisation's operations and strategy. This report will also highlight the ways in which internal and
external drivers of change affect leadership, team and individual behaviours within an organisation
and many measures that will taken by organisation to minimize negative impacts of change on
organisational behaviour. This report will also include the different barriers for change and their
influence on leadership decision making and range of leadership approaches to a change initiative
and also state about the different leadership approaches to dealing with change in a range of
organisational context.
Project part 1
1. Overview of Shell organisation and McDonald organisation and type of change they went
through
Shell is one of the largest international oil company in energy sector. It is a gas and oil
company and incorporated in the UK. The Shell has major goal to take initiative for collaboration,
innovation and conversation all over the world's energy challenges. It includes various services
such as Shell fuels, Shell engine oils and lubricants etc (Espedal., 2017).
McDonald's is a American food company and started their business as a hamburger stand
and now they turned into a Franchise. It is a largest restaurant chain across the world and daily
serving approximately 69 million customers in 100 countries or more. They know for its best food
products such as cheeseburgers, French fries, hamburgers, soft drinks, wraps etc.
Various type of changes in Shell and McDonald's organisation
In the Shell company, many changes are occurring. For strengthening the business
organisation, Shell takes initiative of replacing their businesses by chief executives to improve the
entrepreneurial vigor, financial control and effectiveness of their business strategy. of and The new
technical changes and divisions in the organisation's departments. The organisation take actions to
alter radical organisational restructuring and their large scale business activities. They wants to
merging two parents companies to convert their organisation from joint venture to unitary

corporation (Neumann, James and Vince., 2019). Due to poor performance and low oil price, shell
takes essential actions to cut costs, implement many organisational changes and divest assets. They
reducing additional capacity by closure of filling stations and refineries. Delayering by removing
administrative layers in the hierarchical structures. Creating new mission, vision and values,
implementing and developing a business model, developing a new system of governance, creating
new concepts of leadership.
The McDonald's also implement several changes in their organisation. McDonald's takes
various innovative steps by engaging new items in their menu, renovated restaurants, improving
digital ordering, best delivery etc. They implement many organisational changes in their business
such as removing its region structure for the field offices and enhance resources in main strategic
areas. Developing a effective techniques for better communication between home office and field.
Linked initiative with operators-owner (van der Voet, Kuipers and Groeneveld., 2015).
2. PEST and SWOT analysis of the Shell and McDonald's
PEST analysis assist the organisation to identify various external factors which can
influence the organisation's operations and activities. It includes Political, Economic, Social and
Technological factors.
PEST analysis of the Shell
Political factor
Political factors such as government measures, influences or interventions the affect the
performance or economy of the Shell organisation. Government influences in the sector includes
labour law, tariffs, political stability, tax policy, trade restrictions and environmental law (Rossi.,
2019). The regional and international bodies have implemented a taxes and penalties on carbon
emissions.
Economic factors
Economic factors such as exchange rates, products demand and price, economic growth,
inflation rate and interest rate that affect on Shell organisation. Due to the increment in production
cost, the oil prices have also increased. The production cost is also enhanced due to increased
government taxes.
Social factors
Social factors such as age distribution, health consciousness, career attributes, population
growth and emphasis on safety create major effects on Shell organisation. Today, people are more
aware regarding responsible consumption (Neumann, James and Vince., 2019). It will enhanced

social pressure on oil industry to involve in responsible production .
Technological factors
It involve ecological and environmental aspects like technology advancement, automation,
research and development activities and technology incentives. Technological advancement create
major benefits for Shell oil company.
PEST for McDonald's
Political factors
The McDonald's have business in across 100 countries, so that its political exposure is also
high. Government policies on public health and trade issues can enhance costs and influence the
business functions. Trade agreement create their both positive or negative impact on organisation.
Economic factors
Due to the global brand the national, local and international conditions affect the
organisation. The company also impacted by economic recession, exchange and inflation rate in
countries due to their international brand.
Social factors
The changing customer's trend will affect the McDonald's operations and activities. The
consumers changing demand due to price and health consciousness will impact on organisation.
Technological factors
Technological advancement improve the process of McDonald's business by reducing waste
and re-ordering. Technology improves the organisation's brand and global market image.
SWOT analysis of Shell
Strength
Shell is a popular name in the sector of energy and a second largest company. It has huge
financial growth, latest technology and co-branding with Ferrari.
Weakness
The Shell has various legal issues, environment and human rights issues that will decreased
image of company (Bohman., 2019).
Opportunities
Shell has effective opportunities because of enhancing demand for fuel. They gain huge
opportunities through grab competitors.

