UNIT 1: DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP

SKILLSSTRATEGIC MANAGEMENT AND LEADERSHIP IN

MCDONALD

AKINYEMI OLUWAYINKA JOHN(REGIONAL MANAGER)

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CONTENTS

• Introduction

• Definitions

• Link: Strategic Mgt & Leadership

• Strategic Objectives

• Functions Within McDonald

• Functions of Management & Leadership

• Achieving Strategic Objectives

• McDonalds Strategic Decisions

• Management – Leadership Styles

• Impact of management & leadership styles

• Situations

• Conclusion and Recommendation

• Reference2

INTRODUCTION• This presentation's aim to explain how the functions within McDonalds

manage and lead towards achievement of the strategic objectives. It examine the links between strategic management and leadership styles, also analyse effect on the strategic decisions.

• Today Mc Donald's,More than 34, 000 restaurants118 countries

• Restaurant Ownership of McDonald's59% of Conventional franchisees21% Licensed to foreign affiliates20% Company operated

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1.1 DEFINITIONS

Strategic Management: is the comprehensive collection of ongoing activities and processes that organisations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organisation (Balance Scorecard Institute 2014).

Strategic Leadership: is the collective actions of formal and informal leaders acting together to influence organisational success/ Process of Influencing People for achievement of certain goals in a given situation. (Pasmore 2009).

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1.1 LINK: STRATEGIC MGT & LEADERSHIP

• Atreya (2013) Strategic management is about setting vision, mission, goals and objectives for achieving excellence and the strategic leadership is to ensure that the results are being achieved by motivates and persuades staffs to share that same vision.

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1.1 STRATEGIC OBJECTIVES

• To place customer experience at the core of all we do

• To committed to our people

• To Believe in the McDonald’s System

• To operate our business ethically

• To give back to our communities

• To grow our business profitably

• To strive continually to improve6

• Administrative/ Human Resources

• Finance

• Customer & Restaurant Services

• Legal

• Distribution/Logistics

• Marketing 

• Product Development

• Hygiene, Safety & Security

1.1 FUNCTIONS WITHIN MCDONALD

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1.1 FUNCTIONS OF MANAGEMENT & LEADERSHIP

MANAGEMENT

• Planning• Organising• Leading• Controlling(Jones and George 2008).

LEADERSHIP

• Setting Vision• Achieving the task• Developing the individual• Building and maintaining

team(Mitesh 2009) 8

1.1 ACHIEVING STRATEGIC OBJECTIVES

Coordinate resourcesTraining needsAttend to CustomersLegal adviseTargeting our CustomersQuality Assurance

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1.2 MCDONALDS STRATEGIC DECISIONS

Plan To Win – People, Products, Place, price and Promotion

Internationalisation – Expansion through franchising Marketing – Modern Technologies, Menu Expansion,

Negative Press, Packaging Re-design10

1.2 MANAGEMENT – LEADERSHIP STYLES

•Autocratic Leadership•Bureaucratic Leadership•Charismatic Leadership•Laissez Leadership

(Badshah 2011)

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1.2 MANAGEMENT – LEADERSHIP STYLES CONT..

•Autocratic LeadershipManager seeks to have the most authority and control in

decision making,Manager seeks to retain responsibility rather than utilise

complete delegation,Manager seeks to make as many decisions as possible,Consultation with other colleagues is minimal and decision

making becomes alone process.12

1.2 MANAGEMENT – LEADERSHIP STYLES CONT..

•Bureaucratic LeadershipLeader expect employees to display a formal business-like

attitude in the workplace and between each other,Managers gain instant authority with their position,Employees are rewarded for their ability to adhere to the

rules and follow procedure perfectly,Bureaucratic systems usually gradually develop over a long

period of time.13

1.2 MANAGEMENT – LEADERSHIP STYLES CONT..

•Charismatic LeadershipCharismatic leaders inspire other and encourage them to be

their best,Employees and group members always want to impress a

charismatic Leader, so they work hard and strive to succeed.

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1.2 MANAGEMENT – LEADERSHIP STYLES CONT..

•Laissez LeadershipVery little guidance from leaders,Complete freedom for followers to make decisions,Leaders provide the tools and resources needed,Group members are expected to solve problems on their own.

