Business overview of McDonalds and analysis

Business overview of McDonalds and depth psychologyThe UK fast food foodstuff is worth an estimated 7.82 billion annu totallyy (Keynote, 2003), amounting to an average spend 20/month per prominent (Mcdonald, 2003). Due to busier consumer lifestyles and dual working families with children emphasis is increasingly being placed on quick meal solutions (Atkins and Bowler, 2001). This has resulted in a market growth of 19% in fast food since 1998. As the business has spread globally giant fast food companies adapted their business st countgy as well. It has enclotheed specie on research and development to strengthen their managing policies. Recently legion(predicate) researchers feature shown interest regarding implementing swop in instruction system of the fast food industry. They puddle carried out numerous observations to illuminate the darkness of this field.As the literature review helps to frame the initial focus of the study, well as to focus the data analysis (Swanson Ho lton1997). It also helps researchers to limit the scope of their inquiry and acts as a benchmark for comparison purposes. In this literature review, their findings and suggestions atomic number 18 sincerely considered for further steps of the research. accord to Creswell (2003) literature reviews provide a framework for establishing the importance of the study.2.1 An overview of McDonaldsIn the world of globalisation the fast food business is the most dynamic and growth orientated business. McDonalds is one of the most thriving global restaurant chains around the world. McDonalds have used issuanceive global expansion strategies to enter overb gray-haired markets and pass a share of the foreign fast food market. Now McDonalds is a global scale brand. Since the start of the comp either in 1973, McDonalds Corporation began spreading domestically throughout the United States thus establishing its brand recognition. Its initial strategy began by advertising directly to the middle and upper class citizens, as can be seen in countries such(prenominal) as India and China. To meet the challenge and maintain the success McDonalds has, they had adopt may assortments in their strategy, management, and operation accomplish.The focus of the research is to reveal the elements of defense in the watercourse trans come in management system both in practice and theory in MacDonalds. This chapter is organized according to the various components of resistance to shift and reducing resistance with the help of human race imaging strategies of the organic law.In England first gear McDonald was opened 1974 at Woolwich Southeast Station. In 35 years 1250 restaurants have r to each one(prenominal)ed by end of 2005 most of the traditional lofty streets, shopping centres, retail parks, roadside locations, leisure centres, railway and airport terminal and motorway service areas (Official website). They have assorted types of depot like 24hrs, take away only, super stor e in Retail Park. There is no particular up-to-date information well-nigh how umpteen superstore, take-a-way or airport as well as franchise restaurant in London or in specific area in UK. may be this information is only for top level management, not available for general people. New store is open e truly year, also some store has been relocated or correct close for business insurance. MacDonalds also spread its franchise business all over the world mainly in Asia. Asia is very attractive business market for McDonalds. Its now common to see MacDonalds drive to logo in many Asian major cities. Recession is also touch on the fast food industry but this situation is improving day by day. Many bracing menus are including attracting much customers. MacDonalds also develop policy for healthy fast food policy so campaigners cannot blame them continuously which influence general public to have MacDonalds food.2.2. channeliseMcDonalds has adopted many strategic and operational altern ates during its business cycle .Organizational theorists like Drucker (1995) stated transpose is a constant in all contexts. Change can be defined from an establishmental development perspective.Pendlebury, J. et al (1998) demonstrated assortment as troublesome to organizations, and it is quite disruptive to the individual. The effect of alteration on individuals is significant. In many respects, it is the emotional attribute of resistance that must(prenominal) be managed throughout the life of the change event. Vigorous emotions can be removed through the process of change within organizations. In fact, scholars beg that every act or event of change go out draw some type of resistance resistance that result clear itself in emotions such as fear and anger, denial, avoidance, and resistance. Change can be so disturbing that even individuals directly unaffected by a change green light can be affected through survivor guilt. According to Noer (1997) survivor guilt or sickness may be experienced by individuals indirectly affected by change and may serve as a significant source of resistance for individuals.2.2.1. Forces of changeChange depends on two hales, which could be external and internal forces. If managers, employees or organisations think virtually these forces, than they can implement on change successfully. The forces for change areInternal Forces benignant resource prospects (Unmet fills, phone line dissatisfaction, Absenteeism and staff turnover Productivity Participation) Managerial lasts.Managerial decisions (Conflict, Leadership, Reward system, Structural reorganisation) the trains for the change. (Bullens, et al 2006).External ForcesChange is initiated via external sources such as heathenish and political computes. In short, additional external factors like globalizing markets, technology, politics, and communications are all sources of change (Nadler, 1997).Social ChangeThere is lots of pressure from many health concern organis ations, doctors association, consumer association even government health institution for the food type and food value of McDonalds restaurant. Many scientific statistics has