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McDonald's Organizational Effectiveness

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1) HOW CAN MCDONALDS USE ITS POWERFUL BRAND NAME TO HELP IMPROVE EFFECTIVENESS?

2) IS QUALITY AND TASTE IMPORTANT TO YOU WHEN SELECTING A RESTAURANT? HOW DO I EXPLAIN?

3) WHAT ENVIRONMENT FORCES ARE THE MOST DIFFERENT AS WE ENTER THE 21ST CENTURY WHEN COMPARED TO THE 1950S AND 1960S

The GROUP assignment will contribute 25 per cent of the assessment for the course. It will be in the form of an essay and should be typed or word-processes. Guidelines and hints on essay writing are given later in this booklet. The assignment will require knowledge of the course material.

OBJECTIVE

The aim of the assignment is to show your understanding of a number of various topics covered in the course and your ability to apply Organizational Behavior principles in meaningful, practical, insightful and balanced way. The assignment emphasizes the durability and wider application of OB you have studied and shows how organizations can achieve competitive advantages, efficient decision making and problem solving capabilities within a business context.

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McDonald's
Organizational Behavior

Companies work hard to create a brand image. The brand that the company creates can be one of its greatest assets. Once an effective brand has been established, the company can use the name to launch many other products and product lines. There are few truly 'global brands' that are recognized around the world. Some of these brands that come to mind are: Coca-Cola, Pepsi and McDonald's.

McDonald's is now the largest fast-food chain around the world, making revenues of over $20 billion a year from operations in over 120 countries. These successes did not come about easily; the company started in 1937 in Pasadena, California with just one location. At that time, there was no concept of brand image or marketing. The founders did not conceptualize the Big Mac or all of the little names that are now associated with the McDonald's brand such as chicken McNuggets and the Happy Meal.

Today, the company is "the most recognized brand name in the world." Yet, many new product offerings that the company introduces fail. Such products include: fajitas, pizzas and pastas. In addition, there has been a problem with quality control as the company grows larger and more stores are opened up by franchisees. The company cannot track the quality in all the stores and this has become a problem as the company rated 87 out of 91 restaurants based on taste.

To improve effectiveness, the company can use the brand name that it has built. One of the first things the company can do is to re-examine its franchise processes. The company must develop support systems in order to maintain and restrict how meals are prepared and the ingredients that have to come directly from the main company branch. McDonald's has to be able to work closely with its franchisees in order to have better quality control.

One of the strategies that the company can use is to think of franchisees as team members and employ a task force in each region to work with franchisees in order to monitor their ...

Solution Summary

1) HOW CAN MCDONALDS USE ITS POWERFUL BRAND NAME TO HELP IMPROVE EFFECTIVENESS?

2) IS QUALITY AND TASTE IMPORTANT TO YOU WHEN SELECTING A RESTAURANT? HOW DO I EXPLAIN?

3) WHAT ENVIRONMENT FORCES ARE THE MOST DIFFERENT AS WE ENTER THE 21ST CENTURY WHEN COMPARED TO THE 1950S AND 1960S

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McDonald's: Can it Regain its Effectiveness?

This case describes the growth, dominance, and eventual leveling off of McDonald's share of the fast-food market from 1937 to the present. Although McDonald's was a leader in the burgeoning market after World War II, in the late 1990s its growth slowed considerably, even though it still commands 42 percent of the U.S. fast-food burger market. Through the early 1980s, McDonald's was able to successfully adapt to changing consumer tastes; however, in the 1990s most of its efforts at introducing new products failed. In addition, it has had difficulty expanding to overseas markets and perceptions of its food quality have dropped dramatically. McDonald's management has to identify the causes of the lost luster and then take specific steps to correct the problems.

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How can McDonald's use its powerful brand name to help improve its effectiveness?

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