Entrepreneurship And Innovation WITH THE Mcdonalds Commerce Essay

Creativity, development and entrepreneurship are three essential tools of success for companies in the progressively more challenging business environment. Where, creativeness is the capability to develop new ideas and find out new ways of considering problems and opportunities, Advancement is the main element to economic development of any country. Innovations and innovations will be the building blocks of the future and Entrepreneurship is the procedure of fabricating something new with value by devoting the required time and effort assuming the accompanying financial psychic, cultural risks and receiving the producing rewards of monetary value and personal satisfaction and self-reliance. All three call for 'new ideas' and there can be an aspect of risk involved in the implementation and the acceptability of the new idea. Where creativity is the ability to generate a concept, innovation is the procedure of the idea creation and businessperson is the individual who works both to be who he is, takes the risk, implements the idea in the form of a venture. In such a fiercely competitive, fast experienced global economy creativeness isn't only an important way to obtain building a competitive gain but is also a necessity for success. When expanding creative answers to modern problems, internet marketers must exceed merely using whatever has been found in the past. McDonalds is one such company which has earned its brand image over the years with effective use of entrepreneurship, creative imagination and development all put in right place in the organization allowing the company to achieve large competitive advantages and an edge at building 'new ideas' and defining new and better method of client satisfaction.

The company provides around 50 million customers in 30, 000 destinations worldwide on a regular basis and pulling that off whilst successfully obtaining high income is employment that requires ongoing innovation and from the package thinking. McDonalds concentration through the years has been nothing less than the customer itself. McDonalds got its strong root base in creating a name in technology through the 1990s and the early 2000ss when the competition first began to grow. McDonalds at that time did not take its brand equity for granted and infused its creative groups' minds into the thought process that contain and continue steadily to generate innovative products and campaigns like Big Mac and Egg McMuffin (Businessman, 2006 [online]).

McDonalds offers an extensive research study of the use of a well thought of and thorough innovation strategy, something planning and developmental process that effectively reflects the changing industry, its opportunity reputation and analysis to stay at the top, and the Mcdonalization culture and command embedded with development that it follows to successfully practice innovation in all respects and obtain client satisfaction that defines industry specifications. But even for an organization like McDonalds room still is out there for improvement. The newspaper analyses the company on these aspects. The paper after evaluation of the organization entrepreneurship and invention strategy being following in the business will attempt to establish advice for the improvement of the competitive benefits of the company.

Innovation Strategy

"Think big, start small, scale fast. " This is the invention strategy being followed by McDonalds. This idea was brought along by the controlling director of McDonald's Ventures, Mats Lederhausen (Business owner, 2006 [online]). The main element players are of the employees of the business who are well ingrained with the 5PS that form the paradox of the business. These 5 PS are: People, Product, Advertising, Place and Price. The innovation that occurs in the business is all customer-oriented and started with people and ends with people making effective use of company resources, offers and tools. The invention strategy is built on one notion: Customer is king. The insights and requirements of the customers are the primary triggers of the whole advancement process. The franchisees are known as owner-operators who are a huge part of the innovation string. Keeping such varied franchises and their thought techniques totally merged with the company objectives and essence is a large challenge which can not be manipulated or centralized. The technology process is decentralized making the owner-operators feel the maximum amount of important in the business as those who are area of the core head office as well as encouraging those to create competitive advantages of the business. McDonald's seizes every opportunity it can to bring development and lead the industry. McDonald's success is also centered after its suppliers that are area of the three-legged stool. For McDonald's, the grade of its products is of complete importance. It specifies highest benchmarks for suppliers in the food industry. McDonald's focuses on developing close interactions with suppliers. At McDonald's, everything is done on an available accounting, handshake trust basis (Times100, 2009). McDonalds works meticulously with the suppliers to build up and improve products and production techniques. This dependency is described as a three-legged stool principle, and entails McDonald's, the franchisees and the suppliers. The progress and success of the McDonald's, in this way, is distributed by the suppliers of the restaurant who are able to meet up with the quality benchmarks (Times100, 2009). For McDonald's, the connections between franchisor, franchisee and distributor are of paramount importance to the success of the technology led business.

The Process of Technology and Creativity

The owner providers are small enterprises who have the entrepreneurial zeal in them and provide various ideas and creative insights that form success individuals for the business. Thus, they get excited about each one of the creativity steps and procedures. Each of the franchise of McDonalds is in itself a mini laboratory that has millions of potential ideas stored just holding out to be explored and the owner operators are the main source of their retrieval and practice.

