Our project is situated upon the organization McDonalds and their change process in resource chain management in order to achieve Indian market. We first look to the background of your company and the need of change them we see its advantages and weaknesses. We will also see its major opponents and how they are really doing. Following this part is covered we will have the key stakeholders inside our organization and just how they have got helped the organization to implement the change process. Then we've applied the Make Field Model and 3 step style of Kotter's to aid our issue. And in the end we use 8 Step Model to show the required change our company needs to become competitive.
In the modern world McDonalds is a tantamount in junk food industry. McDonalds established fact and renowned with a good brand image around whole globe. It offers 120 restaurants that provide fast food around the world providing around fifty-four million customers every day and has its headquarters in US. The McDonalds provides its customers with burgers and other junk food variety products. In addition, it serves other foods like French fries, Big Macintosh personal computer, Quarter Pounder, Hen Nuggets and Egg McMuffin. It has a point of view of providing one world with one burger. It can maintain an extremely high standard in cost and quality issues. Its name is the largest on the globe in fast food industry.
The reason why I have selected McDonalds for change management process is basically because they may be such huge and huge and do maintain a high standard that will require a very good supply string management. Thus the change process of supply chain management can help them Hazard
Analysis Critical Control Point (HACCP) which is a systematic procedure of keeping them from food wastage. Handling this can help them maintain good food and quality with costing issue in the India.
Discuss the background to improve that exists in today's economy that determined your organisation to consider Change.
In the modern world all fast food industries want to have good service providing hygienic food with affordable price at good quality. To be able to maintain this circumstance all fast food industry wants to truly have a very good inventory management. During the past few ages because of globalization, it and outsourcing have improved how we look and keep maintaining inventory. Traditionally the companies would concentrate on source network inputs and outputs of the process. But because of globalization source change management has been drastically been improved with ideas of Just with time, lead management and Agile making which has helped to reduce communication costs and purchase costs.
Hence McDonalds gone for similar idea of using functions of resource change management. With McDonalds having such a massive reach globally had a need to maintain its resource chain management and quality issues. By doing so they saved their costs significantly. Today's supply string management also contains principles of customer relationship management, Procurement, Product development and commercialization, Making flow management/support and many more which help the business maintaining good resource chain management in order to work efficiently.
Thus by pursuing all these principles of supply string management McDonalds experienced that they would grow quicker with saving a plenty of cash and getting ultimately more effective and useful in Indian Market. In order to maintain successful supply string management maintaining change would help them expand bigger and better. By following a method SCM and its own quality management function than it has given them earn great revenue in Indian Market.
Theoretically Evaluate the strengths and weaknesses of bureaucratic organizations
Strengths of McDonalds:
McDonalds has many advantages this is merely because it is the main one of the oldest junk food industry which has a good reputation all over the world. Also the brand name of McDonalds is very good it is because of its features in providing junk food items. With McDonalds providing burgers, French fries, etc. and so many more items which are popular and loved by the customers all over the world. It can also posses good staff and incredibly good management team which is their power. In addition, it offers its customer with choice, at reasonable price and superb service.
Also it is disperse total geographic locations of the world with a reputation of retaining good quality and price. It can provide foods to its customers in different parts of earth in line with the taste of the local people with its burgers and fries. Their technology helps them in retaining good customer relationships and retaining them. Each and every McDonalds restaurant has duplication and systemization of products. They also serve only brand name stuff like Dannon yogurt, Art cheese, Nestle chocolate and so many more.
McDonalds does give a very good standard all over the world and it is been choose by the customers as their first priority to eat in a fast food restaurant. As it maintains a good standard around the globe it does enjoy in implementing changes very effectively. McDonalds has been positioned number one by Fortune publication in years like 2005, 2008 and so many more. Packard's children hospital centre has brought up that Children aged between 3 and 5 years choose to get food at McDonalds. Also, they are successful in adapting local civilizations in several countries they have their restaurants. Their business functions around 87% of franchises and they are the number franchised company.
Weakness of McDonalds:
Although being the most well known an trusted fast food industry their test of starting pizza failed and they were not able to compete with other fast food pizza operating chains. Since that time they haven't tried to contend for pizza's. Every year there is a high staff turnover because of training given to their workers. Also they have got made no entries into organic food categories. There main products are out of range and do not match the better lifestyles for people and teenagers since it centers mainly on burgers and fast food items.
As McDonalds is 87% been maintained by their Franchises and hence there is always a problem of quality control. As all franchise do not keep the quality maintained by the McDonalds. Also their relationships with their investors are not been very good this is because of fluctuating operating and net profits over time. Every year there's a huge change in their income and thus its relations with its investors isn't that good. As most of its restaurants are held and supervised by other man and female there is big difference in standardization of products and price of which products are been offered.
