Leading Change: KFC and McDonald's Organisational Analysis Report

This report provides a comprehensive analysis of organisational change and its impact on leadership and business operations, using KFC and McDonald's as primary examples. The report begins with an introduction to the concept of organisational change and its significance in the modern business environment. Task 1 compares the organisational strategies and operational impacts of change within KFC and McDonald's. Task 2 evaluates the internal and external drivers of change, including a SWOT analysis for KFC, and their effects on leadership, team dynamics, and individual behaviors. Task 3 focuses on measures to minimize the negative impacts of change on organisational behavior. Task 4 examines various barriers to change and their influence on leadership decision-making. Finally, Task 5 applies different leadership approaches to managing change in diverse organisational contexts. The report concludes with a summary of key findings and recommendations.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations...............................................................................1
TASK 2............................................................................................................................................2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation..................................................................2
TASK 3............................................................................................................................................5
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour........................................................................................................5
TASK 4............................................................................................................................................6
P4 Explain different barriers for change and determine how they influence leadership
decision-making in a given organisational context................................................................6
TASK 5............................................................................................................................................7
P 5 Apply different leadership approaches to dealing with change in a range of organisational
contexts...................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Organisational change is a significant concept that is required to be understood in the
complex condition of world. Basically, organisational change is a procedure in which a firm’s
changes is in its structure, operational techniques and strategies also in organisational culture
with in the firm and the effects of all these changes can be happened are continues or distinct in a
duration of time. A company’s changes are about modifying and reviewing the whole of
management structures and business procedures. Change is generally hard to opt but once it is
opted, it will be an opportunity for the firm. All these changes occur when a firm determines to
switch from their current state to pre chosen future state (Alkahtani, 2011). Organisation change
is determined as that change which has powerful impact on the manners of work of performance
and able to make signifying impact on employees. Changes in the firm can come in different
ways such as organisational planning, structure, working hour, utilising resources and so on.
Hence, it’s an important thing for an organisation and it may sometime feels has hurdle for the
employees who does not want any change or modification in their working related issues and
firm. The present report is based on KFC and McDonald’s. Along with it, the report shows
impacts of changes on organisational strategies and assessment of various drivers of change. It
also reflects the influences of change on decision making of leaders. Moreover, leadership
approaches are also presented.
TASK 1
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
Change in business basically refers to mean that a firm should be engaged in a process in
which company modify and alter their organisation for a structural reason. Business generally
has a purpose to adopt changes in their firm so that with its support, they can expand and flourish
their business and improve or maximise their profit. On the other hand, it is said that while
change, firm is going through a transformation; hence, it happens when business strategies are
altered. Change is also known as restructuring or turnaround. If changes are adopted in the firm,
then it may be rolling as a productivity enhancer and relationship builder but it also has negative
side which may leads to failed in getting success and organisational goal and also decreases the
profit of the firm.
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The Kentucky Fried Chicken which is formally known as KFC, is an American restaurant
that serves fast food and expertise in the fried chicken. This firm has headquarters situated in
Louisville, Kentucky. This is second largest food chain across the globe after McDonald’s. KFC
is having around 20,000 locations across the globe in approximately 123 nations and territories.
It is a subsidiary firm of YUM! Brands, which is a restaurant firm that also owns Teco Bell and
Pizza Hut (Anderson and Anderson 2010).
Other side, McDonald’s is an American firm that also serves fast food. The company is
established in the year of 1940 and operated by Richard and Maurice McDonald. Its headquarters
are located in the San Bernardino, California, United States. McDonald’s mainly deals with
Hamburger.
Types of change: for an organisation, there are various kinds of changes that occur and adopted
in an organisation. Some of them are:
Process and system change- It is for making shift to workflows, resource allocations, and
manufacturing departments that are framed to maximise the working and capture more vale.
These kinds of changes may affect individual’s behaviour.
People change- All these practices are framed to influence the value, role, norms and
style of leadership that are associated with the organisational mission, vision and their strategy
too. It affects in a way in which individual motivates each other; they make interactions or
communication and sharing working too; it is generally framed for longer terms.
Structural change- It is about adoption of the change for making alteration in the firm’s
hierarchy of the management and their internal groups.
Hence, it can be said that organisation change effects on firm’s operational and organisational
strategies, therefore, effective comparison is presented as follows which shows how change
make impact of these two firms-
If changes happen to KFC and McDonald’s, then it will affect their operational strategy.
