Free Essay: McDonald's Case Summary

McDonald's is a food-based organization with more than 14000 locations. This organization deals with providing a uniform menu for the whole family (McDonald's, 2020). Majorly, the menu includes the Big Mac, chicken, fries nuggets, hamburgers, wraps, shakes, and sandwiches. Our CEO, Mr. Chris Kempczinski, operates the organization in a flexible and employee-based strategy for maximum potential in food-related services (McDonald's, 2020). Our motto is opening opportunities with connected thinking together with our clients. From this motto, we believe that change brings these opportunities and ultimate renewal (McDonald's, 2020).

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McDonald's is on a change process to improve its services with many competition and customers' requirements. There is a planned change to enhance the fast-food section for both takeaway and service demands. This year we are recruiting more than 260,000 workers for franchise marketing in restaurants around the USA (McDonald's, 2020). After the long-term closure, we are reopening our 2200 restaurants which will avail in-dine services and have better monitoring of the employee-customer relation. It is set that the already upgraded 14000 restaurants will reopen soon (McDonald's, 2020). In plan, $300 million is set to acquire technological equipment in the strategy dynamic yield change. With this change, the McDonald's power menus will quickly adjust to inventories and history purchases (McDonald's, 2020).

Besides, McDonald's is changing the drive-through services where clients benefit from the curbside pickup and delivery advantages. For this plan, we are having our committee revise our clients' essential demand elements (McDonald's, 2020). We plan to have a customer free environment where every need will be met both technologically and manually. To make this possible, we are opening 11800 new restaurants beyond the United States. The budget allocation for the globalization and technology adaptation plan is $2.4 billion, the average organization's capital expenditure (McDonald's, 2020). Due to McDonald's global expansion change, researchers find that the organization faces a deficit of strategies to meet the ever-changing market and economy (McDonald's, 2020). The evaluation of franchises indicates due to the coronavirus pandemic outbreak, the organization is at risk of completing changes as per the plan (McDonald's, 2020). In essence, there is a high rate of customer numbers falling from fast food take away, orders, and in-restaurant service demand (McDonald's, 2020). This problem has not been solved efficiently, having that the leadership system of the organization is not concrete to face the challenge (McDonald's, 2020). The current pandemic has led to the closure of some restaurants and a delayed opening of new ones. The risk of loss is the greatest fear for the organization right now. MacDonald has decided to focus on non-burger fast food chains that are of fewer benefits in this token. Following this, it is impossible to raise the required sustainable revenue (McDonald's, 2020).

Case Analysis: Bolman and Deal's Postulations

The mentioned challenge requires diagnosis by the management (Bolman & Deal, 2020). Regarding the four frames outlined by Bolman and Deal, McDonald's' solution is diagnosing the structural and human resource elements of change. In this token, the organization has to create a noticeable change that Bolman and Deal call to change (Bolman & Deal, 2020). The leaders have a significant role in implementing devolution for the organizational change process. MacDonald's current issues originate from the leadership styles and strategic movements (Bolman & Deal, 2020). Bolman and Deal postulate that such issues could be arising from insufficient knowledge of the related issues among the organization leadership and a behavioral rigidity, including unconscious limiting beliefs that perceive the leader's workability and direct their action from the capabilities (Bolman & Deal, 2020). Like Bolman and Deal assert, there have to be lenses that could help gain an overall view of the challenges and the change process (Bolman & Deal, 2020). Leaders have to enact commitment to the various ways of improving services. This would include the rejuvenation of the fast-food services, though with considerable margins to avoid intensive losses. The leaders also have to focus on the best human resource managing criteria's that will sustain the employees, customers, and the general business (Bolman & Deal, 2020).

Case Analysis: Fullan's Postulations

More so, Fullan discusses the causes of issues that institutions are not major from external factors but internal factors. Accountability is not a significant problem but focuses on the purpose, and systemic objectives are the problem (Fullan, 2016). Fullan argues that compliance with the plans is the basis of change. Integrating this to MacDonald's case, the issues faced by these organizations are out of lack of cooperation in the implementation of the plans. Although external factors are determinates of direction, these factors can be adjusted through the management's flexibility (Fullan, 2016). Fullan postulates that the key to save resources and time while presenting the best organizational change is to have more efforts on the futile administration and improve the services regardless of the limiting issues. In this case, MacDonald has to adjust its schedules on service provision during these pandemic times. Fullan argues that the highest change results come from the best leadership adaptability to the emergency and sequential changes (Fullan, 2016). The efforts of change have to be accommodative to negative risks and overwhelming benefits.

