Organisational Development 302 MAN: McDonald's Report and Strategies

This report provides an in-depth analysis of McDonald's organizational development, examining its main characteristics, activities, goals, and environmental influences. It analyzes the organizational structure design, highlighting the challenges faced by the company in both domestic and international...Read More

Organisational
Development 302 MAN

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Analyse main characteristics, activities, goals and environment influences on the
organisation.................................................................................................................................1
2. Analyse and recommend organisational structure design based on challenges faced by an
organisation.................................................................................................................................3
3. Create and justify strategies for sustainable organisational development...............................5
4. Evaluate the impact of organisational culture on multinational firm which operate diverse
environment.................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisation development refers to that study where successful organisational changes
and make good performance. The structure of organisation directly affect on employees
motivation and behaviour. Such organisation development use some organisational resources for
improving efficiency and expand their productivity. It can used for solving major issues and
problems within an enterprise and analyse the ways where they find out more effective sources.
The main objective company development is to high the work quality, adaptability, productivity
and effectiveness for overall business operation (Ha and et. al., 2014). They achieve these things
through changing in behaviour, attitude, advancement in technology and environment change.
The report is based on McDonald which is international organisation and it is located in United
kingdom. The structure of such firm is reformed in July for improving the company handling
their global business operations. The firm organisational structure define the system through
which business elements to coordinate for achieving business goals and targets.
TASK 1
1. Analyse main characteristics, activities, goals and environment influences on the organisation
There are various characteristics of McDonald company are discussed as under:
Standardised and restricted menu- The menu of McDonald is standardised and restricted
for the customers. It is the international phenomenon. Many McDonald restaurants in all over the
world offer high quality burger and its own spins on the Big Mac, some global spots are serve
completely several items. There are few items which customers can order for find the
international taste of each product. In their menu includes different types of food items such as
Mc veggie, Mc-puff, Mcpaneer Royale, chicken veggie burger, soft drinks and many drinkable
items. So customers mainly attracts for consume such food from the McDonald at global level.
Food for immediate consumption- In McDonald, the customers will consume food at
immediate time frame so they eat different different types of items (Men and Stacks, 2014).
They serve junk food which is easy to eat and consume and most of the customers like to take
such type of products. There are various items or products which they offer to their customers
that includes burger, Mc-puff, Mc-egg and many other items. Also they will attracting large
number of consumers at limited time period. They will provide only self services to their
customers where they own take their food items from the counter and eat. Various other food
1

companies also offer such type of services and facilities for gaining attention of large number of
customers towards their products and services.
Young unskilled labour force- Most of the workers who work within this organisation
are unskilled labour so they get only limited salary. Also they does not known the actual service
charge for their work at the firm (Burke and Noumair, 2015). By doing this, an organisation will
save extra income and invest that in employees funds. There are various employees who come
from different countries for searching the job so they join any type of employment which they
are like.
Counter services- In McDonald restaurant, they will provide counter services to their
customers and self service are much better then waiter services. It is the main characteristics of
the company where customer are take their food by own and pay bill while taking items at first.
Activities of McDonald:
The main activity of McDonald is CRS activity which mainly focus on developing
goodwill of the company in proper manner. The other activities will focus on McDonald society
and initiatives of environment and maintain the quality of food. They promote different products
by using various sources that includes advertisement, promotional programmes, Facebook etc.
Goals of McDonald:
 To understand the needs and demand of customers and satisfy them in appropriate
manner.
 To increasing the goodwill of organisation within the overall market place.
 To promote their new initiatives for new desired customers.
 To gain the attention of domestic as well as international consumers
Key environment influences:
There are two environmental factors which directly or indirectly affect the business
operations in effective manner (Patton and McMahon, 2014). These are external and internal
factors which affect the company growth and success. Customers are the main part of each
business so firm should satisfy them for gaining maximum profitability and various other factors
which also involve in managing and controlling all business such as suppliers, dealers,
government and some other. There are certain factors which impact on McDonald management
activities and its functions that are as follows:
2

