Free Essay

Macdonald Strategy

In: Business and Management

Submitted By chandu487
Words 1176
Pages 5
concerns back to senior leaders so that the change plan can be adjusted as needed. If your organization has a change council, ask to be part of it. If it doesn’t, offer to help organize one. For change leaders, there is no replacement for direct feedback as to how communications, plans, and new projects are being perceived in the field. 8. Help other employees cope with change. Even if you’re excited about change, not everyone will be. Some team members might feel confused, angry, frustrated, or exploited. To make the transition easier for them, first, be on the lookout for signals that someone needs help coping: absenteeism, depressed or despondent behavior, or attacks on team members. You might intervene one-on-one, or help steer a bickering session into a change session. You can also help others cope through active listening. Try to act as a sounding board, and help the other person reduce emotionality and increase rational discussion. 9. Encourage communication among your peers. Remember, the sum of the parts is always greater than individual contribution levels added together. So, regularly ask yourself how you can help build a better organization by diffusing confusion, expediting the flow of information, or reaching out to others. Communication between peers and through management helps make your job easier in a number of ways. It uncovers what is valuable to the business and what is not, it minimizes the amount of time required to achieve goals, and it maximizes productivity. 10. Believe in the change and speak up. This isn’t so much about self-help as it is making positive ideas a reality! As change begins, start talking about how great it will be. And if change is not yet happening, talk about past accomplishments to capture the emotions, excitement, and energy your team needs to forge ahead. Whether you are a junior employee or the CEO, show your enthusiasm for the project. Change comes from the heart, not from corporate messaging. A sense of possibility for the future of the company is contagious! If you see that a change is needed but you aren’t the leader, don’t just sit back and be told what to do—be proactive! When you show your commitment in creative ways, you’ll be asked to run the show sooner than you think. LE
Christina Tangora Schlachter, Ph.D., and Terry Hildebrandt are coauthors of Leading Business Change For Dummies (Wiley). Christina is founder of She Leads. Terry is CEO of Terry Hildebrandt and Associates. For more information, visit www.leadingchangexperts.com.

M

ACTION: Be a more proactive leader.

ating the Big Mac secret sauce, perfecting the frozen French fry and inventing the Chicken McNugget, along with developing manufacturing patents that drive productivity improvements. Seek to achieve the triple win. Kroc established relationships with McDonald’s suppliers on a simple handshake built on trust, loyalty, and fairness. Many find it hard to believe that even today McDonald’s most strategic suppliers still operate on a handshake! Francesca DeBiase, McDonald’s VP of strategic sourcing, Worldwide Supply Chain Management, says the rationale by Kate Vitasek and Karl Manrodt for handshake deals is just as powerful today: “Many of our strategic suppliers CDONALD’S HAS A SECRET SAUCE. And it is not what you think. It’s have worked with us for decades. They know we base our partnerships on mutabout how McDonald’s keeps their ual trust, respect, and financial success.” three key stakeholders—the company, restaurant owner/ operators, and their How has McDonald’s sustained this culture for 60 years? The world’s most suppliers—in balance with a Systems successful business relationships have First mindset based on trust, loyalty, several things in common: everyone and fairness to ensure no stakeholder involved in the enterprise collaborates wins at the expense of others. through innovations and sharing value Kroc famously said, “None of us is to produce the long-term win-win. Or as good as all of us.” He knew that he in the case of the McDonald’s threecouldn’t implement his vision alone. legged stool, the win-win-win. His philosophy led to the McDonald’s System, based on the belief that everyone These successful relationships follow five principles: 1) Focus on outcomes in the System should win. Kroc often referred to not transactions; 2) Focus on the what, not the how; McDonald’s Corporation, the 3) Agree on clearly defined owner/operators of the restauand measurable outcomes; rants, and suppliers working 4) Optimize pricing model together to build his vision as the three-legged stool. He incentives; and 5) Governance stressed that each leg needed structure should provide to do well for the group to insight, not merely oversight. prosper. If one leg did not These rules create competigrow in capabilities and proftive advantage and are a key itability, it weakened the to how companies work stool. Kroc wanted everyone involved together to inspire innovation, create value, with the business to thrive. and reward success. Vested Outsourcing Kroc turned his vision into an estab- means creating outsourcing relationlished ecosystem based on trust, loyalty, ships where companies and their supand fairness that motivates suppliers to pliers become Vested in each other’s invest in McDonald’s business. His success. Partners strive to drive beneSystem is credited for revolutionizing fits for the company outsourcing and the restaurant business and helping its supplier or service provider partMcDonald’s rack up corporate leaderners. From the start, Ray Kroc used an ship awards including a No. 5 ‘Most outsource model for operations. He creatRespected Company’ ranking from ed alliances with restaurant owners/ operators and suppliers that operated with Barron’s in 2011. Businessweek recently included McDonald's in its list of the 20 long-term thinking based on trust and Best Companies for Leadership. transparency. He and McDonald’s For suppliers and restaurant owner/ engaged suppliers who were entrepreoperators, being in the System means not neurs, who invested in the McDonald’s being afraid of investing heavily in the System. He worked with them to develMcDonald’s System to create a compet- op products and processes that served itive advantage—in key business driowner/operators and brought profit and vers such as cleanliness, quality, value, growth to the supplier’s bottom line. LE assured supply, safety, and being better, Kate Vitasek (kvitasek@utk.edu) is faculty in the University of not just bigger. It also means everyone Tennessee’s Center for Executive Education. Karl Manrodt (kmanrodt@georgiasouthern.edu) is a professor at Georgia —even suppliers—are highly motivatSouthern University. They are co-authors of The Vested Way. ed to bring innovation to McDonald’s. In fact, suppliers are credited with cre- ACTION: Seek the triple win in your business.

