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Change Management Today of the McDonald’s Company
Change management can be classified as the procedure of repeatedly renovating an establishment’s course, organization, and competencies to serve the ever-varying requirements to the outside and inside clients. Change is an aspect, continuously existent in the life of a company and occurring both at functioning and tactical levels (Exter, Grayson, & Maher, 2013). Thus, businesses know where transformation is vital, and they are fully proficient of organizing and employing these modifications in their organizations. The company’s approach and basic strategies are something that goes hand in hand and that cannot be divided. The goal of this paper is to offer an insight into the change management process in the selected corporation, which is McDonald’s, and to provide answers and recommendation for the same.
McDonald’s is a firm with significant accomplishments and achievements. It began its operation in 1954 by Ray Kroc as a burger shop that was later changed through a widespread promotion scheduling and activism, becoming a universal trademark in the contemporary world. The firm boasts of famous fast food products globally with more than 32,000 outlets in 117 states (McDonald’s, 2010). McDonald’s brand was prudently formed and a clown with a grin became a hit for the brand. The big Mac represents one of the most prosperous merchandises of McDonald’s. McDonald’s provides a menu that is nearly similar universally and that comprises burgers, hamburgers, and cheeseburgers. The list further includes soft drinks with fries. McDonald’s targeted clients involve children, teenagers, and families. Currently, the company is the most well-known brand in the fast food industry that satisfies the demands of those who want rapid meals. Regardless of being a famed brand, McDonald’s faces some problems and requires to transform its management structure and appearance as the individuals in contemporary time have characteristically different prospects than those in the previous times (McDonald’s, 2010).
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In modern time, people have become more food and health-conscious, and they currently shift in the direction of a healthier diet with greater dietetic values. Fast food has continually been branded as junk food, lacking a nourishing value, and the general view is that fast food consumption leads to obesity since fat is accumulated in human body. Moreover, modern people are mindful of their bodies, and they seek low fat nourishment that is also rich in proteins. Therefore, McDonald’s has some difficulties in keeping its clientele as it is a deep-rooted fast diet brand and quick nutrition is continually linked to unhealthy and fatty food, while the competitors of McDonald’s have now made a change towards health sentient products by presenting an entirely new assortment that appeals to the new demands of customers (McDonald’s, 2010). McDonald’s must to transform the method it markets itself and similarly, it should offer a fresh line of merchandises as per anticipations of new clients.
Forces for Change
There exists a huge rivalry in the fast food chain business. In a highly modest domain, McDonald’s must compete with its rivals and offer fresh products that are behind the grasp of its opponents. To maintain an advantage over the competing corporations, McDonald’s ought to make such foodstuffs that possess nutritional value and that are affordable at the same time. This rivalry becomes aggressive, which means that fresh products should be sprung into the marketplace by the corporation, and this can allow the business to remain on top with its total revenue.
The perception of customers remains unsteady. Thus, it is necessary for McDonald’s to retain the flavor and penchants of its clients so that they remained loyal to the firm and did not switch to the rival corporations. Novel transformations in the products should be conveyed so that the clients did not become disinterested with the brand that never changed anything. It is a fact that the clients are the kings of the market and their wants should be gratified in the best possible way (Exter, Grayson, & Maher, 2013). This move will help the company attract new clients.
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Expertise plays a crucial role in the fast food industry. Thus, McDonald’s should use the newest and advanced technologies to be able to offer the best products to its clients. Thus, old products will hamper the development of the establishment and the firm could lose its customers quickly. At the same time, the usage of old technologies will make workers distressed, and they will not work with passion and ardor. Therefore, the firm should regularly purchase newest equipment that will prove to be quite valuable for the business in the long run.
Health-Consciousness of the Clients
Contemporary consumers have become fitness cognizant, and they desire that the product they consume fill them with vitamins and nutrients instead of unhealthy fats and carbs. As McDonald’s is a fast food chain corporation, its primary goal is offering the finest meals to the clients by incorporating the components that do not upset the health of its consumers (McDonald’s, 2010). If the business emphasizes on this feature, other trustworthy customers will become enticed towards becoming the corporation clients as they will come to discern that the firm takes care of its consumers’ health.
Forces Against Change
The Cost of Implementation
Bringing a change in the business is a challenging undertaking. This, an establishment like McDonald’s would encounter problems in realizing a change as it has to be completed consistently over an extensive area. Therefore, the vast size of McDonald’s as a corporation represents a fundamental constraint of understanding the change management procedure (McDonald’s, 2010).
The enactment of a change in McDonald’s would consume much time as the company is spread to numerous places. Excellent time suggests that it would necessitate workforce as well as wealth to create the transformation for an extended time.
