1. UNIT 1: DEVELOPING STRATEGIC
MANAGEMENT AND LEADERSHIP
SKILLS
STRATEGIC MANAGEMENT AND LEADERSHIP IN
MCDONALD
AKINYEMI OLUWAYINKA JOHN
(REGIONAL MANAGER)
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2. CONTENTS
• Introduction
• Definitions
• Link: Strategic Mgt & Leadership
• Strategic Objectives
• Functions Within McDonald
• Functions of Management & Leadership
• Achieving Strategic Objectives
• McDonalds Strategic Decisions
• Management – Leadership Styles
• Impact of management & leadership styles
• Situations
• Conclusion and Recommendation
• Reference
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3. INTRODUCTION
• This presentation's aim to explain how the functions within McDonalds
manage and lead towards achievement of the strategic objectives. It
examine the links between strategic management and leadership styles,
also analyse effect on the strategic decisions.
• Today Mc Donald's,
 More than 34, 000 restaurants
 118 countries
• Restaurant Ownership of McDonald's
 59% of Conventional franchisees
 21% Licensed to foreign affiliates
 20% Company operated
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4. 1.1 DEFINITIONS
Strategic Management: is
the comprehensive collection
of ongoing activities and
processes that organisations
use to systematically
coordinate and align resources
and actions with mission,
vision and strategy throughout
an organisation (Balance
Scorecard Institute 2014).
Strategic Leadership: is
the collective actions of
formal and informal leaders
acting together to influence
organisational success/
Process of Influencing
People for achievement of
certain goals in a given
situation. (Pasmore 2009).
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5. 1.1 LINK: STRATEGIC MGT & LEADERSHIP
• Atreya (2013) Strategic management is about setting
vision, mission, goals and objectives for achieving
excellence and the strategic leadership is to ensure
that the results are being achieved by motivates and
persuades staffs to share that same vision.
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6. 1.1 STRATEGIC OBJECTIVES
• To place customer experience at the core of all we do
• To committed to our people
• To Believe in the McDonald’s System
• To operate our business ethically
• To give back to our communities
• To grow our business profitably
• To strive continually to improve
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7. 1.1
FUNCTIONS WITHIN MCDONALD
• Administrative/ Human Resources
• Finance
• Customer & Restaurant Services
• Legal
• Distribution/Logistics
• Marketing
• Product Development
• Hygiene, Safety & Security
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8. 1.1 FUNCTIONS OF MANAGEMENT &
LEADERSHIP
MANAGEMENT
• Planning
• Organising
• Leading
• Controlling
(Jones and George 2008).
LEADERSHIP
• Setting Vision
• Achieving the task
• Developing the individual
• Building and maintaining
team
(Mitesh 2009)
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9. 1.1 ACHIEVING STRATEGIC OBJECTIVES
Coordinate resources
Training needs
Attend to Customers
Legal advise
Targeting our Customers
Quality Assurance
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10. 1.2 MCDONALDS STRATEGIC DECISIONS
 Plan To Win – People, Products, Place, price and
Promotion
 Internationalisation – Expansion through franchising
 Marketing – Modern Technologies, Menu Expansion,
Negative Press, Packaging Re-design
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11. 1.2 MANAGEMENT – LEADERSHIP STYLES
• Autocratic Leadership
• Bureaucratic Leadership
• Charismatic Leadership
• Laissez Leadership
(Badshah 2011)
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12. 1.2 MANAGEMENT – LEADERSHIP STYLES
CONT..
• Autocratic Leadership
Manager seeks to have the most authority and control in
decision making,
Manager seeks to retain responsibility rather than utilise
complete delegation,
Manager seeks to make as many decisions as possible,
Consultation with other colleagues is minimal and decision
making becomes alone process.
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13. 1.2 MANAGEMENT – LEADERSHIP STYLES
CONT..
• Bureaucratic Leadership
Leader expect employees to display a formal business-like
attitude in the workplace and between each other,
Managers gain instant authority with their position,
Employees are rewarded for their ability to adhere to the
rules and follow procedure perfectly,
Bureaucratic systems usually gradually develop over a long
period of time.
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14. 1.2 MANAGEMENT – LEADERSHIP STYLES
CONT..
• Charismatic Leadership
Charismatic leaders inspire other and encourage them to be
their best,
Employees and group members always want to impress a
charismatic Leader, so they work hard and strive to succeed.
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15. 1.2 MANAGEMENT – LEADERSHIP STYLES
CONT..
