The McDonalds corporation, founded in Chicago, USA has grown to a global leader in the fast food industry, operating over 36,000 restaurants in 119 countries worldwide. The first McDonald’s restaurant was run by brothers Dick and Mac McDonald. In 1954 Ray Kroc visited the restaurant and was so impressed by their efficiency of their operation that he pitched his vision of creating McDonald’s restaurants across the US. 17 years later the first McDonalds opened in Australia in 1971 which has now grown to over 900 individual stores. Eighty percent of these stores are run by individuals instead of being company run. In this time Australia has become one of the most profitable and inventive countries that McDonalds operates in. Examples of Australian innovation include the launch of “McCafe” and nutritional labelling which has now been spread to other McDonalds organisations throughout the world.
McDonald’s Australia’s Chief Executive Officer is currently Andrew Gregory, who stepped up into the position in 2014 after he previously served as the Chief Financial Officer in 2012 as well as a variety of leadership positions within McDonalds. After a two-years with McDonald’s Japan as a development officer, Andrew Gregory played a key role in leading the Japanese business out of the ¬earthquake crisis in 2011, Mr Gregory returned to Australia in 2012 as chief financial officer and chief ¬development officer.
Gregory was appointed to CEO few McDonalds Australia’s sales growth started to slow as consumers embrace healthier food options and competition increases from fast food rivals such as Dominos, Pizza Hut, KFC and Oporto. As the boss of one of Australia’s largest employers, he is responsible for marketing, public affairs, operations, supply chain and business planning. (Robbins, Bergman ; Coulter 2018)
McDonald’s vision statement covers a number of business aspects. The company implies innovation to satisfy current market needs, as stated in the contemporary customer experience component of the vision statement. Also, McDonald’s characterizes its products in the “great-tasting, high-quality food” component of the vision statement. In saying “modern, progressive” McDonald’s shows that its vision statement defines the kind of business approach it uses for organizational development. A strategic objective linked to this vision statement is the innovation of McDonald’s goods and services to match consumer preferences and expectations.
The McDonalds Corporation is an excellent example of a company following a global strategy and having a centralized organizational structure. The over 900 restaurants situated all over the country are typically franchises, they all receive food and packing from the same approved vendors. This is to ensure that there are no changes in the standard of the products all over the country, the quality and taste is the same everywhere. All of the crucial decisions taken related to the menus and marketing are made at the higher or corporate level of the organization in America.
The McDonald’s corporation operates a global hierarchy to cover all its operations worldwide. This feature of the organizational structure ensures corporate control. For instance, McDonalds executives direct the activities of all business areas. Mandates are then passed down from middle managers and then to the restaurant managers and personnel.
Function-Based Groups. McDonald’s maintains function-based groups in its organizational structure. For example, under corporate operations, the company has a human resource management group, a supply chain and franchising group, and a legal group. This characteristic of the organizational structure allows McDonalds to address the basic functions of its business.
As the CEO of McDonalds Australia Andrew Gregory has overall responsibility for creating, planning, implementing and integrating the strategic direction of an organization. This includes responsibility for all components and departments of a business. The CEO makes certain that the organization’s leadership maintains constant awareness of both the external and internal competitive landscape, opportunities for expansion, customers, markets, new industry developments and standards, and so forth.
The four functions of management are fundamental to planning and implementing an organisations goals, these four functions allow plans to be organised while directing individual employees in their roles.
Planning is the first part of this process, Andrew Gregory would be responsible for determining what McDonalds short term and long-term goals are and what actions need to take place for them to be accomplished. From there the plan needs to be organised, Andrew Gregory’s role in this stage would be organising the correct employees and resources. Once an objective is underway it is important for Andrew Gregory to give direction to ensure that everyone involved knows what is required of them. The final function of management that Andrew Gregory needs to undertake is controlling. This is monitoring the organization’s performance to ensure the ultimate goals are being met and correcting any areas of the process that are restricting the outcome desired.
In this role Andrew Gregory has responsibility for the general direction of every McDonalds store in Australia, this means taking action that ensures that as a whole McDonalds Australia is making choices that impact the organisation on the whole positively. On the other hand, an assistant manager is responsible for the day to day operation of the store following the guidelines set by Andrew Gregory. These duties include things such as keeping stores properly staffed and ensuring stock levels are maintained for the store to run properly.
