Understanding and Leading Change: McDonald's and Subway Report

This report provides a comparative analysis of change management strategies employed by McDonald's and Subway. It explores the impact of organizational changes on strategy and operations, evaluating both internal and external drivers that influence leadership, team dynamics, and individual behavior. The report examines methods for minimizing the negative impacts of change on organizational behavior, including effective planning and change impact analysis. It also delves into the barriers to change faced by both companies, and how these influence leadership decision-making processes. Furthermore, the report discusses different leadership approaches in dealing with organizational changes within the context of McDonald's and Subway. The analysis covers mission and vision, internal capabilities, resources, customer behavior, and technology adoption, offering recommendations for effective change management and strategic leadership.

Understanding and Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1: Managing the impact of changes......................................................................................3
P.1 Comparison between McDonald and Subway where there has been impact of changes on
an organisation strategy and operations.................................................................................3
P.2 Evaluate the internal and external drivers of changes that affect leadership, team and
individual behaviour within an organisation..........................................................................5
P.3 Measurement for minimising negative impact of changes on organisational behaviour. 6
D.1 Recommendations for planning effectively for changes and applying changes impact
analysis...................................................................................................................................7
Task 2: Leadership Decision Making..............................................................................................8
P.4 Different barriers for changes and determine MacDonald and Subway influence leadership
decisions making....................................................................................................................8
TASK 3: Leading Changes..............................................................................................................9
P.5 Different leadership approaches to dealing with changes in a range of organisation
context....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Understanding and leading changes play an important role in the organisation with the
effective leadership. The two organisations will be chosen in the report for the effective
comparison made between McDonald and Subway from the restaurant industry. The impact of
the changes of organisational strategy for both the firms will be compared. It is important to
evaluate the way in which internal and external drivers of change affect leadership, team and
individual behaviour within an organisation and taken to minimise negative impact of changes
on organisational behaviour. The different drivers for changes in McDonald and Subway will be
considered. In addition, various barriers for changes and determine both organisation influences
leadership decisions making. Using of force fields and analysis the driving and resisting forces
and shows influence in the decision making. The various leadership approaches to dealing in a
range of organisational context.
TASK 1: Managing the impact of changes
P.1 Comparison between McDonald and Subway where there has been impact of changes on an
organisation strategy and operations.
There effective difference in both the organisation when huge changes made in the
organisational strategy and operation which can be impact on certain activity of business.
Impact of changes and McDonald’s strategy and operations:
Mission and vision: The vision of McDonald is to be the rapid service restaurant
experience. They have aim of providing the best quality, service and hygienic food to bring smile
on every customer’s face. The mission of the organisation is to serve the customer the best place
and way to eat and drink.
On the basis of this mission and vision statement of McDonald, it will frame the business
strategy for the rapid operations in the organisations.
McDonald is not able to get the business in the United Kingdom which have been changes the
various things aspect of the firm.
International presence of organisation in which they have been situated across the globe. They
had redesigned their menu for UK and introduced various things for the best customer
attractions. Another change they had made in the organisation is vertical acquisitions in which

organisation is looking for the better investment on the innovative concept. The revenue of the
organisation is also had strong cash flow in the market.
With all these changes, the huge impact has been found on the business of McDonald which is
able to bring the better position in the UK market.
Easy access: Subway has carbon of build the various location which can m,ake iit easy to access
for the customer and is better than the McDonald. They focus on each and every location where
they get better business.
Healthy perception: Subway is known for its burger to make the effective treatment to the
customer. While McDonald’s perception is not decent in the UK in terms of taste and quality as
compared to the SubWay
Franchise model: Both the organisations had distributed their franchise for business with nominal
franchise fee with high terms and condition. Subway ever give the franchise before analysis of
all the obstacles that can cause to the brands of the organisation (Harding, 2012). While
McDonald will give all the set up with organisation terms and condition along with audit every
year to know their performance.
Both the organisation had adopted various business strategies and operations to bring the best
customer service and cover the market share.
Marketing and promotion strategy: Subway has standard marketing techniques likethey had fix
the price of $5 to attract more customer to choose their products. With these, impacts have been
seen in which organisation is able to get the better business. While McDonald also adopted
various marketing and promotional strategies with tag line meaning to put smile on the customer
face.
The above discussion of the McDonald and SubWay will be help to compared easily. It can be
seen that McDonald is focusing on the cost efficient customer while SubWay focus on the
customer who required the healthy as well better quality products.

