Leadership at McDonald's: Requirements, Skills & Strategy

Introduction

McDonald's has often been blamed for the negative impact its food products have upon public health. In a context where more and more people suffer from nutrition-related illnesses, McDonald's has become an emblem of fast food to be avoided (Kaufmann, 2010).

Nevertheless, demand for its products continues to increase, a trend explained by a wide array of social and economic changes. For instance, women's emancipation and the choice to work outside the home leave little time for cooking (Parasecoli, 2004). The experience of dining out has also changed dramatically in recent years, a shift exacerbated by economic pressures that reduce the population's access to traditional restaurants and drive consumers toward fast food products that are cheap and convenient (Wilk, 2006).

Within this complex environment, McDonald's continues to thrive. Its success is attributable to a wide array of elements, among them a strong marketing program, the advantages of economies of scale, and the quality of its leadership. This paper sets out to assess McDonald's leadership from four distinct angles: current leadership requirements, future situations requiring leadership, the development of leadership skills, and the usefulness of the methods used. Finally, several alternatives for strategic leadership are proposed.

Current Leadership Requirements

McDonald's is one of the largest corporations in the world in terms of size, global reach, and volume of sales and revenues. This position presents the company with significant opportunities but also with numerous challenges. The method used to identify these challenges is the systematic review, which involves the systematic identification of valuable sources of information and then summarizes those most pertinent and relevant to the specific topic under study (The Community Guide, 2011). Application of this method led to three primary findings: the company is challenged by globalization, by its business model, and by changes in the socio-cultural environment.

One important leadership challenge is represented by the international context of globalization. In this setting, the organization must manage people, resources, legislation, and customers across various global regions while ensuring that the company's image and objectives are upheld. McDonald's leadership approach in this area is still developing, but lessons can be drawn from the company's marketing practices—specifically, the way the fast food giant has adapted its marketing strategies to appeal to diverse customers across the globe (Armstrong, Harker, and Brennan, 2009). Similar adaptations could be made regarding leadership style.

Another leadership challenge stems from McDonald's franchise model. The company's stores are run by local managers who use corporate resources and the McDonald's brand to operate their outlets. The leadership challenges this creates are multiple and include loss of control by the parent corporation, erosion of organizational standards, the possibility of lower profitability, and the potential for conflicts between franchisee and franchisor (Alon, Alpeza, and Erceg).

Finally, a significant leadership challenge is presented by the changing socio-cultural environment, particularly new nutritional concerns that threaten to reduce demand for the company's products. McDonald's has already begun responding by expanding the presence of healthier options on its menus, but it continues to face the challenge of addressing rising nutritional concerns (Werther and Chandler, 2006).

Future Situations Requiring Leadership

The challenges previously mentioned represent only a few of the potential threats McDonald's may face. Additional challenges could include the continually shifting international context, high rates of employee turnover, and various complications in relationships with business partners. In these future situations requiring leadership, the company's responses will be critical in determining future success. The following suggestions outline how to plan for the development of leadership in such scenarios:

• Constantly assessing the market and the industry in order to identify emerging changes.
• Continuously monitoring trends in the market, the industry, and in relevant legislation.
• Identifying new needs and situations even before they become established trends, and satisfying customer needs before customers themselves become fully aware of them (Kotler, Armstrong, Wong, and Saunders, 2008).
• Continually engaging employees in effective collaborations built on trust and motivation.
• Developing and implementing a culture of change and learning, which would consolidate McDonald's as an enterprise capable of meeting any new challenge (Boonstra, 2004).

References

Alon, I., Alpeza, M., Erceg, A., Opportunities and threats regarding the development of the franchising business model in Croatia, Fransiza. Retrieved November 22, 2011.

Armstrong, G., Harker, M., Brennan, R., 2009, Marketing: An Introduction, Pearson Education.

Boonstra, J.J., 2004, Dynamics of Organizational Change and Learning, John Wiley and Sons.

Garfinkle, A.M., 2000, Politics and Society in Modern Israel: Myths and Realities, 2nd edition, M.E. Sharpe.

Kaufmann, J.C., 2010, The Meaning of Cooking, Polity.

Kotler, P., Armstrong, G., Wong, V., Saunders, J.A., 2009, Principles of Marketing, 5th edition, Pearson Education.

Leibovici, L., Reeves, D., 2005, Systematic reviews and meta-analyses in the Journal of Antimicrobial Chemotherapy, Oxford Journals. Retrieved November 22, 2011.

Parasecoli, F., 2004, Food Culture in Italy, Greenwood Publishing Press.

Shuttleworth, M., 2009, Systematic reviews, Experiment Resources. Retrieved November 22, 2011.

Werther, W.B., Chandler, D., 2006, Strategic Corporate Social Responsibility: Stakeholders in a Global Environment, SAGE.

Wilk, R.R., 2006, Fast Food/Slow Food: The Cultural Economy of the Global Food System, Rowan Altamira.

The Community Guide, 2011, Systematic Review Methods. Retrieved November 22, 2011.