Leadership And Change Management At Mcdonalds Business Essay


"McDonalds started his business in 1940 with 1st restaurant opened in San Bernardino, California by Richard. It was the result of the thoughts of two young brothers, Mac McDonald's and Dick who introduced a new revolutionary restaurant "Speedee Service System" in 1948 which was established on principles of the modern fast-food restaurant. Speedee completely replaced with Ronald McDonald's by 1967. McDonald's as Trade Mark is time used on May 4, 1961, with the description of "Drive In Restaurant Services" and still continues until end of June, 2010. The logo "M" with double arched overlapping as trademark was introduced in Sep 13 1961. The double overlapped as trade mark symbol "M" as logo temporarily disfavoured by September 6, 1962. The modern double arched "M" symbol started in November 18, 1968. "(McDonalds, 25 August, 2010, http://www.mcdonalds.co.uk )

"Big Mac started in 1968, Egg McMuffin started in 1973, Happy Meal for children started in 1979 and Chicken McNuggets started in 1983 .At the present time, McDonald's have more than 31,000 restaurants in 119 different countries of the world of which a lot are franchised". (www.mcdonals.com.uk)

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"McDonald's vision is to become world's best and quick service experience restaurant for this purpose McDonald's delivering outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. In mission statements includes best employer or our people in each community around the world, excellent operational for delivery to customers and enduring profitable growth by expanding the brand and leveraging strength of McDonald's through innovation and technology" McDonald Corporation ,2010)

Change and Resistance to Change:

"According to Rev Sharon Patterson that which people want to changes are babies who have wet diapers. We can be explained that change is the pain full processes in the place of work towards real physically changes are consists exciting incentives." (Bernerth, 2004)

Change Process Model

"Though we all know and believe that success is change so every one want and need success because everyone want earning profit and want to hold this success but on the other hand we don't forget that every change have some resistances and resistance only in the response of change. (Duck, 1993)" According to Duck (1993) bluntly he pointed out that "Changes are strongly personal". "According to Petersen (2002) many people consider that change basically factor of "Fear and uncertainly and some Doubts". (Peterson, 2002)"

"As change broadly accepted all over the world as usual from top management to down management and its also brings high management and those people who are in the capacity of manage by any management they always show resistances against the change before application of change or before forward change its duty of manager to make a such type framework which should be overcome over all resistance before implementation". (Peterson, 2002)

"Resistance to change can be defined as it's an apparent attitude of organization employees or members who are declined to admit any change within organization". (Cheng and Petro Vic Lazar Vic, 2004). "James Hunt says Resistance isn't an indication that something is wrong with what you are trying to change. It is an indication that something is happening". "Ansoff defined Resistance as its only cause of creation unexpected delays and different types of costs or losses which create instabilities into the process of costs and instabilities into the process of planned change" (Ansoff, 1988) "Resistance is any employee behaviour trying to stop or delay in any change". (Bemmels and Reshef 1991)

Real example of the change process and its implementation.

British Airways.

"Past in 1981, British Airways hired on board of Directors a new chairperson. When this chairperson joined, he noticed that the company was very unproductive and was wasting a lot of valuable resources in useless activities. To make the organization efficient and increasing the profit ratio he decided to restructure the entire organization. He realized that Change Methodology Management Plan is the best way to serve that purpose". (Jean Scheid, 2010)

"Systematically, the British airways started reducing workforce. But, before started this, through his change management leadership, the chairman gave the all reasons for the restructuring and privatization of the company in order to prepare them for the future change. He directed his company through a hard time that could have been terrible without effective change management resistance communication just only through his Leadership & Communication" (Jean Scheid, 2010)

Scope of the Change at McDonald's.

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Every organisation has different departments with their own value and importance. These departments have their own specific objective. Marketing is one of them department which is most important part of and company and organisation. So in McDonalds integrated market campaign has played vital role in development of business. This campaign has important goal is adopting latest rules and regulation of health and safety. That is latest styled of awareness about health and safety for the children by focusing the market. Through this IMC, McDonalds has launched new low fat healthy meal deal menu for children and try to give answer of awful advertising of the McDonalds.

Moreover, McDonalds have basic aim to make customer happy and proving good healthy diet which is beneficial for the children's and parent as well. McDonalds have offered new meal deal for children's which are "McKids" deal especially for the healthy food of kids.

In addition, for progress of business, McDonald has started new integrated marketing communications which has helped out in the advertisement and for convey the message to the customer. This new system has attracted the Childers more than parents. For adopting and accepting the responsibilities McDonalds has make team which will be handle the change as well.

This type of strategies will bring change not only in marketing mix and will increase in sale and advertisement as well which will help to achieve their gaols, objective and success. McDonalds has faced many bad responses in the menu of children which is mostly issues were related to nutrition. So IMC has turned the McDonalds status in eyes of the customers. IMC is a developed way to focus on the aim and in progress of company. IMC has helped to promote the advertisement level.

Basically purpose or scope of change in McDonald's is application of the integrated "Integrated Communication (IMC) as essential part of the strategy of the marketing in McDonald's. In this way of change, very important area where we should attention is the advertisement and promotional activities of the McDonald's. Mostly promotional activities and advertisement campaign concerned with offering new services or any new products through any mode of communication. For this purpose there is lot of sources which are used to for this type advertisement or campaign by company. "Basic purpose of this new change to concentrate on sales activities and promotional activities and try to increase sale of the company and this change give the important of Integration Marketing system as important part of the marketing strategy of the company. (McDonald's Corporation 2009)

"According to Forgeson and Green Basically there are three major categories of change resistances are organizational, group and individual". "The following are resistance or conflicts faced by McDonald's during implementation of this change: McDonald's workers, customers, culture and behaviour." (Mabin, Forgeson & Green, 2001)

Resistances and Conflicts to change at McDonald's:

 1st resistances due to reactions of the McDonald's staff and customers of the company, some employees are in favour of this new change and some are against this new change mean using the Integrated Marketing communication. Managers and some employees only against this change due to fear, they think might be this change instead of resolving problem it will increase the problems of the company.

