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Role of Leadership and Management of McDonald’s

University: UK College of Business and Computing

  • Unit No: 1
  • Level: Undergraduate/College
  • Pages: 7 / Words 1826
  • Paper Type: Assignment
  • Course Code: R/508/0486
  • Downloads: 463
Question :

The objective of this report is to introduce management related practices of a business organisation that can assist them to attain target goals and objectives of firm. In this regard, it is required for McDonald’s to pay their attention towards:

  • Explain different levels of an organisation as well as their responsibilities including functional areas.
  • Evaluate roles and styles related to leadership and management in McDonald’s by including theoretical perspective.
  • Identify the effects of globalization facing by McDonald’s.
  • Provide an understanding over CSR and discuss two responses that McDonald’s can adopt.
Answer :
Organization Selected : Mc Donalds

Section 1 Introduction

There is requirement of various approaches to run business in specific and better manner. Marketing is one of the factor which helps to perform activities in better and effective way. There are policies which has to modified as per market requirement (Bharadwaj and et. al ,2013). Through this there will increment in sales and it helps in achieving business objectives in better and effective way. As per change in business strategies it must be conveyed to workers so they can perform activities in better and effective way. This report is based on Mc Donald's which is one of the best fast food selling restaurant. Marketing is the field which deals with change in business policies. There are many marketing strategies which has to considered and alter policies. In this report there is discussion about levels of management in organisation, their responsibility, various styles of leadership, its roles. There is discussion about effect of globalisation and CSR activity on business.

Section 2 Levels of organisation

In company there are various departments and levels which work to accomplish goals and objectives. There are many changes which has to be taken to achieve goals and objectives on time and effectively (Chen, Chiang and Storey, 2012). Mainly there are three levels which are discussed as follow-

Top level- This is the top level in company, this level includes board of directors, chief executive officer, general manager, directors, etc. and it is essential that they must analyse market and then frame policies. There main task is to plan and make strategies to operate business in better and effective way. They analyse market and then select source which is mosrt effective for achieving targets. They have full authority and responsibility so they can alter as per requirement. They are the people to represent company in front of stakeholders (Colombo and et. al. ,2012).

Middle level- In this level, head of departments, junior executives, etc. are present. They bridge gap between top and lower level of management, so it is essential that they must be good in communication. This helps to gather information from top level personnel to lower level and vice versa. They play efficient role in keeping coordination among various departments. They require various managerial and technical skills to perform business operations.

Low level- This level includes workers which perform physical work to achieve targets. They work under the guidance of middle level person. In case of any difficulty whole perform actions, they can talk with middle level managers.

As in case of Mc Donald's there are various outlets so these levels plays significant role in achieving targets. There are many factors which has to considered and hence this is effective for company's growth. It is essential to collect and transfer information in proper way so actions can be analysed in better way. Through this there will proper satisfaction to customer also.

Various types of organisational structure

In industry there are various types of organisational structure, which aims at achieving t6argets in better and effective way (DAILY, KIEFF and WILMARTH, 2014). These structure helps to make communication more clear and they can assign duties in better and effective way. There must not be gap between planned and delivered ideas, so it is effective with plans and policies. In case of Mc Donald's they mainly prefer two structure they are as follows-

Functional Structure- In this structure, there is bifurcation on the basis of job in company. In this there is specialisation in some task, so this helps to make business in better way. There are many changes taking place in business but through this department there will service of best quality to customer. There is regularity in activities in functional structure. Departments are aware of their roles and responsibilities.

Divisional Structure- In this structure departments work as there own company. There is no link between departments, so there are possibilities of copying of activities. This structure is costly and time consuming. There is completion of task frequently with quality aspect.

Section 3 Roles and Styles of leadership and Management

Leadership Model

Autocratic model- In this style, there is more power with leader and there are less opportunities to workers to share their views. In case of any problem faced by employees they have to talk with leader. In Mc Donald's there is no use of this techniques because there is increment in employee's absenteeism and turnover. As power remain in one hand so there is fast decision as compared to other model (Demil and et. al , 2015).

Transactional model- In this model, there is analysis off employees on the basis of performance. This is effective with the help of performance check and in case of negative results there is provision of punishment also. Through this model company can improve their efficiency and this helps to achieve business objectives in better and effective way.

Charismatic model- There is important role of employees in achieving and accomplishing business objectives. There are many changes which has to taken place in business to compete with external factors. As per this model to achieve targets, it is important to motivate workers and then apply change in better and effective way. Employees are the key which help to increase production and profitability of association.

Management Model

Subjective model- This model; talks about change taking place in business. It is effective with the change in plans and policies of organisation. I9n Mc Donald's there are many product and services which are performed by workers. As per this model there is difference in perception of workers so it is important to guide them so they can perform activities in better and effective way.

Ambiguity model- As per this model, there is alteration in business policies due to change in external factors. It is important to make happening in business and hence they can perform changes in better and effective way (Dumas, La Rosa, Mendling and Reijers, 2013). There environment of company is unpredictable so it is important to analyse market and then take actions.

Cultural model- As per this model, cultural, values, etc. are some important concept which has to be considered in Mc Donald's so better results can be achieved. There is change in perception of workers so it is important to guide them in proper way.

These above discussed models are very helpful in achieving targets set buy managers of McDonald's. They apply many changes in their plans and policies and hence they can perform activities in better and effective way. There are many employees working in different outlets of Mc Donald's so leadership theories plays vital role in motivating workers to give their best.

Section 4 Effects of globalisation

Globalisation meaning:-

Globalisation is that concept which is used after LPG concept in which all the barrier and restriction in respect of transfer of labour, movements of machinery are liberalised. In other word there is an increasing trends of interaction between people, companies in all over the world. The main reason behind it is the advancement in technology, transportation and communication which change the complete picture of corporate world in the form of growth and development (Ragsdale, 2014). Further globalisation is a way that involves goods services, economic resources of technology, data and information that provide multiple ranges of choices to customers in terms of goods and services.


Pestle analysis means knowing all the political, economical, social, technological, legal and environmental factors that affects the overall conditions and smooth running of business. It is a way of knowing the actual condition of business in market place and give the idea to business that how effectively they grab the market opportunities and increase the profitability and market share of business. Following is the pestle analysis of MCDONALD'S which stated below:-

Political Factors

Their are different factors that affect the political situation of business which include government policies, actions and methods that affect the business at macro level. The most important political external factors are as follows:-

  • Increase in international trade agreements.
  • Change in taxation policies and reforms.
  • Evolving different public health policies of business.

Economic factors

MC Donald's has different opportunity to grow in rapid fast speed. Their are different current economic situations in Europe that become riskier for McDonald's growth in particular region. apart from it, slowdown in Chinese economy will also affect growth and factor like inflation deflation in particular region affect employment conditions also.

Social factors:-

Under this there are different social factor that influence the growth and profitability of business. Some components are:-

  • Change in taste, preferences and choices of customers which affect the sale of products.
  • Change in lifestyle of person and cultural diversity that alter the preferences of customers in respect of particular brands.

Legal factors:-

McDonald's will face the threats of higher minimum wages which incurs higher cost and price of products.

Laws related to animal welfare regulatory will also affect the supply chain of business because of new policies that ensure the animal welfare.

Environmental factors

Factors like change in climatic conditions will lead to negative impact on farms that indirectly impact supply chain also.

Technological factors

Advancement in technology like using of mobile devices in order to connect with customers and increase in business automation increase productivity of business also.

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