 Customers- There are around 119 states where retail operations are serve by McDonald.
Most of the customers desire to consume their food items at any price. The company
mainly attracts children, kids, students, adults and old persons. They provide home
delivery facilities for different type of parties like birthday parties, occasion, playthings
for kids (Ibidunni and et. al., 2016). Also they will provide low cost products so all type
of clients are easily afford such products and services. Products and services- McDonald provides nutritious merchandising to their customers
in cleaning, effective designing and properly arranged marketing situations. The
management aim motive is to supply customers tasty and delicious food items at
reasonable cost so it will mostly attracts large number of customers. Also the firm need to
satisfy all clients demands and wants in proper manner. Competitors- There are various rivals who will also make similar type of products and
food items for their desired customers. This can easily identified that management face
tough competition in the large market place. McDonald major rivals are Burger king,
KFC, Subway and Wendy's. Employees- The workers are main part of each organisation and they will make potential
food item for their customers which are required by them. The workforce strength of
restaurant is approximately 50 employees and other are temporary workers.
 Technology- McDonald also adopt different latest and new techniques for increasing
growth and success of the company (Murtaza and et. al., 2016). By using such methods
they will make various types of innovative and creative products. So this can help in
making latest technology and techniques for attracting huge number of customers.
2. Analyse and recommend organisational structure design based on challenges faced by an
organisation
McDonald leadership team owned by President and CEO, which involves seven
executives vice presidents and one senior vice president and they all are manage business
operations and its functions. Steve Eastbrook is the President and CEO of McDonald restaurants.
There are various factor directly affect the market growth rate of the company that are described
as under:
High growth markets- This will define that market which are related to higher potential
in the form of expanding restaurant and franchising. High growth market is around 10% of
3

McDonald which operates income in 2014 and it includes Italy, South Korean, China, Poland,
Switzerland.
Global leading market- This is related to markets which already developed in Australia,
Germany, France and UK (Lyons, Ng and Schweitzer, 2014). The revenue generate from
international lead markets in 2017 is approximately 40% of total revenue of McDonald for the
same year.
Foundational market- It define that “the remaining market system of McDonald are
operated under the franchised model.
Challenges faced by McDonald in the International market place:
McDonald face various greatest challenges in their domestic as well as global market
place. The company has been unable for cope with shifting with fundamental in the restaurant
business operations in the current years. Competitor are capable for provide the consumer
4
Illustration 1: Organisational structure, 2017
(Source: Organisational structure, 2017)

demand and needs for products or food items which are perceived as fitter and make it fresh,
natural and new ingredients. McDonald has been develop and build international authorities
which are based on the uniformity of their desired products, fries the dimension and distribute
number of pickles on sandwich. But still the age of Big Mac and fries which has provided mode
to the age of integrated bread. In the sign drastically the game of restaurant has been shifted,
McDonald will attempt to contend in that year by expanding customised burger programmes up
to the 2000 US outlets and in each seven stores. This will provides consumers to gain
opportunities for getting maximum profitability. The US labour regulatory services currently
ruled with the firm which might be liable for franchisees treat the employees for dealing with
overall franchise model.
The presence of McDonald is determined as fast food giant in the international as well as
domestic market place (Costa, Panyik and Buhalis, 2014). The fast food chain are established in
119 nations in over the world and it is not easy task for an organisation. Another big fast food
franchisors that includes KFC, that has been in Vietnam in some years and it is still outside in the
market place. Thus, McDonald has anticipated to realise the plans and policies for join the
international market place, this will take part in making plans for expanding business in different
countries. The economic crisis affect badly on business growth and success level of organisation
at the market place that carry out around 40% to the total income. In American market, that
makes 30% of total income which has became concentrated. McDonald board of director
understand that it should not expect very much from European and American marketplace and
there is no chance for expand their business in these areas.
In large market location of China, McDonald has wide network which is around 1100
shops which mainly against with KFC restaurant and on the other side, its competitors has
approximately 3500 shops in all over the world (Engeström, 2014). But currently, the provider
trouble have some sizeable US unit along with this KFC facing various consecutive allegation of
substandard businessperson exercises.
There are various challenges which has been faced by McDonald at the time of entering
in international market place. It is necessary for company is to research on whole market are
where they analyse the situation of products and services among the customers. They need to
attracts large number of buyers by providing them innovative and creative goods and services at
the global level. By doing market research, firm can easily analyse the other companies products
5