P.2 Evaluate the internal and external drivers of changes that affect leadership, team and
individual behaviour within an organisation.
In every organisation, there are various drivers cages that affect the organisational
activity. For McDonald and subway their are various elemnts of changes that will affect the
leadership, Team and individual behaviour as follows:
Drivers of change in the McDonald and subway
Internal
 Capabilities: organisations have the capability in which the leaders will get better
opportunity in the subway while working in the effective environment create more
effective and turnover of the organisation will bring motivation to leadership. If these
things are not presented in the business then leader will be affected and chance of lower
productivity can be seen (Hallinger and Bryant, 2013). Team will be also affected if the
capability is less in both the organisations. Also, the individual or employees will be
affected if they are not able to get better changes as per their capabilities to perform
various roles and responsibility in the firm. This situation will affect behaviour with
organisations.
 Resources: Sometimes, resource of the organisation will affect the behaviour of
leadership, team and individual in which lack or resource will create negative impact. In
such situation, leader will not be able to focus on production and operations and team
have to work more for rapid productions. Also, individual contribution in organisation
will be less due to less resource in firms.
 Inventions: In every organisation, invention will give positive impact on the
organisation of the leadership. Team and individual behaviour. Due to more invention
takes place organisation team work and coordination will be increase and try to enhance
the firm operations.
 Dissatisfactions: Due to dissatisfactions in the organisations chance of effect on
behaviour of leadership, team and individual will be adverse and create the negative
behaviour.

 Desire: Each and every person have desire to get better opportunity in the firm but if
they are not able to fulfil their desire then behavioural changes will be seen in leadership,
team and individual.
External
 Customers: customers are not able to get attracted towards the business than also
leadership. Team and individual behaviour will affect in the organisation because all the
hackwork is done for reaching high customer for business (Wellman, Jeffries and Hagan,
2016). Not able to retain customer will haveimpact on business growth and development.
 Competitor: These can be the external drivers cage that will affect the leadership. Team
and individual behaviour in terms of high competition from the competitor will give
adverse impact on business performance.
 Investors: These are the most important drivers that can bring changes in the
organisation that will affect business. Behavioural changes will be arisen in leadership,
team and individual if investor will take interest in the organisation can make negative
image.
 Technology: Changes in technology in industry may affect leadership, team and
individual behaviour (Broadbent and Brady, 2013). Leaders have to put efforts into
learning of new technology then training have to be given to all the teams which can
affect the individual performance. If they are not able to learn, it will adversely impact on
their behaviour and result in less productivity due to such changes.
 Government: If any policy has been implemented by government, it can bring adverse
impact on the leadership, team and individual behaviour.
P.3 Measurement for minimising negative impact of changes on organisational behaviour.
In every organisation, there is a need to utilise some ways to measure the negative impact
of changes on organisations' behaviour in following manner. First it is important to
monitoremployee’s performance with feedback
There are various strategies that can be implemented for reducing negative impact of changes in
organisation behaviour such as follows:

