What Does McDonalds Fast Food Company Require to Be Successful in the Victorian Market - Coursework Example

Progress Report The decision chosen for analysis is decision 1 which is McDonald’s decision to open a new restaurant at Tecoma in Victoria. I have done a lot of research on the topic and the course in general this has sharpened my ways of carrying out research in my studies in any related topic even if it is a complex one. My reaching skills have improved day by day during my studies and especially in this course. In this paper my research skills have been put to test and I have shown that I have gone to deeper depths of carrying out academic research in any given topic. I have skills in getting academic sources and research from various avenues search as the websites, libraries and all the other academic acceptable resources. In relation to the three perspectives the research has been great and I have done my best to analyse the topic using the different perspectives so as to give out the best analysis and give the best possible results. The three perspectives will help give the different possible views that can result from a decision taken by any organization. This can help in giving the best conclusion according to the analysis. The only problem I experienced I would require help is relating the three perspectives. Decision analysis Modernist analysis the modernist theory states that possessing of complete knowledge means one has the understanding of the way an organization carries out its functions in different environmental conditions. These environmental conditions help the organization balance its internal and any pressures that are coming from outside the company. The reaction resulting from these pressures shows how the company is effective by adapting to any changes resulting from such pressures. In this decision analysis the organization being analysed is McDonalds. This organization is one of the companies dealing with fast foods and owns a lot of food joints in so many countries. The organization has a lot of outlets in Australia and has attracted a lot of customers from all the backgrounds and cultures. The company is one of the largest food producing companies with a lot of operations in major cities of the world. To help in the analysis there is need to use of the theories and the most appropriate theory is environment. Environment In modernist organization theories, environment is defined as the activities outside the walls of the company. These activities include the source of raw materials for the company products and any other input that will help in realising the company’s products and services. The company McDonald will succeed on its decision to expend because of this theory. The theory of environment has a lot of forces could have effect on an organization. These forces that will have impact on McDonald’s decision include social, economy, legal, political and technological environments. The success of the company’s decision will depend on how the company will match the internal structure and the forces of the environment. The social factors The social forces of the environment include population structure, life style, and structure of the class and mobility patterns. These relate to behavior, lifestyles and tastes of consumers. The company should consider the consumer behavior because, their changes in cultural practices will lead to changes in their fashions and styles (Thomas, 2008). They should also consider the population structure, that is, the age structure. This will help plan effectively on current market situation and to predict the future. McDonald’s should invest where there are a lot of young people because they form a large base of their customers. The company should work towards identifying the social changes that might occur in future. This will help them plan for the future market situation. The decision to invest in Tecoma will be a success if the company will take into consideration the taste of the victoria people. The company should maintain its taste and production of its known brands. The victoria population comprises people who are young especially university students. This structure of the populations means that the organization should have a product that attracts the young people into their outlet. The life style of the majority of the people in this region should be considered in this analysis. Many people in the area prefer taking snacks and fast food in such outlets; therefore, this decision will benefit the company because it will help the customers get what they require from a known outlet. The legal factors The legal factors should also be considered. These are the laid down rules and policies that companies should follow. McDonald’s have to identify such policies in their areas of investment. The legal frameworks include consumer protection, environmental legislations, health and safety and employment law. McDonald’s should work to understand the policies in time of their investment. The company should take proactive measures to ahead of such changes in case they occur. The company should, therefore, follow the laid down policies to the letter to avoid disturbances in the market. The company should ensure that they follow the set labor policies in the area so allow avoiding any problems with law. The company should also research about the environmental requirements in the area so as not to interfere with the set environmental requirements. This will ensure the company takes measures to avoid pollution. The economic factors Economic factors are factors that directly affect investment and the company’s profits. They are to be considered before any international venture. They include interest rates, which is the cost of borrowing money. A company should invest when investment rates are low to avoid making losses when it comes to the time of payment. A boom is a time when company or a business is earning