Abigail Rodriguez

MCDONALDS RESTAURANTS
Rebecca Ochoa
Shiela Saucedo
Giulia
Prols
A Case
Study
& Alexandria Pena

McDonalds Restaurants: A Case Study

Abstract:
This is a case study that is based on collected research on McDonalds restaurants. The
case study explains how McDonalds restaurants understand and analyze data regarding
organizational changes in order to increase performance and productivity. The data collected
informs the reader how McDonalds restaurants manage change effectively and recognize the
presence of barriers the company faces in todays and future fast food market.
Keywords: Change, Implementing, Management

McDonalds Restaurants: A Case Study

McDonalds Restaurants: A Case Study

Change is all around us and theres no way of avoiding it. Change is a result of internal
and external factors that represents the world of today. But what about anticipating upcoming
change that moves the world forward? Organizations and companies are always in the need to
adapt to these factors. Organizations and companies are sometimes unaware or unprepared to
adapt to change. In the fast food market, change is unavoidable and its always pushing for faster
and better service. Margin prices and operating systems are always in need of being checked and
sometimes reconstructed. As for McDonalds restaurants, they are no exception to this fast paced
changing market as technology improves and new competition increases. McDonalds
restaurants have been around since the 1950s, and since then the restaurant has kept up with the
changing world. However, recently McDonalds restaurants have faced many obstacles in
perfecting their organizational formula to respond to change in todays world effectively,
especially in regards to implementing a healthier menu.
Understanding and Analyzing McDonalds Change Effectively:
Within an organization, there are several factors that cause change. However, all these
factors fall in to two categories: internal and external. The internal causes could be a change in
the workplace such as a move from one office to another or a change in management. Another
example would be a high level of absenteeism amongst employees at all levels. External
environmental causes can be things such as a change in standards, advances in technology,
changes in the market, and changes within the economy. These factors can have both negative
and positive effects on an organization. In the case with McDonalds, the changes they made
were positive.

McDonalds Restaurants: A Case Study

These changes must be handled well within the company, and therefore effective
management is important. Effective managers must be able to anticipate and plan for the changes
to make the necessary improvements. This can also be referred to as Change Management and it
is up to the leaders to make the impact of the change as minimal as possible to the entire
company. With McDonalds at a point of losing sales, these changes could hurt them even more,
if the leaders are not careful with how they manage the process and impact.
McDonalds had several factors that lead to the major changes within the company. Their
internal factors were a major drop in sales, new CEO, Steve Easterbrook, was appointed to the
company, and there was a decision to make a wage increase for employees. The external factors
were, a higher demand for healthier food options on their menu, marketing some of these new
items, like the sirloin quarter pounder, didnt meet the sales goals, there was advancement in
their KIOS systems and displaying of their menus, and to be able to meet the needs of customers
with a low budget. Overall, the companys focus is not only to make sales, but to meet the needs
of their customers and employees. These factors allowed for them to seek the changes necessary
to make improvements and allow the company to grow.
Implementing Change Effectively & Analyzing Barriers:
When it comes to change within an organization, there will always be issues with
successfully implementing change. When McDonalds first began to introduce healthier menu
options, barriers of change arose. Three barriers of change that McDonalds faced were a lack of
an effective communication strategy, organizational complexity, and a negative public image.
Implementing an effective communication strategy can really prove a challenge for an
organization as large as McDonalds. In 2015, McDonalds had 14,259 restaurants in the United

McDonalds Restaurants: A Case Study

States. The majority of the McDonalds locations in the United States are owned by individual
owner/operators while others are owned by McDonalds Corporation itself. This means that
information and communication has to go through two separate avenues. The first avenue
involves information spreading from corporate to their stores and eventually down to the crew
level. The second avenue requires communication transferring from corporate to individual
franchise owners, then to the restaurants, and finally to the crew members. This is a complex
channel of communication and it can be quite easy for information to be lost or misinterpreted.
As we know, in order for an employee to want to introduce the desired change, they have to be
involved in the change process. When they feel left out or do not understand the change, this can
often lead to a change barrier. Therefore, an effective communication strategy is integral for
implementing the new healthier options that McDonalds is creating to satisfy their customers.
Organizational change involves the complexity of introducing the healthier options to the
restaurant and market. Inventory can often be a struggle in regards to new items. With the
introduction of healthier items, came more inventory to keep on hand. Where do restaurants store
this additional product? How do they ensure the quality? How much will they actually sell?
Time is a valuable resource that can often pose a barrier to change. With such an intricate array
of products to begin with, how are McDonalds employees going to be able to provide the best
quality products, which now include a larger menu to feature healthier options, and still meet the
expectations customers have in regards to service times? Finally, healthier options also meant
new equipment. While some was simple, like new utensils, some was more complex like the
blended ice machine. This meant a large learning curve for the majority of employees and caused
a major barrier to change.

