Business Administration: Elements of Business - Essay Example

? Business Administration: Elements of Business This assignment is related to different business elements in organizations. In this assignment there is a comparison of Mc Donald’s and Burger King, since they are similar businesses and are ranked one after another. This assignment gives an insight of different elements observed in both the organizations. In this assignment there are SWOT analyses of both the companies. It will give a detailed analysis of each company. Moreover, it shows how one of the two is doing better than the other. This helps us realize which is a better approach and why at some places one of the organizations is a little more successful than the other. It also shows how external changes affect an organization and why. Thus, this assignment will help us understand the difference and similarities between the two organizations. Business Administration: Elements of Business Culture: The culture at Mc Donald’s is that of diversity and inclusion. Mc Donald’s has more than 31,000 restaurants in around 118 countries of the world. It involves people living in the vicinity that they operate in. 60% of its employees of home office and U.S. based restaurants are racial or ethnic minorities or are women. (About Mc Donald’s, 2011) Burger King on the other hand has a culture of fun and enjoyment at work. Burger King claims that its employees have fun at work and they strive to do something better every day. That is, they like to set and achieve goals. There are opportunities for employees in restaurants as well as in corporate arena. (Bkcareer, 2011) Promotion Policies: Mc Donald’s has promoted itself quite a lot. Some of the promotional activities include promotion via National Association for Stock Car Auto Racing (NASCAR). It has NBA as fast food partner. Some of its celebrity spokespeople include Michael Jordan, Charles Barkley, Venus Williams, Destiny’s child, Justin Timberlake etc. Burger King uses Burger King toys as a promotional item. These are available only at restaurants and serve as a promotion. (Burger King, 2011) AOL, Maxim Magazine, DirecTV, Formula One and some celebrities are promotional figures of Burger King. Decision Making Style The decision making style at Mc Donald’s is centralized. That is, most of the decisions are made by top manager who has the decision making power. The corporation sets rules and polices but the franchises are given autonomy as well. The decision making style used by Burger King is also centralized. Management Style The management style at both Burger King and McDonalds is task oriented. Managers do what they can to make sure employees are following procedures, rules and regulations. However, they keep motivating their employees as well. Leadership Style: The ideal Mc Donald’s leader needs to apply coaching leadership style. He has to be task oriented, yet encouraging at the same time. He has to promote pleasant environment for his subordinates. The CEO of McDonalds is a charismatic and transformational leader who is a paradigm of doing the right thing. (Goldman, 2008) The CEO of Burger King describes his leadership style as informal. He creates an environment where people want to be part of things. (knowledge@emory, 2007) SWOT analysis of Burger King: (marketing teacher, 2011) STRENGTHS Geographic Diversification Globally Recognized Brand Established Market Share Superior Growth Plan WEAKNESS Vulnerability to Labor and Regulatory Influences Reliance on so-called “Super Customers” OPPORTUNITIES New Breakfast Food Initiative New Healthier Menu Items National Urban Community Marketing Initiative Brand Licensing Project THREATS Unrest among Franchisees Changing Consumer Eating Habit SWOT analysis of Mc Donald’s: (marketing teacher, 2011) STRENGTHS Best place to work for minorities A thriving business with branches in 118 countries World’s most recognized logo and spokesperson Community oriented Socially responsive Easily adaptive to cultural differences Serves brand processed items Food safety WEAKNESSES Test marketing for pizza failed High employee turnover Yet to adapt organic food trend OPPORTUNITIES Health conscious people like appreciate food safety by Mc Donald’s Provision of optional allergen free food Business directed efforts at the breakfast, chicken, beverage and convenience categories THREATS Criticism for turning children towards fast-food for the rest of their lives Competitors Impact of Potential Change Factors Including Changing External Conditions: As external environment changes, there is a change within an organization as well. In case of Mc Donald’s and Burger King, as people are getting conscious about diet and health, they might stop or curtail the use of fast food which is a major threat to the business. The organizations might have to undergo some changes which will compel people to take healthy food from their outlet. This might mean hiring nutritionists in order to gain an insight on healthy food and create innovative ideas. Moreover, economic conditions have an impact on an organization as well. For example, in the financial crisis of 2009 most of the organizations all over the world faced problems and their profits sunk, some even went bankrupt. So unstable economic conditions also lead to change in an organization. This might mean shutting down some franchises etc. Since Mc Donald’s is expanded throughout the world, therefore, political situations of the country they are functioning in might become hurdle at times, this might cause loss or less profits. This might mean laying off people or shutting down franchises. Hence, as external environment changes, organization also has to change. About McDonalds, 2011. Diversity at McDonalds. Retrieved from http://www.aboutmcdonalds.com/content/mcd/students/serving_our_communities/diversity_at_mcdonalds.html Bkcareers, 2011. Job Search, Your Flame is always burning. Retrieved from http://bkcareers.com/jobsearch.aspx Burger King, 2011. Corporate Policies. Retrieved from http://www.bk.com/en/us/company-info/legal/corporate-policies.html Eric Goldman, 2008. Observation of Leadership & Organizational Behavior at McDonald’s. Retrieved from http://www.ericgoldman.name/non-technical/28-leadership/34-observation-of-leadership-a-organizational-behavior-at-mcdonalds Knwoledge@emory. Burger King CEO John Chidsey on Innovation, Trust, and “The King”. Retrieved from http://knowledge.emory.edu/article.cfm?articleid=1097 Marketing Teacher, 2011. Burger King SWOT, Retrieved from http://www.marketingteacher.com/swot/burger-king-swot.html Marketing Teacher, 2011. Mc Donald’s SWOT, Retrieved from http://www.marketingteacher.com/swot/mcdonalds-swot.html Read More