TASK 2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
SWOT of KFC
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In order to know internal and external drivers of change, SWOT analysis is presented that
affects the team and individual behaviour along with leadership of the firm-
Strengths-
Second largest and best brand in the fast food industry in the manners of value ($ 6
billion approx.)- KFC is known by larger numbers of people and it is considered as the most
trustworthy brand in more of the nations majorly due to their early multi nation expansion and
franchising. They opt changes for their firm and utilise it in expansion of their business in other
countries before any other firm. Hence, it is a positive impact of change in the KFC. This change
made them leader in fast food operating chain (Branson, 2010).
Original 11 herbs and spices recipe- The cited firm known as KFC is famous for their
original chicken recipes; hence it is traded secret and helps in getting major competitive
advantage in cut throat completion and also against their competitors.
Strong position in China- It is true that KFC is having higher percent revenue from the
country as they operate more than 4000 outlets in China itself. Hence, for KFC, China
positioning is considered as the major strengths in fast food services market which is growing
steadily.
Combination of KFC- Pizza Hut and KFC along with Teco Bell- as KFC is an
subsidiary firm of YUM! Brand since they have come in partnership for serving market with
tasty food, that the parent firm yield some major benefits as the restaurant provide them items
from their partners if they are not able to cater the demand of their customers and provide
satisfaction to their buyer’s needs.
KFC is the market leader in the world among firms featuring chicken as their core and
prominent product offering- KFC has rooted themselves clearly among other fast food providing
firms or chains to offer well known slogan and trademark product that is made up of chicken.
Weaknesses-
Untrustworthy suppliers- Over the past decade, KFC is generally been contracting with
their suppliers, that is providing contaminated and property of poultry to the firm KFC or
mistreating chicken, therefore in resulting in the drop down sales and demanded reputation and
position.
Negative publicity- It is normal for the firm that they are having some of bad and critic
wording from their service market, hence KFC is also having more and much of criticism from
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PETA over the situations of the chickens that have been raised. More of further, they are also
having bad publicity in order to selling chicken wing with kidney. There is more and less
combination of bad news from KFC that reduces company’s reputation significantly (Brown,
2012).
Unhealthy food menu- The menu of KFC is majorly designed of higher calories, fat
meals, salt and drink. Such kind of menu providing prompts protests by the firms that are
fighting with obesity and therefore, it decreases the popularity and name of KFC. Sometimes,
their own buyers are also opts to consumes and selects more of healthier food for them.
Higher employee turnover- employment strategy in KFC is facilitating lower skilled
and minimum paid jobs. This results in lower working capacity and weaker performance of their
staff members and shows higher employee turnover that enhances the costing of provided
training and adds to entire costing of the firm KFC.
Opportunity-
Improving the demands for healthier food- At times, demand for the healthier stuff
and food enhances, then KFC needs to launch more of healthy food in accordance to the choices
of customers in their menu and reverse its weakness into their strength.
Home delivery of the meal- The firm KFC needs to apply test on their service delivery
which they are using hence this will be an opportunity and reach more of the customers. This
will help them to have larger numbers of customers and effective delivery system provides aid in
sound promotion with the help of word of mouth.
Launching newer product to their only range of chicken- KFC is required to launch
new meals to their menu and provide pork, beef and only vegetarian meals, that will be able to
make larger group to buyers as their prominent target area and it will be resulted in the more of
customers.
Threats-
Saturated fast food market locations in the developing economies- The fast food
market on the developed nations are generally get over crowded by so many of restaurants which
are providing fast food and dealing in the same genre and this already known as the major threat
for the firm KFC as this will find their growth in the well developed economies.
Trend for the healthy eating and consumption- because of the government and
different firms they tries to fight with the obesity, hence more of persons are become much more
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conscious for their eating habit of healthy food and product rather then what the KFC provide
them or offers in their main menu (Carrington, Deppeler and Moss, 2010).
Local fast food restaurant chain- it is true that domestic chain of fast food can provide
more of local approach in order to serve food and product which they are made off and menu that
properly showcase their local tastes. Other side, KFC does a great job in order to adopting their
own menu to its local tastes. The enhanced numbers of the domestic fast food chain and their
minimal price meal pack is a major threat to firm KFC.
Fluctuation in currency- the company KFC is having a part of their earning majorly
form the foreign market operations. That earning needs to be covered in to the dollars and it may
impact the profits of business, particularly, when a dollar is on their hike in comparison of the
other nations.
Lawsuits against KFC- it is true that the firm KFC has been sued already for much
many time by different companies in so many times and lost quite a few of lawsuits. These are
expansive as they need time and money, as KFC regular to operate their operations more of less
the smellier manner. There is higher probability for the more expansive lawsuits in order to
come.
TASK 3
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.