been published on disparate media just about the quality and nutrition value of Macs food. Even UN organisation W.H.O (World Health Organisation) also comments negatively against fast food. Macs mainly targeted customers are children and teenagers rather original and elderly people. McDonalds always face different social challenge from internal as well as external sources. But they try to maintain highest thinkable hygiene and safe way to make and serve the food as well as plan to mention the food values for each concomitant which help all the consumers to know the nutrition value of the food.Technological ChangeTechnological change in the organisation is critical, for three primary reasons.1- Competitors use technology as part of major success strategies.2- Technology driven is everywhere and always presen t.3- Value capture from new technology is challenging and never guaranteed. witness Ettlie,J (2000)Most of the time, we hold technology as a constant, because its convenient. The more change in technology of products, services, and operations, the more change in administrative procedures, new strategies, new organisational structures, and new operating procedures leave be required to successfully capture the potential benefits of the venture. The failure of technological change typically occurs when either too much(prenominal) technology is adopted too quickly or not enough technology is adopted to stay ahead of competitors.Nadler (1997) argue strongly for the skid of new technologies and new markets. Jick (1995) identifies competition and the aspirations to gain and maintain competitive advantage a key Impetus for change.Economical ChangeMcDonalds has the tendency to experience hardship in instances where the economy of the country is hit by inflation and changes in the exchange rates. **The current recession also put them struggling. The high store maintenance make up in major cities like London, New York, Tokyo etc. is very expensive. For the recession people try to eat home to save money even MacDonalds offers food is the cheapest than early(a) competitors. The low sales impact on store profit which also related to all kind of necessary expenditure. An another(prenominal) factor is the maintaining the food preparation and service standard for MacDonalds food which is prime concern for them to establish the hygiene and safety issue for the people health. If MacDonalds charge high terms of their food to maintain store standard they will definitely loose target customer and most valuable reputation. Still they are in market leader position. Economical chance has great influence on MacDonalds business.Political ChangeGovernment can implement some bindings on the advertisement of McDonalds because of the high cholesterol, obesity and some other health pro blem. They also control the licence as we mentioned earlier in social change that MacDonalds have many legal bindings from different level of government and non-government organisation. Political change of a country has also affect MacDonalds business. As health issue is one of the prime concerns of the various(prenominal) government, if any political change occurs the health policy can also change. The very practical example in UK conservative government will change the health policy of the previous labour government. MacDonalds must track the relevant information by which their business can be affected. In other case marketing can also affected by political change. Sometimes, social crisis influence to raise the public issue politically. Like obesity in the westbound world is an important discussion topic in heath area. Government regulates the advertising to focus this concern so that people awareness will increases about the obesity. MacDonalds must accommodate with this poli cy in all its marketing campaigns.CultureCulture examines societys values, norms, believes, symbols. Organisational culture, is the concept to analyse that the organisation can be very reusable for focusing on the more demeanoural and attitudinal aspects of the organisational life. Organisational culture is the social aspects of our employing organisations. Scheins (1985) developed the following typology for heathen analysisThe organisations relationship to its environment (belief that relate to the broader environment)The temper of the human activity (beliefs about what the core activity of the business should be)The nature of the reality and truthThe nature of human nature (beliefs about what people are like)The nature of human relationships (beliefs are about how people should relate to one another both hierarchically and horizontally)Homogeneity versus diversity (beliefs about similar or diverse the workforce should be) (Ellis Dick 2003).According to Schein (2004) culture change certainly involves unlearning as well as relearning and is therefore, by definition, transformative thus Schein (2004) also suggested learning leaders must be well connected to those parts of the organization that are themselves well connected to the environment-the sales organization, purchasing, marketing, public relations, legal, finance, and RD must be able to listen to negatively charged information coming from these sources and to assess the implications for the future of the organization.The Wider EnvironmentSocial ValuesDemographicsTask Environment Customers and marketsEconomyTechnologySuppliers of InputsCompetitorsFor marketsFor resourcesRegulatory groupsThe FirmProcess actorive roleWhat is done (task)How things are done (technology)People factorsWorkforce diversityWorkforceBehaviourFigure 2.1 Triggers to change. Corlett,Forster, (2004),2.3. Theories of change managementThere are many change poses that are used to aid experts in implementing change. These models can be broken down into two types of change theories that organizations can use extremist and incremental. Within each of these approaches there are various models and processes.2.3.1 Radical vs Incremental changeRadical change approaches include, but are not limited to, six sigma, quality make deployment, and re-engineering. Radical change models are used