Running Head: MCDONALD’S CORPORATION

McDonald’s Corporation
Lizzeth Martinez
Management Theory II
South Texas College
July1, 2019
Dr. Dora E. Vargas-Bustos
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Abstract
This paper examines the McDonald’s Corporation and its management. First it gives a brief

background of the corporations and its accomplishments. Also, it discusses the importance of

planning, organizing, leading and controlling. Then, it presents several approaches and models

that will aid the organization with the adaptation to change. It briefly touches concept of positive

and negative reinforcement and programed decisions. Moreover, through the exploration of some

articles it observes the corporation’s SWOT analysis in order to understand the internal strengths

and weaknesses and the external opportunities and treats. Similarly, it mentions some of the

current strategies that are implemented throughout the corporation. Furthermore, derived from

these concepts it will create a plan of action to be implemented in the organization for future

growth. Lastly, if implementation of plan of action is successfully sustained it provides some a

graph of current sales and a graph with projected sales of three years.

Keywords: management, plan, strategies, successful

McDonald’s according to Rowley and McMurtrey (2016) was classified as number three

on the 2012 Gartner’s Supply Chain Top 25 list moreover, this record has been issued in 2004,

and is classified grounded on the awareness of demand-driven leadership. Originated in 1955,

McDonald’s expanded extremely fast via constant development both domestically and globally,

furthermore, with its compelling growing frequency and emphasis on core preferments, the

corporation contributed to excellent development opportunities for skillful people (Williams-Lee,

2008).

Regardless of such success a corporation has to be aware and seek its capacity for change

for future growth and regularly be innovative to keep up with the demand trends in the market.

As noted by Conkright (2015), Fayol presented five basics of management, henceforth

minimized now to what is nowadays known as the four basis of management which are planning,

organizing, leading, and controlling. These four functions are essential for the business operation

and to meet the business’s operational desired targets. When leading a corporation strategic

planning is an important first concept to take into consideration because it helps develop the

corporation’s direction and instructs employees of the road that lies ahead. When employees get

a sense of direction from the leader, they can help the corporation get there furthermore,

planning can support the corporation with the embrace of adaptation.

As stated by Shabbir (2018) planning is considered one of the principal functions because

the other functions descend from it, it governs the purpose of the organization and its mission.

Organizing encompasses more than beyond of just a development of the beginning of a new

program. It is the capability of viewing all the function and process, planning stage additionally,

originating new processes, mind-sets, and methods that have sustenance to the complete

organization capability (Conkright, 2015). Managers assemble and sort the corporal, human and
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economic capitals to attain goals. The next function of management is leading with this concept

Conkright (2015) explains that the leaders must demonstrate a sincere interest in personnel and

discover methods to flourish and stimulate them consequently this will result in the reward of

loyalty from workers. Furthermore, a genuine leader is accountable to supporters and raises

confidence, morality, and transparency. Lastly, the purpose of controlling according to Conkright

(2015) is the adjustment in the final plan it alters situations for any given change of plan

moreover, controlling deals with departing and forthcoming of employees and managers,

incoming new markets, acknowledging to constant variations of economic circumstances, and

other issues that depend upon organizational caution.

When it comes to adaptation to change in an organization such as McDonald’s, issues

may arise giving the organization a hard time to be able to produce capacity for change. A good

instrument to use for this is Kotter’s eight step change model which according to Pollack and

Pollack’s (2015) article these eight-phase methods of generating considerable change has been

identified unanimously as one of the greatest prominent methods for organizational evolution. It

is important to point out that concrete implementation of a change is the crucial factors in

defining the overall triumph or ruin of an organization. In a brief explanation the eight steps in

Kotter’s model are as follows beginning a reason of urgency, generating the supervisory alliance,

form a vision and strategy, conveying the change vision, vesting broad-based change, producing

interim wins, combining advances and constructing more change and securing new approaches

in the culture (Pollack & Pollack, 2015).

A complementary tool that is usually used in corporations such as McDonald’s is the

positive and negative reinforcement, this is used by manager usually for motivation of workers.

This tool can cause both advantages and disadvantages when implemented. Positive
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reinforcement encourages personnel with vocal or printed commendations, rewards, commission,

advancements, and bonuses (Rowley& McMurtrey, 2016). The downside of overuse can be

underperformance and can create an environment of rivalry. In negative reinforcement

reprimanding employees if expectations are not met as well as termination (Rowley&

McMurtrey, 2016). To take total advantage of these two concepts a tip is to create a balance

between both. When an organization encounter programmed decisions, these decisions tend to

already be familiar because such decisions have been dealt before and are usually easy to handle.

They repeatedly contain monotonous, candid materials that are lectured in the corporation’s

guidelines and process guide (Rowley& McMurtrey, 2016).

Nonetheless any company that has great success, consequently, faces great challenges

that they need to overcome. McDonald’s is constantly confronted with forceful rivalry from a

progressively diverse range of opponents outside the traditional fast service restaurants,

especially fast random restaurants, grocery stores, and convenience stores (Williams-Lee, 2008).

It is beginning to be unfavorably hard to produce sales through new restaurant openings, and the

corporation commences elaborate on aspects to diversify.

