McDonald’s Change Management Analysis
Keywords: change management mcdonalds, mcdonalds culture change
McDonalds is the world’s largest fast food chain serving more than eight million customers daily. It starts its operation by giving franchise right, affiliated company and starting its own unit. Source of revenue generations are rent, royalties received from franchise or sales units operated by McDonalds. Main products of McDonalds are hamburger, chicken, cheese burger, break fast item, soft drinks and deserts. It is rapidly growing organization; it generated 9% more net income in 2007 than the year 2006. In order to sustain its sell in the market and make company more profitable McDonalds is focusing to bring some changes.
It is utmost priority of every organization that it should improve itself in order to strengthen its capabilities and sustain its competitive advantage. It strives for the attainment of this purpose in shape of introducing change management in the organization. In order to remain in the market with full potential management of the organization and lower staff must be ready to bring the change because environment is dynamic and it is rapidly changing and businesses are going to be complex. It is necessary for the organizations to bring changes to operate and keep itself competitive in this dynamic environment. Business world is continuously changing and new technologies and innovative products have been introduced on daily basis and most of the organizations are accepting theses change even they are not willing to accept. It is because of change benefits, changes bring improvement. When a person accept change and cope up with changes and equipped himself / herself then he/ she becomes different from other. His worth exceeds than that of the person who does not keep himself / herself up to date. If any employee enhances his/ her skill with new technology, his/ her efficiency increase, can perform better than previous, increase the productivity of the organization. That’s why it has been observed in the most of the organizations that they adopt changes quickly because they understand the worth of change. They try to equip their employees with modern technology as their performance gets improved.
Change is very important for every organization. Companies and business adopt change and incorporate it in their organization for fulfilling the needs of suppliers and customers and to remain competitive in market. We can define change as implementation of new activity; the main purpose of that activity is to enhance the productivity by applying new policies and procedures. Change management process and change implementation has different strategies to change, so the change process is very complex and comprehensive. The most important approach in change implementation process is one which brings accomplishment. Changes in organization are essential at different activates such as modification in management system, change in operations, change in organization structure and change in other 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 implement change in any activity. The factors that may bring change may be internal and external. Different activities and different new strategies can be introduced tat different level, and these changes and modifications may be restricted or unrestricted, common or general in nature. Internal factors for change may include the following:
- Change in structure of organization
- Increase in business needs
- Alteration in business plan
- Modification in goals of business
External factors for change may include:
- Technology growth
- Changes in economic conditions that affect the profitability or value of money
- Requirement of electronic and technological services
It is the primary responsibility of the McDonalds to bring changes in order to achieve organizational goals and objective in effective manner, due to that it must plan from initial stage of change to proper implementation. For the effective implementations of the change and successful results of the change organization must focus on Individuals and their relationships and continuous improvement system is introduced in which change is carried on properly. In order to improve the organization and bring change successfully, McDonald should consider the issues wisely and come up with positive solution that may break hinders. At each stage organization should take action to overcome the resistance and implement change properly.
NEED FOR CHANGE
The extent of the change management in McDonald as company’s marking plans is restricted to execution of incorporated marketing communication. For bringing new things and new activities in organization, the marketing, advertising and promotional operations of the organization must be focused. Normally different communication mediums are used for marketing and advertising and considered as aid for offering services and ideas and products. Different kinds and different types of communication media are used for marketing and advertising the products. The concentration shall be given on marketing, advertising and promotion in integrated marketing operation. The part of new marketing plans of the McDonald, integrated marketing operation shall be highlighted by this change and new modification. The basic idea of the integrated market operations is to implement change related to health, which spread the information about current development in health and the increasing ration of fatness among children and adults for creating target marketing. The objective of integrated market operation is to launch new products for children, and to reduce the effect of growing bad perception about McDonald among the individuals. The marketing approach which focuses on the people’s heath will provide information to parents and children about the new product of McDonald McKids, and about differences between new product and existing products. If the integrated marketing communication system is successfully implemented, then it would provide successful marketing, advertising and public relations operations for efficiently introducing the new products of McDonald to general community. The organization should form a team for bringing new activities that would handle the necessary issues for this change. The new dietary material information of new product has also uploaded on McDonald (Bahrain) website. This change will mainly concentrate on marketing and sale promotion. Nowadays, the menu of McDonald for children has facing the problem of criticism. The integrated marketing communication has been implemented by the McDonald for changing the perception of people about the kid menu of McDonald. Through integrated marketing communication, it will also be ensured that the mission and vision that the McDonald is utilizing has been highlighted in every advertisement or promotion or not.