to jump-start an organization and are also used when a culture change is required. In 1994, Dyer pardon radical change , In a conventionally Midwestern family business atmosphere, change is likely to be more heavily resisted than in other organizations because the feelings adjacent to the change tend to be deeper and more intense, and previous research shows that family values, goals, and relations deeply influence strategic change in family-oriented firms . A review of the literature Senge (1990) reflects the drive for organizations to be able to continuously adjust as well as to allow for learning to take place. Incremental change approaches include, but are not limited to, Kurt Lewins model, Beckhards change model, Kotters transformation model, and the Bridges transition model.Incremental change models are related with improving the existing system and operate within the current business model. All these models have a exemplify of unfreezing of the current behavior, a change being introduced, and a stage of refreezing the new behavior, or else they begin with the designation of the current state, the desired state, and the blocks and barriers that exist amid the two.Cummings and Worley, (2001) state that Kurt Lewins three-stage change model is the root of change management. Lewins change model consisting of the following steps 1) unfreezing the old behaviour (or situation), 2) moving to a new level of behaviour, and 3) refreezing, the behaviour at the new level. Lewin viewed the change process as a fundamental alteration or change in the forces that kept a system in stasis. According to Lewin, an o rganization will go through the process of making preparations for change, developing the force for change, implementing change, and then will strive to re-establish stability or reach stasis.UnfreezeChangeRefreezeFigure 2.2 Kurt Lewins three-stage change model of change.Adopted from Cummings and Worley, (2001)According to van de Ven and Poole (1995) Organizational change is an empirical observation in an organizational entity of variations in shape, quality or state over time.Kaestle (1990) states in A New precept for Organizational Structure, that there are fundamentally two drivers for organizational change 1) a dynamic marketplace and, 2) information technology.2.3.2 Conditions for changeAccording to Kotter (1996) certain conditions need to be met in order to bring about effective change. These conditions on what is known to contribute to the failure of change efforts.2.3.3 People involved in changeKotter also states that producing change is about 80% leadership (establishing direction, aligning, and motivating and inspiring people) and about 20% management (planning, budgeting, organizing, and problem-solving). In most change efforts he has studied, the percentages have been reversed. While there are some examples of successful change efforts, so leadership or management kit and boodle as a change agent within the organization.According to Vago (1999) in a planned change effort, change agents are professionals who influence and implement the change they are critical to the success of a change effort.Recent studies indicate that static change models are being replaced with dynamic change models that reflect the discontinuous nature of organizational change. In other words, change does not occur at a steady rate even though in the onetime(prenominal) organizational theory has written about steady or static models.2.3.4 People in changeSchein (2004) also suggested learning leaders must be well connected to those parts of the organization that are themsel ves well connected to the environment-the sales organization, purchasing, marketing, public relations, legal, finance, and RD must be able to listen to disconfirming information coming from these sources and to assess the implications for the future of the organization.2.3.5. The red-brick version of Lewins theoryNeito (2006) described the graceful tools of Lewins theory is the critical analysis if it is to be helpful to HR professionals. To start by means of, it is affective and how roaring to get the agreement of employees regarding a change process. Even though if the change is important, but people will not accept the change easily, thats way the first stage Unfreezing takes more time rather than other stages. Next process is Change, this process will be by itself, but this process should be managed properly. If this process is managed properly there are incentives and benefits (easy wins) during the change process, end of the day this process will give the positive deem.Fina lly, the last stage is Refreezing which is a process of that stabilizes the change, which has been done.Human resource strategies are influenced by external and internal factors. Change successful depends on the concern and growth on the employee relations and interpersonal relationships. Human resource professionals should consider the change processes are likely to meet resistance and that is more efficient to consult with staff and expand teamwork than to oblige changes. Present workers should therefore invest in special development to enhance their long term employability.(Neito,M 2006)To understand the process and the nature of change in the organization, it is important to understand how organization works in the complex environment of external and internal forces.According to Hayes. J (2007) open structure theory predicts that changes to any one of the internal and external elements of an organisations will source changes to other fundamentals. Hayes. J (2007) adopts from Kot ter (1980) the integrative model of organisational dynamics.Recent theorists have considered change according to developmental change, transitional change, and transformational change (Anderson Ackerman-Anderson, 2001).The six main elements in Kotters model areExternal environment, establish on the direct task related environment and the wider environment (which includes the political system, economical system etc).Employees and other apparent assets, as well as building cash and all other stuff and inventories. perfunctory