McDonald's Business Situation: Addressing Change Management and Growth

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This essay examines McDonald's business situation, highlighting the challenges in managing organizational change, particularly after introducing the All-Day Breakfast menu. The analysis identifies issues such as competition, failure to adopt technology, and ineffective change management strategies as contributors to declining sales. It recommends embracing technological advancements, improving customer service, and implementing better management practices to control change and maintain customer loyalty. The reflection emphasizes the importance of adapting to market dynamics and competition by offering quality services and strategically managing change for sustained success. Desklib offers similar solved assignments for students.
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McDonald
Business situation
McDonald restaurants offer quality meals to their customers which are prepared by food
experts. Formed under the philosophy of Ray Kroc, McDonald grew from a single humble
restaurant which has now over 36,000 restaurants. McDonald's is located in over 100
countries. McDonald's restaurant has been a company consisting of different units in different
areas. The company has been working constantly to enhance its growth ("McDonald’s All-
day Breakfast Push No Longer Fueling Growth - The Boston Globe"). McDonald
Corporation encourages investors who boost the financial records of the company. The
company has good leadership which ensures that the activities and plans of the company are
effectively met. It values its customers hence make sure that they offer them the best services.
Problem statement
McDonald's have a problem with managing the change in the organization. The trend that
depicts a change of the sales quantity and profits that is a positive shift, shortly after the Egg
McMuffins and other morning fare was supplied all the day through. Therefore, the problem
with Macdonald's is attributed to the competition between the restaurant and the groceries,
which made the people prepare meals from their homes. Another problem attributed to
Macdonald's is an immediate change that was introduced to the restaurant menu, excited
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many customers and later along, they lost psych with the restaurant and finally, the restraint
innovation and technology was at a very low level and therefore, the organization was not
able to control the change of their customer's feedback, advertise their other products and also
digitalize their service (Abad-Santos 67). Therefore, the mentioned issues with the
management became a drawback to the organizational growth and development in the USA.
Alternative strategies and programs which should be considered by McDonald's
McDonald should be in the lead to ensure that strategies are in place to ensure that the
business moves forward significantly. Some of the strategies that should be used by the
company are an adoption of technological systems, an offering of good services and
employment of good management skills. Due to the recent advancement in technology the
company should incorporate recent technologies in it services. Mobiles applications and good
websites are paramount. Online orders and advertisement will help to a great deal in securing
of customers (Boon, Paul I., Perrin Cook, and Ryan 730). McDonald Company should
continue offering better services to curb the challenge of competitors. Offer and promotions
are ideal for maintaining customers. Likewise, good management should be incorporated in
the company which will help to effect transformation. Change is good but when impacted
suddenly it has adverse results. Individuals accept the change well but after a period of time,
they repel it. Good management will help to keep the change at a constant level by
introduction methods that help the customers adopt the change.
Recommendations
The Macdonald's restaurant should consider some recommendations to make sure that the
organization has a positive change. One of the recommendations that the organization should
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embrace is to adjust to the risks and uncertainties based on the product manufacturing and the
sales volume (Abeyratne 98)
. Macdonald's had made an error when recommending the full-time Egg McMuffins
and another morning fare because they did not seek to understand what would happen when
the customers turned over their major items in the menu.
Another recommendation is attached to the change management and customer
retention which can be achieved through diversification of service, innovations, and
technology which would make the customer's experience great(Scotto 67). Earlier, the
business failed in making the customer's experience recommendable, therefore, the customers
withdrew their loyalty from it. Additionally, in the US, there are many restaurants and for
Macdonald's to achieve a competitive advantage, it needs to embrace and accelerate techno-
enabled service delivery methods to suit Americans in the current and changing world.
Reflection of the Analysis
McDonald Company has a wide market and has many customers. It offers quality
services and food to its customers. Nevertheless, it has faced a continued decrease in its sales
after incorporation of the All- Day Breakfast. The reduction of sales is due to several reasons
which include competition from similar companies, lack of management to control change
and failure to incorporate technological systems in its operation. The challenges met by the
company should be interposed by perfect solutions which will eventually lead to its success.
New technology will help deliver better services to the customers. It gives an opportunity to
the customers in accessing the dishes and services offered (Lannelongue, Gustavo, Javier,
and Oscar GonzalezBenito 157).Competitors should not worry the company rather the
McDonald should concentrate on offering quality services and goods dishes which will
reduce the stiffness of the competition being experienced. Change is good, but it should be
controlled. Failure to regulate change brings negative results which are the unexpected. The
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company should strategize on acceptance of change by the customers which will promote
success and eventually increase the sales.
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Works Cited
"McDonald's All-day Breakfast Push No Longer Fueling Growth - The Boston Globe."
BostonGlobe.com,24Jan2017,www.bostonglobe.com/business/talking-points/
2017/01/23/mcdonald-all-day-breakfast-push-longer-fueling-growth/
wV8a1v2skOwldczM4MWbKI/story.html.
Abad-Santos, Alex. "McDonald's All-day Breakfast, Explained? and Debated." Vox, 3 Sept.
2015, www.vox.com/2015/9/3/9257199/mcdonalds-all-day-breakfast-explained.
Abeyratne, Ruwantissa. "Achieving Competitive Advantage Through Connectivity and
Innovation: An Application in Airline Hubbing." Competition and Investment in Air
Transport, 2015, pp. 131-143.
Boon, Paul I., Perrin Cook, and Ryan Woodland. "The Gippsland Lakes: management
challenges posed by the long-term environmental change." Marine and Freshwater
Research 67.6 (2016): 721-737.
Lannelongue, Gustavo, Javier GonzalezBenito, and Oscar GonzalezBenito. "Input, output,
and environmental management productivity: effects on firm performance." Business
Strategy and the Environment 24.3 (2015): 145-158.
Scotto, Stefano Alexander. "Utility for creating heat maps for the study of competitive
advantage in the restaurant marketplace." U.S. Patent No. 8,880,420. 4 Nov. 2014.
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