PERFORMANCE

WIN

McDonald’s Secret

8

O c t o b e r

2 0 1 2

w w w. L e a d e r E x c e l . c o m

Copyright of Leadership Excellence is the property of Executive Excellence Publishing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.…...

Similar Documents

Premium Essay

Macdonalds

...In the 12 years since then, that average frequency has doubled and analysts forecast that by 2011 the Indian quick service restaurant market will be worth 30,000 crore (about $6.3bn at October 2008 exchange rates). But from their earliest investments in India, multinational company (MNC) owners of restaurant chains have struggled to adapt to the needs of India's many markets. Some pulled out of the country after failed ventures. At the time, consolidation of the hugely fragmented Indian retail sector had also barely begun, and there was scepticism that Indians would prefer burgers and fast food to local food offerings. However, in the intervening decade, McDonald's has continued to open new outlets in the country, evolving its marketing strategy through several phases. Twelve years of McDonald's India McDonald's India was set up as a 50:50 joint-venture between McDonald's at a global level and regional Indian partners such as Hardcastle Restaurants Private Limited in western India, and Connaught Plaza Restaurants Private Limited in northern India. The first Indian McDonald's outlet opened in Mumbai in 1996. Since then, outlets have begun trading in metropolitan and Tier II towns across the country. By September 2008, it had premises in Mumbai, Bangalore, Baroda, Pune, Indore, Nasik, Chennai, Hyderabad, Surat and Ahmedabad. Amit Jatia, Managing Director, McDonalds India, said: "The past decade has witnessed a marked change in Indian consumption patterns, especially in terms of......

Words: 1150 - Pages: 5

Premium Essay

Macdonalds

...employs to keep itself at the top of the fast-food industry. Although there are various weaknesses, these can all be turned around following the McDonald’s Plan to Win, which was implemented with the hiring of Jim Cantalupo. Keeping in mind, the core competencies of this company is what makes it so successful today. For the past ten years, one of McDonald’s key success factors has been its franchises, taking in approximately 60 percent of total sales. Another success factor is the “Plan to Win” strategy. It is a plan that focuses on five key drivers of success; people, product, place, price, and promotion. The first factor is McDonald’s people or employees. McDonald’s is striving to do a better job of staffing during busy periods as not to overwhelm and to reward outstanding employees for exception work. Based on these facts and analysis, we have come up with alternate strategies and have recommended the one that best fits McDonald’s current situation. The recommended strategy includes diversification and maintaining customer service through quality training and people development....

Words: 552 - Pages: 3

Premium Essay

Macdonalds Marketing

...In order to develop a successful marketing strategy, it is very important for companies to understand its target customers. MacDonald has segmented their products according to demographic, psychographic and behavioral. They positioned their products mainly between family, kids , students, café goers and working adults. Segmentation Market segmentation is defined as dividing a single market into smaller segments. The need for dividing the market into small segments is to supply to the distinct need of smaller groups of consumers and to manufacture different products according to their consumer habits. MacDonald’s segmentation has been done on three different bases. 1) Demographics segmentation: Mainly for kids , family, students , café goers and working adults McDonalds offer many different types of products like the world famous happy meal which is typically a form of kids meal which was marketed towards children since 1979. It includes a toy with the food, both of which are usually contained in a box or paper bag with the McDonald's logo. For families they also have many different types of family meals for special occasions, parents may also purchase a family meal instead of ordering individually. In various countries McDonalds also has student’s meals which makes it more affordable for students . Students also tend to hang out at McDonalds to study. For café goers they have mccafe which has a quieter ambience, a place to relax or even for business entertainments....

