McDonalds: Way of Life
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McDonalds: Way of Life
MGT/230 Management Theory and Practice
McDonalds: Way of life
There are many different fast food chains out there to choose from when you are hungry. McDonalds is one of the top franchises because of their knowledge of management and the four functions on management: Planning, Organizing, leading, and controlling. McDonalds have implemented these functions in how they run their internal and external factors. Internal and external factors affect the four functions of management because when a business conducts planning, organizing, leading and controlling, they have to first conduct several external analysis and evaluations. Successful organizations have to conduct an analysis of the external environment. Successful strategic management depends on an accurate and thorough evaluation of the competitive environment and macro environment.
Globalization
Under the four factors of management globalization would fall under the external factors. Globalization is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communication. With many major corporations, food chains especially trying to market outside of the United States, globalization will be their major concern when doing so.
McDonalds is a perfect example of a food chain that has to ensure globalization is met with in its organization. McDonalds commitment to globalize its establishment on the foundational belief that globalization is not just a moral and ethical decision, but also a business decision. (McDonalds, 2011) With McDonalds having over 32,000 restaurants in 117 countries around the world, McDonalds has had to based its menu around many different cultural and beliefs. McDonalds practice in globalization has become a significant attribute to the internal part of the company. McDonalds has won several awards and national recognition for their diversity. McDonalds customers, operators, and franchise owners, as well as employees all represent a form of ethical diversity whether it is religion, cultural, or ethnicity. With McDonalds having over 32,000 restaurants around the world and prefers to work with local suppliers with similar ethical cultural to ensure cultural beliefs and policies are being met within the organization. McDonalds surrounds its reputation on trust and dependability and realizes that if the company wants to be profitable, having ethical control within the organization is a great asset.
Innovation
It is nearly impossible to drive a couple miles without seeing a McDonalds when driving in cities in most of the country and in other countries. Innovation at McDonalds has been a big part of the growth and newer and better McDonalds. McDonalds has served millions of Americans daily and recently they have sought to increase sales during the day when most people food and snack consumption was low. One example of how McDonalds increase sales was in the morning with the breakfast menu and the popular McGriddle products for the on-the-go breakfast eaters (Christensen, 2007).
Diversity
Diversity is the way of life at McDonalds. According to the chief diversity officer Pat Harris, “the Company ensures diversity among its corporate employees by including diversity in the business planning process” (Diversity at McDonalds: a way of life, 2005, para.3). With diversity in the planning process, McDonalds uses strategic planning process, which includes the companies mission, vision, values, and strategies. There are many reasons to for keeping diversity at the organizations planning process. The main reason is to represent the customers that are served each day at the restaurant. Vice President, Rudy Mendez noted, “Weve learned to frame our discussions about diversity around business opportunities,