details and their strategies for gaining attention of huge number of customers in proper manner.
Also they will make separate team for analyse the overall market area in which they carry out
various types of functions and activities. Another is country policies and plans which create issue
while managing business operation at the international market. In some nation, there are huge
process of documentation at the time of import and export. Also global marketers have to modify
with legal formality of different countries in which they need to function.
The different nation have their specific culture and civilisation. The major problem for
international marketers is consider social and cultural diversification in the form of taste,
preferences, expectations, languages, needs and demands (Kalagnanam and Venne, 2014).
Another problem faced by McDonald is instability within political environment where different
economic system and imbalance of political are real challenges which faced by international
marketers. The country government have some precedence, conceptualisation, philosophies to
the global trades.
3. Create and justify strategies for sustainable organisational development
In an organisation, sustainability is play an important role for making approach and
concept. This is that aspect which represent different things by various people. It refers to the
equalisation social, economic factors and environmental for short and long time period
perspective and it is major issue for managing pressure and analyse the demand of environmental
change. Business are face trade crisis when dealing with transition of sustainable exercises. In
some areas of sustainability organisation development maintain techniques for make such things
complex for doing planning in proper manner (Evetts, 2014). In simple words, sound
environmental performance is the main reason for doing effective business at long time period.
The international economy is going under for increasing pressure to pay the huge damage
towards environment. It help in solving major issues and problems which occurs while handling
some business operations and its functions. The main challenge is to resolve issues in sustainable
way so they can easily generate regular development.
The concept of sustainable development required to be incorporated the different policies
and plans of the business and they should follow all these sustainability principles. This need a
new culture, system, processes and practices in effective manner. McDonald company require
for developing such areas where they try to expand their business and also make effective
strategy which help in increasing profitability. The concept of sustainability development should
6

be incorporated in the business planning and control all management systems of information.
There are various required factors which help in managing an organisation for sustainable
organisational development that are as under: Analyse stakeholders- The McDonald stakeholders is needed for determine all the parties
which are directly or indirectly impact by the business operations. This will set the
various issues, information, concerns of the stakeholders in the context of sustainability
organisation development (Baker and et. al., 2014). The company existence is linked with
international market place and carry out various activities for maintaining management
functions in proper manner. Set sustainable development policies and objectives- The main objective or motive is to
articulated the common values where an organisation expect its workers for follow in
respect of sustainability development, and set target for operating business performance.
The McDonald senior manager is mainly responsible for developing sustainable
development policies for their enterprise and establish particular target and objectives in
proper manner. This will assist in maintaining and increasing community ability for
substitute the capital within an organisation. Execute and design implementation plan- It is essential for planning for management
system changes which are required for achieving sustainable organisation development.
Another is translation sustainable development major policies in the term of operational
which affect the whole organisation. This includes business firm changing civilisation
and workers attitudes, analysing roles and responsibility, establish organisation structure,
information reporting method and functional exercises (Adegoke, 2014). This type of
organisation structure always change the leadership management system. It is necessary
for determined such modification which should make the organisational system and
process for make sure the daily activities that are performed in appropriate manner which
agreeable in such targets. Develop supportive business culture- It is necessary for McDonald company is to make
effective business strategy which help in gaining extra profitability for gaining attention
of large number of customers. The process for implementing sustainable development is
to make policies and plans for various countries and also they increasing participation of
workers for generating new ideas and thoughts think by them that will assist in maximise
7