According to Fullan, there has to be a reinforcing element created through the emphasis of relationship. For example, in MacDonald's case of change, the senior leaders have to attain the reinforcing element by creating attention that focuses on every stakeholder. Fullan discusses the importance of engaging every business element to provide services that are worth the clients (Fullan, 2016). Fullan describes an effective change process as one that takes care of handling the employees' hiring, training, and welfare (Fullan, 2016). On this plane, MacDonald has to face the issues on a single basis and have the best out of the available environment. Fullan also describes the element of central office mentality as a perspective for an effective change process. According to Fullan, the change process have to converge all the projects and strategies in one central control system. In this case, MacDonald, the CEO, and senior managers have to focus on assembling all transformational ideas in one basket (Fullan, 2016). Lastly, Fullan considers trust and empowerment crucial for every change; there has to be a collaborative element among leaders, clients, and workers. The change process will be inevitable only if the considerations of trust and empowerment are absolute (Fullan, 2016). From Fullan postulations, there is an element of continued orientation and improvement of the plans.

Personal Evaluation and Recommendations on MacDonald's case

As outlined, the issues at MacDonald arise from the lack of change focus. MacDonald's loses money through immersive strategies that are not effective in executing change plans (Isabelle et al., 2020). MacDonald could lose more capital expenditures if no change is taken for the next few years. The company must centralize in the best safe area and operate from within this location to discover the barriers of best change and develop the fast-food chain. If a theoretical framework is used to better this situation, MacDonald could improve efficiency (Isabelle et al., 2020). My view on this is better explained using Potter's theoretical framework. The company can face problems using a strategic move of improvising change. To improvise change means that McDonald's would need to check the pandemic's marketing issues (Isabelle et al., 2020). Using Porter's five forces elements, MacDonald's will control the market and reduce competition in the change improvisation.

Reflection on the Limits Affecting McDonald's Change Projects Process

According to the change plan, the major limitation to effective change implementation will be leadership negligence. MacDonald's leadership system could have many flaws in the reopening of the restaurants. More so, the selection of the best fast-food chain could be an issue. Parallel to the Coronavirus pandemic, leadership has a significant gap to cover. All the change processes could be affected by the pandemic. Thus, an additional role is to have measures and strategies to face the pandemic before implementing change. Every project's pandemic factors affect the workers, leaders, customers, and even the operation's systemic finances. Aside from the negligence, the company's strategy for change could be adversely affected by the economic commotion currently on the rise. Much of the economic dependence of McDonald's is in the American region. Of late, there is an economic imbalance due to various factors, including political issues, leadership transition, and employment issues. MacDonald could be at risk of loss and change failure if more strategic moves could not be taken immediately.

References

Bolman, & Deal. (2020). Four Frame Model of Leadership – BusinessBalls.com. Businessballs.com. Retrieved 6 December 2020, from https://www.businessballs.com/leadership-models/four-frame-model-bolman-and-deal/.

Fullan, M. (2016). The NEW Meaning of Educational Change (5th ed.). Teachers College Press. https://www.researchgate.net/publication/303873022_Essential_Features_of_Effective_Networks_in_Education

Isabelle, D., Horak, K., McKinnon, S., & Palumbo, C. (2020). Is Porter's Five Forces Framework Still Relevant? A study of the capital/labor intensity continuum via mining and IT industries. Technology Innovation Management Review, 10(6).

McDonald's. (2020). McDonald's Just Announced a Big Change in Plans. Here's the Key Lesson for Every Business. Inc.com. Retrieved 6 December 2020, from https://www.inc.com/bill-murphy-jr/mcdonalds-just-announced-a-big-change-in-plans-heres-key-takeaway.html.