Threats
High competition, economic instability, environmental laws and government regulations
created major threats for a Shell company.
SWOT analysis for McDonald's
Strength
McDonald's has strong brand image and has international brand value approximate 97.7
billion. They have high brand loyalty, large product range, great promotional strategy and effective
pricing strategy.
Weaknesses
McDonald's has limited range for vegans, unhealthy food, animal cruelty issues, long
queues of consumers etc.
Opportunities
McDonald's has an opportunities to expand their business globally by introducing
McDonald's cafe, large rage of coffees and range of fish products.
Threats
Huge competitors like KFC, Burger King, Subway etc (Nelson‐Brantley and Ford., 2017).
3. A comparison of the drivers of change affected Shell and McDonald's
The drivers of change largely affect the operations and performances of Shell company. The
various drivers such as technology, competitors, customers, government policies and rules will
affect the operations and activities of Shell and McDonald's. The various government policies
relation to oil and gas industry can influence the organisation's function and performance. The
economic situation of country is main element that directly and indirectly affect the Shell and
McDonald's organisation.
Trade regulation related to the oil and lubricants item will alter the business activities of
Shell. But at the McDonald's organisation, the political factors create their less impacts. The
various technological advancement develop a big platform for Shell company and promote them in
whole oil industry. The technological advancement also improve the McDonald's performance and
productivity. The new competitors in the market will generated high challenges for Shell oil
company. The food industry has high competition and it can influence the company's market share
and position in the market. It also influence the activities of leadership and employees behaviours
in the organisation.

4. Evaluation of the long term implications of drivers of change in the Shell organisation and
McDonald's organisation
Drivers of change will create their large impacts on the Shell organisation and McDonald's
organisation. It can alter the whole strategies of the company. The positive changes in the Shell
organisation will encourage the employees or workers fro innovative approaches.
It can allow the staff to develop their ability by learning new skills and talents. It also offers
new opportunities to McDonald's organisation for expanding their business globally (Iles., 2017). It
promote the creativity in the business and generate better development by new ideas and enhanced
commitment. The effective changes create its large impacts on the organisation's growth and
performances.
5. Recommendation for planning effectively for change and analysis of change impact
The organisation needs to take effective actions to implement changes in their business. The
organisation should have to clearly describe the change according to their business goals and
objectives. The company should have to know the need and requirement of change in the
organisation. They must have an idea about the positive and negative effects of the particular
changes and which changes mostly affect the operational activities of company.
The organisation should have to create a community strategy to implement a best
communication system in the organisation. It will assist to implement changes effortlessly. The
should have to analysis the impact of changes and manage all the customer's feedback accordingly.
For adopting the changes, organisation needs to provide effective training to their employees for
smooth work and improve skills and knowledge. It is very necessary to establish a support structure
in the organisation to help employees to adjust the change practically and emotionally.
Project part 2
1. Brief introduction of the McDonald's organisation
McDonald's is a fast food chain in the food industry. The various drivers of change in the
internal and external environment will impact on the organisation abs its activities. The
McDonald's adopted various changes in their business (Emanuel and et.al., 2015).
There are many barriers to change and it will directly influence the decision making process
of leaders and managers of the McDonald's organisation. The company will use PEST and SWOT
analysis to identify the impacts of internal and external factors and also analysis the effective
changes accordingly.

2. Force field analysis
Force field analysis assist to identify the elements that influence a social situation and
original situation. It is strong strategic tool that used by the McDonald's organisation to understand
the requirements for change in business. Force field analysis includes two forces such as Driving
forces and Restraining forces. Driving forces is a positive forces for change and Restraining forces
is obstacles to change. According to the force field analysis, changes is necessary to create a vision
for great alternative. The management of the organisation needs to develop strategies for
implementation of changes. The analysis provides a details about the change problem and which
will be control by business. If the company is dissatisfied with present strategies than they promote
towards the changes (Dudar, Scott and Scott., 2017). Force field analysis define the differences
between the driving forces and restraining forces. The driving forces encourage the changes and
their positive impacts and they totally support change. The restraining forces take necessary actions
to restrain change and try to control them.
The force field analysis helps to develop a improvement plan of the McDonald's
organisation. It is effective tool that contributes in the enhancement of internal communication. The
driving forces make the change attractive and restraining forces works on keeping the things in
present situation. If the driving forces are strong and restraining forces are weak than the
organisation can achieve successful change (Lopez and Wise., 2015). All these activities of forces
field analysis helps the organisation in their decision making process because it assist the leaders
and managers regarding the change and its impacts. It also identifies the needs of change and their
role in the improvement of organisation's perorations and functions. It will enhanace the
performance of organisation that can promote the McDonald's business to achieve its objectives or
goals. Lewis's force field analysis provide a effective guideline to identify the various elements in
the organisation or a situation that encourage the person towards the desired change. The driving
forces can be analysed to present the decisions which will make change more likeable and
acceptable. Lewin also recognize the various emotion that will alter the person's attitude towards
the change. The driving forces will promote for changes and helps in making the decision in a very
effective way. The driving forces develops a favourable environment for change and improve the
company's environment by encouraging positive change. The restraining forces making the change
more harder. It restrain the change because of various reason such as misunderstanding regarding
the purpose or need of change, the habit of security and comfort, low tolerance of change,
economic implications and fear. It will influenza the decision about the change and become a
barrier between the organisation and organisational objectives.