RESISTANCE TO CHANGE
It is the well known fact that when any organization brings changes, it faces difficulties while implementing these changes. Resistance may occur before implementing the change, during implementing the change and after implementing the change. that’s why these changes are carefully managed as organizations can avoid adverse outcomes of the change because change is brought for the betterment of the organization and management expects some thing better from that change, if it is not properly implemented and it get victimized of extreme resistance then the expected result would be inverse. It is the priority of the organization that it should manage the change proper way and for this purpose open talks with employees are conducted in order to know the view of the employees because change will directly effect on the employees and if they do not accept it, organization would not achieve desired results. Now it is the responsibility of top authorities to find out ways that can bring organization up as well as they must terrace out he ways through which that change will be implemented successfully.
McDonald is striving to encounter the environmental changes by bringing changes in its promotional activities, by making changes it can respond the external and internal factor that are rapidly changing. Change will be made in promotional activities in which organization will boost its image in the mind of customer. Because of that change McDonald is facing some problems to implement the change that is resistance from employees’ side. Problems that have been encountered 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 regarding the implementation of this change. a few of the employees are in favour of changes, they want that integrated marketing communication should be implemented. Others are resisting implementing that change. They are opposing change because they fear that company is going in wrong direction. They think company what ever is expecting would not attain it but it would encounter more problems due to this change. It is also a problem that those who suggested the change to be implemented are not able to properly convey the outcome the organization would gain from that change.
Though technology is rapidly developing in these days, information technology has grown more rapidly than any other technology. specifically in the information technology, if organization purchases computers and uses it for marketing purpose as McDonald is expecting to bring the changes but the issue is that, with the passage of time these computer would be outdated and company will have to replace them. It may cause severe losses for the company. This issue has been raised not only by employees but also by customer that’s why they are opposing to bring changes. This has created big issue for the McDonald’s because it would not be able to achieve desired results that it is expecting from that change. Company may lose the key employees those who basically operate that change because due to resistance many of the employees may quit the McDonald and McDonald may require a number of other employees who can operate and run this change. It is purely technical task and only IT literate person can handle it.
Every organization faces barrier when it comes with innovative idea as McDonald is going to implement new change it also facing barriers and organization’s success depends upon the change. Barriers may not be in shape of resistance but they may be resources that required bringing change. Stakeholder may resist because they may not rely the proper usage of that communication media, there may short fall of amount because its implementation requires finance.
MANAGING THE RESISTANCE
It is the responsibility of McDonald’s that how wisely it deals these issues because these issues are not as bigger as they are perceived, for this purpose it must ensure the employees that the change is not going to hurt them rather it would be beneficial for the organization and if organization will move in right direction then ultimate benefit will be given to employees. Major problem that is with this change in technology that McDonald is going to introduce is not long lasting because computer is rapidly changing, the growth ration in this sector is high. So stakeholder fear that if this change is brought then it would not be the permanent solution, organization may have to change in future. That’s why it should be considered wisely that technology should perform long lasting duration.
Information regarding the change will be provided to the employees would be accurate and every one can easily understand. Third issue that McDonald’s have to ensure that after implementation how this program will be carried on, the follow up of this program will be ensured by the top authority of management. Necessary training must be provided to the employees who would directly interact with this change and handle all the activities that would occur after change. McDonalds should provide necessary things to carry on the functions that would be run by the employees.
There are differences in cultures among the employees who are working in McDonalds. They would not synchronize the activities with the changes because of their differences in culture that’s why it would be more difficult for the management of McDonalds to implement the change properly. Apart from that this is most difficult type of conflict; the reason for this conflict would not be change. While implementing the change McDonalds must ensure that who would be responsible to manage the change if any cultural difference is found it must be observed and they must terrace out subcultures to overcome this problem. They must identify that that would be empowered by this change.
