McDonald's Change Management Analysis

Keywords: change management mcdonalds, mcdonalds culture change

INTRODUCTION

McDonalds is the world's greatest fast food chain providing more than eight million customers daily. It starts its operation giving franchise right, associated company and starting its unit. Way to obtain revenue generations are rent, royalties received from franchise or sales models operated by McDonalds. Main products of McDonalds are hamburger, poultry, cheese burger, breakfast item, carbonated drinks and deserts. It really is rapidly growing company; it generated 9% more net gain in 2007 than the year 2006. To be able to support its sell on the market and make company more profitable McDonalds is focusing to bring some changes.

It is maximum priority of every organization that it will improve itself in order to improve its capacities and preserve its competitive advantages. It aims for the attainment of this purpose in condition of launching change management in the organization. In order to remain in the market with full potential management of the business and lower personnel must be ready to bring the change because environment is energetic which is speedily changing and companies are heading to be sophisticated. It's important for the organizations to bring changes to operate and keep itself competitive in this vibrant environment. Business community is consistently changing and new solutions and ground breaking products have been launched on daily basis and most of the organizations are accepting theses change even they are not willing to simply accept. For the reason that of change benefits, changes bring improvement. Whenever a person accept change and cope up with changes and outfitted himself / herself then he/ she becomes not the same as other. His value exceeds than that of the individual would you not keep himself / herself up to date. If any worker enhances his/ her skill with new technology, his/ her efficiency increase, is capable of doing better than prior, increase the productivity of the organization. That's why it's been observed in the most of the organizations that they choose changes quickly because they understand the value of change. They make an effort to equip their employees with modern technology as their performance gets advanced.

Change is vital for every organization. Companies and business choose change and incorporate it in their business for gratifying the needs of suppliers and customers and also to stay competitive in market. We are able to establish change as execution of new activity; the main purpose of that activity is to improve the productivity by applying new insurance policies and techniques. Change management process and change implementation has different strategies to change, so the change process is highly complex and comprehensive. The most important procedure in change implementation process is one which brings achievement. Changes in firm are essential at different activates such as changes in general management system, change in operations, change in corporation framework and change in alternative activities which management may consider important. Change in necessary when management is facing problem in current system or for getting better the performance of the organization the management may modify the current system or put into action change in any activity. The factors which may bring change may be interior and exterior. Different activities and different new strategies can be launched tat different level, and these changes and adjustments may be restricted or unrestricted, common or standard in nature. Internal factors for change can include the next:

  • Change in composition of organization
  • Upsurge in business needs
  • Alteration in business plan
  • Modification in goals of business

External factors for change may include:

  • Technology growth
  • Changes in economical conditions that affect the success or value of money
  • Requirement of electronic and technological services

It is the principal responsibility of the McDonalds to bring changes to be able to attain organizational goals and aim in effective manner, due compared to that it must plan from first level of change to proper implementation. For the effective implementations of the change and successful results of the change organization must give attention to Individuals and their relationships and ongoing improvement system is introduced in which change is continued properly. To be able to improve the firm and bring change successfully, McDonald should think about the issues properly and come up with positive solution that could break hinders. At each level organization should do something to defeat the level of resistance and implement change properly.

NEED FOR CHANGE

The level of the change management in McDonald as company's marking ideas is restricted to execution of incorporated marketing communication. For delivering new things and new activities in group, the marketing, advertising and promotional procedures of the business must be targeted. Normally different communication mediums are being used for marketing and advertising and considered as help for offering services and ideas and products. Different varieties and various types of communication press are being used for advertising the products. The concentration will be given on marketing, advertising and advertising in involved marketing operation. The part of new marketing strategies of the McDonald, integrated marketing operation shall be outlined by this change and new changes. The basic notion of the built in market functions is to put into practice change related to health, which propagate the information about current development in health insurance and the increasing ration of fatness among children and parents for creating target marketing. The objective of integrated market operation is to release new products for children, and to reduce the aftereffect of growing bad understanding about McDonald among the individuals. The marketing methodology which focuses on the people's heath will provide information to parents and children about the new product of McDonald McKids, and about distinctions between new product and existing products. If the integrated marketing communication system is effectively implemented, then it would provide successful marketing, advertising and pr operations for effectively introducing the services of McDonald to standard community. The organization should form a team for providing new activities that could handle the necessary issues for this change. The new dietary materials information of new product in addition has uploaded on McDonald (Bahrain) website. This change will mainly focus on marketing and deal advertising. Nowadays, the menu of McDonald for children has facing the problem of criticism. The built-in marketing communication has been applied by the McDonald for changing the notion of folks about the kid menu of McDonald. Through integrated marketing communication, it will also be ensured that the quest and eyesight that the McDonald is utilizing has been outlined in every advertisement or promotion or not.

