BUS104 Introduction to Management: A Case Study on McDonald's

This case study provides an in-depth analysis of McDonald's Australia's management strategies, leadership approaches, and organizational culture. It explores the company's history, growth, and success factors, highlighting the role of key figures like Andrew Gregory in driving innovation and maintaining a competitive edge. The study examines McDonald's core values, operational activities, and human resource management practices, emphasizing the importance of standardization, quality, and employee development. Furthermore, it discusses the challenges faced by McDonald's in a competitive market and the strategies implemented to ensure sustainable growth and customer satisfaction. The analysis also contrasts the role of a CEO in a corporate setting like McDonald's with that of a CEO in a non-profit organization, underscoring the differences in objectives and priorities. Desklib offers similar solved assignments and study resources for students.

Running head: INTRODUCTION TO MANAGEMENT
INTRODUCTION TO MANAGEMENT
Name of the Student:
Name of the University:
Authors Note:

1INTRODUCTION TO MANAGEMENT
Table of Contents
Answer to Question 1:.....................................................................................................................2
Answer to Question 2:.....................................................................................................................3
Answer to Question 3:.....................................................................................................................4
Answer to Question 4:.....................................................................................................................5
Answer to Question 5:.....................................................................................................................6
Answer to Question 6:.....................................................................................................................7
References:......................................................................................................................................9

2INTRODUCTION TO MANAGEMENT
Answer to Question 1:
McDonalds was originated by two brothers Dick and Mac McDonalds in California.
During the year 1954, Ray Kroc impressed by the efficiency of the idea opened chain of
McDonald’s restaurant all across US. During 1971, the first restaurant of McDonalds was
opened. Since that time, the company has seen tremendous growth rate with more than 90,000
employees that serves around million of customers every day (Mcdonalds.com.au, 2018). The
company earns average annual sales for more than $4 billion profit. In the recent times,
McDonalds has over 69million of total consumers and has over 36,000 restaurants in more than
100 countries worldwide. The restaurant opened around the world has its own drive through and
several operational activities in different regions. Each country has been provided the freedom to
renovate or makes changes in the products and facilities according to the place. More than 80%
of franchisee business is operated effectively by all successful individual business women and
men. Each restaurant has almost 100 employees working daily on an average (Mutum, 2014).
McDonald’s business in Australian is considered to be one of the leading businesses in
the nation. The business is under the umbrella of the popular Chicago based business fast-food
empire. Cafes of McDonald's was launched in the year 1993, in the Swanston Street was a huge
success and also adopted in the other various parts of the world. The strategy implemented by
McDonalds Australia is also implemented by the others McDonalds present in all around the
world. The company has also proved itself to be a leader in initiating nutritional labeling. The
success of the organization is mainly depended on a simple but very effective formula that
includes standardization of the services. This organization maintain quality services and generate

3INTRODUCTION TO MANAGEMENT
cost efficiencies through employing young and unskilled labors that later gets supervised by the
managers.
Answer to Question 2:
As the franchisees of McDonalds is widespread all across the world, the key elements of
the firm includes high quality, convenience, values and services. The organization has a system
of command and control that is increasingly becoming centralized. McDonalds approach is
universal in nature, where, integration and standardization is considered to be the main
foundation of the business. The strategy applied by the organization is methodical in nature,
where the main focus is given on the established standards and practices that is highly significant
for maintaining a smooth operational activity. The core values of McDonalds stands for Q.S.C
and V which means Quality, Service, Cleanliness and Values. These facilities in providing the
customers with high-end quality products that are served in an affordable price and a clean and
better working environment (Laheri, Dangi & Vohra, 2014). The organization firmly believes
that it is crucial to invest in human resources. As people, who are qualified and coming from
diverse background can proved to be an asset for the organization to ensure maximum success.
McDonalds has a strong organizational culture and its ‘single store’ concept turns to be a
motivator of the employees. Integrity and honesty is the major cornerstone for all business
strategies and approaches. The main vision of McDonalds is to be the best and leading fast food
provider globally. While the mission of the organization is to become the best preferences of its
customers in the fast food segment. The organization also tries to improve its operational
activities and further surpasses the need of its target customers. Major focus is given on retaining
all the promising employees by offering growth opportunities to its employees. McDonalds