Change is a procedure of business that utilises to impose the needed changes to the firm.
Hence KFC is have a change management which measured the negative impact of change and
provide techniques of minimising the negative effects of change on behave of organisation.
Some of them are:
 Improve confidence to accept change- imposing newer policies can be come as the result
of change resistance. Employee did it when they are not have clear understanding for the
purpose of change hence leaders required to boost up the confidence of their employees
so that they could accept the change in the KFC (Doppelt 2017).
 Expanse- tackling the change in to the work place in proper manner can have more more
time that may leads to lost production hence it is important to formulate the team
particularly whose employee needs to be capable enough to handle the change in the firm
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so that it cannot make hurdle for the production department and KFC will have smooth
running of business.
 Provide support to change- lack of support will leads to a failure of the new policies and
procedure in the working place. The change will fail if firm’s employee will not provide
effective support to the organisational change.
TASK 4
P4 Explain different barriers for change and determine how they influence leadership decision-
making in a given organisational context.
Understanding to the barriers to change can provide help in KFC business in ordre to
formulate effective and successful business strategies for determining and imposing the changes.
Changes are a signifying concept for all the enterprise and it concentrate on switching from the
one state to other for the good of organisation. Hence there is some barriers to change which
resist the changes in an organisation instead it is important for a company.
 Lack of employee involvement- generally it is the most common barrier to change in an
organisation. Workers are always having a fear of change hence they do not want to get
any change. It is highly noted that even a employee if more loyal still they have afraid for
organisational change and as result they resist for the same. Therefore a change can
successfully implementing if firm’s employee get involvement by their own will and they
accept the change.
 Lack of effective communicating strategy- some of the firms are not having effective
communication strategy hence their manager feels that when once they have announced
their changing policies and procedure they observes that their employees are ready and
able to accept change but in actual they are not want to get off form their comfort zone
and they also feels that change in thing or organisation will leads them more of harder
process and also effects their working capacity.
 Psychological barriers – individuals likes comfort, safety and feeling of control. This
kind of barriers will provide protection form accepting change when they have feel their
entire security is in hard hand. It is true some where that person resits change when they
are not having suitable or proper information for about change and how it will be
implemented. Some time it leads individuals to the lower confidants cause if the change
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occur they needs to work of different thing and they lose the confidence cause their lack
skills which resist them for the new working techniques (Fagerström and Salmela, 2010).
At time, employee will also have anxiety cause of lower confidence and stress. It is
natural and leads to not accepting change.
 Contextual barriers- there are general three kinds of barriers to change acceptance
which are known as power and prestige; threats of power can allows the resistance to
change. Hence change can be able to make a person more powerful then others and it
may also be possible that one can lose their power. Job security; when individual feel the
feel for losing their job then they start resistance for the change. Intrinsic rewards; change
to task and duties may cause a perceived threat to inherent rewards such as challenges
and self determinations.
It is true that change also effects leaders decision making such as
 Change in their planning- if change took place in the organisation then leaders needs to
make required and suitable change in their pre planning which they have already done at
time of beginning of task. And reset it form the starting point.
 Effects on the policies- when change are in place of any department of the firm then it
will make impact on the policies on the firm or KFC which needs to be reviewed and re
set in accordance to the change imposed to the firm. Hence leader required to formulate a
backup policies that may match with the change.
 Effects on the employees behave- when change place into the organisation it may
effects the behaviour of the employee cause kit may possible that they might be not ready
to accept the change.
TASK 5
P 5 Apply different leadership approaches to dealing with change in a range of organisational
contexts.
Porter’s five force analysis of KFC-
Competitive rivalry; high- the fast food enterprise is the one of the fastest growing and
most competitive industry in the current situations or era. The KFC is also having intense and
higher competition in their business form different other key enterprises majorly from
McDonald’s that is taking it head on in order to have top rank or position in market of across the
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globe. Although, there is a product differentiation in the same productions or stuff hence most of
the goods are same such as soft drink, fries, coleslaw , salad and so on (Fullan 2014). As an
outcome, each and every competitor are trying to coming up the some scheme that are able to
capture the eyes of the higher numbers of customers, other side KFC has launched a membership
card mainly for kids that not only provides them higher discount at the KFC store but along with
it different other outlets such as Zoo Melake, Sunway Lagoon and so on. Hence the competitive
rivalry for the KFC is instance or wider.
Threat of newer entrance; Medium force- fast food enterprise needs a large level of
investment, marketing and goods creations before the entrance of new product or firm can frame
a place in the industry. The currently existing brand such as McDonald’s and KFC both are
having their own brand image so the stronger that they have create s larger loyal buyers base.