Communicate with employees: It is important form the organisation to communicate each and
every thing that can be implemented. When the employee know about thevarious things that
have been changing in the organisation which perceive negativity thought ability the firm which
can be reduce with regular communications (Stanleigh, 2013). It is important for top
management to discuss about their benefits of changes which can help employees as well as
organisations. Mostly, management never discuss any issues with employees and they just
implement changes made for effective environment.
Planning to reduce negative impact: It is important for the organisation to reduce the negative
impact from the firm that can be possible if they had planned before any changes have been
made in the organisation (Nazi and Naqvi, 2012). Effective planning helps to develop safe
organisation environment.
Participate the team members from each division: it is also any another strategic to overcome
with negative impact of changes made in the organisational ad safe the behaviour can reduce
with inviting them to from strategy of organisation when will be helpful to create positive impact
on organisation behaviour (Keppel, Van Niel and Wardell‐Johnson, 2012). It is important to
participate the each and very top management member from each division that can give
suggestion to understand in behalf of their department. Also, from the division an important
member has to find out who can deal with lower level employees which are necessary for
planning to implementing according to the outcomes of meetings.
D.1 Recommendations for planning effectively for changes and applying changes impact
analysis.
From the discussion of about the changes and applied changes impact will for easily
recommended following things such as:
 Effective planning can be implement only if leader will discuss with employee for all the
changes have been made in the organisations. If employee know these changes the impact
can be easily measures ad loss will be not in terms of huge risk.
 It is important for employees to help leader to coordinate with them for various
organisation perspective.

 If the employee is participated for reducing the changes of impact in the organisation can
be made than leader have to consider their suggestions also include in the changes.
 It is important for the organisation to analysis all the internal and external factor which
can necessary for cages and which are impacted on organisation behaviour have to reduce
according to the planning.
 For every organisation changes have to take seriously a leader will take important
decision which are important for them to reduce changes. The way organisation will be
affected in the employees will be more advance and feel valued in the firm.
 New ideas and use of technology have to be increase for the better operation and
management.
 Employee will be known regulation and legislation process which is important to changes
their behaviour with the effect of this policy on business organisation.
 If the organisation top management will understand the employee requirement and
fulfilled by them to bring various decision will be less affected.
 Leader and employees have to be in touch after every step where there are problems have
been identified it is important to give effective solution in to execute the planning.
Task 2: Leadership Decision Making
P.4 Different barriers for changes and determine MacDonald and Subway influence leadership
decisions making.
McDonald have different image which can bring the different barrier for changes and
determine the organisation decision making of leadership will be effective. Interpersonal barrier
in decision making of leader will be influence the most in the organisation performance which
can bring the most important aspect. This barrier is most disruptive than the regular meeting. The
behaviour and attitude of the leader will change at that time. The gap better the employee or team
membered with leader according the decision making. The various things will bring the effective
search for alternative, innovations and flexibility in the organisation. The various things that will
be implemented by the team will be effective in terms of various solution from the leader
(Hrebiniak,, 2013). The barrier cannot be break down with interlink activity in the organisations.
Leadership in the subway way will be open and trust with various key decision to bring changes

in the organisations in terms of effective solution can be made for employees and other
stakeholders. The different thought of the leadership will be more beneficial with coordination
with each and every employee before taking any decision. Leadership role in subway will be
more crucial when they have to take the decision related with important task can bring the
changes in the organisations. It is important to Cary out certain aspect that can be changes the
organisation decisions. Communication gap in the organisation can be the most important barrier
in the decision-making influences the organisations. Understanding of all the internal and
external factor of the organisations(Broto and Bulkeley,2013) These can be the economic
condition of the nation which is have to consider for the various new expansion of business
dealing with the other stakeholder which can be perfect to the organisations. Government can be
the next barrier in the leadership decision making. Various changes related the taxation and other
policy will influence the decision in terms of model of revenue. The various things that can be
influence to the for various strategies implement the leadership decision that can be covered to
risk will be associated with organisation. The past decision will be influence on decision making
of leader which can be create only when they are not gap for organisation purpose solved in
various issues. It is the leadership capability that can reduce the burden from the organization
with their effective key decision such as policy for employee wages and incentive can be given
to the employees in effective situations (Swayne, Duncan and Ginter, 2012). All the decision
which are related with the financial terms on the basis of cost cutting ion the production process
that can be bring the adverse impact on the leader decision which has to be avoided. Due to
various decision of the leader that can bring more negative impact in organisation employee
turnover can be increase. The barriers impact will be seen with the decision-making process that
will be impact on the leadership. The motivation will be bringing more decision in the
organisation for employee can be affected ion their work.
TASK 3: Leading Changes
P.5 Different leadership approaches to dealing with changes in a range of organisation context.
In organisation without any changes made on every step will bring more improvement in
the organisation that will be depends on the different leader who had deal with various situation
have been arisen.

