Organizational hanges for McDonalds - Case Study Example

Analysis and Consider Future Sources of Change and Recommendation for McDonald’s (Hong Kong) Table of Contents Overview 3 Change Management 3 Future Changes 5 Recommendations and Conclusion 6 References 7 9 Bibliography 10 Overview The term ‘change’ usually signifies making anything radically different or to undergo transformation, substitution or transition. ‘Manage’ on the other hand refers to handle the matter with high degree of skill and expertise (Indiana University, 2011). Change Management The term change management can be defined as a deliberate process that would assist the organisation to succeed in making dramatic changes (Purdue University, 2008). The organisational dynamics of change can be evident in the form of that the communication in the organisation deteriorates. The productivity also tends to suffer and the morale of the employees goes down. On the other hand, the individual dynamics of change takes place in different ways. Even if the change is quite exciting, individuals expect a sense of loss. Change is often perceived to bring a sense of confusions and ambiguity (Telfair, 2008). Change is referred as an essential aspect for any business, especially in those business houses where innovations takes place on a continuous basis and readily acclimatise to shifts in the market (Doherty & Waterhouse, 2006). Since the year 1955, when McDonald’s was established in Des Plaines, Illinois, there are more than 30000 restaurants over 100 countries globally. It has been the largest fast service restaurant in the globe. The basic philosophy behind the successful operations of McDonald’s has been its belief that in order to be successful, the company should be quite flexible and adept to the societal changes (McDonald’s Corporation, n.d.). Hong Kong is considered as the “food capital of the world” and has over 10000 restaurants that serve food from all around the globe. The people of Hong Kong have a cosmopolitan taste. They love to eat and enjoy foods from all around the world. McDonald’s is one particular kind of restaurant that they love to visit. With the introduction of the McDonald’s restaurant in Hong Kong, there have been changes in the product of McDonald’s for the consumers of Hong Kong (White, 2005). Change management has been evident in McDonald’s of Hong Kong as well. McDonald’s basic menu was promoted by the franchise of Hong Kong while paying less attention to introduce the products that would be more recognisable and preferable to the Chinese consumers. The food has been quite indistinguishable from the food served in Moline, Illinois or Mobile, Alabama. McDonald’s also applied the conservative approach to its breakfast items. In the year 1980, when the morning service was started, American-style items such as eggs, pancakes, muffins and hash brown potatoes were not served. The local outlets served hamburgers and fries at a standard fare for breakfast then. Its first venture into the ‘early morning food market’ was so successful that Chairman Mr. Daniel Ng didn’t want to introduce the American-style breakfast items, with a fear that if there is shift in the menu then this might alienate the consumers who were beginning to consume hamburgers and fries as their regular diet. The change to American style food happened gradually and today it is evident that most of the Hong Kongers order for breakfast that is similar to the food items ordered by the Americans (Lechner & Boli, 2004). Future Changes It is evident that the lifestyle that is emerging in Hong Kong which can be best described as postnationalist, postmodern and flamboyantly transnational (Lechner & Boli, 2004). The world is changing at a rapid pace. The eating habits of the people are changing. The change may not only be evident in the eating habits of the consumers but also in the managerial culture in the organisation. The sources of change may come from the competitors of McDonald’s, Hong Kong. The major competitors are Café De Coral, Burger king and Subway Sandwiches. In order to successfully compete with these giant players, McDonald’s needs to bring about continuous changes on the organisation structure, its ideologies and culture. Since McDonald’s have brought a change in the eating habits of the consumers, this is an indication that the Chinese culture is being diminished (BBC News, 2002). In this regard, it can be revealed that if such threats are received from the consumers, then the management needs to consider other alternatives in the near future in order to cope up with the environmental threats. The way McDonald’s, Hong Kong has adapted the product because of the various reasons such as religious customs and laws in a country and the way the restaurant has adapted the original menu to meet the customer needs/ wants in various countries, it would be prudent for the company to keep adapting to the changes that will occur in the near future (Scribd, n.d.). This can be linked to the theories of the change management. It reveals that the key to effective change management is not only able to respond to the changes that may happen in the near future but to anticipate the change and take immediate actions as well. The emergent approach to the change entails that the forces of change have become so complex and constant in the recent times that it becomes completely difficult to fully plan the change process. One of the biggest problems in the change management is to anticipate and understand the stakeholder’s response to the change and overcome the resistance to change (Pizam, 2005). Recommendations and Conclusion McDonald’s, Hong Kong has to consider the following four key factors in order to gain success when implementing the change in the organisation. Change should be a regular feature in order to cope up changing demands of the consumers. The commitment of the senior management of McDonald’s is essential to effectively manage the change. The second factor is to have a clear, shared vision. The vision and mission of McDonald’s should be shared by all the employees of the organisation. If this shared agenda is followed then it will benefit the whole organisation. The organisation has to provide capacity for change by providing the adequate resources such as time and finance. Finally, action is one of the factors that can be considered to implement the change successfully in McDonald’s. The channels of communication need to be kept open so that all the employees are well informed regarding the changes. This will help to avoid any kind of shocks and ambiguity as well as confusion regarding the change (Gues, 2007). References BBC News, 2002. Hong Kong Hungers for Fast Food. Business. [Online] Available at: http://news.bbc.co.uk/2/hi/business/1872661.stm [Accessed March 02, 2011]. Doherty, P. & Waterhouse, P., 2006. Change Management: A CA IT Service Management Process Map. Introduction. [Online] Available at: http://www.ca.com/files/whitepapers/30264_change_mgmt_processmap.pdf [Accessed March 02, 2011]. Gues, A. D., 2007. Managing Change. Change Management Matrix. [Online] Available at: http://www.oursouthwest.com/SusBus/mggchange.pdf [Accessed March 02, 2011]. Indiana University, 2011. Definition of Change Management. Change. [Online] Available at: http://www.indiana.edu/~change/defofchange.html [Accessed March 02, 2011]. Lechner, F. L. & Boli, J., 2004. The Globalization Reader. Wiley-Blackwell. McDonald’s Corporation, No Date. Company Info. About. 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