• Laissez Leadership
Very little guidance from leaders,
Complete freedom for followers to make decisions,
Leaders provide the tools and resources needed,
Group members are expected to solve problems on their own.
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16. 1.2 IMPACT OF MANAGEMENT & LEADERSHIP
STYLES
• Autocratic Leadership
 Faster decision making
 Teams become dependent upon their
leader
• Bureaucratic Leadership
 Quality work & Ultimate control
 Lack of self-fulfilment
• Laissez Leadership
• Charismatic Leadership
 Allow the visionary workers
 Positive work environment
 Less productivity and
 Lengthy and ‘boring’ decision making
 Job fall back on someone else or are not
completed
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17. 1.3 GLOBAL STRATEGY & LOCAL SPECIALISATION
SITUATIONS
• In order to open over 25,000 locations, Mcdonalds had to
go worldwide and introduce its food to people who have
never had burgers before
Situation 1: FRANCE
Situation 2: INDIA
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18. 1.3 SITUATION 1: FRANCE
• Take their time when
they are eating
• Idea of fast food against
their culture
• Fancy restaurants
• French potatoes and
French cheese
• Democratic ManagementLeadership style
Successful initiative
Creative thinking
Personal Development
Delay in decision making
Dangerous when manager lacks
expertise
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19. 1.3 SITUATION 2: INDIA
• No beef/Vegetarian
• Can’t eat most of native
products
• Cows are holy in their
culture
• Getting rid of beef &
selling chicken products
• Different menu
• Opened Vegetarian outlet
• Served Indian favourite
• Bureaucratic ManagementLeadership style
Market sensitivity
Quality work
Ultimate control
Lack of self-fulfilment
Lack of creativity
Poor communication
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20. CONCLUSION AND RECOMMENDATION
• Fiedler (1967 cited in Nasso 2014: 21) suggested
applying an appropriate management-leadership
styles to a situation is always determined by the
nature of the situation being face by a particular
manager – leader.
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21. •THANK YOU!!!!!!!!!!!!
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22. REFERENCES
•
Atreya, B. (2013) what is the relationship between strategic management and strategic leadership? [online] available from
<http://www.researchgate.net/post/What_is_the_relationship_between_strategic_management_and_strategic_leadership> [17 February 2014]
•
Badshah, B. (2011) Strategic Management & Leadership [online] available from <http://www.slideshare.net/bilalsaidbadshah/strategicmanagement-leadership> [17 February 2014]
•
Balance Scorecard Institute (2014) Strategic Planning Basics [online] available from
<https://balancedscorecard.org/BSCResources/StrategicPlanningBasics/tabid/459/Default.aspx> [17 February 2014]
•
Cardinal, R. (2014) 6 Management Styles and When Best to Use Them – The Leaders Tool Kit [online] available from <
ttp://leadersinheels.com/career/6-management-styles-and-when-best-to-use-them-the-leaders-tool-kit/> [10 February 2014]
•
CIPD (2014) Leadership [online] available from <http://www.cipd.co.uk/hr-resources/factsheets/leadership.aspx> [11 February 2014]
•
Jones and George (2008) Contemporary Management [online] 5th edn. New york: The McGraw-Hill. available from
<campus.murraystate.edu/academic/faculty/.../PowerPoint/Chapter01.ppt> [17 February 2014]
•
McDonald's Team (2014) Department [online] available from
<http://www.aboutmcdonalds.com/mcd/corporate_careers/working_here/departments.html> [10 February 2014]
•
McDonald's Team (2014) Mission & Value [online] available from
<http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html> [01 February 2014]
•
Mitesh, V. (2009) Leadership [online] available from <http://www.slideshare.net/meet007/leadership-ppt-1903712> [17 February 2014]
•
Murray, A. (2014) 'Leadership Styles'. The Wall Street Journal [online] available from <http://guides.wsj.com/management/developing-aleadership-style/how-to-develop-a-leadership-style/> [10 February 2014]
•
Myers, S. (1994) Definitions of Leadership and Management [online] available from
<http://www.teamtechnology.co.uk/leadership/management/definitions-of-leadership-and-management/> [11 February 2014]
•
Nasso, E. (2014) Development Strategic Management and Leadership Skill. Unit 1, 29 January 2014. Birmingham: Stanfords College
•
Vignettes (2010) Functions of Leaders and Managers [online] available from
<http://www.vignettestraining.com/galleries/trainers/download/LD_5s.pdf> [10 February 2014]
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