Sources of Ideas

For McDonalds, pursuing are the primary resources of ideas.

Consumers will be the foremost innovation sets off. Included in these are potential as well as existing ones. They are given great importance and attention to indicate new directions. This attention calls for the proper execution of informally monitoring potential ideas and needs and officially arranging for consumers to have an opportunity to exhibit their views (Bygrave, 2008).

Existing products and services in the market are also continuously monitored or examined to discover ways to enhance the services. This results impressive products and services that contain more market appeal with better sales and profit potential.

Owner-Operators, like mentioned previously, will be the biggest and most effective way to obtain ideas for McDonalds as they feature insights of local appeals encircling the franchises, that are then integrated into new products and services. McDonalds' advantages of Apple and Walnut salads is one such exemplory case of its wedding caterers to the local demands, which were communicated effectively by the owner operators. But there are also many requirements, such as Shrimp salads that McDonalds cannot currently cater to, because of insufficient resources.

Federal Administration is also a way to obtain new product ideas in two ways. First, the data of the Patent Office contain numerous new product opportunities. However the patents themselves might not be possible, they can frequently suggest other more marketable product ideas. Second, new product ideas can come in response to federal laws (Drucker, 2008)

Research and Development is yet another but large source of ground breaking ideas for McDonalds. McDonalds has its mini-laboratories in each of its franchises as well as large laboratories in its head-quarters in US that are continuously involved in attracting new product ideas and substances and recipes to win customer satisfaction.

The Creative Process

Although, creative ideas can happen to strike McDonalds as suddenly as a bolt of lightning nevertheless they are actually the result of the creative process, that involves the following steps







Preparation consists of getting the mind ready for creative thinking. Planning carries a formal education, face to face training, work experience and taking good thing about other learning opportunities. This training provides a foundation which to build creativity and innovation. Inspection is where a solid understanding of the trouble, situation or your choice at hand is developed. Transformation involves observing similarities and variations in the information collected. This stage requires two types of thinking: convergent and divergent thinking. Convergent thinking is the capability to see the similarities and the relationships among various data and events. Divergent thinking is the ability to see the differences among various data and occasions. The unconscious needs period to think about to the information collected, this is performed during the incubation stage. Next comes the lighting phase, in which a spontaneous breakthrough causes the lamp to be on. McDonalds Technology Council then verifies the ideas where it conducts experimentation to check the success potential in the theory generated. Execution then follows where in fact the idea is changed to certainty (Businessperson, 2006 [online]).

Opportunity Identification and Analysis

A business opportunity represents a likelihood for the business owner to successfully complete a huge enough unsatisfied need that enough profits result. Popularity of an opportunity results from the knowledge and experience of the company and its employees. McDonalds makes effective use of its knowledge platform and preserves proper details of its earlier industry examination to point to new directions and market niches to exploit gains out of. Every single impressive opportunity is carefully evaluated through an opportunity examination plan. This opportunity examination plan comprises of four portions

A explanation of the idea and its own competition;

An analysis of the local and international market of the theory;

As analysis of the entrepreneur and the team; and

A discussion of the steps needed to make the theory the basis for a practical business venture.

Product Planning and Development Process

Once ideas emerge from idea resources or creative problem handling, they want further development and analysis. The merchandise planning and development process at McDonalds is split into five levels

The idea stage

The concept stage

Product development stage

Test marketing stage


Organizational Culture

McDonalds has succeeded since it offers consumers, workers, and professionals efficiency, calculability, predictability, and control. This constitutes the McDonald's style of work practice and work design, known as McDonalization. McDonald's is a worldwide capitalist firm that changing the production, ingestion and distribution of food - moreover everyday routine. McDonald's utilizes Taylor's and Ford's methods in its set up line development.

Ritzer discerns four components of Mcdonalization



Predictability and

Control (Haworth, n. d. )

McDonald's offers efficiency, which is the maximum way for getting from one indicate another. This means that McDonald's supplies the best available way to get from being famished to being full. For working people, fast and simple access to food is a blessing and McDonald offers that through its useful work techniques. This fast-food model offers people a competent method for gratifying many needs. (Ritzer, 1996, Pp. 9-11)

To achieve this efficiency, employees in McDonaldized systems function efficiently. They are given with training to work this way by managers, who supervise over them meticulously to make certain they come up to standards. This is ensured by organizational regulations regarding creation of highly useful work.