Subsequently, followed by these issues that the corporation is facing this paper will

construct a plan of action to be a road guide to detail what are the objectives that need to be

accomplished in order to overcome these issues. First thing that needs to be considered is the

SWOT analysis for McDonald’s. The SWOT analysis will provide an examination of how the

fast-food chain corporation practices its competitive advantages to keep on striving for a leading

standpoint. Moreover, it completely recognizes the significant strengths, weaknesses,

opportunities and threats that have the highest impact in the corporation (Bhasin, 2019). In the

SWOT analysis articulated by Bhasin (2009) McDonald’s strengths are its global brand equity,
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affordable prices, achievement in foreign market. Weaknesses involves of steady profits growth,

deteriorating of market share, unhealthy food, staff turnover. McDonald’s opportunities can

consist of joined ventures, to expand internationally, acknowledgement social changes, in

contrast to the threats which are recession, loyalty of customers, health mindful customers, and

forte of competitors. (Bhasin, 2019).

By looking at these valuable concepts the action plan can be emphasize on alternate

marketing strategies that concentrate on the important aspects of the corporation. The focus of

the corporation is to offer value to client each day, modernizing the company menu items,

remodeling the corporation’s appearance and production marketing campaigns. The goals that

McDonald’s wants to focus on is acquiring more customers that visit the business regularly then,

they want to mature their loyalty towards them which in return will increase the profit for the

corporation. One strategy that can be helpful when dealing with competitors is the cost

leadership business strategy which uses lower prices on quality products that are usually lower

than the competition (Shabbir, 2018). First off McDonalds needs to increase advertisement

particularly focusing on presenting the corporations regard to a varied menu of inexpensive price

items. This will attract client’s curiosity through the brief display of ads and can also help the

clients regularly visiting the locations that may result in customer loyalty.

Another strategy that McDonald’s can put more focus is attracting children, the key tool

for this of course it the toy. All kids are attracted to toys which is usually included on the Happy

Meal. This strategy captures both the customer attraction and loyalty. Furthermore, product of

top-quality material is another key characteristic McDonalds needs to focus on. McDonald’s

incessantly toils with suppliers to better the degree of quality and uniformity of their common

product moreover, implementation of innovation in supply chain procedures is also a major

importance at McDonald’s (Rowlery & McMurtrey, 2016). In today’s commercial world,

corporations are striving to establish and preserve an amount of what is identified as corporate

responsibility. Rowlery and McMurtrey (2016) define corporate responsibility as “being good

citizens in the global community while still turning a profit”. Lastly, but also very important is to

focus on forming a diverse group of upcoming leaders that have the proper resources to reach

and achieve the unstable requirements of the corporation for the formation of the strong

leadership. Also, focus on the increase development of high possible leaders throughout the

corporation, by utilizing leadership progress as a development to initiative business outcomes,

form organizational culture, and construct leadership complexity.

In conclusion, all organization even in the amidst of their success need to be attentive to

arising issues such as competitiveness, decrease in revenue, customer retention. Below are some

graphs of projected sales that will mostly benefit McDonald’s if the action plan suggested above

is put into practice. Throughout the management process there exist different tools and concepts

that can be applied to any type of organization to aid in the continuing success that it is looking

for. The four functions of managements are an essential part of management that needs to be put

forward for a well-functioning organization. McDonald’s characterizes a corporation that is a

compact performer in supply chain management. They make substantial efforts to endorse and

effect corporate accountability in cooperation of their individual movements and in their

particular supplier establishments (Rowley& McMurtrey, 2016). Although there is continuously

development to be accomplished, they are a corporation with numerous optimistic qualities to

explore and compete with in the global business ground.

References
Bhasin, H. (2019, May 12). SWOT analysis of Mcdonalds - Mcdonalds SWOT analysis.

Retrieved from https://www.marketing91.com/swot-mcdonalds/

Conkright, T. A. (2015). Using the Four Functions of Management for Sustainable Employee

Engagement. Performance Improvement, 54(8), 15–21. https://doi-

org.ezproxy.southtexascollege.edu/10.1002/pfi.21506

Pollack, J., Pollack, R. (2015). Using Kotter’s Eight Stage Process to Manage an Organisational

Change Program: Presentation and Practice. Systemic Practice & Action Research, 28(1),

51–66. https://doi-org.ezproxy.southtexascollege.edu/10.1007/s11213-014-9317-0

Rowley, B., McMurtrey, M. E. (2016). McDonald’s and the Triple Bottom Line: A Case Study

of Corporate Sustainability. Journal of Strategic Innovation & Sustainability, 11(1), 33–

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com.ezproxy.southtexascollege.edu/login.aspx?direct=true&db=sur&AN=116418758&si

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Shabbir, M. S. (2018). Innovation Strategy of McDonald Business from Historical perspectives.

International Journal of Global Business, 11(2), 9–28. Retrieved from https://search-

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Williams-Lee, A. (2008). Accelerated leadership development tops the talent management menu

at McDonald’s. Global Business & Organizational Excellence, 27(4), 15–31. https://doi-

org.ezproxy.southtexascollege.edu/10.1002/joe.20210