the profitability. For executing such strategy of sustainable development, its main
objective is required for changing the attitude of company managers. It is important for
maintain communication skills for understand the employees major issues and problems
which create many problems within an organisation.
 Developing measures and standards of performance- McDonald company should
required for implemented sustainable organisational development and analyse the
performance report for measuring employees work ability (Lueg and Radlach, 2016).
This is necessary for firm is to make proper strategy which help them in analysing whole
market place in proper manner. It is require for prevent administration for evaluate the
performance over the extrinsic and intrinsic performance standard and also measure
employees records. It is important chance for organisation to work in business sector
from the authorities for establishing employees performance standards and measures and
aid them in developing monitoring and reporting system which reach the demand and
needs of the business.
4. Evaluate the impact of organisational culture on multinational firm which operate diverse
environment
McDonald company play an important role in the multinational firm that includes internal
and external for signifies it in proper manner. It define the aggregate of environment for all such
nations where firm conduct its business operations and their functions. The physical and
economic environment are major issues for importance in the area of international business. The
culture describe the social stratification, system of management and various elements which they
can identify for attaining nations where international firm undertaken the business operations and
its functions (Salisbury and et. al., 2016). There are different cultural environment required for
diverse the behaviour to maintain structure and adopt latest techniques which are set particular
results for gaining failure. McDonald manage relation among cultural environment and
multicultural firm which help in developing their strategy for gaining profits. For doing business
on the multinational which present various challenges due to this different factors are offer from
different market to another market. The organisational culture directly or indirectly affect the
multinational business for increasing the changes which occurs in the business operations and its
major functions. Another one is the main environmental factors which represent these challenges
of cultures. McDonald business strategy is to do many right things and give the best products for
8

their customers and serve to them. Company has strong corporate culture and give support to
manage the culture towards managing employment. They try to provide best quality based
services to their customers which attract them for purchasing such items at reasonable price.
They maintain culture within an organisation, among employees towards making such food
items which is not against in the favour of people religions. McDonald set various factors of
business with honesty and unity. They consider the achievement in celebrating and striving the
new higher goals and objectives for achieving such things. They mainly committed with
customers to satisfy and expect desired things by the restaurants. The main objective and goal of
McDonald is to doing work in better and proper performance and live to reach their customers.
In business, culture should maintain by manager for conducting all functions and
activities in proper manner. Each nation should set the different variables that can be new for
offshore firm that includes regulations and rules, taxation, holiday periods, various currency. The
culture directly or indirectly affect the company business operations and its major factors for
increasing profitability. This will help in expanding business area for maintaining growth and
success in proper manner. The influence of culture in international business is to expand such in
new regions for various cultures and it is important for an enterprise whose main motive is to
move in the new location for understanding the culture appropriately. The level of make similar
products by various companies culture is to identify the customers demands and needs. The need
for understanding the culture is to make new marketing strategies which help in targetting the
desired customers towards their goods and services.
There are various other factors affect the organisation culture that are discussed as follows:
Individual working with organisation- It is the first factor which directly or indirectly
affect the single persons working within an enterprise. An employees maintain their ways such
as cultural workplace. The persons attitudes, perception, interests process affect the organisation
culture in badly manner. If person attitude is not good towards specific work so this will affect
the firm culture. This is necessary for single person is to maintain culture in an organisation for
analysing major goals and objectives in proper way. The organisational culture directly or
indirectly affect the multinational business for increasing the changes which occurs in the
business operations and its major functions. Another one is the main environmental factors
which represent these challenges of cultures.
9