These all customers are generally avoid the other place visit cause of these brands and their
offered quality product which buyers loves to eat. The capability and ability of present existing
brands to confirms the same product taste, restaurant and cafe ambiance, and superb services for
customers across the globe has made more of future raised the entry of hurdles to the fast food
industry. In accordance to the survey , radix fried chicken was introduced and through it the firm
was attained success in order to gain market share and capture more numbers of customers as
they offers a fresh menu, hence the threat of threat of the new entrance is medium force for the
firm KFC.
Bargaining power of suppliers; force is lower- the prominent raw material of the firm
KFC involves chicken, potatoes and soft drinks. Due to the same the rapid and bulk order are
seen in the sited firm. There are a larger numbers of suppliers who are ready to make a contract
with agreement on the terms of KFC and provide or supply it with their more needed raw
products (Malenfant 2010). Cause of the lack of goods differentiation, the wider size of the order
and larger numbers of supplier or providers; hence the suppliers are not having the capability to
hold back the bargaining power in the against of KFC and they can not try for rising up their
price or cost. In accordance to an survey, KFC has been terminated a contract with the one of
their most reliable supplier cause of their crude slaughtering of the hens. Therefore, the suppliers
of the KFC are not having any kinds of bargaining power over them.
Bargaining power of the buyers; higher force on KFC- the customers of the firm KFC
are their buyers who are walking in into the KFC restaurant every and each day. These
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consumers have an range of choices which they are going through with it for example: subway,
McDonald’s, RFC, Pizza hut and so on. Hence, KFC are not able to rise up their costing of the
product which they have provided and offered and also they are not allowed to make force on
their customers in order to purchase their product at higher rate and price. Hence the bargaining
power of the customer on the company KFC is higher than other elements (Parsons and Cornett
2011).
Threat of the substitutes; it is higher on the KFC- in the market location there is a larger
numbers of cafe and restaurants which are also offering the product or goods that all are similar
to the offer of KFC. On the major competitor is Popeye’s Louisiana kitchen has become a
prominent substitute for the KFC. The sited restaurants provides a wider range of other different
dishes such as rice and mashed potatoes that the firm KFC does not provides or offers
(Salmela,Eriksson and Fagerström 2012). On the other side, in many of countries, in which the
KFC has their operations, they are having strong competitions or substitutions by the domestic
restaurants such as Arabic fried chicken in the centre east region, the KFC has handled this types
of problems with the help of offering free Wi-Fi services at their restaurants and launching the
morning menu for the early breakfast. Hence it is true that the threat of the substitution is higher
on the KFC other then different elements.
Different types of leadership approach
Leadership approach can be defined as a technique or an approach of providing direction,
implementing plans and method of motivating people. Different leadership approach can be
developed through training and practical experiences to improve a company effectiveness and
enhance the performance of overall organization. Most appropriate activity style is based on the
function of an individual or leader, follower and situation. Various culture and goals of a
company can assist to know which type of leadership formulation suits on a firm. Some of a
leadership approach are discussed in below as:
Democratic leadership approach: It is also known as participative leadership. In this
type of approach, employees are involved in making decision. This formulation encourage
workers at the time of judgement. When a management makes changes within an organization,
democratic leaders helps to accept them in proper manner. Employees works effectively due to
delegation of authority done by their supervisors.
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Autocratic leadership approach: This aspect allows to managers to make decision
alone without any disruption of others. It possess high level of power and authority which are
imposed on their subordinates. There is a clear division between leader and its managers. This
type of approach is used at the time of rapid decision making such as employment by military
commanders.
Transformational leadership approach:it refers as a approach where leader provide
more emphasis to perform function by their own. It is used as self energetic, tends to be
passionate and emotionally intelligent. They are serving to an organization to achieve goals, and
helping group members to fulfil their needs. In this approach, high level of communication exits
between manager and employees to meet their goals by enhance their efficiency and
productivity.
Laissez-faire leadership approach: It means “let them do”. This formulation provides
authority to employees. Since, employees are highly experienced and need tiny supervision, to
continuous feedback under a supervisor. This type of approach is related with those leaders who
do not supervise their team members and failed to render feedback, resultant in high cost, lack of
control bad services and so on.
CONCLUSION
The report has major focus on KFC which is multinational chain that provides range of
fast food across the globe. They prominently deal in the range of chicken products. The report
shows change and their effects on the organisational behaviour and shed light on the changes
impact of decision making. In addition, SWOT analysis of KFC has been carried out that shows
internal and external forces of change along with Porter’s five force model of the same.
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