Words: 608 - Pages: 3

Premium Essay

Macdonald Essay

...distinguishing members of one group or category of people from others”. He is famous for the 5D model that is used to illustrate the dimensions of national culture. This model consists of five clusters, namely • Power Distance (PDI) • Individualism versus Collectivism (IDV) • Masculinity versus Femininity (MAS) • Uncertainty Avoidance (UAI) • Long term versus Short term orientation (LTO) This 5D model can be used to analyse the Chinese culture in relation to the American culture. Marieke de Mooji (2004) advises managers of firms that partake in international marketing to compare 2 or more cultures so as to depict the similarities or differences of consumer behaviour and thus implement them into international marketing strategies for each target market. Figure 1 shows an illustration of comparisons for China and the USA diagrammatically. Power distance consists of the ways in which different societies tackle the problem of human inequality, in terms of power and wealth. Hofstede expresses that this model can be used to depict the attitudes of the culture towards these inequalities. China has a PDI of 80, while America is allocated 40. China is thus ranked highly in terms of PDI, their culture views inequalities amongst its nationals as acceptable. However, with the USA, a score of 40 goes to support the focus on equal rights in the American society. Within an organisation it would expected that the superiors are always available and accessible to......

Words: 7203 - Pages: 29

Premium Essay

Macdonald Marketing Strategy

...McDonald's Marketing Strategy McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006. Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern......

Words: 1184 - Pages: 5

Premium Essay

Hrm of Macdonald

...satisfactory contributed for business expansion, McDonald today has over than 30,000 restaurants over than 100 countries in the world and it has maintained the top position in the Fast Food Industry for the past 50 years. McDonald’s has been pursuing a growth strategy for the last decade. McDonald’s foreign operations amount for more than half of the company’s revenue today and all have been marked by basic vision of selling the maximum. However, in the late 1990s and early 2000s, the giant experienced problems owing to external environment changes. In 2002, the company experienced huge embarrassment with law suits, negative media coverage, and 15 percent drop in its stocks making it the third biggest loser in the Dow Jones Industrial average. Among the blows that McDonalds took was the obese-causing and loser-employer issues. McDonalds has been hammered for providing people with unhealthy. Based on figures rising in US and UK, the cultural changes are also taking place, the anti American sentiments in the rest of the world has had negative impact on McDonald’s sales. The biggest challenge that managerial level faced was changing the mind set of the people from being a loser to employees of a growing Company. Even the company strategy announced, not many people were influenced by the McDonalds’ confidence. To battle it out, a growth of 6-7 percent annual growth which was not much considering the huge size of the food chain was pursued. The challenge was to increase the......

Words: 2404 - Pages: 10

Premium Essay

Macdonalds

...meant a system where divine law was the basis of all humanly enacted law, and in which religious and political hierarchies were merged. Today, the term theocracy is applied to refer to the dominance of religion over state. Technological Factor: McDonald’s generates a demand for their own products. The Company’s key tool for marketing is by means of television advertisements. There are similarly some claims that McDonald’s are inclined to interest the younger populations more. The existence of play spots as well as toys in meals offered by the company shows this actuality. Other demonstration of such a marketing strategy is apparent in the commercials of they use. They employ animated depictions of their characters like Grimace and Ham burglar. Other advertising operations employ popular celebrities to promote their products. Company also have its marketing strategy like as Facebook, Google Ads, etc. The like has become endorsers for McDonald’s worldwide “loving’ it” campaign. Moreover, the operations of McDonald’s have significantly been infused with new technology. Elements like the inventory system and the management of the value chain of the company allows for easy payments for their suppliers and other vendors which the individual stores in respective markets deal with. The integration of technology in the operations of McDonalds tend to add value to their products. Basically, this is manifested in the improvements on its value chain. The improvement of the inventory......