3. Different leadership approaches and models of change management to dealing with change
Models of change Management
Change in the management is very necessary for any organisation. Sometime, Effective
changes are the backbone of the success of business. For implementing a effective change, change
management model must have to apply in the organisation (Gaspar., 2017).
Kotter’s 8-Step model
Kotter's 8 step model is an effective change management model that can be used by
McDonald's organization. This model not only focus on the change but also mainly focus on the
people behind it. This model inspire towards the urgency of change. This model can be used by the
organization to create a great effects on the business in the current situation. Kotter's model works
in 8 steps: they create a sense of urgency, develop the team who dedicated to change, forming a
vision for change, communicating the vision for change, eliminate the barriers of change, creating
short term goals, maintaining momentum and establish the change permanently. This model provide
a understating regarding the need of change and create a sense of urgency to implement change. It
encourage the team to quickly enable the change. The Kotter's model can also create risks for
company because the urgency may generate various errors and issues.
Lewin's change management
Lewin's change management model is most effective approaches that used by organization
to implement change effectively. It divide the change process in three stages such as Unfreeze,
Make changes and Refreeze.
If the manager of McDonald's realize that organization needs to change than they adopt the
first step to unfreeze their current perceptions and process for new changes. It assists the team to
approach the challenges and tasks in a very effective manner. The second step is, implementation of
changes. For the implementation of effective changes, it is essential to create a constant and clear
communication platform for all the channels during and after the implementation process. The final
step is Refreeze. After identification of all the changes that organization will implement, refreezing
step is adopted by company (NHS England, 2016). In this step, McDonald's organization will
develop new habits stick and make new rules accordingly.
Change initiation is a first step in the change management process. In this, the organization will
identify need for change, changes stages. In this process company will encourage the employees
towards the need of change through various ways such as providing great access to employees to
suppliers, customers and competitors, encourage attendance at conference, seminars etc., encourage
towards risk taking activities etc.
Leadership approaches

Transformational leadership
In this leadership approach, leaders take necessary action to bring meaningful anmd positive
changes in the organisation. In the transformational leadership, the leader serve as a role model and
inspiration to their employees or workers. They fully concerned about the challenges of future and
make planning accordingly. The many characteristics of transformational leadership are
inspirational and charismatic leadership, intellectual stimulation, individualized consideration etc.
Leaders encourage most desirable employees within the organisation and inspire by effective
communication and create an attractive environment of intellectual stimulation.
Situational leadership
In this leadership approach, the leader of the McDonald's organization use different styles
according to the organizational environment (Ruben and Gigliotti., 2019). They alter their style
depending on situational factors such as leader follower interactions or relationships, work to be
completed, follower commitement or motivation.
Transnational leadership
In the transactional leadership approach, the McDonald's leader will establish a effective
chain of command. They use the carrot and stick approach in their leadership. Through the effective
and clear instructions, they will manage all the activities and operations of the business. In this
approach the follower are encourage to achieve organizational goals or objectives for developing
the strong structure. In this approach, leaders establish a exchange system, they reward and
encourage good performances and punish or ignore bad practice. This is a best approach of
leadership and it provides a great way to complete the short term tasks. It helps the employees to
reach up to their desirable position by developing creative potential.
Servant leadership
In this approach, the leaders will opt power sharing model. By this, they will share their
authority and take necessary concern on the needs of their employees in the McDonald's
organization. They also take actions to develop collective decision making process in the
organization to encourage employees or workers. This leadership style can boost morale and
improve diversity in the organization. This leadership style plays an important to inspire the
employees towards the business objectives.
CONCLUSION
From the above report, it is concluded that the Understanding and leading changes gives
their best assistance in controlling the issues or problems that will developing from implementing

changes. Understanding and leading changes will provides a understating to the leaders and
managers of the organization to lead the changes effectively and examine the impacts of political,
psychological, organizational and any other issues which will generated from changes. The change
in the organization will directly and indirectly influence the organization's operations and strategy
because strategy and operations are directly linked with the changes. The various internal and
external environmental factors create their huge impacts on the activities of Shell and McDonald's
organization organization. The impacts of drivers of change is very huge because it create long term
implications. The Shell and McDonald's organization develop effective planning to eliminate the
negative impacts of these changes.

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