RESISTANCE TO IMPROVE

It is the popular fact that when any company brings changes, it faces difficulties while employing these changes. Amount of resistance may occur before applying the change, during putting into action the change and after employing the change. that is why these changes are carefully handled as organizations can avoid unfavorable benefits of the change because change is helped bring for the betterment of the organization and management expects one thing better from that change, if it is not properly carried out and it get victimized of extreme resistance then the expected end result would be inverse. It's the priority of the organization that it should control the change proper way and for this purpose open talks with employees are conducted to be able to know the view of the employees because change will immediately effect on the employees and if indeed they do not agree to it, organization wouldn't normally achieve desired results. Now it is the responsibility of top authorities to determine ways that can bring business up as well as they need to terrace out he ways by which that change will be implemented successfully.

McDonald is trying to encounter environmentally friendly changes by bringing changes in its promotional activities, by causing changes it can respond the exterior and internal factor that are quickly changing. Change will be made in promotional activities in which organization will improve its image in your brain of customer. Because of that change McDonald is facing some problems to use the change that is resistance from employees' part. Problems which may have been experienced by employees are misperception and negative reaction by the customer and employees, culture is not supporting for these changes.

Major problem is reaction by employees and customer about the implementation of this change. a few of the employees are in favour of changes, they need that designed marketing communication should be carried out. Others are resisting employing that change. They may be opposing change because they fear that company is certainly going in wrong way. They think company whichever is expecting wouldn't normally attain it but it would face more problems because of this change. Additionally it is problems that those who recommended the change to be integrated are not able to properly convey the results the organization would gain from that change.

Though technology is quickly developing nowadays, information technology has grown quicker than some other technology. specifically in the info technology, if company purchases personal computers and uses it for marketing goal as McDonald is looking to bring the changes however the issue is the fact that, with the passage of time these computer would be outdated and company must replace them. It may cause severe losses for the company. This issue has been elevated not only by employees but also by customer that's why they are opposing to bring changes. It has created big issue for the McDonald's since it would not be able to achieve desired results that it is wanting from that change. Company may lose the main element employees those who in essence operate that change because scheduled to resistance many of the employees may give up the McDonald and McDonald may require lots of other employees who is able to operate and run this change. It really is purely technical job and only IT literate person are designed for it.

Every organization faces barrier when it comes with impressive idea as McDonald is going to implement new change it out also facing barriers and organization's success relies upon the change. Obstacles may not be in shape of level of resistance nonetheless they may be resources that required getting change. Stakeholder may withstand because they may well not rely the correct usage of this communication press, there may short fall season of amount because its execution requires finance.

MANAGING THE Level of resistance

It is the duty of McDonald's that how smartly it discounts these issues because these issues aren't as bigger because they are perceived, for this purpose it must be sure the employees that the change is not going to hurt them alternatively it might be beneficial for the organization and if organization will move in right way then ultimate benefit will be given to employees. Major problem that is with this change in technology that McDonald is going to introduce is shortly enduring because computer is quickly changing, the growth ration in this sector is high. So stakeholder fear that if this change is helped bring then it could not be the everlasting solution, organization may need to change in future. That's why it should be considered wisely that technology should perform long lasting duration.

Information about the change will be provided to the employees would be correct and everyone can simply understand. Third concern that McDonald's have to ensure that after implementation how this program will be continued, the follow-up of the program will be made certain by the top specialist of management. Necessary training must be provided to the employees who would directly interact with this change and take care of all the actions that would occur after change. McDonalds should provide necessary what to carry on the functions that might be run by the employees.

There are dissimilarities in cultures among the employees who are working in McDonalds. They would not synchronize the actions with the changes for their distinctions in culture that is why it might be more challenging for the management of McDonalds to use the change properly. After that this is most challenging type of issue; the explanation for this conflict would not be change. While applying the change McDonalds must ensure that who be responsible to manage the change if any ethnic difference is found it must be viewed and they must terrace out subcultures to beat this problem. They must identify that that would be empowered by this change.