Task 1 c)
Theoretically compare choice types of organizational development.
There are many more companies that are doing very good business in fast food industry. They may be as follows KFC, Pizza Hut, Burger King etc. from each one of these companies McDonald faces toughest competition from KFC as their main focus is on deep-fried Rooster items itself. KFC is world's most popular chicken breast restaurant on the planet. It has customized extra crispy, grilled chicken, spicy wings, menu whitening strips and home- made fowl sandwiches. KFC owner Colonel started out an idea of finger preference goods with 11 herbal remedies and spices to get started on Kentucky Fried Poultry.
KFC was introduced in UK in the year 1965 first US quick string restaurant to be get started in UK. It performs around more than 700 KFC restaurants around UK and Ireland. KFC spends around 202 million pounds because of its famous coating. Each day around 12 million customer around 109 countries of the world are been offered by KFC. It has around 5200 restaurants in US by themselves and runs more than 16, 200 restaurants throughout the world. Lately it has already reached a draw off 2. 4 billion sales per yr and has made increased revenue around 25% in recent years.
McDonalds other competitor in fast food industry is Pizza Hut which was started by Frank and Dan Carney in 1950's. As the name suggest Pizza hut is an expert to make pizza's worldwide currently working around 10, 000 and much more restaurants in about more than 90 countries. It offers around 6500 online purchasing locations from which customers can get their pizza. Their skillet pizza is been adored by all pizza eaters all over the world. And they provide yummy pizza with mozzarella cheese which is been loved by all. Although McDonalds experienced tries to enter into its shoes when that they had started an identical concept to start presenting Pizza's in their own restaurants but they failed as these were not able to keep it the way Pizza hut does indeed.
Identify the main element Stakeholders in your company and Develop systems to entail those stakeholders in the launch of change.
In McDonald's business the key stakeholders are customers, business partners, employees and view leaders. Customers are the person's who buy McDonald's food items they range between very young to extremely old individuals. Business lovers include both suppliers and other franchises. Employees are the person's working in KFC and are an integral part of the business as all responsibilities of execution are in their hands. Opinion market leaders are those categories of men and women that generate ideas for the business enterprise. They are marketing person, health professionals, environmental communities and other federal.
In India more than 50, 000 Crore of food is been wasted every year because of lack of safe-keeping facilities and also because of vehicles. With McDonalds aim to provide quality products to Indian people offered at McDonalds they launched the idea of "Cold String" which was been revised from supply chain management which was decision of stakeholders of McDonalds functioning its restaurants in India. SCM is circulation of materials from suppliers and almost all their upstream suppliers at all level, change of products into semi-finished goods and syndication of these goods to customers and their downstream in any way levels. It runs around 20 quality inspections to be able to provide good quality of products to its customers in Cool Chain process of Supply chain management.
In India all these stakeholders enjoyed an important role in handling supply chain management. McDonalds was been looking to sourcing its major business requirements from suppliers and farmers. They always looked forward to keep up a good romantic relationship with the neighborhood businesses which resulted and ensured its success is mirrored by its suppliers in India. They seemed to those important stakeholders like suppliers who had been keen in providing customers with high quality products to customers. With McDonalds looking for local business partners for its business in order to provide food is a very good chance of these local businesses to increase its businesses.
Analyse and consider these systems that you experienced used to entail the main element stakeholder in change process.
In our system of SCM at McDonalds in Indian market the engagement of key Stakeholders like suppliers and customers is vital from making decision how to control the inventory and how do the items for products need to be arranged and what kind of menu should be put in line with the flavour of the Indian consumer. To be able to use the change in the SCM process McDonalds picked the "Cold String" process for Indian Market and there was a keen part performed by all the stakeholders on every single process. Main steps that are been involved in Cold Chain are procurement, warehousing, travelling and retailing.
The procedure for cold chain was very effective and essential for specially market like India since it integrates food products from its suppliers and are been stored and transported in a standard manner in order to keep products freshness and keep up the nourishment value from it. In Cold chain suppliers play an important role with the help of advanced technology in order to keep up good express of food. The supply string management from its suppliers to warehouse and finally from the circulation channel to its stores was been looked after in by the concept of
"Cold Chain". It considers all steps of SCM and continues the meals items at a manipulated temperature.
The foods that are been served at restaurants in Indian McDonalds on daily basis were to be maintained under the temps between -18Censisu to 4Censius. Nearly every product in the warehouse and during travel should be held under these conditions for quality issues. If the quality of these foods is not been managed them it could damage the reputation of the company. And hence strict rules and very skilled people are been used in order to transport all these tasks.