McDonalds Restaurants: A Case Study

With documentaries such as Super Size Me portraying McDonalds in such a negative

light and society in general becoming more health conscious, McDonalds had already obtained a
negative image. It would take time for customers to overlook their preconceived notions and
actually recognize the changes McDonalds was implementing to satisfy customers and regain
former customers. McDonalds went so far as to introduce a menu that included calorie counts
for all of their menu items and introducing healthy choice sections on their menus, as well as
continuing to introduce healthy options such as oatmeal and Egg White McMuffins.
Despite the many barriers to change McDonalds has had to face with the implementation
of healthier options and continues to face with many other changes the company goes through,
they have worked hard to ensure the easiest transition for their employees and the best results for
their customers.
Managing Change:
McDonalds, as everyone knows, is a huge franchise that has been successful worldwide.
McDonalds has won in the fast food business because of their ability to keep prices low, offer
quick service, and also win kids and parents over. Whats better than a hard-working parent
getting out of work and them being able to just simply going to pick up a kids meal for their kids
and not have to go home and cook? With all the success that McDonalds has, they have also had
their fair share of backlash. Obesity came into play years ago, and hit McDonalds hard. So many
documentaries were made of how unhealthy the food was, and this really hit the company hard.
With all this criticism, McDonalds had no other option but to implement change.
It was time for McDonalds to revamp their menu to meet the evolving needs of their
customers. The time for change had come, and was necessary as the company was experiencing

McDonalds Restaurants: A Case Study

quarterly losses. What McDonalds ended up doing was changing their menus, introducing
healthier menu items, and placing the calorie count for each item on the menu so customers
would know what they were eating. These upgrades really created a positive outlook for the
company. The company made visual changes to its interior and exterior structures as well, that
changed the way we look at McDonalds. The company was no longer a dollar burger joint that
anyone could go to. The restaurants became more modernized and provided a bigger section on
their menu.
The beloved Happy Meal also underwent change, to meet the demands of parents who
wanted healthy alternatives for their children. Parents now have the option to choose milk as the
beverage for their child. The portion of fries has decreased dramatically, and all Happy Meals
come include either apple slices or yogurt In general, these changes received positive reactions
from parents. The standard menu was also expanded to include salads with grilled chicken and a
new line of real fruit smoothies.
Companies today are going through change daily because society is changing and the
company must meet the demands of society. For the past couple of years health and fitness has
been a huge change in society and everyone thinks about being healthy and fit. McDonalds is
now able to cater better to society with the changes they have implemented. McDonalds
managed change well and responded accordingly to the needs of their customers. A company
must manage change properly to succeed; panicking during change will often lead to failure.
Evaluating the Management to Change:
Throughout the years, the McDonalds franchise has faced harsh criticism and negative
publicity due to the changing nutritional attitude and behaviors of the growing population.

McDonalds Restaurants: A Case Study

Todays generation is more concerned with their health and figures than ever before. Their
overall goal is to improve customer perception of their food quality, contribute to decreasing
child obesity rates by developing healthier food alternatives/options, and maintain the latest
trends in health awareness.
McDonalds used the ADKAR model to evaluate the effectiveness of management
change. Managers use the ADKAR model by demonstrating five key roles to achieve successful
individual and organizational change. The five key roles include:
1. Ability to implement necessary skills or behaviors McDonalds successfully
implemented change by rigorously evaluating its goals and objectives. New and
healthier food menu options and alternatives were introduced in addition to the
calorie counts to its menu boards.
2. Desire to participate and support necessary change McDonalds overcame
resistance to change and together gathered the participation and support needed to
successfully administer change. Such participation increased profits and customer
satisfaction and decreased employee resistance.
3. Attain knowledge needed to train, inform, and work closely with other individuals in
order to increase ability and confidence to effectively achieve performance
McDonalds studied and gathered important information that would help them
evaluate constant changing market demands, competitors strengths and weaknesses,
and customer needs and behavior. Identifying these key elements helped prepare them
for future changes needed.
4. Become aware of needed change and required skills and behaviors McDonalds
became aware of the need for change due to external factors and decided to increase
innovation to further develop awareness needed for the markets changing demands.

McDonalds Restaurants: A Case Study

5. Reinforcement is required to sustain the change McDonalds maintained

reinforcement post implementation of change. Reinforcement was administered
through rewards for its employees and constant positive words of encouragement.
This continuous practice has further helped achieve the business goal of changing
customer perception into a positive one.
Due to the administration of the ADKAR model, McDonalds has achieved positive
results. Profits have increased while developing innovative ways of improving peoples lives.
McDonalds makes it its mission to fulfilling its customer needs. They identified the health issues
brought forth by society and took action in providing healthier food options while maintaining its
low cost food menu.
Conclusion in Case Study:
As a group, our research shows that McDonalds primary focus is to respond to the
healthier well being of its company, employees and customers positively. Even though the
company has faced several internal and external setbacks McDonalds has worked hard to ensure
its mission to fulfill customers needs and perfecting their organizational formula for their
company today and for the future.

References
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http://www.academia.edu/8609489/ADKAR_Model_vs_Quality_Management_Change

McDonalds Restaurants: A Case Study

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