Words: 7568 - Pages: 31

Free Essay

Macdonald- Ethics

...solutions that might mitigate the risk better, or more cheaply, or more easily, here are some of the solutions we propose: 1. Reducing the temperature of the coffee is one possible solution, but McDonald's customers may not like the taste of the cooler coffee. 2. The other causes we suggest to reducing the risk, some of which have been already implemented today is to improve the design of the cup and lid, 3. To have the server add the condiments in the shop before giving it to the customer. 4. Offer a second temperature of coffee for those that don't want it so hot. 4. Implication of the case for future product related complaints I. MacDonald had received numerous complaints in the past about the temperature of their coffee they should have put measures in place to prevent future complaints of this nature. Over the last 10 years MacDonald had received 700 complaints out of the 24 million cups it had sold and considered this figure trivial. However the woman involved suffered very serious injuries - third degree burns on her groin, thighs and buttocks that required skin grafts, this indicates that the coffee was indeed too hot. In the future companies will certainly be liable for questioning for their inability to address customer complaints. Each customer will have to be treated as if they are the only one, if companies rely on statistical data analysis to address customer grievances this could lead to more cases such as the Stella Liebeck coffee case.......

Words: 3304 - Pages: 14

Premium Essay

The Macdonald Farm

...The MacDonald Farm The Conservation Foundation established in 1972 as a non-for- profit organization that focuses its efforts to protect its land and watershed. The Conservation Foundation sits on the 60-acre McDonald Farm and working land located in Naperville, Illinois and its primary mission is to preserve open spaces and natural land, and protect rivers, streams and watersheds. The Conservation Foundation received the MacDonald Farm as a donation from the MacDonald family 1992 and it moved its headquarters to the site in 1998. The MacDonald family purchased the property in 1949. The family rehabilitated the barn and some other buildings including the new construction of the latest house that had previously burned twice. Mrs. MacDonald continued living in the farm after the passing of her husband in 1966. In the 1970s, farms were disappearing rapidly due to the fast development in the area. Soon most farms were replaces by subdivisions and in less than 10 years all those farmland became neighborhoods. Mrs. MacDonald resisted and sent away many developers who offered big amounts of money for the farm. She always insisted that no one was going to build any houses on her property. Mrs. MacDonald donated the farm to the Conservation Foundation on the promise that this property was to be kept for conservation, education and agriculture purposes. Include aspects on water conservation, native landscaping, solar and wind power, co-op farming. The McDonald farm under the......

Words: 755 - Pages: 4

Premium Essay

Sir John Alexander Macdonald

...Sir John Alexander MacDonald - ‘Canada’s Patriot Statesman’ ‘Confederation is only yet in the gristle, and it will require five years more before it hardens into bone.’ - John A. Macdonald Early Life Sir John Alexander MacDonald was a very influential political figure, originating from Scotland but carrying out his career in Canada. Being the first Prime-Minister of Canada, MacDonald spent the majority of his life living there, after he and his family migrated to Kingston in 1820. He was born in Glasgow on January 10th in 1815 and passed away on June 6th in 1891 due to a stroke. John Alexander MacDonald is thought to be one of the most important political men ever in Canada, he first came into power in 1867 and to this day his face still remains on the 10 dollar bill. In his early years he played a major part in transforming the old Tory party, which was based on narrow minded loyalist and Anglican values into a broader Conservative party that was willing to work with french-speaking Canadians in order to achieve the joining of all British North America. His personal life was not the happiest of those and was generally quite grim. MacDonald had to watch his first wife die slowly, see his son die as a baby as well as have a daughter born with Hydrocephalus. Because of this he often turned to drink to numb his pain and emotion, though this wasn’t good it was overlooked. During a campaign, Macdonald had had a little too much to drink and ended up throwing up on the......

Words: 1152 - Pages: 5

Premium Essay

Macdonald Refrigeraton Case Analysis

...Macdonald Refrigeration Limited PART I 1. Characterize the dominant strategy used for each of Janet’s production plans, and provide a brief summary of the strengths and weaknesses of each. PRODUCTION PLAN 1: LEVEL STRATEGY Janet's first plan proposes using a stable workforce and a constant output rate. Inventories would increase during low demand periods and decrease during high demand periods. Strengths: * Workers are protected against forecast error * Stable work hours and increased job security lead to happier employees * Employees would not have to work as many overtime hours to fill orders because there would be substantial inventory during heavy demand months * Tasks become easier and workers more efficient because employees are doing the same jobs, which creates a stable work environment * A stable work environment can increase morale Weaknesses: * A constant output rate will result in high and/or excessive inventory * Inventory levels fluctuate leaving the potential for high inventory carrying costs, or conversely, can result in order stock outs, backlogs and lost sales * Holding inventory could result in outdated products * Accumulated inventory leads to higher storage costs, higher insurance, and higher carrying costs like taxes PRODUCTION PLAN 2: STABLE WORKFORCE-VARIABLE WORK HOURS Janet's second plan holds the workforce constant, but varies the number of hours worked through flexible work schedules and......

