The paper “ How McDonald Company Capitalizes on Organization Theories” is a thrilling version of a case study on the management. The modern organizations operate in a more dynamic and competitive environment in comparison to traditional organizations. Many organizations today have emulated global strategies as a result of severe expansion in their business scope as compared to old organizations that rarely crossed the borders of the parent countries. Otley (2016 pg. 40) agrees that the changes in geographical locations of organizations subsidiaries and the diverse staffing strategies, therefore, means a change in dominant practices that theoretically prevailed due to strong theoretical backing from scholars.
Recently organizations according to Denrell& Powel (2016 pg. 35) have emulated new practices that give a competitive advantage to the ever-changing business environment. Traditional organizations entirely tied their practices and policies on theories that guided their operations as argued by McDonald & Vital (2016 pg. 67). Using the McDonald company as a case organization, this paper will aim to show the changing nature of the company's operations and related management issues using the contingency theory and the dynamic capability theory. Definition of the theories used. The organizational contingency theory claims that there is no best way to structure a corporation, lead the company and reach important decisions.
Instead, the theory argues that the structure used by a company depends on certain situations that the company is facing the notion that is also agreed by Shirokova et al (2016 pg. 45). In theory, the primary course of action is dependent on external or internal scenarios. The contingent theory suggests that in certain circumstances the contingent leader i. e. the CEO has to derive his own way or leadership style to match the current situation (Gerdin & Linton 2016 pg.
50). The theory is majorly applicable in this company as a result of major decisions that have been employed by the management to secure high customer base and have a competitive edge to companies such as Starbucks and Chipotle companies that wage high competition in the food industry according to Shao et al (2016 pg. 48). The theory suits the case, McDonald's company due to its present success in the food industry as a result of important strategies such as globalization and modern situational practices and policy formulation. On the other hand, Pisano (2016 pg.
90) affirms that the dynamic capability theory in organizations is the capability and abilities of the company to strategically adapt the company’ s resource base. The theory according to Brodie et al (2016 pg. 52) analyzes the firm's ability to integrate, develop and establish both internal and external prowess to tackle the dynamic and rapidly changing business environment. The theory suggests that the ability to react adequately to both internal and external changes needs integration of multiple options.
The theory basically as postulated by Brodie et al (2016 pg. 32) assumes that a company's major competencies should be built on short-term competitive angles which later can be developed into a long-term competitive advantage. According to McDonald & Vital (2016 pg. 64), this theory is relevant to the case study as a result of its multinational nature and the global strategies it uses in practices such as remuneration and recruitment.