high profits. It is not advisable to invest during such a time because; it does not reveal the real image of the market. A slump is a kind of economy fluctuations when most businesses make huge losses and close down. McDonald’s should not, therefore, invest in such a time but should wait when the conditions are favorable. Levels of demand at this time, is the consumers’ willingness and ability to buy. It should be highly considered during investment. The company should invest in a market where there is a rising demand. This is because; the company will be assured of a ready market which can be exploited. The rate of inflation, which is, a general hike in commodity prices, should be considered during investment. This is because; it could lead to collapse of the market when it causes the prices to rise beyond affordability of consumers. It will also make it expensive for the companies to do business leading them to losses. Wage rate is the pay that is going to the company’s employees. The company should consider a venture where wage is low. The reason behind this is that, low wage rates means cost of production is low, and the company will make large profits while selling at a low price. Investing in Victoria will help the company increase its revenue through the new outlet because most of the factors in the region are favorable to the company. The company will face a lot of competition from the other established companies and the company may gain losses in its first months of its operation. The reason behind this is that the customers do not naturally trust new businesses and they will wait for such a company into established and prove itself in the market. The company will also take advantage of the huge population in the area which comprises of the young people who have to take fast food because they do not have to time to prepare their own food. Therefore, their target market should be the young generation especially the students. The company should find a location that is appropriate and near the areas with many young people. Political factors Political factors are the changes that arise as a result of government influence. These include policies passed by the regional organizations. The company needs to consider such factors such as freedom of movement. The company should invest in a country where there is freedom of movement. This will enable the company to use their resources freely including human capital to strengthen the new ventures. Freedom of movement and other favorable factors increase competition, which will, help McDonalds, penetrate the market freely without any discrimination from international governments. The policies in Victoria are favorable because there is no policy that limits investments. The company will benefit from tax exemption in the region before it gets into full operation. The government does not interfere with the operation of investors because they have the freedom to operate. Technological factors Technological factors are the changes that arise from advances in communication. McDonald’s should be aware of technology used in the fast food industry. This will enable the company to be in competition with rival companies in the market and industry. They should invest in technology which will make the company outstanding and favorable to consumers. They should also use modern forms of technology to do marketing. This can be done through the social networks and other types of media. The modern technology enables companies to share information. McDonald’s should also invest in technology to cut down costs and improve in service delivery. The company should highly invest in research and expansion in order not to remain behind its competitors. McDonald’s should go global after having considered all the above factors. The information will enable the company to realize the best time to invest in an international market. The company should also analyze the social, legal, economic, political and technological factors that might affect the company’s investment in the future. The company should take proactive measures to ensure they are not negatively affected by any changes in the market (Hollensen, 2010). McDonald’s will be able to penetrate the international market if all the factors and recommendations are put in place. Symbolic-Interpretive Critique The theory of symbolic interpretive critique is very subjective as opposed to the theory of modernist with is objective. The theory states that we cannot know an external or its objective existence of such a belief. The theory states the existence of such a thing in one’s subjective awareness. This theory calls for agreeing with the things that exist rather than those we assume they exist. Therefore, in this case of the McDonalds decision the theory would call for starting of the business without research because the business will take the cause of the existing things. According to this theory an organization is a created and maintained by human being through plans such as human resource strategy is multidisciplinary and it relates the disciplines of psychology, economics, law and even sociology. In the discipline of psychology, there is satisfaction and motivation, sociology; culture and organization culture, Economics; wages, resource and markets, while in Law, there is labor contracts and wage. Human resource management is entrenched within the work of managers and individual contributors because there is a need to manage people, and teams to get work done. HR strategy entails a cycle from setting of goals, to performance measurement, then to coaching, to performance evaluation, to rewarding, then to appeal, back to goal setting, and the cycle goes on. The context of HR strategy system in the organization of work and technology of production, looks at; employee skills which are required, easing of monitoring the input of employees, and physical layout of employees. Human resource