Nature of the business- This is second factor which affect the organisational culture. It
includes financial services, banking sector, broking sector which are depend on external factors
such as satisfy demand and supply, earning per share. This will help in analysing the actual and
real market variables and evaluating whole market area where they need to invest their capital in
current time period. McDonald company also serve and offer different type of products and
services for satisfy needs and wants of customers in proper manner. This will also analyse and
evaluate the business position which make changes in the firm.
Analyse the organisational culture goals and objectives- There are various strategies
and process are make by McDonald company for achieving desired goals and targets. They need
to do working within an organisation by setting desired guidelines for follow the actual process
and form new culture (Organisation development. 2017). It is necessary for firm manager is to
analyse the goals and objectives of the organisation for better know the functioning and activities
and also gain full attention of customers towards their products and services. For them, it is
required for maintain the culture among employees as well as within an organisation for together
work for reaching the potential goals and objectives.
Management styles for handling employees- This factor also affect the workers culture
at workplace. Some organisation in which administration allow the employees for take their own
decisions and also participate in their making different strategies. In this context, culture,
management, employees are mainly attached with company strategies. There are various which
has been adopted or used by company manager for effectively manage the business operations
and functions.
CONCLUSION
From the above mentioned report it can be analysed that Organisation development refers
to that study where successful organisational changes and make good performance. The structure
of organisation directly affect on employees motivation and behaviour. There are two
environmental factors which directly or indirectly affect the business operations in effective
manner. McDonald face various greatest challenges in their domestic as well as global market
place. It is necessary for company is to research on whole market are where they analyse the
situation of products and services among the customers. In an organisation, sustainability is play
an important role for making approach and concept. The concept of sustainable development
required to be incorporated the different policies and plans of the business and they should
10

follow all these sustainability principles. McDonald company play an important role in the
multinational firm that includes internal and external for signifies it in proper manner. McDonald
manage relation among cultural environment and multicultural firm which help in developing
their strategy for gaining profits.
11

REFERENCES
Books and journals
Ha, J. G. and et. al., 2014. Impact of organisational characteristics on turnover intention among
care workers in nursing homes in Korea: a structural equation model. Australian Health
Review. 38(4). pp.425-431.
Men, L. R. and Stacks, D., 2014. The effects of authentic leadership on strategic internal
communication and employee-organization relationships. Journal of Public Relations
Research. 26(4). pp.301-324.
Burke, W. W. and Noumair, D. A., 2015. Organization development: A process of learning and
changing. FT Press.
Patton, W. and McMahon, M., 2014. Career development and systems theory: Connecting
theory and practice (Vol. 2). Springer.
Ibidunni, S. and et. al., 2016. Talent retention and organizational performance: A competitive
positioning in Nigerian banking sector. Periodica Polytechnica. Social and
Management Sciences. 24(1). p.1.
Murtaza, G. and et. al., 2016. Impact of Islamic work ethics on organizational citizenship
behaviors and knowledge-sharing behaviors. Journal of Business Ethics. 133(2).
pp.325-333.
Lyons, S. T., Ng, E. S. and Schweitzer, L., 2014. Changing demographics and the shifting nature
of careers: Implications for research and human resource development. Human
Resource Development Review. 13(2). pp.181-206.
Costa, C., Panyik, E. and Buhalis, D. eds., 2014. European Tourism Planning and Organisation
Systems: The EU Member States (Vol. 61). Channel View Publications.
Engeström, Y., 2014. Activity theory and learning at work. In Tätigkeit-Aneignung-Bildung (pp.
67-96). Springer VS, Wiesbaden.
Kalagnanam, S. and Venne, R., 2014. Management control in a spiritually–charged
organisation. International journal of Indian culture and business management. 10(1).
pp.1-15.
Evetts, J., 2014. Women and career: themes and issues in advanced industrial societies.
Routledge.
Baker, P. and et. al., 2014. The men? s health gap: men must be included in the global health
equity agenda. Bulletin of the World Health Organization. 92. pp.618-620.
Adegoke, T. G., 2014. Effects of occupational stress on psychological well-being of Police
employees in Ibadan metropolis, Nigeria. African Research Review. 8(1). pp.302-320.
Lueg, R. and Radlach, R., 2016. Managing sustainable development with management control
systems: A literature review. European Management Journal. 34(2). pp.158-171.
Salisbury, C. and et. al., 2016. Effectiveness of an integrated telehealth service for patients with
depression: a pragmatic randomised controlled trial of a complex intervention. The
Lancet Psychiatry. 3(6). pp.515-525.
Online
Organisation development. 2017. [Online]. Available through:
<https://ebrary.net/2911/management/organiational_development>.
12