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highly ensures that the culture for the organization is spread at all level and properly reinforced
through education. Promotion of employees is still highly vital for all the levels of the
organization.
Answer to Question 3:
Andrew Gregory, the Chief Executive Officer of McDonalds holds this position in the
year 2014. He is held responsible for all the operational, marketing, supply chain, public affairs
and business planning. Andrew also holds the leadership role recently to inspire and motivate the
people for future development of Australia. Andrew joined as a casual member of the
organization while being at the university and later on started his career as an accountant.
Recently all the local as well as international responsibilities for the operational activities are
controlled by Andrew. Several important activities are needed to be undertaken by Mr. Gregory
for managing the Australian operational activities of McDonald’s (Robbins, Bergman & Coulter,
2018).
In the fierce competitive market, the business environment is highly challenging. The
competitors like KFC, Subway, Dominos and Pizza Hut are competing for the customer dollars.
It would be highly significant for all the firms to be more innovative and highly agile. Major
emphasis should be led on creating a responsive and transparent dining experience for their
customers. McDonalds continues to be leading restaurant services in Australia by delivering
strong sustainable growth of the business and further engaging its workforce. The managing
techniques are highly differentiated from any other assistant manager due to his well defined
skills and implementation strategy (Pappu & Quester, 2016). He facilitates in providing an
unmatched opportunity for all the young individuals to learn different skills that can be applied

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by the people throughout their lives. The internal management processes of McDonalds are very
strong and are highly recognized at an international level. The restaurants or assistant mangers
have their own tailored programs that are internationally recognized and have development plans
that include combinations of education initiatives and experiences to ensure workplace
management and operational development (Dessart, Veloutsou & Morgan-Thomas, 2015). Mr.
Gregory has further created a high performance environment through effective leadership skills
and business planning.
Answer to Question 4:
Mc Donald’s is a leading fast food chain that further achieved great heights under the
leadership of Andrew Gregory. According to Gregory it would be profitable for the firm to
invest more in human capital. The employees of McDonalds are trained efficiently to serve high
and improved beverages and quality foods to their customers. This also includes facilities like
outstanding customer’s services and maintaining cleanliness for the restaurant as a major part of
the learning (Nyadzayo & Khajehzadeh, 2016). Mr. Gregory aims at informing the people about
the career development and employment opportunities to the individuals.
McDonald’s crew members are provided to learn effectively through market-leading
customer services and providing attention to all the minor details. The main role of the Gregory
was to ensure that all the goals of the people and department are cohesively supported by the
organization to achieve maximum success. Transparency was bought in the dining experiences
by Mr. Gregory. Furthermore, working effectively in such a better environment enhanced the
teamwork skills of all the employees. Innovation was made in the customer services with the
help of new features like prepare, display and advise application that was installed on the menu

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items (Davcik & Sharma 2015). Food safety procedures were adopted by Gregory that leads to
encouraging sustainability within the organization. Moreover, world class customer services
would be provided to the customers. McDonalds also offers various shift schedules to its
customers so that effective balance between the individual’s personal and professional life can be
easily maintained. Gregory emphasis on the process of entry socialization that put major effort
on investing into manpower and their grooming for organizational excellence. He globally
supports youth employment and also encouraging the individual’s growth in the organization.
The main management strategy is to create new training program for inducted employees that
will focus on growth of the employees and smooth functioning of the organization.
Answer to Question 5:
Andrew Gregory has to make sure various important factors while having weekly
conference meeting with its employees. He should develop a friendly work culture that would
help the employees obtain maximum satisfaction through high involvement in work and making
extra effort to ensure that limited risk is taken by the individuals. He should ensure that all the
employees are frequently rotated to acquire knowledge from all the field of the business that also
includes accounting and financial segment. He should further encourage the subordinates to take
additional responsibilities so that the employees can become self-reliant in the decision-making
process (Homburg, Jozić. & Kuehnl, 2017).
While assessing the feasibility of the new product it would be important for Andrew
Gregory to properly research the market. It would be beneficial to conduct the market research
and also gathers important information that would be useful in identifying the potential of the
customer’s product and services. Moreover, feedback should also be received by the customers