There are not only employees have negative reaction towards this change but also customers are not showing positive reaction towards this campaign so it lead o another conflict in the shape of not positive attitude of customers towards this new change in this way McDonald's cant achieve benefit from this change as whole of the company. 

One more resistance against this new change of the company the shortage of qualified personnel in company who assigned the maintaining these tasks to maintaining crew and application of this new marketing change but they are not much professional so this is the conflict in the way of new change.

"The fear of stakeholders of McDonald's for insufficient budget and ineffective use of different mass communication for this new change and chance of failure of this new change is also conflict and resistance in the way of this new change.

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The difference in culture between the different employees of the organization is another inner conflict. Due to difference in cultures in McDonald in different members of the company so in this way they unable to do work in pleasant environment and in good way and also this cultural leads to create difficulties in the way of implementation of new change in organization. "According to Wilkins & Dyer the management of the McDonald's and main administration of the McDonald must point out empowerment of the culture of the organization mean the empowerment culture of the McDonald's and should also identify the relation between the empowerment of the culture and planed system of the McDonald's and also relation between both empowerment and culture" (Wilkins & Dyer, 1988).


In restaurant industry managers play vital role in any change so in this way what McDonald's managers pay specific attention at the time of implementation and initiating change towards reducing possible resistances and achieve better organization performance.

Manager is the person who initiating and start the change and employees have to accept and adopt it. Through Effective communication, awareness of manager actions, employee's attitude and harmonious working situation can be overcome resistances to change and also play important role in attaining better organizational performance.

Process for change implementation in Restaurant Industry

Effective communication is the most important components in restaurant industry and played a vital role in the success of organizational operations. Effective communication is very important among the managers and employees and among the employees to employees. Good listening skills are the essential for a successful manager of any organization especially in fast growing fast food industry. Before, after and during the change process managers should carefully listen to the employee's opinion and should modify the new change according to the opinion of the employee.

For implementation of successful change in organization it is compulsory for manager he should always alert regarding employees reaction towards change. McDonald's Managers should realize that if employees against that change and don't want to cooperate with them so in this way customer service delivery will get worse. Conflict may arise amongst colleagues and managers when employees resist change. In this way employees may not perform well which directly effecting reputation of restaurant and might be it will also become cause of resignation of employees. So before implementation of new change McDonald's managers listen very carefully arguments of employees and change the situation according the time need and should avoid the create bad environment in which employees proved poor environment for work and end all go for resignation. Not only this but also they should encourage the employees for better service and development of performance of the company as well as the employees.

"There should be a proper action of plane for development of or improvement of different customer services and development in working environment within the organization. This strategy or procedure will always encourage to managers as well employees to sure things are well done. We should understand that improvement is with only change. If there is no improvement, it means no change in this way restaurant become sluggish due to not improvement and any other reason like occurring unforeseen and unexpected circumstances in the restaurant and this way it will very difficult to maintain that position in market and compete the competitors. Managers should also provide a pleasant environment to employee for keeping happy to workers and happy workers are great part of high performance and great motivation. Well motivated staff is in this position to do work in good manners and in good pleasant way and strong relations with their colleagues. It's duty of managers to provide and keep very good and pleasant environment for work and we well know a good pleasant environment always get good result and a poor and boring environment always get a poor result and this the negative impact on the repute of the restaurant" (A Paton, R. and Maccalman, J. ,2008)

Further more, the success of the new change is still under process and difficult to convert the children attitude towards healthy fast food meals. But at the other hand, there are very strong chance for this success due to strong campaign and promotion activates for prompting the characteristics of the this new change. Furthermore, McDonald's should assure the message has been reached to every child in 119 countries where McDonalds is serving for this purpose help from every type media is the best strategy. There should be a new theme for new advertisement "I love it even more!" and hopefully this new theme and way of advertisement will inspire the parents and also encourage the children's towards healthy food. This campaign should be long lasting, strong concerned on healthy characteristics of this new change and should be in friendly way like 'kiddie-friendly way.

If McDonald's carefully make plan and use best strategy and good and effective method for implementation of this new change so there are bright chance of the success of this new change and in this way company can achieve very easily mission and objectives of the company. The most concerned of this company to give image of health conscious which is good match with the latest trend of health conscious measures for this world and also for the future world.


"According to Beverage the management change leaders must be willing to keep their fingers on the pulse of the organization, by monitoring what is working and what is not working and in the change process.  It is duty of managers to reassure, support and take commitment before application of this new change and for getting positively and good result of this new change. The managers should make a strong strategy and should make strong plans of actions regarding this change before implementation of this change and for making this successful." (Beverage (2003)

Therefore, we can be concluded now that changes of management is not bad until they enhance the competitiveness and power of an industry. If any change implicated through proper planning and investigation so it will be very effective and will also increase the performance of the organization. So organizations should impose the any change at the right time when studies proved that no time of change. Because we don's forget the change management system not only critical and complex but also very sensitive so only one wrong decision of any company in any change might be it push company to in under clouds and prove harmful for organization profit and inspite giving development instead company feel difficult to survive in perfect market.

This is strongly recommendation for McDonald's that must see and again and again ensure that future changes are well very planned there implication is very carefully because these changes will be cause of the success /or failure of any company.