Mcdonalds Organizational Change Analysis
McDonalds is an enterprise which has accomplished milestone of success and was established by Ray Kroc back in 1954. It is a burger shop featured with extensive marketing campaigns to strengthen capacities into being a global brand. Presently, it is among the leading fast food brands enjoyed around the globe in 117 countries with over 32000 outlets (Badal, 2017). Their menu is the same throughout its outlets; comprising of hamburgers, burgers, drinks, and cheeseburgers served with fries. Their target market includes families in general but majors on teens and kids. McDonald’s mission statement states that it is objected to being customers favorite spot and eatery. Accordingly, the multinational company has aligned its functions through a plan to win cantering revolving around five fundamental pillars – its products, prices, promotion, people and the place (outlets). McDonald owns 43% of the US market share, KFC 28%, Subway 22%, Burger King 17% and the rest smaller competitors share the remaining share (Olsen, Popovich & Thompson, 2016). They are enthusiastic at enhancing their operations and customer experience. Implying that their mission also includes being the best employer within the different outlets’ locations to the native community, while providing the best services to customers.
Through their mission, they believe they can realize growth with profitability reinforced by the integration of system and technological innovations. Lastly, their foresight is focussed at making McDonald’s the best and quickest restaurant across the globe, which can only be achieved through outstanding quality, cleanliness, and quality services to make its clients smile and happy (Badal, 2017). McDonald’s also values customer satisfaction, as their existence is dependent on them. As such they are focussed at creating a welcoming environment with committed employees. Additionally, the business is obliged to grow profitably, while at the same time consider consumers’ health in the changing way of life, its customers and employees (Bull, et al. , 2016). Such considerations have made McDonald’s among the most renowned global firms in the fast food industry which offer quick fast foods. Nonetheless, despite the status, 38100113347500McDonald’s still encounter organizational issues necessitating a change in its management structures and policies to adjust to the current times and generation. For instance, today people tend to live in ways which are more health conscious and moves away from foods which have nutritional value and healthy. In contrast, McDonald’s products, fast foods, are classified as junk food and perceived to have no nutritional value popularly associated with obesity (Tuñón-Pablos & Dreby, 2016). Moreover, the present generation is more conscious about their body weight and purpose to consume food which is high in proteins and low on fats. McDonalds Situation AnalysisSWOT analysis McDonald’s strengths are its internal capacities which are fundamental to realizing the business objectives. The company has a steady cash flow and is positioned high in the fast food industry strengthened through its product development and innovation. For example, the newly developed Chicken Burger has not competition substitute in the market yet.
The firm continually innovates with the aim of retaining customers (Bull, et al. , 2016). The vegetable chicken burger is featured with an exceptional combination of a unique taste. Introduction of such new products enables the business to offer a comprehensive menu to its consumers with reasonable value and excellent service. Weaknesses of the business are its internal elements which affect the firm’s ability to realize its objectives. Currently, McDonald is focussed are producing a product line; to include burgers and hot foods. The concerns arise because carbohydrates and fats consumed at a high level are harmful to human health. Though it’s a weakness, the company’s success is dependent on consumers’ happiness, and satisfaction, meaning the company should shift its focus to capitalize on organic foods which are the current trend. McDonald’s opportunities revolve around the buyers needs to maximize its returns. For example, introducing the vegetable chicken burger in the United Kingdom market explores the significant opportunity presented by the diversity in the multicultural market. Another opportunity is a collaboration with supermarkets through joint ventures.
They also need to employ innovation into developing new products which align with the current healthy lifestyle regarding food consumption. The business can also consider developing playing parks for teens and children who are their primary target market, with educational programs which enlighten its customers about healthy living such as exercising and maintaining fitness. Threats are all the challenges brought about by unfavorable happenings which could lead to diminished sales, thus profits. A significant risk is the competitors plan to integrate vertically and sell to consumers directly. Social changes are also a threat to the business, presently the government and society are encouraging people to lead healthy lives consuming balance diets, and organic foods. Currently, McDonald’s is the leading fast-food chain company, visited by over 40 million clients every day over its over 30,000 outlets around the world. The business gets 80% of its revenues from developed countries like US, UK, Canada, Germany, Brazil, Japan, France, and Australia. The company’s greatest achievement was the image it created for itself in the people minds and introduced the majority to the fast food culture. Among its core strengths include customer value and care, delivery speed and cleanliness. The corporate logo is a significant role in its marketing campaigns, which turned out to be highly successful. The company faces stiff competition from two firms, KFC and the Burger King (Santos & Laczniak, 2015). Their marketing strategies emphasize external environments and internal resources. The business is facing problems based on its products, and fast foods are associated with unhealthy eating, considered to be fattening foods. From another viewpoint, McDonald’s competitors are taking advantage of the situation offering health conscious products which are non-fattening and healthy. Consequently, change is required, McDonald’s needs to change its marketing strategies as well as introduce new menus which align with the current generation’s consumer expectations. The graph below shows how McDonalds’ sales were reducing because of customers perception concerning healthy lifestyles. left000The scope of changeThe proposed change involves changing the marketing approach to go along with the launch of the new healthy products. Marketing and advertisement are fundamental in establishing the company’s image in the society in which it functions. The latitude of change lies in its implementation of the new marketing strategy, which will be helpful in launching the new healthy products.
