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Business Dynamics of Mc Donalds - Case Study Example

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The paper "Business Dynamics of Mc Donald’s " states that the analysis of the internal and external aspects including organizational culture reveals considerable factors that can be leveraged upon by companies like McDonald's to gain a competitive advantage in the market…
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Business Dynamics of Mc Donalds
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Download file to see previous pages The era of free trade and globalization has changed the face of business dynamics in the present business environment. Business organizations are leaving no stones unturned towards moving into new markets and gaining market share. The success of these strategies is very much dependent upon the aspect of organizational excellence. This includes having a good culture that is very essential in the achievement and fulfillment of the goals of the organization. McDonald's was established in the year 1955 by the legendary personality Ray Croc in the United States of America. The company since then has grown a long way to emerge as one of the most popular restaurant chains having a dedicated presence in almost every region of the world (McDonald's, 2011). The company at its present date has a dedicated presence in about 119 different nations and employing a large number of individuals. The stocks of the company are listed on the bourses of the New York Stock Exchange. The company has been adding new products in its menu list consistently over the years and has also developed an impressive franchising strategy to spread its footprint across the globe. The company has also developed at attractive work culture that has helped in retaining and attracting a talented pool of human resources to meet the challenges of the highly turbulent and fluctuating business environment (McDonalds-a, 2011). Analysis of Organization Culture Organizational culture is an important facet of business organizations in the present business environment. Organizational culture is influenced by both internal as well as external factors. The importance of culture as highlighted by Lussier (2008) who stated that organizational culture is largely an implication of the personality and the work environment in an organization. The author also highlighted some of the internal factors such as organization mission, resources available with a company, structure, and attitude of the management as the factors that largely influence the culture in an organization (Lussier, 2008, p.46-48). Keyton (2010) identified communication as another strategic factor that determines the aspect of organizational culture in a particular company. The author also pinned out the importance of organizational culture towards generating positive and negative values in a company. The author highlighted that positive culture generates greater value while negative culture creates a negative set of values that ultimately helps in generating a favorable working condition. Internal communication has a key role to play in this regard as a smooth flow of information helps in generating positive sentiments in an organization that helps generate long term advantage for a company (Keyton, 2010, p.166). Figure 1: Elements influencing Organizational Culture (Source: Cameron & Quinn, 2011) The figure shown above reflects some of the factors that affect organizational culture. These include assumptions, official norms and contractual obligations of the company, the artifacts and the behavioral patterns of the individuals in an organization. The figure clearly identifies that behaviors and other artifacts associated with an organization are largely observable and can be monitored and hence influenced by an organization through its policies. Therefore the role of evaluation and monitoring acts as a crucial internal factor that can help influence the culture prevailing in an organization. ...Download file to see next pagesRead More
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