7INTRODUCTION TO MANAGEMENT
by developing a prototype of new product that is to be added to the McDonald’s menu. It would
be easier if the employees are trained to shop around the products to distribution partners and
retailers and creating awareness about the new product. Andrew Gregory is recognized for his
role as an emerging leader and proud for all the opportunities that lead to the success of both the
employees and the organization. Mr. Gregory provides essential training skills to the employees
focus and make them strongly committed towards the customers. He should offer attracting
promotional and reward strategies besides service offerings. Employees should be encouraged to
also be a major part of the brand restructuring initiatives. Designing attractive uniform for the
employees also make them proud and provide job satisfaction. In addition to this, the young
employees can be retained by offering them continue their education even while working for the
organization.
Answer to Question 6:
McDonald’s corporate management activities mainly focus on effective leadership and
training program to make an organization achieve its desired mission and vision. In the ever
changing business environment it is important for the firm to embrace new trends. Mc Donald’s
new approach of ‘create your taste’ has provided the customers interesting opportunities to
customize their own items through touch screens application. Moreover, customer learning labs
has also been established for the customers to try other new concepts (Ponnam & Balaji, 2015).
The recently launched’ The Corner’ has paved way for re-branding the outlets of Mc Café. The
café offers personalized services, range of hot beverages and metal cutlery.
Yes there are lot of difference from being a CEO at McDonalds and being a CEO at
NGO. The CEO of McDonalds has to achieve their desired goals and vision besides achieving

8INTRODUCTION TO MANAGEMENT
target profits and satisfying its customers, such is not the case of a NGO. The CEO of NGO does
not have to pay attention to innovation and profitability. Employees are also not properly trained
and satisfied. On the other hand being a CEO of McDonalds more emphasis is given on the
innovation and meeting the needs of the customers by providing the desired changes. Recently,
McDonald’s new learning lab has achieved maximum success by training their employees and
providing satisfaction to its potential customers and further obtaining their feedback (Brones, de
Carvalho & de Senzi Zancul, 2014). The CEO of McDonalds, Andrew Gregory invested huge
amount of money for attracting and retaining talent within the organization. Unlike in NGO, the
CEO of McDonalds has to focus on all the functional and operational activities of the company.
Controlling and managing is not only limited to the top-level but it is his duty to ensure positive
work culture is maintained at all level of the organization.

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References:
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about brands influence purchase and retransmission intentions. Journal of Marketing
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Brones, F., de Carvalho, M.M. &de Senzi Zancul, E., (2014). Ecodesign in project management:
a missing link for the integration of sustainability in product development?. Journal of
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Davcik, N.S.& Sharma, P., (2015). Impact of product differentiation, marketing investments and
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Homburg, C., Jozić, D. & Kuehnl, C., (2017). Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Kozlowski, A., Searcy, C. &Bardecki, M., (2015). Corporate sustainability reporting in the
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Laheri, V. K., Dangi, H., & Vohra, A. (2014). Green marketing: development of construct and its
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Cases from Emerging Markets(pp. 37-39). Springer, Berlin, Heidelberg.
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Ponnam, A. & Balaji, M.S., (2015). Investigating the effects of product innovation and
ingredient branding strategies on brand equity of food products. British Food
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