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McDonalds Effective Leadership

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Francisco Oliveira

on 17 April 2015

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Transcript of McDonalds Effective Leadership

Maurice McDonald
Leadership Styles & Traits
Don Thompson

Richard McDonald
Ray Kroc
1940: First restaurant
Mcdonalds Bar-B-Q Restaurant
San Bernardino
In 1955 the company became a franchise agent when Ray Kroc built his first restaurant called McDonald's in Des Plaines (Illinois)
"drive-in", but
with different

Participatory Leadership Style
Transformational Leadership Style
Was born 1963 in Chicago Illinois.
Attended North Central High School in Indianapolis.
Earned his BS degree in 1984 in electrical engineering from Purdue University
He also holds an honorary doctorate from Excelsior College.
Personal vs. Organizational
24 Years at McDonalds Climbing Corporate Ladder

1st African American CEO

“Papa Bear” Style

Failure to Turn Around Performance
Sales declined
Stock declined
New Product Failure
McLean Deluxe
Mighty Wings
Struggle to Stay Relevant
Customization of menu items +/-
Late to make technology advances

Improve visibility- give interviews
Communicate clear messages
Brand confusion
Waivering opinion on worker pay
Provide employees with tools to succeed
Reinvigorate franchisees, clear direction
Keep up with changing environment
Create more diversity within the organization’s leadership and board

What should have done done differently?
Supportive Leadership Style
How the situation may have impacted some of the key decisions made by Don Thompson?
Technological Factors forces that create new technologies, creating new market and product opportunities
Threat of Potential Entrants

Threat of Substitutes and Replacement Products

Threat of Competitors

Stakeholders Perception how the consumers, distributors, suppliers and stakeholders view the company and the products marketed
Follower's Impact
The menu was too broad and complex for consumers and restaurant employees.

Lost business to Chipotle, Five Guys Burgers and Fries, and other smaller food outlets.

McDonalds business for 2015.

Lay offs
Impact on Diversity

After his first year as CEO, He led the company through a very competitive period.

Employee morale was high.

Leader involves employees in project decisions
Employees have some independence of action

Leads to a more adaptive, flexible employee structure

Considering the needs of the follower
Leadership is proactive
Work to change the organizational culture by implementing new ideas
Motivate and empower employees to achieve company’s goal by appealing higher ideals and moral values

Motivates followers by encouraging them to transcend their own interest for those of the group or unit
Shows concern for followers welfare and create a friendly working environment
Helps to increase follower's self-esteem and make job more interesting
Show acceptance and positive regard for others.
Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.
is to be our customers' favorite place and way to eat and drink.
We place the customer experience at the core of all we do
We are committed to our people
We believe in the McDonalds system
We operate our business ethically
We give back to our communities
We grow our business profitably
We strive to continually improve
The McDonald's worldwide restaurants offer prepared foods, with the highest levels of quality and hygiene, from basic natural ingredients such as
dairy products
in-restaurant recycling strategy
Energy saving 20%
Corporate Social Responsibilities
Economic factors – affect consumer purchasing power and spending patterns
Technological factors – forces that create new technologies, creating new market and product opportunities
Threat of potential entrants

Economic Factors affect consumer purchasing power and spending patterns
Work Cited

Athavaley,Anjali."McDonald's CEO Don Thompson leaving after tumultuous run."Reuters. ReutersUS.,29 Jan.2015.Web.3 April 2015

Austen, Ben. “McDonald’s CEO Don Thompson The Remarkable Rise and Fall of McDonald’s CEO.” Chicago Magazine Mar 2015: N. pag. chicagomag.com. Web. 12 Apr 2015.

Berman,Jillian. "McDonald's CEO Don Thompson steps Down."HuffPost Business.HuffingtonPost., 29 Jan. 2015.Web. 4 April 2015

Ellis, Sam. The tipping point for customer-centered leadership. 2015. Web. 12 March 2015.

Goldman, Eric, Santos, Tiago & Tully, Sara. Observation of Leadership & Organization Behaviors at McDonalds. 2008. Web. 12 March 2015.

Hume, Sam. McDonald's CEO Jim Skinner - R&I's 2007 Executive of the Year. 2007 Web. 12 March 2015., from Restaurants & Institutions:

Lussier, Robbert & Achula Christopher. Contingency Leadership Theories. 2012. Web. 12March 2015.

McDonald's Corporation. Corporate. 2008 Web. 12 March 2015.
McDonalds.com. N.p, n.d. Web. 12 April 2015.

“McDonalds CEO Quits Before Board Fires Him- Abject Failure in Position of CEO Three Consecutive Years.” (in press). Web. 12 Apr 2015.

“McDonald’s When the Chips Are Down.” Economist 10 Jan 2015: N. pag. Print.
O'Connor,Clare. "What McDonald's Must Fix After CEO Don Thompson Ouster." Forbes. Retail., 30Jan.2015.Web.2 April 2015

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