Words: 2121 - Pages: 9

Premium Essay

Macdonalds Problem

...Introduction This paper provides an overview of how the various component of the Black Scholes model impact the option price and to what degree. The 6 determinants of the BS model namely stock price, strike price, time to expired, volatility, risk free interest rate and dividend are explained as well as their relative impacts of Call and Put prices. This is followed by discussions of a case study on a company UWA which has decided to change its performance rewards policy from bonus payout to an options offer and whether the management would actually benefit from such a program. Finally another case study covering the financial relationship between Macdonalds Corporation and its subsidiary in UK and the various arrangements between the firms. The paper analyses the benefit of hedge policies using cross currency swaps and whether Macdonalds should recognize its profit and loss for Cross currency swaps as OCI (Other Comprehensive Income) in its Revennue statements and the potential impacts. This submission is part of the Main Assignment for the Advanced Treasury Management – Financial Engineering module as part of MSC 25 course. (1a.)   is the cumulative distribution function of the standard normal distributionS is the spot price of the underlying assetT − t is the time to maturityK is the strike pricer is the risk free rateN(d1) and N(d2) represent log normal distribution values. | Options are derivative instruments that give investors the right to buy or sell......

Words: 2955 - Pages: 12

Free Essay

Macdonalds

...that it had appointed Defendant as Chief Technology Officer. (Defendant listed himself as Chief Technology Officer of Music Group on his LinkedIn page, as well. Defendant used the email address "CTO@music-group.com" for correspondence. Defendant worked more than the single 40-hour week contemplated schedule set forth in the Agreement as evidenced by his income, which exceeds the $5,000 monthly flat rate: Plaintiff paid Defendant $61,540 for 5 months of work in 2010, $189,958.86 in 2011, $240,240 in 2012, and $167,670 for eight months of 2013. In the course of his work pursuant to the Agreement, in September 2010 Defendant drafted the status report labeled "IS and IT Strategy Document," and provided it to Plaintiff. In the report, Defendant identified certain problems with Music Group's systems and set forth a strategy for moving forward. Some of the problems Defendant identified in this report--namely, (1) IT/IS projects were "incompletely implemented, or misimplemented"; (2) a "high degree of fragmentation in the currently implemented systems"; (3) the "current systems are not updated or upgraded"; and (4) the infrastructure is not centrally managed"--were also identified by Presidio, Inc. ("Presidio"), the company Plaintiff hired to assist in its recovery following the cyber- attack, as barriers to recovery. During the course of his work, Defendant also signed contracts with third party companies as Music Group's Chief Technology Officer and without first consulting with......

Words: 2308 - Pages: 10

Premium Essay

Marketing Strategy

...Brand Essence. ........................................................................................................ 18 Brand Identity.......................................................................................................... 18 Brand vision and culture .......................................................................................... 18 Positioning............................................................................................................... 19 Personality ............................................................................................................... 19 Relationships ........................................................................................................... 20 A Strategy for Growth....................................................................................................................20 Market Expansion.................................................................................................... 21 Market Penetration .................................................................................................. 22 Diversification ......................................................................................................... 22 Retail Format Development..................................................................................... 23 Conclusion ................................................................................................................................

Words: 8985 - Pages: 36

Premium Essay

I Love Macdonald

...McDonald’s utilizes an excellent operations strategy in order to gain a larger market share and increase value to the shareholders. The corporation specifically focuses on speed, standardization, quality, and affordability. McDonalds has moved ahead of the competition by focusing on these factors. McDonald’s competes on three main bases, such as speed, affordability, and standardization, mainly to make their customers happy. Through extensive market research and surveys, the organization discovered that its customers desired speed as one of the restaurants’ top priorities. Therefore, McDonald’s vision aims to “provide fast, friendly and accurate service” (“McDonald’s Worldwide”).   McDonald’s realized that specific targets are necessary to measure the performance of speed; therefore, they continuously take relevant measurements to compare actual performance with desired targets. From the customers order, to the making of the burger, and till the customer leaves the restaurant, speed is a key f actor in McDonald’s operation strategy. To reduce the amount of time it takes to provide services, the company uses standardized training processes for its employees and new drive-thru layouts.   Along with speed, McDonald’s also competes by offering prices at a low cost. To offer high quality products at low cost requires efficient processes throughout the entire McDonald’s organization. Once again, this goal is built into their vision statement when they claim, “We will be the most......

Words: 299 - Pages: 2