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The concern of administration has an essential function in the firm. At times, it is perceived that the organization does not offer its backing for realizing novel ways in the company (Exter, Grayson, & Maher, 2013). Thus, employees are against embracing any form of novel way in their workstations. The move impedes the general development of the business and the tactical goals of the firm might not be realized, owing to lack of support.
Scope of Change
Promotion and marketing are important in creating an image of the corporation in the eyes of the people of the nation, in which it operates. The range of change broadly lies in the execution of combined promotion approach. In this essay, the significance is set to promotion and advertisement part since in order to unveil a novel assortment of good merchandises, the firm must enact current marketing strategies. The new marketing campaign will offer a unique health cognizant method that will be combined with an inclination of fitting with health linked concerns like obesity in teenagers and forming knowledge about the practices of consumption of healthy foods. The chief objective of this operation is to support the company’s new healthy products that contain little fat. The move will aid the constructive fashion image of McDonald’s among the clients and make them aware of the new merchandises and improved merchandises that will be much better than the previous ones.
To implement these strategies, the firm has to plan its new approach to the promotion and marketing concepts and place a team in place to enact this policy. The company has similarly presented novel smoothies and shakes along with a decent breakfast, obtainable before 12 p.m. in various outlets. The marketing campaigns’ primary goal to replicate the firm’s mission and a new approach is perceived by the customers through the corporation’s new advertising and selling tactics.
Challenges in Implementing Change
When executing change, problems will regularly occur since there are always struggles on the road towards modifications either before or after it has been instigated. Change in an organization could bring achievement or disaster to a company (Exter, Grayson, & Maher, 2013). Nevertheless, conflicts might convey difficulties if they are not solved in time as they may send impediments in the organization’s current structure. The administration must be conscious of the fact that it should be proficient of not only offering necessary modifications but also be capable of implementing them successfully, removing all hindrances on its way to success.
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It is vital to identify the approval of the shareholders of the business as they are an extremely significant part of the company (Vora, 2013). Stakeholders comprise stockholders, clients, dealers, and personnel. It is imperative for an establishment to retain all its shareholders contented since when they are pleased, it is useful for the business.
However, there will always arise struggle, owing to some variations as there will be opposition from the side of personnel or clients themselves since it is common for individuals to resist change. There might be workers or customers who would accept the transformation well, but the challenge lies with those who disagree with the new organizational system to be realized. Most of the time, they might contemplate that the modification, which has been implemented, has nothing to do with the matter or it can deteriorate the working process. It might likewise occur that workers may not trust individuals who are responsible for this modification.
Employees are not the only ones who generate difficulties for change. Occasionally, even the clients are not prepared it. If they fail to take transformation confidently, this can cause problems for the firm to realize its objective of modification (Vora, 2013). Along with this, another challenge that McDonald’s might encounter is discovering the appropriate professionals to implement this transformation as they will be responsible for conveying these changes in the division of sales and communication. In addition to employees and clients’ conflict, some other obstacles could impact the change process. The tactical enactment is a crucial part of modifications. Impediments in this factor could be challenging for the corporation. Thus, many other concerns may generate obstructions for changes such as issues with stakeholders, the difficulty in funding, and lack of a financial plan for the business. Another challenge may be supporting the procedure of change.
The company’s administration should make the employees take the required teaching and growth programs to mitigate the problem of negative reaction to change. The preparation program should offer full indulgence to the staff members of the company. The training should ensure that none of the facts is overlooked in the teaching program. After the program, there should be a follow-up to evaluate if all participants have distinguished the objectives and have sufficient facts to support this change. At the same time, there could be internal fights among the staff members, and they might be caused by national concerns. This move could instigate the problem of disharmony in the firm, resulting to problems within the business. McDonald’s needs to comprehend the values of its workers and it should classify the challenge that might be instigated because of the encounters if there are any.
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McDonald’s ought to integrate authority in the system to improve the value of workers and the time they spend in the workplace. Diverse assessment policies might aid in boosting the personnel. Operating setting could be similarly developed so that employees might have a decent time while performing their duties, which will bring corresponding profits to the company. Robust organization values along with a great running team are required to resolve such inside issues. The second vital change is to uphold the achievements that have been attained through the enactment of the new administration process. The modification is part of the civilization, and it occurs at regular time intervals. For the accomplishment of change management, it is important that all shareholders recognize or they are made aware of the fact that contemporary change has been conveyed for their advancement (Vora, 2013). The administration of the business should regularly examine the present market situation and impending forecast circumstances so that it could organize itself for the ensuing set of transformations, which will be a prerequisite for the victory of the company.
The challenge with McDonald’s is that it has now grown a status of being a fast food chain business where junk food is offered to clients, which impacts their health (McDonald’s, 2010). Thus, there is a necessity that the corporation should have in mind that those merchandises should be change for the sake of clients’ welfare and their health. There is also a need for the business to undertake steps for circumventing the growing health challenges among the clients and salvage the company’s image.