As the CEO of one of Australia’s largest corporations Andrew Gregory needs to appropriately use technical, human and conceptual skills to ensure profitability.
Technical skill is defined as knowledge about and proficiency in a specific type of work or activity. This includes competencies in a specialized area, analytical ability, and the ability to use appropriate tools and techniques (Katz, 1955). For leaders at the highest level such as Andrew Gregory technical competencies are not as essential in their day to day duties. However, it is important that he is well advised to make decisions on behalf of those who do.
Human skill is knowledge about and ability to work with people. It is quite different from technical skill, which has to do with wor1king with things (Katz, 1955). Human skills are “people skills.” They are the abilities that help a leader to work effectively with subordinates, peers, and superiors. As a successful CEO it is vital to have human skills which means being sensitive to the needs and motivations of others and taking into account others’ needs in one’s decision making. Broadly speaking, conceptual skills are the ability to work with ideas and concepts. Whereas technical skills deal with things and human skills deal with people, conceptual skills involve the ability to work with ideas, which is a crucial skill for Andrew Gregory to maintain.
Andrew Gregory’s conceptual skills are central to creating a vision and strategic plan for an organization. For example, it would take conceptual skills for Andrew Gregory to articulate a vision for a line of new products that would boost McDonalds Australia’s profitability.
Andrew Gregory’s use of these three skills has a large run on effect on the employees of McDonalds Australia, by effectively using these skills he has the power to maintain an overall positive work place environment within McDonalds Australia, which is critical to the growing success of the company.
As CEO of McDonalds Australia, Andrew Gregory has a vast amount of responsibility, on a weekly basis he would have numerous meetings with different corporate departments, in these meetings he would be checking progress on any ongoing projects, as well as reviewing company sales and figures and working towards rectifying any possible issues with the appropriate teams.
If Andrew Gregory was to be assessing the possibility of adding a new product to the menu he would need to be looking to see the effects that this would cause throughout McDonalds Australia. He would have to look at the possible increase of sales and profits that the introduction could have, as well as any issues that could stem from the introduction of this product, such as supply of ingredients, pricing etc.
Another management role that Andrew Gregory has is ensuring that employees maintain the company’s commitments towards customers. As stated in the McDonalds mission statement, McDonalds is a company that strives to always put the customer as number one. Part of Andrew Gregory’s responsibility as CEO is to ensure that the outcome set in the mission statement is upheld by the actions of McDonalds Australia into the future.
These management roles play a crucial role in the continuing profitability of McDonald’s Australia, as well as the company’s ability to continue to act in accordance with their mission statement.
There are a variety of possible practices that other managers could learn from Andrew Gregory and McDonalds approach towards leadership and operating a company. The concept of corporate controlled but individually owned and operated stores lets McDonalds keep profits high from each restaurant while only managing the big picture planning. This allows McDonalds to perfect products, marketing etc. and then simply roll this out to possibly every McDonalds restaurant globally.
The McDonalds act of defining a process, properly documenting it, testing it, and then creating a standardised step by step methodology for everything. No matter which McDonalds you go to you always get exactly what you expect. The restaurants always look the same the staff wear the same uniforms, the menu and pricing are the same, and the food tastes no better or worse than any other visit. This incredible efficiency and planning gives McDonalds a competitive advantage. It shows that they have developed the processes and proven repeatedly that it has mastered the best possible way to serve its customers.
McDonalds Australia has remained very consistent in its overall appearance the company has always strived to not only keep their customers happy but to continue to be ahead of the curve in regard to changing interests, examples of this include the launch of McCafe and more recently introducing an all-day breakfast all over Australia.
Unlike a corporate CEO, a non-profit CEO has a smaller role in planning the strategic direction of the organization. Working with the board, which sets the course of the non-profit, the CEO provides advice on the practicality of the board’s vision and individual wish-list items, based on the CEO’s knowledge of the organization’s budget, resources and staff expertise.
A corporate CEO however, is responsible for leading the development and execution of the Company’s long-term strategy with a view to creating shareholder value. The CEO’s leadership role also entails being ultimately responsible for all day-to-day management decisions and for implementing the Company’s long and short-term plans. The CEO acts as a direct liaison between the Board and management of the company