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MGC3130 The Management Of Change

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MGC3130 The Management Of Change

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MGC3130 The Management Of Change

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Course Code: MGC3130
University: Monash University is not sponsored or endorsed by this college or university

Country: Australia


Your essay should appropriately cite theoretical models and research findings to support these views. This should include academic journals, 2-3 academic books and appropriate websites as well as grey literature to support your arguments and assertions.
Note that the reading provided in the unit to date is a good place to start with, to help support your arguments/perspective. Answers that simply reflect opinion and that do not draw on the accumulated body of scientific knowledge on managing organisational change and development will not be rewarded.


The aim of this critical essay is to discuss the change management of a global company like McDonald’s in the Australian fast food market. Fist of all the company had to gain knowledge about various external factors like market environment and customer preferences before the entered Australian market as it a foreign market with different organizational culture and expectations (Gorran Farkas, 2013). This is the reason why the company had to change its strategies for getting the best result in the Australian market otherwise McDonald’s would not be able to do business in such a concentrated market. This change is essential for matching the changing preferences of the customers in the market (Jacobs, van & Christe-Zeyse, 2013). For this reason, the company is implementing changes mainly in the technological aspects and become the most preferred food chain brand in Australia. The company background states the fact that McDonald’s is a fast food company operating in the US market since 1954 (, 2018). McDonald’s has a popular brand image and a reputable history of achievements in the various counties’ market which has helped the company to enter new markets. The market segmentation of the company is wide for which the popularity of this brand has reached every big and small cities of the continents. The main strategy of McDonald’s is to offer customers a high-quality fast food cheaper than the competitors (, 2018).
This essay will discuss the company background along with the background to change and the main objectives to this change. This critical essay has described the changed through three most important theories and ADKAR model of change management to show how the change takes place.
Environmental shifts
McDonald’s constantly follows the method of innovation in the production of their food which is the chief success factor of this company worldwide. They understand that the social needs of the customers are changing so also the market demands. However, increasing health consciousness and avoiding greasy food hampering the brand reputation and increasing consciousness in obesity among target market has compelling the company to bring changes in the operation of the company. McDonald’s tops the list among the top ten fast food chains with 29.5% visitors (Chain, 2018). It has been also found that the company has highest customer return rate which is of 2.7 times. Its immediate rivals are KFC and Subway with 19.9% and 17% visitors (Chain, 2018).
Social factors
One of the chief problems of Australian food market is that it is highly concentrated with a huge diversity in offerings which is increasing he competition pressure. The other competitors of McDonald’s are more efficient as they get more technological support from the headquarters and serve the consumers more efficiently. As the lifestyle of the population has changed drastically, the people are preferring to visit the stores which takes much less time to serve them. The automation has changed the food preparation and delivery design of the sector. These have increased the expectation and comfort of the customers. From the financial data of Starbucks in Australia, it can be found that the company has increased business after it started to provide benefits of Wi-Fi to the customers in their shops (, 2018).
Technological changes
The company is really very concerned with the innovation among the competitors hence it has initiated in investing in the technological sector in order to provide a personalized and improved customer experience. Most of the competitors of McDonald’s in Australian market are using online marketing trend so that they can reach the young generation more successfully. The technological advancement in the customer service of the company can be automated (Lundin & Söderholm, 2013). In addition to this, the rival companies of McDonald’s and other companies in different sectors of Australia get benefitted by the trends analytics tools so that they understand their growth through performance improvements. For example, Domino’s Pizza has 9.2% visitors but has used trends analytics tools more to understand the practices of the branches and share them with others branches in the same market.
McDonald’s is a reputed brand worldwide yet follows the method of constant change to sustain the market of high competition. The fast food market of Australia has a wide variety as the cultural diversity of the place is high which gives no scope for the company to flourish. This is the reason why in the Australian market McDonald’s has adopted the strategies to follow the customer preferences for which it has started to focus on repositioning the brand. The why and how of changes can be seen from different perspectives. The nutritional attitude among the people has grown hence the company has decided to redefining its image and grabbing the attention of the health and nutrition conscious customers in the market of Australia (Kotter & Schlesinger, 1989). In addition to this the company has changed its outlook about the usage of technology in the operation system both inhouse as well as in the outlets. For grabbing attention of the customers, the mobile app has been introduced in which the customers will get customized menu options as well as delivery within desired period of time. Using analytic tools, McDonald’s can understand its position in the highly competitive market of Australia. In order to apply this change in the organization, the management followed some very essential steps which included using the organizational culture as an advantage for motivating the employees, connecting the changes to strategic as well as emotional benefits, encouraging the behavioral shifts, supporting changes with formal framework (Chrusciel, 2004). It is giving trainings to the employees to serve the customers in a better way which is reflected in its performance of the company. It has become the top most place to be visited among all the reputed food chains like KFC, Subway and Domino’s Pizza.
McDonald’s understood the changing behavior of the customers and the health-conscious factor prevailing in the market hence the management has decided to implement a new integrated marketing plan in the marketing strategy which involves innovation in the advertising as well as promotional campaigns to match the caging perception of the customers (Lynn Kaarst-Brown, 1999). Unlike other global companies this company is also engaged with various types of stakeholders of the market in which it operates. This multinational business has its stores in the large shopping centers and high streets across the market of Australia.  Hence the company has been affected by different external factors which compel the company to bring changes immediately Meyer, Neck & Meeks, 2017). The main drivers of this type of change in the organization includes the environmental shifts, technological changes and the high competition in the market.