For solving these types of problems, the professionals of McDonald should form a successful culture of the organization, and tough organization through good control of the stakeholders in company; they also needs to provide their needs and wishes which they require for the drive of stakeholders which benefit the stakeholders as well as company. For certifying or confirming the continuing success in change implementation, some elements are part of real human capital management strategy and plan. These elements include operations and techniques for work, design and composition of firm, management performance and program for providing payment. A number of the customers of McDonald have also created problems in implementation of change in group.

The McDonald should expose governance process for guaranteeing the equality among employees and controlling the folks of different civilizations. The managing and managing of individuals in firm is very hard and challenging job, if we give careful consideration, attention and target, onto it then it will increase commitment of employees and hardworking that may benefit the business and employees. In case the management provide acceptable time, move forward information, incremental individuals for doing job effectively and offer extra hands and minds then the employees work more than what is expected from them.

The not availability of any support in reaching the success from functions is the primary clash in execution of change. Change can be applied in different stages; it can't be implemented simply by any decision. The people which are entails in change process must proceed through their experience for realizing the aims of the adjustment. For success in implementing change and solve these kinds of clashes the management of McDonald should that the info about the change objectives and purposes has been properly sent out to all stakeholders and all of these stakeholders such as employees, customers, suppliers, personnel should realize that they are really m ain source and essential for these changes. The management must be able to identify and forecast problems which may be faced by company and the ones problems may hamper the employees and other stakeholders from helping the change.

Advice

To moving the behavior and belief of the children about healthy junk food is quite complicated, so success of these changes is very doubtful. There Is also indications to be successful in change execution because of good top features of included marketing communication. McDonald should ensure that the new advert for the new image has been reached to every child in all countries where in fact the products of the company are available, for this the company might use different kinds of mass media that disperse the info. These new adverts for building image of McDonald also needs to reach to the father or mother because these are the parents who choose the food for his or her children, and these adverts should persuade the parents to encourage their children for eating healthy and dietary food. There are various ways for changing and invention, the more attentiveness is directed at research and development. Novelty can be achieved by less formal changes in the job by exchanging and merging professional experience or other strategies could also be used. Innovation can be explained as new ides, new goods, new activities, new services or routines initiated by organization which are of help in achieving the aim of the business. Advancement is much debated area in modern world, whether the innovation is based on new knowledge or expertise or predicated on needs of societies or neighborhoods and market requirements. The common element in successful technology is acknowledgement of requirements somewhat than acknowledgement of specialized problems.

This innovation will positively end result for McDonald; it will try its level better to put into practice this change any way. For the execution of the change if it must encounter few problems its must focus on it and try to resolve this issue. There are plenty of options for the McDonalds that it would bring revolution in the food industry and will gain competitive benefits. Thought it is food producing company if it crates this promotional activity not only it would attract customer but also influences positively in the heads customers.

Realization

It is extreme priority of each organization that it should improve itself to be able to bolster its functions and support its competitive benefit. It aims for the attainment of the purpose in form of launching change management in the organization.

It is the principal responsibility of the McDonalds to bring changes in order to attain organizational goals and target in effective manner, anticipated compared to that it must plan from first level of change to proper implementation.

The scope of the change management in McDonald as company's marking plans is fixed to execution of included marketing communication. For bringing new things and new activities in business, the marketing, advertising and promotional functions of the organization must be targeted. Normally different communication mediums are used for marketing and advertising and considered as help for offering services and ideas and products.

Resistance may occur before applying the change, during applying the change and after putting into action the change. that is why these changes are carefully monitored as organizations can avoid negative benefits of the change because change is brought for the betterment of the organization and management needs one thing better from that change, if it's not properly carried out and it get victimized of extreme amount of resistance then your expected end result would be inverse.

Information regarding the change will be provided to the employees would be correct and everyone can certainly understand. Third concern that McDonald's have to ensure that after implementation how this program will be continued, the follow-up of the program will be guaranteed by the top power of management.

This development will positively effect for McDonald; it should try its level better to apply this change in any manner. For the execution of this change if it must come across few problems its must concentrate on it and try to resolve this problem.

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