Hence McDonald's stakeholders from supplier, marketers, employees and franchises made a great decision for the products to be stored and carried properly and with a good standard. Also the necessary temperatures were maintained to supply the customers with a good food. Technology helped the business in order to keep up proper functioning of most phases of qualitative SCM. Thus, Cold Chain function of SCM (supply change management) helped the Stakeholders at McDonalds India to give a system that would help them to create profits by keeping a good quality of products been offered at their restaurants.
Identify quantity of appropriate models for change that suites your organisation.
FORCE FIELD ANALYSIS (DRIVING FORCES/ RESTIRTCING Causes) on McDonalds:
McDonalds supply chain process of Cold Chain was been adopted in order to keep up change which would help them to be successful in Indian Continent. However in order to achieve it there are a number of driving pushes that conflicting with restraining causes that not in favor of it. For McDonalds to achieve success the driving force was adopting Frosty Chain procedure for SCM that would help them gain success and conflicting with them was to keep good quality that was hard to attain in India. But to change the way in which they operate their business that they had to keep quality with resource chain management. This was been achieved by pursuing these key steps:
Investigate the balance of power in an concern: The change process was to outsource its suppliers in India and also to maintain good food quality because of its restaurants. This was been attained by the procedure of Cold Chain where standard temperature ranges were been looked after in order to attain quality foods through effective technology.
Identify the main element stakeholders on the issue: The main element stakeholders inside our business will be the customers, business lovers, employees and opinion leaders. Customers will be the individuals who are going to take our products they range from young individuals to old age group. Business lovers will be the business companions and Franchises. Employees are those individuals that are going to work inside our esteemed organization to keep all its standards. And opinion leaders are government, advertising etc.
Identify competitors and allies: The major competitors of McDonalds are US fast food industry such as KFC, Pizza Hut, and Burger Ruler. Amongst each one of these they face toughest competition from KFC as their main aim for offers customers with Fried Crispy Hen. And pizza hut specializing in providing Crispy pizzas. Both KFC and Pizza Hut have more than 10, 000 restaurants around more than 90 countries on earth. According to the allies of McDonalds they may have many Franchises in counties they operate their business.
Identify how to effect the target groupings: Regarding to McDonalds approach they approach to local suppliers in each country they operate their business and keep maintaining a good marriage with them. Their main concentrate is to outsource all parts of their products in the countries they operate. While outsourcing all its products and keep maintaining good marriage with them suppliers they can certainly enter the market with changing their Menu based on the taste of the neighborhood people and so enjoying income.
THE 3 STEP MODEL on McDonalds:
By the utilization of Lewin's 3 Step Model we are going to start to see the change process that McDonalds adopted to be able to type in the Indian Market successfully. McDonalds method of achieve quality management in India through supply chain management process function of Cool Chain. By successful execution of Cold String and key decisions made by stakeholders in outsourcing resources were some key decisions that helped them achieve success in Indian market.
Stage 1: Unfreeze
The first step to attain change in Indian market was to study the Indian market and the approach to life that was been accompanied by the people surviving in there. The first key step by McDonalds to start its business in India with change in way they operate was to outsource their supplies to local suppliers. They do so because local Indians understood the taste and choice of people which helped the McDonalds to prepare menu consequently. The resource change was a key factor in Indian market because annually around 50, 000 Crore price of food was been wasted. To change this factor effectively it was very important in the way that McDonalds would place its Supply chain management. As they had a world -wide tag to be quality providing fast food company. And if this is not been handheld properly it could have an impact on them diversely.
In order to emerge from this they used a straightforward function of supply chain management called as "Cold Chain" which helped them to maintain procurement, warehousing, vehicles and retailing with their food products effectively. The change had to be supported by the technology in order to keep products under normal heat range. In India to keep such a level of quality was very hard but McDonalds was successful for finding such suppliers who provide their customers with the best product with best value.
Stage 2: Transition
Once the source chain managements function "Cold String" was been adopted it was very essential for McDonalds to tackle the right suppliers that could supply them with good quality products and also maintain a very strong marriage with them in the forthcoming future. Also they had a need to be sure the express of their warehouse is at a perfect condition in order for them to store their foods. Drip and sprinkler irrigation in lifted farm mattresses with fertilizer mixing up plant. It had been not only the health of warehouse where the products were placed but it was to keep up those food products at the right temp so that they aren't been ruined or been destroyed. Pre-cooling room and a sizable frigid room for post harvest handling. If so happened then it could cost them great deficits.
After the meals products were been properly stored at the warehouse another stage was to securely take them back again to stores when they were required. After they were been off from warehouse and been getting carried in refrigerated trucks would help them to keep the right temperature. It was to be retained properly in order that they weren't been spoiled during transport. As well as had to make sure that they were been stocked properly in the stores at right temps in order that they could be of good quality. With good use of technology each one of these was been attained by the McDonalds when they started out their business in Indian Market.
