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Recommended: Mcdonald's case study
1. BBC ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬The change in the company was re-creation (reactive as well as transformational). BBC did not proactively analyze the market conditions and competitions due to which is faced lots of problems like political pressure, declining revenue and increased debt. As this stage it is impossible to turn the company around with just an incremental change, rather the company has to go for a complete transformation. The drivers for change were (1) low staff utilization (2) high overhead and support costs (3) political pressure (4) increased competition (5) freezing of license fee and increasing debt and (6) changing technology. The main problem here was the inability of the company to introspect and understand the changing …show more content…
The drivers of the change were (1) increased competition (2) changing demand of customers (3) focus on healthier diet and (4) media attention on obesity and (5) government proposal to levy taxes on unhealthy food. The main problem that McDonald’s faced was the fact that the food it served was mostly unhealthy. With the change in consumer mindset, people started looking for healthy alternatives and government imposed regulations on unhealthy foods. To deal with this the company should introduce healthier items in the menu while maintaining its USP of stellar service, low prices and low waiting times. This will help the company in retaining its customers and dealing with the change. 5. GNER Initially the company was involved in adapttion change (with the idea to provie enhancd services in order to retain its tender and ensure survival). However, later it moved on to reorientation change by by acquiring franchises, increasing nmber of trains and providing better services as well as diversification into different ttypes of
Elite Engineering has been unable to successfully implement change because they haven’t been able to get the employees to see the need for the change and to believe in the change. “It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.” (Kotter & Schlesinger, 2008) Change is often met with resistance. When it comes down to it many people fear change. At Elite Engineering, the engineers were happy with the way things were being run. They enjoyed the billable work they were doing and did not want to take the time to collaborate with others, as it would take away time from their billable work. The engineers saw the billable work they were doing as a way to ensure they received their bonus at the end of the year. However, they were failing to see that the litigation business was going to begin to shrink and in order for them to remain competitive, changes needed to be made. Kotter and Schlesinger state that there are for common reasons that people resist change. The four reasons are the desire not to lose something of value, a misunderstanding of the change and its implications, a belief that the change does not make sense for the organization, and a low tolerance for change. (Kotter & Schlesinger, 2008) At Elite Engineering, I think upper management was unsuccessful at implementing change because the employees didn’t want to lose their bonuses (something of value to them), they misunderstood the change, and they didn’t feel that the change made sense for the organization.
Lord Simpson and some of the key members of his team had to standown and Mark Parton took over the company in September 2001. His basic challenge was to introduce fresh transformational organisational changes to save the company and turn it around back to profitability. The case deals with the initial phase of this change process where in the strategy was to divest noncore activities to generate the immediate requirement of cash to reduce the debts and to restructure and downsize the company to reduce the losses. In resulting situation of high demoralization of employers, Mark Parton had to push forward the cultural changes introduced by Lord Simps...
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Top management had a high influence on the strategic decision made and had no doubt regarding the outcome, there was an unjustifiable presumption of perfect information and complete knowledge. The strategic decision to spend $40 billion to reinvent itself did not account for the new technology integration, which GM encountered many difficulties in integrating with existing technology. The implementation took place through the managerial hierarchy and budgeting mechanisms of the
OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Although McDonald's food is unhealthy, our economic society need McDonald. McDonald's has more of an impact on the United States economy than a lot of people realize. As much as people hate McDonald's and fast food, it is an industry that the United States can not live without right now. Without McDonald's millions of people would be unemployed, and the economy would suffer greatly. McDonald's also provides adequate benefits for employees, and its accessibility makes the company even more of a moneymaker. Many times I believe that people overlook the importance of McDonald's because its become so much a part of American society, and no one looks at it from an economic standpoint. Most people are more concerned about the health risks from eating McDonald's than about the economic impact it has on the United States economy.
3. cost reduction not enough, which led to buyout & stock swap between Tom & his father & brot...
... of this trend can have a great impact on the company performance. Due to the diminishing reputation and emerging negative cases the company is facing hurdles to improve its operations and expansion.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
They were not open to innovation and invested lesser on research and development compared to the industry estimates
Managers are not convinced for the need of change. They did not visually perceive the business issues driving the change, or they did not identify the same quandaries(problems) as the design
McDonald’s serves products that reaches a wide variety of age ranges and personal interests and desires. The menu consists of items from salads to greasy, cheeseburgers. By McDonald’s having a variety of items on their menu, it allows the products served to reach a broader audience. There are salads for those who are vegans, dieting, looking for a healthier lifestyle, or people of a certain age or weight who are cutting back because the Dr. ordered them to. There are kid’s meal which consists of many options from hamburgers and cheeseburgers to chicken nuggets. Instead of always having fries with your meals, there is the option of substituting the fries for a salad or apple slices. There are those high calorie burgers, fries
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
Additionally, McDonald’s provides value to consumers by consistently bringing new items to its menu such as specialty coffee drinks (McDonald’s Corporation, 2012). The implementation of new healthy salads, fruits and carrot sticks into the McDonald’s menu has been brought on by the increase in health conscious consumers. The company also strives to adapt its food offerings to local flavors in order to customize menu options for consumers (Mourdoukoutas, 2012). In recent years, several locations have begun remodeling their store with leather seats, wooden tables, and by offering free Wi-Fi (Forbes, 2011). ...