Category: Business Report

Introduction

The dynamic changes in the management sector have led to the creation of novel strategies and approaches that continue to pose both positive and adverse effects. Brown (2010) supports this advancement when they note that the increased focus on firm managers had created a wealth of opportunities for a business. Brown also concurred that several risks have rivalled the wealth of opportunities that have come with these dynamic management elements. McDonald’s has not been an exception to the occurring merits and demerits. Recently, the Corporation has experienced management and human resource challenges of various natures (McDonald 2014). The management led by Catriona Noble, the CEO for McDonald’s Australia, has devoted to understanding the causes, solutions and the course of actions (Robbins, Bergman, Stagg & Coulter 2005, p. 34). Noble has led initiatives seeking to achieve the essence of sustainability, scientific management approach and staff management and care. The firm’s executives led by Noble will receive the report for reviewing and for its use in decision-making.

Purpose of the Report

Purposely, this report seeks to address the following issues related to the above concerns:

  1. assess the notion of whether the Corporation is counterproductive in achieving its goals;
  2. identify opportunities arising from efficient management;
  3. access the validity of the concerns under review at McDonald’s Australia.

Scope and Limitations

In analysing the sub-topics stated above, this report has assessed the validity of concerns raised at McDonald’s Australia. The concerns integrated amongst others a visit to a McDonald’s store. The report takes from reviewing managerial behaviours and approaches. Other proposals made traced from findings from secondary scholarly sources.

Sustainability Issues

According to McDonald (2014), sustainability entails managing economic principles and adopting strategies that meet the current and future needs of the firm and its stakeholders. It withstands and enhances the human and natural resources that are indispensable components for the future. The sustainability of a firm encompasses its ability to bear adaptability to the changing market, customer and brand environment and understanding its disclosures. Apparently, the business forms part of the societal system. Society and environment will determine the continuity of McDonald’s based on efficient management necessary for the company’s sustainability (Gilbert 2009).

McDonald’s has existed for several decades in Australia. Its primary areas of operation include selling breakfast, cheeseburgers, chicken products, desserts, French fries, hamburgers, shakes and soft drinks (Mcdonalds.com.au 2015). Thus, the concern of sustainability comes in handy. Through the stakeholder theory, the corporation understands the essence of their stakeholders. It does so by seeking to meet the expectations of all stakeholders. McDonald’s contributes to the community through its appealing program – ‘Ronald McDonald House Charities, Australia’ (Rmhc.org.au 2015). Sustainability enhances an ambient, healthy and safe working and customer environment. The firm ensures that solutions offered to their clients are efficient and abide by the laws. Also, it improves transparency of information availed to stakeholders.

Moreover, McDonald’s, through the legitimacy theory, adheres to a societal contract. Thus, it has to conform to the societal norms and bounds. For instance, while responding to Western nation’s trends and criticism over their products’ healthiness, the firm modified its menu. It incorporated alternatives of healthier fruits, salads and wraps (Wellard, Glasson & Chapman 2012). Society did not expect unhealthy products. Thus, management initiative was sequential to ensure the outlet came with relevant goals. It helped management to build its strategies. Further, the company has the responsibility for its actions. Seemingly, a firm’s survival is a result of what society deems fit (Harris 2013).

Finally, McDonald’s achieves sustainability through the institutional theory. It manifests when the company adheres to norms, rules, routines, and schemes that mirror social behaviours that have authority (McDonald 2014). Indeed, McDonald’s Australia responds to the society and environment in making its disclosures, thus attaining sustainability.

Scientific Management Approach

Drawing from the antiques of Winslow Taylor, the management consultant at Bethlehem Steel Company, McDonald’s Australia could develop an idea, aimed at enhancing the firm’s output. Taylor’s theory capitalized upon scientifically addressing management in order to increase work efficiency and an eventual productivity. It requires the systematic inclusion of gestures, skills and tasks of work, which enable managers to present the best option of undertaking whichever the task (Robbins et al. 2005, p. 47). It is possible to identify the scientific management approaches that McDonald’s enhances, owing to its market stance. Her core objective is to realize the profits and attain better performance anchored upon best strategies, which the company communicates internally (McDonald 2014).

Equally, McDonald’s management enhances an immense amount of indigenous knowledge in establishing her rules and policies. On one hand, it achieves a legitimate function of the labour process, and the other avails a control mechanism. It has entailed a comprehensive job description, specialization and division of labour. Consequently, the scientific approach aims at attaining cheap work and minimization of operational costs. Notably, the ‘McDonaldisation’ management approach fosters calculability, control, efficiency and predictability. It aims at orienting and aligning the workers’ goals with the organisation’s objectives and strategies.

Staff Management and Care

McDonald’s human resource strategy outlines the future of its human resource management (HR). HR dedicates to the recruitment, welfare, operationalization and effectiveness of staff. It aligns the staff functions with the business, as it supports the organisation’s development and enhances market competitiveness. Diversity forms part of the prevailing discourse of McDonald’s’ contemporary structure (Mehbin & Molla 2013; Srivastava 2015). Staff management ensures hiring and retention of the best talents and capabilities from the job market. Indeed, the firm’s staff progresses, as the company grows and remains successful. Personnel management and care at McDonald’s Australia ensures the company stands competitively by integrating the best HR processes and fostering management and employees’ relations. It helps the staff to identify, understand and appreciate the firm’s goals, objectives, and the course of action. Lastly, staff care avails a reasonably proactive than a reactive staff.

Conclusion

McDonald’s Australia operates with a maxim of a global outlook, while running locally. The corporation pursues an approach of differentiation, giving an emphasis to the identified elements of sustainability, scientific management and staff management and care, which the report perceives as of great significance. Thus, the elements avail a substantial foundation for a sustainable competitive advantage.

Recommendations

McDonald’s is a multinational corporation with high revenue. Despite clearly setting out its future objectives, the firm should comprehensively incorporate plans of social and corporate responsibility. Consequently, the company will be willing to avail products that will seek to improve the society’s wellbeing. Management is an ever changing element in the McDonald’s Australia; this implies that the firm has to be flexible. Nonetheless, the degree of flexibility should be limited to some level of predictability. Efficient management will foster an increased market share now and in future.

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