strategy is the critical aspect that influences performance of a company or a firm. Human resource strategy is the same as an arrangement that involve the board of directors or the top executives of a firm/ organization. Therefore, this theory aims at testing the already existing structures. The theory also states that the law of interpretivism should take its cause in explaining the existing things. This law states that all knowledge is relative and its interpretation depends on the person possessing the knowledge. It states that the person possessing the knowledge understands it from their own point of view. The knowledge is helpful to those who are directly involved in the process of gaining and interpreting the knowledge. This theory is opposed to the theory of modernism which promotes the law of positivism which calls for actual carrying out things so as to get the results. In most cases, when starting a business or any other venture, planning is involved in order to foresee the needs of employment. In practice, human resource planning is not always given high priority, although it is usually viewed as a necessary aspect of the ideal model of successful human resource management. Planning is an essential aspect of strategic and business integration. The hypothesis of a developmental approach to workers is an ideal- form aspect of human resource management. Emphasis on dedication to organization goals is also a chief feature of human resource management model. In this aspect, techniques of career development and reward play a significant role where human resource planning is important. Success of a business or an event is linked directly to the performance of the workers or employee. Hiring the wrong people and failing to forecast hiring needs fluctuations are costly, therefore, it is necessary to invest in human resource planning. Integrating human resource planning and other aspects like strategy and employee development is necessary in making planning a responsibility of the organization. When planning, there is supposed to be an attempt of forecasting the likelihood of whether there will be a disparity between demand and the supply of labor, and therefore, prepare the correct adjustment policies. When planning, there is the need to put in mind the external environment versus the internal supply. During HR planning, workforce analysis is the key aspect. When carrying out a comprehensive workforce analysis, there is need to focus on the vital demographic employment information and characteristics like age, average, sex, skills, occupational group, and internal workforce trends like retirement eligibility, turnover and vacancy rates. In theory, the above is expected to be done, but in practice. External scan is also necessary when planning since there might be some external aspects that might influence the workforce capacity. The external scan should put into consideration existing opportunities that can be of advantage to the organization, and also risks in the external environment that the workforce might come across, and identify strategies to deal with those risks. Human resource planning helps in performance management, which is aimed at improving the employee’s performance and in the long run, achieving the organization’s goals and mission. The theory modernist believes in the real world and existence of things while the theory of symbolic interpretive believes in organization as constructed structures that are controlled by human beings. Performance management is a partnership between the employees and the supervisor. By setting performance standard, providing feedback after observing, then performing appraisals, aid in achieving the best outcome and this is by managing employee performance. The supervisor and the employee are supposed to collaborate on performance standards development. Performance management is an integrated and strategic approach that delivers triumphant results in firms and organizations. This is done through developing team capabilities and improving performance of individuals and teams. In the early 1980’s is when the performance management term gained popularity, when quality management programs acquired paramount importance for achievement of quality performance and advanced standards. With the rise in quality and popularity of performance management, tools like leadership development, job design, reward system and training also received the same impetus together with the conventional performance appraisal process in a new widespread framework. Performance management is a continuous and cyclical process in nature. It is important to always note that performance management is the process that sets the platform on which rewarding of excellence is done, by aligning personal employee accomplishments, as according to the organization’s objectives and mission of ensuring that the organization and the employee understand the need for specific job in achieving the outcomes and result. Postmodern critique This theory proposes to correct the gaps left by modernist theory it is the period after modernity. The discourses of the postmodern also appear in the field of theory and focus on the critique of modern theory and arguments for a postmodern rupture in theory. Discourse may be defined as use of language as part of social aspect of life. It is a way used by socialists and linguists to signify particular happenings from different perspectives that very in better understanding. It works hand in hand with the discourse practice which helps develop the communication in the social context. It also relates to discursive event which is the act of analysing social practice, language and even a text. It helps identify different aspects that should be used in the analysis of different social practices to help in better understanding. Genre can be defined as any act of using language in a social context to deliver a message to a given audience. Genre