organisational arrangements which system is operating and job designSocial system, which is based on organisations culture and social structure.Technology is the main product of the organisation.Dominant coalition Goals, strategies of those who control to make the plane.According to Hayes.J (2007) adaptability is very important because it determines whether the organisation will be able or not to maintain the require degree of alignment over the long period. F or the long period, the main purpose of change management needs to be ensuring, that the structural basics of the organisation are as adaptable.Key organisational processesInformation gatheringCommunicationDecision makingMatter thrust transportationMatter energy conversionFormal organisationalDominant coalitionExternal environmentTechnology, methodsSocial system cultureEmployees and tangibleaaaa assetsSource of potential behaviour and constraintImpact onFigure 2.4Source Hayes,J.(2007) The theory and Practice of Change Management ,2nd ed, p-47, palgrave Macmillan.2.3.6. Force Field slitForce Field Tool is the pioneer tool for change management the tool was developed by Kurt Lewin. Schein (2002) explain Kurt Lewin tool, how change is influenced by two opposing factors private road and restraining forces that work against each other to sustain a state of stability .At the same time as driving forces uphold change, restraining forces resist the driving forces and thus hold confirm c hange. When these forces are balanced, a state of quasi-stationary equilibrium is achieved.EquilibriumDriving forces(Restraining forcesFigure2.3 Lewins Force Field TheoryThe term quasi-stationary equilibrium was used by Schein (2002) to describe the abiding routine of day-to-day activity, rather than just equilibrium which implies a state of rest . According to Schein (2002) Any living system is always in a state of some change (growth, metamorphosis, or decline), but all systems are homeostatic in that they always tend toward some kind of equilibrium (p. 35). To explain the quasi-stationary state, Lewin used the analogy of a river flowing at the same velocity and direction over time. Although the river is not at rest, it flows consistently at the same rate and thus is stable. A shift in velocity or direction, however, would constitute a change.To bring about change, either driving forces need to be added or restraining forces must be diminished. According to Schein (2002) adding m ore driving forces is likely to be paralleled by higher aggressiveness, higher emotionality, and lower constructiveness than if restraining forces were reduced therefore, the latter is a more desirable course of action. In addition, adding driving forces is likely to result in new restraining forces as people try to maintain a state of quasi-stationary equilibrium. In this study, force field theory provided the theoretical framework for the variable of resistance to change in that it posited the tendency for groups to maintain a state of stability with restraining forces (i.e. resistance) resulting when driving forces that promote change are introduced.2.3.7. A congruence model of organisationsA substitute open system model, planned by Nadler and Tushman (1982) point out the effect of the congruency of the elements of the organisation, and shows the effectiveness on the organisation. Additionally, it puts more pressure, on the role of strategy, because any organisation based on the strategy as well. Congruence model depends on the quadruple classes of inputEnvironmentEnvironment as well as based on wider culture, within which the organisation operates, thats the backbone of the organisation. Environment is a part of fiscal institutions, supplies, markets and it is the overall system of the organisation, which is based on the external and internal environment of the organisation. Environment provides the strength and opportunities that the organisation has to compete with.ResourcesResources like as raw material, limpid capital, labour, technologies.History History is very important for the organisation, because past strategic decisions and development of central part values and patterns of leadership can affect the present model of organisation.StrategyThis input gives the direction how the organisations resources can be used to be the advantage in relation to the opportunities, and demands of the environment. Successful organisations are those that are able to support themselves with the help of external environment and move themselves to take advantage of any environmental changes.Nadler and Tushman (1982) argue that strategy defines the task of the organisation. Strategy is effective to the organisations behavioural system. They urge on that the goals of strategy measure the organisations performance.Nadler and Tushman(1982) define the major components of the transformation process asa- Task, can be viewed in terms of obstacle, predictability, interdependence a skill demands.b- respective(prenominal)s, those are the members of the organisation and their reaction capabilities, intelligence, experience, training, skills, attitudes, expectations etc.c- Formal organisational performance that include all the mechanisms used by the organisation to direct, control behaviour or formation.d- In conventional organisation, as well as casual group structures, the quality of inter-group relations, political processes, etc.Transformation proces sxInformal organisationIndividualTaskFormal organisationOrganisationGroup,IndividualEnvironmentResources,HistoryInputsOutputsStrategyFeedbackFigure 2.5Source Hayes,J.(2007) The theory and Practice of Change Management 2nd ed, p-52,palgrave Macmillan.Like Kotter, Nadler and Tushman argue that any useful model of organisations must go beyond only providing a simple sketch of the tools of the organisation and consider the dynamic relationships that exist between the various tools. They define congruence as the degree to those the needs, goals, objectives and structures of any one tool of the organisation are reliable with the needs. Their general theory is that, other things equal, the great the total degree of congruence between the different tools the more efficient will be the organisations behaviour. Figure 2.5 summarises the congruence model and the bold double headed arrows pose the six fits between the components of the transformation process (the internal organisation)These a re(a) Individual Formal organisations for example to what extents are individual needs met by the formal organisational arrangements?