Although the change in resource string management was totally different of the way in which McDonalds would do their business in other areas of the world. To get everything right at the first did required them time but they were successful in preserving it. The most important factor for McDonalds was to get right people to be employed in their stores which could handle all kind of customers and that would be able to solve and answer customers efficiently. But at the end it was McDonalds that could achieve everything it wanted by taking SCM's Cold String concept because of its business organizations.
Stage 3: Refreeze
With McDonalds in a position to achieve success using its "Cold String" management process was done detail by detail. In beginning they were did well but as time went on they were able to better almost all their departments of resource chain management. Then they could actually get discounted prices with suppliers and could actually force those to get foods as they were so big that suppliers cannot effort to reduce them. As McDonalds proceeded to go buzzing with its Indian Menu that was made according to Indian people tastes. They were capable of progress people wanting to use them and seek a much better future with them.
Thus it could achieve significant increase after their initial success helped them to control quality and all hygiene factors that were important to their image which was been put in minds of each individual all over the world. Technology to maintain and keep up all areas of their business was also a crucial success factor.
How do you go ahead in implementing one or more model(s) in your chosen organisation and what advancements do you anticipate to accomplish by implementing your chosen model(s).
For our company I would like 8 Step change Model for the next reasons:
Step One: Create Urgency
The McDonalds wanted to change just how they operated their supply chain management in India because they found India as a good market because of their junk food industry and with a good source change management they could earn significant profits with local taste. Indian market was been regarded as a mass market an in order to achieve success in India they needed to pull out a good blend of market mixture and supply chain to achieve success.
Step Two: Form a Powerful Coalition
Before making the inroads into Indian market there was a good research made about the Indian market and desires of individuals. McDonalds wished to grow its reach across the world and in order to achieve India they does need a good romance with local suppliers from the beginning to launch fast food restaurants in India. Although this is not easy plus they had to put in big money and resources to comprehend the flavor of Indian people and their lifestyle. But with a deal with suppliers to help them from starting and outsource all products helped them make good inroads.
Step Three: Make a Perspective for Change
With the Vision to outsource all its products in India and have good channel with agricultural farmers was an integral step bringing a change to their business in Indian market. This eyesight to change their supply chain management through a process of Cold String in which all foods should be maintained under -18 level census to 4 level census was their main Eyesight operating change to their business.
Step Four: Communicate the Vision
With the eyesight of having a good romance with suppliers who want forwards to provide good food products to its customers and retaining standard temperatures because of their foods on daily basis was their day to day strategy. With providing good supply chain recommended there would be no waste material of food products and close marriage with suppliers would help them to understand local tastes so that they could make Menu's according to the flavour of local crowds. Especially in Indian market where yearly around 50, 000 Crore of food is been wasted this was a good plan to start out conversing with.
Step Five: Remove Obstacles
After the successful execution of its processed function of Frosty Chain McDonalds was able to maintain food products at a standard temperature of which they would not be spoiled and good romance with suppliers would maintain good day to day operation of their business. Although preserving those suppliers for longer period and also preserving a good skilled employed that could understand at what temperatures the meals products should be conserved was very important. But they were successful in performing both functions properly by retaining good relations with suppliers and recruiting and providing training to employees that can carry daily functions of business properly and moving with great guns.
Step Six: Create Short-term Wins
Although just how that McDonalds experienced targeted Indian market for its fast food string was long-term but its short-term goals like selecting right suppliers and utilizing and training skilled people because of its daily operations when they might began their junk food restaurants was very important. With its short term plan to cut out on food misuse while transporting and employing right people who have good skills gave the company great maximizing success with its intro in Indian market. The help they acquired from suppliers to understand taste of residents in presenting Menu's relating to local likes was important. And a long-term goal to succeed in all departments.
Step Seven: Build on the Change
The McDonalds should keep on producing their business by adding more restaurants and producing relations with more suppliers to become the junk food large in Indian Market and put KFC, Pizza Hut plus some local junk food chains like Dominos pizza and many more. E advanced technology should be positioned at labor force to provide its employees with latest machines to serve the customers on the till. They should retain in touch of the style of the local people as the surroundings changes with the changing flavour of men and women and their lifestyle. And should always make an effort to provide customers with discounted prices that they would be satisfied and maintain their loyalty into the McDonalds in India.
Step Eight: Anchor the Changes in Corporate Culture
Although McDonalds has extended its business in more than 109 countries but it still comes after its basic burgers and French fries to its customers all around the globe. They could have different Menu's in several countries to support the taste of folks nonetheless they have always retained their basic foods and also culture all over the globe to be the number fast food company.
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