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1.2 IMPACT OF MANAGEMENT & LEADERSHIP STYLES

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• Autocratic LeadershipFaster decision makingTeams become dependent upon their

leader

• Charismatic LeadershipPositive work environmentLengthy and ‘boring’ decision making

• Bureaucratic LeadershipQuality work & Ultimate controlLack of self-fulfilment

• Laissez LeadershipAllow the visionary workersLess productivity and Job fall back on someone else or are not

completed

1.3 GLOBAL STRATEGY & LOCAL SPECIALISATION SITUATIONS

• In order to open over 25,000 locations, Mcdonalds had to go worldwide and introduce its food to people who have never had burgers before

Situation 1: FRANCESituation 2: INDIA

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1.3 SITUATION 1: FRANCE

• Take their time when they are eating

• Idea of fast food against their culture

• Fancy restaurants

• French potatoes and French cheese

• Democratic Management-Leadership style

Successful initiativeCreative thinkingPersonal Development

Delay in decision makingDangerous when manager lacks

expertise 18

1.3 SITUATION 2: INDIA

• No beef/Vegetarian• Can’t eat most of native

products• Cows are holy in their

culture• Getting rid of beef &

selling chicken products• Different menu• Opened Vegetarian outlet• Served Indian favourite

• Bureaucratic Management-Leadership style

Market sensitivityQuality workUltimate control

Lack of self-fulfilmentLack of creativityPoor communication

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CONCLUSION AND RECOMMENDATION

• Fiedler (1967 cited in Nasso 2014: 21) suggested applying an appropriate management-leadership styles to a situation is always determined by the nature of the situation being face by a particular manager – leader.

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•THANK YOU!!!!!!!!!!!!

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REFERENCES• Atreya, B. (2013) what is the relationship between strategic management and strategic leadership? [online] available from

<http://www.researchgate.net/post/What_is_the_relationship_between_strategic_management_and_strategic_leadership> [17 February 2014]

• Badshah, B. (2011) Strategic Management & Leadership [online] available from <http://www.slideshare.net/bilalsaidbadshah/strategic-management-leadership> [17 February 2014]

• Balance Scorecard Institute (2014) Strategic Planning Basics [online] available from <https://balancedscorecard.org/BSCResources/StrategicPlanningBasics/tabid/459/Default.aspx> [17 February 2014]

• Cardinal, R. (2014) 6 Management Styles and When Best to Use Them – The Leaders Tool Kit [online] available from < ttp://leadersinheels.com/career/6-management-styles-and-when-best-to-use-them-the-leaders-tool-kit/> [10 February 2014]

• CIPD (2014) Leadership [online] available from <http://www.cipd.co.uk/hr-resources/factsheets/leadership.aspx> [11 February 2014]

• Jones and George (2008) Contemporary Management [online] 5th edn. New york: The McGraw-Hill. available from <campus.murraystate.edu/academic/faculty/.../PowerPoint/Chapter01.ppt> [17 February 2014]

• McDonald's Team (2014) Department [online] available from <http://www.aboutmcdonalds.com/mcd/corporate_careers/working_here/departments.html> [10 February 2014]

• McDonald's Team (2014) Mission & Value [online] available from <http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html> [01 February 2014]

• Mitesh, V. (2009) Leadership [online] available from <http://www.slideshare.net/meet007/leadership-ppt-1903712> [17 February 2014]

• Murray, A. (2014) 'Leadership Styles'. The Wall Street Journal [online] available from <http://guides.wsj.com/management/developing-a-leadership-style/how-to-develop-a-leadership-style/> [10 February 2014]

• Myers, S. (1994) Definitions of Leadership and Management [online] available from <http://www.teamtechnology.co.uk/leadership/management/definitions-of-leadership-and-management/> [11 February 2014]

• Nasso, E. (2014) Development Strategic Management and Leadership Skill. Unit 1, 29 January 2014. Birmingham: Stanfords College

• Vignettes (2010) Functions of Leaders and Managers [online] available from <http://www.vignettestraining.com/galleries/trainers/download/LD_5s.pdf> [10 February 2014]

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