On the other hand, McDonald's offers calculability, which is an emphasis on the quantitative areas of products sold (portion size, cost) and service offered. Quantity has become equivalent to quality; that is something that must be good. The common customer's notion of 'bigger is better, " is very successfully satisfied with McDonald's 1 / 4 Pounder, the Big Mac, and the top fries. People quantify these exact things and realize that they are getting a great deal of food for quite less overall. For consumers this is the best deal but also for the food-food outlets this is actually the extraordinary profitability. (Ritzer, 1996, Pp. 9-11)

Consumers also determine the time it takes to operate a vehicle to McDonald's, be dished up the meals, eat it, and give back home; and then, they compare that duration to enough time required to make food at home. They believe that it requires them less time to get it from McDonalds than prepare the whole meals at home. This computation obviously facilitates home-delivery franchises such as Mcdonald's, which focus on time cutting down.

The McDonaldized corporations incorporate the emphases promptly and money. Staff at McDonaldized systems point out the quantitative as opposed to the qualitative aspects of their work. This triggers the workers to focus more on the quantity of work they actually somewhat than how well they actually it, sometimes. This is how McDonald's uses Frederick Taylor's Scientific management work procedures, that related the task immediately with pay. (Daft, 1997)

The third element of the McDonalization is that McDonald's offers predictability, the assurance that the products and services will be the same each and every time and in every outlets. For instance, the Egg McMuffin in New York is identical to people in Chicago and LA. To become more precise, those ingested next week or next 12 months will be identical to those consumed today. This gives a great comfort in understanding that McDonald's offers no surprises, it's service is predictable. People know that another Egg McMuffin they eat will taste about the same as the others they have ingested; it will be what is expected and in mind of the consumer. The success of the McDonald's model clarifies that many people have come to favor a world where there are few surprises, because unpredictability can be dangerous too (Ritzer, 1996, Pp. 9-11).

Relating this to the work practices at McDonalds, the workers in McDonaldized systems also behave in predictable ways. They are simply confined by the corporate rules as well as the dictates of the managers. McDonalds offers extensive training to its employees, which is so standardized that regardless of the employees say at customer touch tips is scripted by the managers themselves. McDonald's has pioneered in the routinization of interactive service work (Ritzer, 1996, Pp. 9-11).

Fourthly, McDonald's methods control, especially through the substitution of nonhuman for individuals technology. A individual technology is controlled by people; a nonhuman technology (manages people. Folks who eat in fast-food restaurants are managed through lines, limited selections, few options, and uncomfortable seats. Many of these enable the clients to eat quickly and leave (Ritzer, 1996, Pp. 9-11).

The employees in McDonald's working under the McDonaldized organizations are also controlled to a higher degree. They are provided trained to execute a limited variety of tasks in exactly the way they are simply bought to do them. The technologies and what sort of organization is set up strengthen this control. Professionals and supervisors ensure that workers follow the series. (Ritzer, 1996, Pp. 9-11).

How does McDonalds ensures employees follow-up to this control? It threatens them to displace them with technology. But employees cannot be manipulated from fouling the system's procedure. The administrator cannot control a sluggish worker, that can still make the prep and delivery of a Big Mac pc inefficient and employee who refuses to follow the rules might leave the pickles or special sauce off a hamburger, in so doing making for unpredictability. And a distracted staff member can put too little fries in the field, making an order of large fries appear skimpy. It really is for these reasons, McDonald's has been appreciated to continuously replace human beings with non-human systems, including the soft-drink dispenser that shuts itself off when the wine glass is full, the french-fry machine that wedding rings and elevates itself out of the oil when the fries are clean, the preprogrammed cash register that eliminates the necessity for the cashier to determine prices and portions, and, perhaps at some future time, the automatic robot capable of making hamburgers. Such technologies boost the company's control over workers. And in this manner McDonald's can assure customers that their workers and service will be regular (Ritzer, 1996, Pp. 9-11).

Increasing Competitive Advantages

Being an technology leader in the food service industry, McDonalds will not let its creative heads fall asleep. It is always looking for new guidelines to boost its customer services to pave way for profitable business. Pursuing are the ways that McDonalds can maintain and increase its competitive edge in the face of intense rivalry in the meals service industry.