(b) Individual Task for example, to what extent do individuals have the skills required to meet task demands and to what extent do the tasks satisfy individual needs?(c) Individual informal organisation for example, to what extent does the informal organisation satisfy the needs of individuals or make best use of their talents?(d) Task formal organisation for example, to what level are the formal organisational arrangements enough to meet the demands of the task?(e) Task informal organisation for example, to what point does the informal organisation make sure to task performance?(f) Formal informal organisation for example, to what level are the goals, rewards and structures of the informal organisation reliable with those of the formal organisation?Mostly tools that Nadler and Tushman desire to focus on are different to those that figure in kott ers model. All models are overview of the real world, and the usefulness of the particular model, in the context of the change management. Schneider state in the book of john Hayes, Internal and external alignment promotes organisational effectiveness because the various elements of the system strengthen rather than upset each other, thereby minimising the loss of system energy and resources.2.4. Defining resistance to changeResistance to change is not rigorously related to organizations management and leadership. It is a problem embedded in the very nature of its organizational members. In any case, resistance to change is a significant factor that must be understood in the organizational context. Examples of resistance may include, refusal to work, riots (in extreme cases). On the other hand the employees can demonstrate contentment with change, a happier performance at work and a general consensus that the change was beneficial to the restaurant. Individuals can arrive at a psych ological state where major change can no longer be absorbed. According to psychologists, change can trigger emotional experiences such as depression, mania, irritability, anger, disturbing or obsessive thoughts.According to Conner (1998) the main sources of individual resistance to change are lack of trust, commitment to the status quo, belief that the change is not feasible, economic threats, relative high be, loss of status and power, and threats to values and ideals.Tushman and OReilly (1997), state that despite the inevitability of change and its necessity for survival, it presents serious dilemmas to anyone serious about the notion of change. Change is disruptive to organizations. That is undeniable. Change is not helpful to an environment of stability it precipitates more and more disruption wooing business leaders to a critical deadlock. One cannot have both stability and change they are conflicting forces.Pascal, R et el (1997), state, findings from surveys confirm that exe cutives have begun to give renewal a high priority.however, most of their efforts to achieve it have met with frustration partly because large organizations have such a remarkable capacity to resist change of all kinds.2.4.1. Sources of resistance in the implementation stageAccording to Klein and Sorra (1996) implementation of any change in the organization is the significant step between the decision to change and the regular use of it at the organization. In implementation stage more resistance groups can be found. The main resistance is with political and cultural locks to change. It consists ofImplementation climate and relation between change values and organizational values, considering that a strong implementation climate when the values relation is negative will result in resistance and opposition to change and forgetfulness of the social dimension of changes ( Schalk et al., 1998).Last but not least, a set of five sources of resistance with different characteristics are ac cording to Rumelt (1995) leadership inaction, sometimes because leaders are afraid of uncertainty, sometimes for fear of changing the status quo embedded routines collective action problems, oddly dealing with the difficulty to decide who is going to move first or how to deal with free-extruders ,ask of the necessary capabilities to implement change capabilities gap and cynicism.2.4.2. Sources of resistance in the look stage of changeTo understand resistance in the process of change in any organization, we need to focuses on the very fast formulation stage of change.It includes inability of the company to look into the future with clarity. According to Morrison and Milliken (2000) organizational silence, which limits the information flow with individuals who do not express their thoughts, meaning that decisions are made without all the necessary information. Denial or refusal to accept any information that is not expected or desired ( Rumelt, 1995).Low motivation for change, sour ces areDirect costs of change, is the cost of change that brings success to a product but at the same time brings losses to others, so it requires some sort of sacrifice. According to Rumelt (1995) the need for a change is compensated through the high rents obtained without change with another different factor, so that there is no real motivation for change.According to Lorenzo (2000) past failures, leave a pessimistic image for future changes. Waddell and Sohal (1998) identified different interests among employees and management, or lack of motivation of employees who value change results less than managers value them).2.5. Kotter and Schlesingers Choosing StrategiesChoosing Strategies for Change an article of Kotter and Schlesingers (1979) explain causes for resistance to change. Organizations frequently experience employees resistance when change is introduced.