Table of Contents
The McDonald’s Corporation
All the major concepts that affect the growth and development of any organization either negatively or positively deserve to be acknowledged by the management. Just to mention, various organizations have learned to appreciate the importance of selling their shares in an open market whereby, the public is free to purchase business dividends and expect to earn in line with their respective stock sizes. Public corporation is a common term used in referring to such organizations that value and create a cohesive management platform. A perfect example of a public company that entices a significant quota of the masses crosses the globe the McDonald’s Corporation. Since 1940, this corporation has been able to develop into one of the most popular multi-international organizations of the contemporary era. An in-depth assessment of the performance of McDonald’s reveals how its management has been able to embrace a flexible policy in their favor. The organization tends to move with the wave in the market, but also, ensure that all the contributors of success are prioritized and interleaved with the day to day operations. Although McDonald’s enjoys a stable and robust brand name, there is still room for further improvement and development, as reflected from their initial inception.
Globalization and Technology
The impact of globalization and technology on McDonald’s performance is extensive to deserve recognition from different business angles. Through globalization, the corporation has been able to pinpoint the perfect opportunities at the international level easily. This has assisted them to make the correct global decisions before venturing into the new markets in different countries across the universe (Jeon et al., 2016). Additionally, globalization has enhanced the chances of the corporation to increase its stakeholders and expand its roots as a dominant commercial force. For instance, McDonald’s has attracted significant investors who form the franchise block. It is essential to note that the majority of the revenues of the organization are fetched from the franchise and the rental payments. A more profound assessment depicts that it would have been difficult for the organization to accomplish its international objectives without the common connection amongst the people all over the globe.
The advancement of the technology has also been beneficial to McDonald’s. In fact, the attributions of globalization would be tainted without the development and the changes that have been witnessed in the technological sector. Today, the management can easily communicate with diverse stakeholders from different geographical locations; an aspect that has improved their reputation notwithstanding the challenges and odds that they encounter (Jeon et al., 2016). Moreover, the management of McDonald’s tends to purchase the most suitable equipment and machinery that can enable them to meet the demands and interests of both its staff fraternity and customers in the market. The fact that their operations and services have been improved through the impact of specific technical advancement and changes unveils why globalization and technology are crucial business tools.
The management applies industrial Organization Model in the decision making process. Through this model, the management implement rules that aim to uplift the external forces influencing the dominance and competitiveness of the organization. The external forces such as the environment and the sociopolitical concepts are considered vital. This increases the chances of the management of creating a cohesive platform that can link the opinions of the majority of the people within specific societal setups. For instance, McDonald is bound to maintain the above average returns record due to its dedication to protecting the interests of their stakeholders and other associated parties (Collett, 2013).
The resource-based model has also nurtured fruitful outcomes as far as the progress of the organization is concerned. Some of the strategic decisions executed by the management of this mega-corporation reflect their financial supremacy in the market. The organization deserves the bragging rights for being resourceful in most competitive fronts. This is seen through their capability of supporting the establishment of numerous restaurants and their endless acquisitions of lands all over the world. According to their financial report, the organization has total assets of USD 4.686 billion with a significant portion of the amount dictated by the lands it owns (Forbes, 2017). Therefore, in as much as the McDonald’s values its competitors, some of the expansion decisions undermine the existence of most the competing firms.
Vision and Mission Statement
The initial stage of organization foundation is usually considered a crucial phase for any firm. This notion is supported by the fact that most of the decisions cherry picked at this stage are fundamental in shaping the fate of an organization in the current competitive epoch. For example, investors prefer to instill specific policies that replicate their cultural perspectives. The creation of the mission and vision statements are also prioritized under this phase of organizational development. It can, therefore, be claimed that McDonald’s mission and vision statements, which expose the intentions of the firm, have been helpful in one way or another. First, they make the corporation to be exceptional in the market considering the existence of their competitors. The policies ratified by the management tend to protect both the mission and vision of the organization which aims at boosting the connection between the customers and the operations of the organization. Most of their clients are committed to the organization mainly due to the high quality of their services (Collett, 2013). This is a clear indication of the positive impact of the mission and vision statement.
The Internal Stakeholders
The internal stakeholders include the employers, owners and the managers. These people are bequeathed with the task of implementing strategies that benefit the entire corporation. They form a solid team that foresees the growth and development projects of the company. As aforementioned, the success of McDonald’s has been enhanced directly by the management tactics embraced by the administration. There is real chance that the organization is anticipated to gain further progress if all the parties in this category of stakeholders are ready to maintain the current expansion policies.
The External Stakeholders
In a general point of view, the external stakeholders comprise of the government, creditors, shareholders, customers, society, and the suppliers. Nonetheless, the case of McDonald’s is exceptional mainly due to its magnificent stretch at the international level. The governments of the nations they target for business should be ready to accommodate their activities but expect the corporation to adhere to particular regulations. Additionally, according to Collett (2013), the organization can only do well in new environments by respecting the cultural perceptions of the targeted clients.
In summary, McDonald’s continues to grow internationally due to the flexibility their management policies and programs. The competitiveness of the company is highly ranked as it yearns to outshine most of its competitors in the industry. Palpably, the active management strategies put in place have been essential in stirring the corporation towards the peak in the food and drink business. The management of McDonald’s clearly deserves praises for safeguarding the dominance of the company in a highly competitive industry.
- Collett M., P. (2013). Competitive strategy: the link between service characteristics and customer satisfaction. International Journal of Quality and Service Sciences, 5(4), 395-414.
- Forbes. (2017). Global 2000: Top Regarded Companies.
- Jeon, H. J. J., Meiseberg, B., Dant, R. P., & Grünhagen, M. (2016). Cultural convergence in emerging markets: The case of McDonald’s in China and India. Journal of Small Business Management, 54(2), 732-749.
- McDonald’s Corporation. (2018). Our Company: McDonald’s Website.