 Laissez Faire: This type of leader will bring direct supervision on employees' and fails to
provide continue outcome to them. These types of leadership approach will be not
effective in the organisations (Yoder-Wise, 2014). Leadership will be hinder for various
situation that can brings the negative impact on the firms that will be produce without
easy leadership quality. These types of leadership are not bringing any positive impact on
the organisation and other employees don't need supervision due to experience in the
fields.
 Autocratic: this type of leadership will help the managers to take the important decisions
for the organisation on their own without the involvement of any other factors such as
management or employee's. In such leadership the managers possess the complete
authority of the organisation or the department and implement their decisions on their
subordinates. The employees have no right to question or challenge the decision or will
of manager and thus this will help the manager to improve the management at the
business firm. Also, it will enhance the supervision for the required employees in the
organisation.
 Participative: This type of leadership includes the input from the managers or the
leaders as well as the subordinates or the peer employees in the organisation. Although,
the final decision-making authority lays in the hand of the participative leader. This
leadership approach will work on boosting the confidence of the employees and motivate
them to work for the decision making process (Doppelt, 2017). It gives the employees a
sense of belonging as their opinion counts in the decision-making process. This helps
them to adopt the changes in a better way and help them to meet new challenges.
 Transactional: In this type of leadership approach, the leader and the team members get
some tasks to perform and based on the efficiency of the execution, the leader provides
rewards or punishments to its subordinates (Bulkeley and Tuts, 2013). In this, the
manager as well as the team members work for the pre-set goals and the manager held the
supreme authority to review and assess the task and based on the evaluation, provide
training or correction, if the team fails to meet the targeted goals. The successful
employees get rewards like appraisals or bonus.

 Transformational: Such leadership approach or style involves the high level of
communication process from the employees as well as the management of the
organisation to achieve the targeted goals that are been decided by the management. The
leaders or managers in this style, motivates their employees to perform well and increase
their overall productivity (Fullan, M., 2014.). The work efficiency of the employees can
be improved by a better communication among the team and having a high and clear
vision about the goals. This type of leadership, extensively requires the active
involvement of the company's management. The leader target for the bigger goal and
divide it into smaller tasks for its employees to achieve them.
 Unfreeze: Reducing the powers that are endeavouring to keep up business as usual,
and destroying the present outlook. For the most part by showing a provocative
issue or occasion to inspire individuals to perceive the requirement for change and
to scan for new arrangements.
 Changing: Developing new practices, qualities, and mentalities, here and there
through authoritative structure and process changes and improvement strategies.
There might be a time of some disarray as we move from the old methods for getting
things done to the new.
 Refreezing: The last phase of taking shape and the adjustment of responsibility for
new 'as seems to be'. The association may return to previous methods for getting
things done now unless the progressions are fortified through solidifying.
CONCLUSION
From the report understanding and leading change, it can be concluded that various
impact of changes on the subway and MacDonald will affect on the team and leadership
behaviour. The problems of certain changes can be made in the organisation with
implementation of various leadership approach that can solve the problems. Autocratic
leadership will be helpful in the organisation which can be important for the subway while in
MacDonald, transformational leadership will be helpful to change the behaviour of employees
and transform various skills and qualities. Moreover, effective planning can be implemented only
if leader will discuss with employee for all the changes that have been made in the organisations.
If the employee knows these changes, the impact can be easily measured and loss will be not in

terms of huge risk. Dissatisfactions in the organisations change of affect on behaviour of
leadership, team and individual will be adverse and create the negative behaviour.

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Online
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