The new advertisement and marketing policy should adapt to a new health-conscious process which aligns with the current fitness and health associated concerns like obesity and bad eating practices (Santos & Laczniak, 2015). The primary objective of the marketing campaign will be to endorse the new products which contain low fats and healthy as desired by the consumers. These marketing undertakings will be crucial in creating positive images of McDonald to the consumers, and at the same time make them aware of the new menu along with their health components. While mirroring the company’s missions and foresights, the marketing plans should promote new attitudes in the consumers. For a start, McDonald’s intends to launch new shakes and smoothes to go along with the breakfast menu, healthy breakfast (Kraak, Englund, Misyak & Serrano, 2017). The decision to change the company’s marketing approach was accompanied by conflicts, which provokes problems if they are not resolved. The primary objective of the decision was to improve the company’s image and enhance its competitiveness in the industry. All the stakeholders involved should agree with the suggested change, they include shareholders, suppliers, employees, and customers (Kraak, Englund, Misyak & Serrano, 2017). After all, McDonald’s mission revolves around satisfying and making stakeholders. Nonetheless, the company’s labor force are the primary stakeholders who may stand in the way of changes, if they do not perceive the change positively then problems arise. Besides, McDonald’s staff are the ones responsible for driving the change, supported by communication and marketing. Finances are other factors which affect the process of change, and the decision will undoubtedly be costly to the business. Moreover, during the change process, the company will lose millions as their sales decline, awaiting acceptance by consumers as the new healthy products. McDonald used and continues to use over $40 million every year in conducting training (Carden, Maldonado & Boyd, 2018). Additional expenses will also be incurred through training programs under which employee will undertake to learn the new recipes, communication, and marketing strategies. Besides the cost incurred during labor force training and the decline in sales during the transition.
The decision led to more gains. The company managed to shift children attitude towards its products following the negative health concerns associated with it (Harrington, Ottenbacher & Fauser, 2017). For instance, the marketing strategy was aimed at encouraging parents to comprehend the McDonalds new healthier food menu for children which would enable them to enjoy the product line than before. The approach also changes their image, where the public now associates McDonald’s positively (Harrington, Ottenbacher & Fauser, 2017). The campaign “I love it even more’ was successful and encourage the building of a positive image. The marketing approach was also helpful in creating a safe environment, where the labor force was encouraged to stay committed to and support the organization’s effort in meeting its missions and foresights. As the revenue trend depicted in the graph below: Furthermore, the new marketing approach was essential in enabling McDonald’s to gain a competitive edge and strength as consumer loyalty increased following the positive image. The new marketing strategy re-ignited the company’s sales, over local, semi-global and global levels, as people began to associated McDonald’s product line with healthy lifestyles after understanding the elements of change. Lastly, McDonald expanded is a business portfolio and presently is abreast of competition in the industry. After the slowdown, McDonald’s gained its customers back, progressively earning more market share in comparison to its competitors, KFC, and Burger King (Harrington, Ottenbacher & Fauser, 2017). At the same time, the expansion of the enterprise made the brand to be the children and teens’ favorite, considered to be a place to eat and get entertainment. ConclusionFollowing the changing need of the current generation to partake in healthy living, it was necessary for McDonald’s to decide to change its marketing approach together with its menu. Its product line was being associated with unhealthy food and practices. Therefore, the decision to change its marketing strategy was helpful in changing consumers’ attitudes, while improving the product line enable them to maintain their quality and standard prices. Shifting their focus their efforts on producing healthy low-fat products, and consider fitness by providing entertainment parks where children can have fun. Ultimately, the decision change was the most appropriate approach of handling the problem facing McDonald, in the end, the company enhanced its product line and its competitiveness in the market.
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