For solving these types of problems, the executives of McDonald should form a successful culture of the organization, and tough organization by the use of good control of the stakeholders in organization; they should also provide their needs and wants which they require for the motivation of stakeholders which benefit the stakeholders as well as company. For certifying or confirming the continued success in change implementation, some elements are part of human capital management strategy and plan. These elements include processes and procedures for work, design and structure of organization, management performance and program for providing compensation. Some of the customers of McDonald have also created problems in implementation of change in organization.
The McDonald should introduce governance process for ensuring the equality among employees and controlling the people of different cultures. The managing and controlling of people in organization is very difficult and challenging task, if we give careful consideration, attention and focus, on it then it will increase loyalty of employees and hardworking which will benefit the organization and employees. If the management provide reasonable time, advance information, incremental peoples for doing job effectively and provide extra hands and minds then the employees work more than what is expected from them.
The not availability of any support in achieving the success from processes is the main clash in execution of change. Change can be implemented in different phases; it can not be implemented just by any decision. The people which are involves in change process must go through their experiences for realizing the objectives of the modification. For success in implementing change and solve these types of clashes the management of McDonald should that the information regarding the change objectives and purposes has been properly distributed to all stakeholders and these all stakeholders such as employees, customers, suppliers, staff should realize that they are m ain source and vital for these changes. The management must be able to identify and predict problems which may be faced by organization and those problems may hamper the employees and other stakeholders from supporting the change.
To shifting the behaviour and perception of the children about healthy fast food may be very complicated, so success of these changes is very doubtful. There Is also indications to be successful in change implementation because of good features of integrated marketing communication. McDonald should ensure that the new advertisement for the new image has been reached to every child in all countries where the products of the company are available, for this the company may use different types of media that disperse the information. These new advertisements for building image of McDonald should also reach to the parent because these are the parents who purchase the food for their children, and these advertisements should persuade the parents to encourage their children for eating healthy and dietary food. There are many ways for changing and innovation, the more concentration is given to research and development. Novelty can be achieved by less formal changes in the job by exchanging and merging professional experience or other approaches may also be used. Innovation can be defined as new ides, new goods, new activities, new services or practices initiated by organization which are useful in achieving the objective of the business. Innovation is much debated area in modern world, whether the innovation is based on new knowledge or expertise or based on needs of societies or communities and market requirements. The common factor in successful innovation is acknowledgement of demands rather than acknowledgement of technical problems.
This innovation will positively result for McDonald; it should try its level best to implement this change any way. For the implementation of this change if it has to encounter few problems its must concentrate on it and try to resolve this problem. There are many possibilities for the McDonalds that it would bring revolution in the food industry and will gain competitive advantage. Thought it is food producing company if it crates this promotional activity not only it would attract customer but also affects positively in the minds customers.
It is utmost priority of every organization that it should improve itself in order to strengthen its capabilities and sustain its competitive advantage. It strives for the attainment of this purpose in shape of introducing change management in the organization.
It is the primary responsibility of the McDonalds to bring changes in order to achieve organizational goals and objective in effective manner, due to that it must plan from initial stage of change to proper implementation.
The extent of the change management in McDonald as company’s marking plans is restricted to execution of incorporated marketing communication. For bringing new things and new activities in organization, the marketing, advertising and promotional operations of the organization must be focused. Normally different communication mediums are used for marketing and advertising and considered as aid for offering services and ideas and products.
Resistance may occur before implementing the change, during implementing the change and after implementing the change. that’s why these changes are carefully managed as organizations can avoid adverse outcomes of the change because change is brought for the betterment of the organization and management expects some thing better from that change, if it is not properly implemented and it get victimized of extreme resistance then the expected result would be inverse.
Information regarding the change will be provided to the employees would be accurate and every one can easily understand. Third issue that McDonald’s have to ensure that after implementation how this program will be carried on, the follow up of this program will be ensured by the top authority of management.
This innovation will positively result for McDonald; it should try its level best to implement this change any way. For the implementation of this change if it has to encounter few problems its must concentrate on it and try to resolve this problem.