Enhancing Organizational Creativity

McDonalds can enhance its organizational creative imagination by

Embracing diversity - among the best ways to cultivate a culture of creativity is to hire a diverse workforce. When people solve problems or produce ideas, they do so in the same platform with their experience. Hiring people from different backgrounds, cultural experiences, interests, and interests provides the company with essential raw material needed for creativity.

Expecting Creativeness - employees rend to go up- or fall- to the amount of expectations of business people have of these. One of the best ways to speak the expectation of creativeness is to provide employees permission to be creative (Morris, 2009)

Expecting and tolerating inability - creative ideas will produce failures as wells as successes. People who never fail are not being creative. Ingenuity requires taking chances and professionals must remove employees' fear of failing. The surest way to quash creativity throughout an organization is to punish employees who try something new and fail.

Encouraging curiosity - McDonalds may keep its managers and employees requesting the question "what if" and take a "maybe we could" attitude to use of assumptions that limit creativity.

Viewing Problems as Troubles - every problem provides an opportunity for development. Business people who allow employees to dump all of their problems to desk to be "fixed" do little or nothing to build up the creativity within those employees.

Providing Creative Training - almost everyone can be creative, but growing imagination requires training. Training accomplished through books, seminars, workshops and professional appointment can help everyone figure out how to tap their creative capacity.

Providing Support - the higher level management of McDonalds should give employees the various tools and resources they have to be creative. Probably one of the most valuable resources is time.

Rewarding creativeness - they can also encourage creativeness by fulfilling it when it occurs. Financial rewards can be effective inspiration but non-monetary rewards such as reward, recognition, and special event can be more powerful incentives.

Modeling Creative Behavior - creativity is "found" just as much as it is "educated". Companies that master innovation realize that the interest for creativity begins at the very top. Entrepreneurs set examples of creative patterns, take chance and task the position quo will soon find their workers doing the same (Morris, 2009).

Improving the Creative Process

Teams of people working alongside one another usually can create increasingly more creative idea. Three techniques McDonalds may use to increase the quality of creative ideas that follow from its Innovation Council: brainstorming, mind-mapping and swift prototyping.

Brainstorming is a process in which a little group of individuals interact with very little structure with the purpose of producing a big quantity of book and imaginative ideas. Another useful tool for jump-starting creativeness is head mapping, an extension of brainstorming. The effectiveness of mind mapping is the fact it reflects what sort of brain really works. Rather than surfing around out ideas in a linear fashion, the brain jumps in one idea to another. Generating creative ideas is a crucial step in the process of taking an idea for something or a service successfully to the market. However, entrepreneurs find that almost all of their ideas won't work and that is where immediate prototyping performs an important part in the creative process. The offer behind immediate prototyping is the fact that transforming a concept into an actual model will point out flaws in the initial idea and can lead to advancements in its design (Hisrich, 2009).


Dick and Apple pc were the ones who opened up the first McDonald's restaurant in 1940 in San Bernardino, California, and in those days they cannot have thought the worldwide phenomial success that McDonald's now likes. What acquired them famous was their receiving formula of retailing a superior quality product cheaply and quickly. The business really started to grow immensely once Ray Kroc, a Chicago established salesman, who was simply a marketing expert, signed up with the team (Watson, 2002). He made a decision to spread McDonald's formulation throughout the United States and beyond. McDonald's now has more than 30, 000 restaurants all over the world. Its assists 46 million customers each day, that is add up to a lunch and dinner for each man, woman, and child on the planet! McDonald's relishes sales over $38bn from the whole world, which will make it the biggest food company internationally. McDonalds' paradox of success is with advancement and giving customer satisfaction the priority because of its service offerings and procedures. It monitors industry changes, anticipates consumer choices and comes with them in to the product. Also, insights and communication with owner providers provides new product ideas and a highly effective and successful development process that is dealt by the McDonald's innovation council and together with the organizational culture of McDonalisation, it is exercising innovation in all aspects and providing creativity embedded services all over the world. But a good company like McDonalds has room for improvement, whereby it can boost the creative imagination of its group by infusing the culture of invention more predominantly than before into each organizational level and enhancing the overall creative idea making process. In the face of globalization, invention offers a highly effective opportunity which companies like McDonald are making effective use of but it is more of a continuing process rather than a one-time thing.

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