Managing changes
As mentioned before, the application of change is important but maintaining these to get optimal outcome. The manage needs to define the change and align them to the business goals of McDonald’s. in this regard the reason of change and factors of change need to be understood (Benvenuti, 2011). For implementing changes in the organization, the company can apply different models and theories and gain the best result after the change. The incremental model of change argues that the different parts of the organisation deals separately with one goal at a time (Walley, 2013). This theory uses a continuous, consensus and evolving the building approach. The continuous transformation model of change argue that the change is necessary for each and every organisation. It is the pattern of continuous modification of the activities for bringing changes in the organisation (Akin & Palmer, 2000). Under this particular theory the organisations continuously set up and renew their strategies and adapt the business processes along with the resources for staying relevant in the highly competitive market. In case of McDonald’s the change is implemented in adopting the technological advancement in providing a personalized and improved customer experience. Now the customers can order as well as pay through the mobile app and open exclusive offers. This is helpful for the customers as well as the company. This is due to the fact that McDonald’s get the access the information about how frequently they visit the stores and where they prefer to go.
On the other hand, the company follows the ADKAR model in which the five factors help the companies to feel the need and realize why they want the change hence it is the basic tool for identifying scopes of change (Pan?, 2013). This help the management to identify the reasons why the target market is evolving (Waddell et al., 2016). The management determines the impacts as well as the affected stakeholders at different organizational levels (Foster, 2010). In this regard, proper review of the effects starting from the training and support systems are to be judged so that no part of the organization suffers anyway due to this change. Desire relates to the company’s strength and willingness to participate in the change so that it can excel in the market and make huge profit as well as customer satisfaction (Oswick & Montgomery, 1999). In case of McDonald’s, the changing lifestyle of Australian customers for continuous economic development. Knowledge relates the company’s ability to identify the methods to bring change in its operation so that it can match the continuously changing market demands in the long run (Barney, 2017). This knowledge of tools to satisfy the demands of the market is the way to bring changes and sustain in the fast food market of Australia (Meyer, Neck & Meeks, 2017).
Based on this, the management develops a communication strategy so that the employees both in group as well as individual can participate in the change process (Hitt & Duane Ireland, 2017). It also connects the customers through mobile app. This mobile app also allows the customers to enjoy the service through digital menus which is much upgraded and attractive. These menus are customizable according to the needs of the customers.  In addition to this, the company also has embraced data driven culture and employed trends analytics. This will help the company to understand the practices of the branches and share them with others. The company analyses multiple data points in the customer experience based on which identify the scope for improvement.
Therefore, it can be concluded that McDonald’s is a reputed company that need changes to match the demands of the market. Hence it has decided to bring changes in the menu to fit the expectations of the health-conscious consumers. Hence the company needs proper process though which this change can be managed for optimal outcomes in the company.
Akin, G., & Palmer, I. (2000). Putting metaphors to work for change in organizations. Organizational dynamics, 28(3), 67-79.
Barney, J. B. (2017). Resources, capabilities, core competencies, invisible assets, and knowledge assets: Label proliferation and theory development in the field of strategic management. The SMS Blackwell handbook of organizational capabilities, 422-426.
Benvenuti, S. (2011). Making a case for Change Management Theory to support IS/IT curriculum innovation. Issues in Informing Science and Information Technology, 8(unknown), 093-109.
Carlson, S. L., Harris, M., & McLeskey, N. (2013). Strategic planning for organizational effectiveness during dynamic change.
Chain, M. (2018). McDonald’s: Australia’s most popular fast food chain. Retrieved from
Chrusciel, D. (2004). Consultant as teacher or teacher as consultant: what is the relationship?. Leadership & Organization Development Journal, 25(8), 663-677. (2018). Company Overview | McDonald’s. Retrieved 7 sep 2018, from
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic management. Strategic Management Journal, 39(6), 1529-1529.
Foster, R. D. (2010). Resistance, justice, and commitment to change. Human Resource Development Quarterly, 21(1), 3-39.
Gorran Farkas, M. (2013). ‘Building and sustaining a culture of assessment: best practices for change leadership’ Reference services review, vol. 41, no.1, pp.13-31.
Hitt, M., & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic management research. The Blackwell handbook of entrepreneurship, 45-63. (2018). Starbucks Corporation – Financial Data – Annual Reports. Retrieved from
Jacobs, G., van Witteloostuijn, A., & Christe-Zeyse, J. (2013). A theoretical framework of organizational change. Journal of Organizational Change Management, 26(5), 772-792.
Kotter, J.P & Schlesinger, L.A. (1989), ‘Choosing strategies for change’, In Readings in Strategic Management, pp. 294-306, Palgrave, London.
Lundin, R.A & Söderholm, A. (2013), ‘Temporary organizations and end states: A theory is a child of its time and in need of reconsideration and reconstruction’ International Journal of Managing Projects in Business, vol. 6, no. 3, pp.587-594.
Lynn Kaarst-Brown, M. (1999). Five symbolic roles of the external consultant–Integrating change, power and symbolism. Journal of Organizational Change Management, 12(6), 540-561.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship?strategic management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Oswick, C., & Montgomery, J. (1999). Images of an organisation: the use of metaphor in a multinational company. Journal of Organizational Change Management, 12(6), 501-523.
Pan?, L. (2013). Social efficacy by responsible change management. Systemic Practice and Action Research, 26(6), 579-588.
Waddell, D., Creed, A., Cummings, T., & Worley, C. (2016). Organisational change: Development and transformation. Cengage AU.
Waldersee, R., & Griffiths, A. (2004). Implementing change: matching implementation methods and change type. Leadership & Organization Development Journal, 25(5), 424-434.
Walley, P. (2013), Stakeholder management: the sociodynamic approach, International Journal of Managing Projects in Business, vol. 6, no. 3, pp.485-504.

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