helps in identifying different aspects of communication through the language. It works closely with the above mentioned aspects to give a better understanding in an analysis. It gives a clear line between an event and other social activities that require social action. Genre is the most important aspect that can be used in an analysis because it helps identify different elements of communication such as mood and message. Text can be defined as any material written or any spoken information produced during a discursive event at a given particular time. Texts are highly used in analysis because they provide the necessary information to be used in an analysis. According to many researches that have been carried out there is no theory that have been agreed upon to govern operations in the human resource sectors. The theories used have attracted a lot of criticism from people who think the theories are not satisfactory in explaining and solving human resource problems. Even if theoretically it is possible to have a system of performance management that serves development purposes and decision making, in practice, this is very hard to achieve. Research done has shown that the rationale behind the rating (development versus decision making) influences the observed ratings. Ratings that are used for decision making in most cases have a tendency of being lenient, and most employees receive ratings which are on the higher side of the scale. Developmental purposes ratings have a tendency of being more variable, and in turn, they reflect both employees’ developmental needs and strengths. It is not easy to emphasize equally development and decision making inside the same structure. Managers in most organizations evaluate the employees and they then convene to standardise their ratings, then they make reward decisions. Review sessions are later conducted by managers to every employee so as to discuss the performance of the employee, stock option grant and pay increase. As much as developmental response is expected to be taken account of in the meeting, the percentage range increase and options of stock is large, hence allowing mangers to associate rewards with performance effectively. In this way, most of the meetings focus on justification by both sides, instead of how an employee can develop. The meeting climate in most cases is not favourable to receiving and giving feedback, and on the other hand, employees are reserved in discussing their developmental requirements because they fear that this will impact negatively on their rewards. Even in the case of the tough performance based on the culture of this organization, the feature of performance, based on decision making is accorded more weight. Another contrast in theories is that a manager should let the employees operation in a free way but in the right direction. This theory calls for a close working relation between the managers and the employees of the organization. The manager works together with the rest of the employees as one of them. The manager as portrayed in this theory is a team player and a leader as opposed to theory of modernization. The manager is always on the front line to solve problems and help the other the employees on easy way of doing their duties. The theory portrays managers as friends to other employees’ duties delegated to them. The managers are result oriented do not aim at having work completed but also look for the quality of the outcome. The managers do not threaten their employees because they tolerate mistakes and help their subordinates to perform their duties in the right way. In analyzing this case and to have the best results the organizers should employee this theory. Managers in this theory always welcome suggestions and any constructive critics that will help in improvement. The managers delegate duties to all the employees so as to make them feel part of the company or the organization. The managers are accountable to them and therefore, ensure they have the required results. Therefore, due to the quality and nature of managing this event the organizers should employ this theory because it acts as a way of managing performance. The theory itself is a way of quality assurance because the project does not move until all problems are solved. Conclusion McDonald’s fast food company requires a lot of research to be successful in the Victorian market. It requires implementing ownership as the best market entry strategy because, it outweighs all the rest. It should also consider an analysis of social, legal, economic, political and technological factors that might affect its operation in the international market. The company should also consider the components of market by analyzing each one of them and weighing their applicability in their favor. McDonald’s, being a reputable company in the Australia will register success in the international market given its experience in fast food industry. The company should also put into consideration its organizational structure that will cater for the company’s ventures. References Hollensen, S., (2010). Global marketing: A decision- oriented approach. 5th Ed. New Jersey: Prentice Hall. Vattimo, Gianni (2005). The End of Modernity. Oxford and Baltimore: Polity and John Hopkins University Press. Baudrillard, Jean (2005). "Modernity," Canadian Journal of Political and Social Theory Vol. 11, Nr. 3 (orig. 1985): 63-73. Dickens, David and Fontana, Andrea. (2009). Postmodernism and Social Inquiry, forthcoming, University of Chicago Press. Drucker, Peter F. (1997). Landmarks of Tomorrow. New York: Harper and Row. During, Simon (1987) "Postmodernism or post-colonialism today," Textual Practice, 1, 1: 32-47 Etzioni, Amitai (1968) The Active Society. Featherstone, Mike (2008) "In Pursuit of the Postmodern," Theory, Culture, & Society 5: 2-3: 195-216. Denzin, Norman K. (1996) "Postmodern Social Theory," Sociological Theory Vol. 4: 194-204 Read More