Published on February 27, 2014
UNIT 1: DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS STRATEGIC MANAGEMENT AND LEADERSHIP IN MCDONALD AKINYEMI OLUWAYINKA JOHN (ASSUMED REGIONAL MANAGER) (STANFORDS COLLEGE, BIRMINGHAM CAMPUS) FEBRUARY, 2014 1
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 • Reference 2
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 restaurants 118 countries • Restaurant Ownership of McDonald's 59% of Conventional franchisees 21% Licensed to foreign affiliates 20% Company operated 3
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). 4
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. 5
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 improve 6
1.1 FUNCTIONS WITHIN MCDONALD • Administrative/ Human Resources • Finance • Customer & Restaurant Services • Legal • Distribution/Logistics • Marketing • Product Development • Hygiene, Safety & Security 7
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 resources Training needs Attend to Customers Legal advise Targeting our Customers Quality Assurance 9
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-design 10
1.2 MANAGEMENT – LEADERSHIP STYLES • Autocratic Leadership • Bureaucratic Leadership • Charismatic Leadership • Laissez Leadership (Badshah 2011) 11
1.2 MANAGEMENT – LEADERSHIP STYLES CONT.. • Autocratic Leadership Manager 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 Leadership Leader 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 Leadership Charismatic 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. 14
1.2 MANAGEMENT – LEADERSHIP STYLES CONT.. • Laissez Leadership Very 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. 15
1.2 IMPACT OF MANAGEMENT & LEADERSHIP STYLES • Autocratic Leadership Faster decision making Teams become dependent upon their leader • Bureaucratic Leadership Quality work & Ultimate control Lack of self-fulfilment • Laissez Leadership • Charismatic Leadership Allow the visionary workers Positive work environment Less productivity and Lengthy and ‘boring’ decision making Job fall back on someone else or are not completed 16
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: FRANCE Situation 2: INDIA 17
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 ManagementLeadership style Successful initiative Creative thinking Personal Development Delay in decision making Dangerous 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 ManagementLeadership style Market sensitivity Quality work Ultimate control Lack of self-fulfilment Lack of creativity Poor communication 19
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. 20
•THANK YOU!!!!!!!!!!!! 21
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/strategicmanagement-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-aleadership-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] 22
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