The company should present a new selling communication strategy that appeals to the responsiveness of the clients who are health mindful. A project should be undertaken under the product image of the business that provides enticing products and correspondingly gives solid facts that these products are fresh and good for health. To salvage its positive image, McDonald’s must enact the modifications as mentioned earlier as soon as possible by employing Integrated Marketing Communication (IMC). The business should introduce numerous publicity and promotion campaigns by concentrating on healthy foods presented in their meals, particularly for those patrons who value their health. The move will generate a fresh image among the health-conscious clients and will create obesity awareness among the young people and similarly, among the target market. The factor will serve as a motivating force for the business by holding the clients in the company.
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Model for Change Management
At times, there is a prerequisite that the corporation ought to bring some modifications that would become valuable for the firm in the long run. The firm might advance its activities by leading a detailed study in advance and then applying the best conceivable actions, which offer the business with maximum profits (Vora, 2013). For this, Kurt Lewin presented a three-phase transformation process that would aid McDonald’s in realizing positive changes in its operations. The change comprises of three initial stages that involve unfreezing, changing, and refreezing.
It represents a procedure where a person sets aside his deep-rooted conduct that may bring harm to the development of the business. During this phase, McDonald’s should categorize its inside processes and analyze where the company needs improvement regarding the produce offered to the clients.
For this step, the company should hire professionals so that they could study different conduct and approaches of functioning and relate new features into the operations. McDonald’s ought to distinguish that the transformation presented is to advance the general performance outcomes. Similarly, employees should be made accountable for those modifications that they convey themselves. Lastly, the personnel should be encouraged on time so that they operated as a team and initiated synchronized efforts.
It represents the final stage in the model for change that denotes that whatever the employee has learned in the workstation should be incorporated into his real practice. During this phase, the employee must trail new principles, outlooks, and conduct that he has learned from his boss at the time of varying phase. Therefore, it aids them in embracing a new behavior instead of returning to their deep-rooted conduct.
Roadmap for Change Implementation Plan
Bringing new expertise and presenting innovative products have always aided various establishments regardless of their functioning on a small or large scale (Vora, 2013). These establishments, while considering for bringing a slight change or a methodical transformation, will encounter numerous challenges in employing the change. Thus, McDonald’s is in the same situation. The firm recognizes that the modification must occur, but performing this transformation is a challenging undertaking. There is an eight-step procedure to aid McDonald’s in implementing the change. The eight steps for spearheading change are as follows.
To Create Urgency
The administration should encourage the personnel that the transformation will not merely profit the firm but will similarly attract new clients.
Advance a Strong Alliance
The business should develop a team of active leaders to implement change that could change team structure and detect the delicate parts so that a healthy combination of individuals was established within the firm.
Advance a Vision for Change
McDonald’s needs to develop a vision that recognizes a value, which is vital for transformation. It should enact this vision in an efficient way for the firm to realize its tactical aims.
Communicating the Vision
After forming a vision, the administration should relay the idea to all levels of management so that the workers could toil consequently and the company constantly had an advantage over its rivals.
If McDonald’s implements the above-given phases appropriately, the modifications may occur in the company without any difficulties.
Advance Temporary Success
Immediate victory will aid McDonald’s in realizing accomplishment, thus leaving no possibility for disappointment. If the team participants relate the best of their understanding, objectives will be accomplished, and individual victory will enhance their drive and realization that they accomplish the purpose with the least cost.
Build on Change
The business ought to persist on constructing new modifications and bring developments so that the work was done in an accurate way without giving any disappointments. For instance, Kaizen style should be implemented by the firm so that continuous change development occurred.
Apply the Modifications in the Business Culture
McDonald’s need to classify what exact changes are necessary for the functioning, and its vision and standards must be perceived in daily processes. For this, the firm should discourse about its achievement with the employees and inspire them by telling them how the business has acknowledged their accomplishment in the transformation process. It is essential that McDonald’s strategizes each of its stages prudently and forms an appropriate task for the modifications to be realized efficiently.
The management of McDonald’s must always be alert to maintain the business on par with the market anticipation. They have to examine and monitor contemporary market circumstances continually to be aware of the current position of the firm on the market. The organization will have to check which concepts are operational and which are not when executed and consequently change the organization structure to continue modernization. The management needs to build a safe setting and support modifications in the business to implement an organization change. Various forces impact change and as such, they should be handled carefully. Among the effects, there is stiff competition, clients, technology, and health awareness among customers. Given the above, certain forces act against change and include the cost of implementation, time requirement, and management support. In effecting change management, challenges encountered may include conflicts between workers and shareholders. Workforce training, understanding employee values, and integrating authority have been singled out as some of the solutions to the problems. At the same time, Kurt Lewin’s three phase transformation process is quite essential for the company in achieving success.