Report on Corporate Entrepreneurship and Innovation at McDonald's

This report provides an in-depth analysis of McDonald's corporate entrepreneurship strategies, highlighting the company's commitment to innovation and product development. It emphasizes the importance of consumer insights and maintaining high standards as drivers of innovation. The report explores McDonald's opportunity analysis plan, which involves describing ideas, assessing market competition, and evaluating national and global markets. It also identifies techniques like brainstorming and mind mapping for enhancing the company's creative processes. The organizational culture and leadership style, which are inherently innovative, are discussed as key factors contributing to the company's success. The report further elaborates on McDonald's innovation strategy, emphasizing the principle of starting small and thinking big, and the importance of franchisees and suppliers in the company's operations. It concludes by highlighting McDonald's effective resource utilization and its ability to target niche markets for profit realization.

CORPORATE
ENTERPRENEURSHIP
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EXECUTIVE SUMMARY
Mc Donalds has always believed in developing innovative strategies, undertaking an
extensive product planning and produce products. The culture prevalent within the
organization and the kind of leadership style which is followed throughout the hierarchy is in
itself imbibed with innovation. The innovation strategy is based on the principle of starting
small and thinking big. The insight of consumers is the primary trigger for commencement of
the process of innovation and creativity. Maintaining highest standards is an absolute
requirement for the company. The opportunity analysis plan of Mc Donald firstly requires the
management to describe the idea and the level of competition existing in the market, followed
by an extensive assessment of national as well as global market in the context of specific
idea. The techniques of brainstorming, mind mapping and prototyping have been identified as
some of the ways for enhancing the current creative process of the company.
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TABLE OF CONTENTS
INTRODUCTION 4.
1. Brief background of Mc Donald 4.
2. Current Innovation Strategy 4.
3. Opportunity Analysis 5.
4. Organizational Elements 5.
5. Recommendations 6.
CONCLUSION 7.
REFERENCES 8.
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INTRODUCTION
Corporate Entrepreneurship is a formal term denoting the process of evolution of new
ideas as well as opportunities, which can be witnessed within business enterprises. In
consequence to this process the level of profitability as well as strategies is improved to a
great extent, thereby enabling the entities to improve their competitive position. The core of
this concept lies at the notion of innovation. This combination enables businesses to
undertake beneficial risks and move in a highly calculated manner. In pursuance to this
concept companies like Mc. Donald have the potential to make significant alteration in the
position of competition existing in the industry, and also develop an entirely new sector.
Brief Background of Mc Donald
Mc Donalds is a company which is serving approx. 50 million consumers all over the
world in more than 30,000 destinations. The specific industry in which this entity is working
is highly demanding and continuously expects innovation and creativity. It is interesting to
note that the primary focus of all strategies developed by the company till date has been the
end consumers. The history of the organization has been extremely interesting and
innovative, when they first introduced themselves in 1990 to the market. Since then it can be
noted that Mc Donalds has never compromised on their brand equity, and have always
infused personnel who are highly creative with their ideas. Moreover, the process of
innovation has always been a part of their operations, and in consequence to which they have
reflected a constant streak of innovation. It can be stated that the entity has always believed in
developing innovative strategies, undertaking an extensive product planning and produce
products. In consequence to which the effect of changing the industry and gaining a
competitive edge in the market could be produced. The ambition which is foreseen by the
company is to see beyond what is being sold, and deliver good food through a creative and
diversified team of people and stay committed to reduction of their footprint.
In the past years, the company has clearly established its eye for potential
opportunities and the key to occupy a high position in its industry. It would not be wrong to
say that the performance of a business is highly dependent on various organizational factors
of culture, structure and so on. In pursuance to the same it has been observed that the culture
prevalent within the organization and the kind of leadership style which is followed
throughout the hierarchy is in itself imbibed with innovation. This is the reason every product
which introduced in the market or every strategy which is developed is one of its kinds, and
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never fails to procure customer satisfaction (Our Ambition – Mc Donalds, 2017). This is the
medium through which the company has been defining standards for the industry, since the
time of its inception. However, there still lies scope in Mc Donalds, which the management
has failed to explore till date.
Current Innovation Strategy
The innovation strategy of the company is driven from the idea of thinking bigger
even at the time of starting small, but scaling at a higher pace. As stated earlier the key to
success of Mc Donalds can be given to all the employees who have been associated with its
operations. It has been noted that the workforce within the organization is ingrained with the
marketing principle of 5Ps – people, price, promotion, product and place. Through
application of this marketing principle, the entity has been operating innovatively and has
undertaken all customer oriented initiatives (Anderson, Potočnik and Zhou, 2014). The
utilization of resources as well as varied tool at every level has been for the people. It is
interesting to note that primary triggers for commencement of the process of innovation and
creativity are the demands of their consumers. One of the important places of this entire chain
is occupied by the franchisees, who in essence are the operators of the business. One of the
biggest challenges which the management has been facing is to merge the thought process of
diversified franchises with organizational objectives, and it is not possible to function in a
centralized manner. At this place the company has applied its highly diversified and
comprehensive strategies to evolve a decentralized system of operating with the franchisees
and encouraging innovation across the entire chain. Moreover, it has been also observed that
the owner operators are valued by the company in the same manner as the employees who are
working in the headquarters. The only necessity or requirement which the company has
imposed on all is to abide by the highest quality of the products. This reflects the fact that
maintaining the highest standards is an absolute requirement for the company. Further it has
also been observed that the company has implemented a three-legged principle, in pursuance
to which it operates on the basis of complete trusts placed upon both the suppliers and the
franchises. The interaction with the supplier is extremely close, so as to enable the production
team to develop and enhance their products through application of the newest of techniques
(Kalyar, 011). Therefore, these stakeholders hold paramount importance for the management
of the company.
Opportunity Analysis
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The management of Mc Donalds is highly efficient and has always been undertaking
the process of analyzing business opportunities in the market, in order to carve out specific
unsatisfied needs prevalent in the market. In pursuance to the same, knowledge and
experience has proved to be the key factors for enabling the entity to recognize and analyze
the opportunities in a timely manner. This effective usage of its resources and assets has
enabled the company to target a niche market and realize profits. The opportunity analysis
plan of Mc Donald firstly requires the management to describe the idea and the level of
competition existing in the market, followed by an extensive assessment of national as well
as global market in the context of specific idea. This step prepares a basic platform for the
company, on the basis of which an entire team is developed for further evolving the viability
of the business venture.
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