MGMT

Thomson Crafting and Executing Strategy

Osiris Hernandez

MGMT 3900

Professor Phillips

11/24/20

In the following paper, I will be discussing chapter 12. In chapter 12 “Corporate culture and leadership: Keys to good strategy execution”, it speaks about the core of a companies values and what steps they are willing to take in order to build its corporate culture.

Chapter 12 Corporate culture and leadership: Keys to good strategy execution

LO 1 The key features of a company’s corporate culture and the role of a company’s core values and ethical standards in building corporate culture

In learning objective 1 it speaks about the different values a company could have and how the way they run their business should reflect the values. It also speaks about the principles that drives high-performance culture by Epic.

Example 1: Corporate culture. This refers to the shared values, ingrained attitudes, core beliefs, and company traditions that determine norms of behavior, accepted work practices, and styles of operating. McDonald’s corporate culture is based on the shared value system and maintains a standardized quality process to ensure the same quality and reduction in lead time. McDonald’s has the vision to be the best employer in each community in the world. The restaurants are run either by franchise or as corporate itself.

Example 2: Finding people that accentuate your corporate culture. Make the display of cultural norms a factor in evaluating each person’s job performance, granting compensation increases, and deciding who to promote. Mcdonald’s Core Values and Standards of Business Conduct emphasize the importance of supporting people. This is understandable, considering that McDonald’s is a service business. To ensure support for people, the company’s organizational culture encourages employees to engage management to help improve processes and procedures.

Example 3: Part of Epics ten commandments include Have standards. Be fair to all.

Have courage. What you put up with is what you stand for. Teach philosophy and culture. Mcdonalds achieves all of these goals in their values and the way they treat their employees as well as how they run their thousands of businesses. The way they do this is by being very personal and every franchised restaurant has their owner who makes the decisions for their location.

LO 4 What constitutes effective managerial leadership in achieving superior strategy execution

In learning objective 4 it speaks about how managers should treat employees as well as the engagement in the workforce that will create value for the employee.

Example 1: Management by walking around is one of the techniques that effective leaders use to stay informed about how well the strategy execution process is progressing. To facilitate individual learning, the company offers training and development opportunities through Hamburger University, internships, global mobility, and leadership development programs.

Example 2: Diversifying the industry. By diversifying you give people a sense of openness and being able to fit in. McDonald’s official human resource management policy states that diversity and inclusion are key factors in the firm’s organizational culture. McDonald’s recognizes the importance of diversity and inclusion in optimizing HR capabilities to deal with an increasingly diverse market. To ensure support for diversity and inclusion, McDonald’s organizational culture encourages employees, suppliers, franchisees, and customers to give their feedback and engage in meaningful conversations to improve the business.

Example 3: Executing strategy and leading the strategy process. Crafting, implementing, and executing strategy is a continuous process that requires much adjusting and fine-tuning of the strategy to fit changing circumstances. An example of this when McDonald’s started executing different ideas after being dormant from 2011 to 2014.

In conclusion in order to achieve maximum results you have to separate the process of executing strategy from actually leading executing strategy. Crafting and implementing strategy as well as testing strategic leadership are the three conditions that exist in order to be able to be successful in this industry.

Works Cited

“Examining The Corporate Culture And Values Of McDonalds Corporation.” UKEssays.com, www.ukessays.com/essays/business/corporate-culture-and-values-of-the-mcdonalds-corporation-business-essay.php.

Team, Trefis. “How McDonald's Is Effectively Executing Its Turnaround Strategy?” Forbes, Forbes Magazine, 3 May 2016, www.forbes.com/sites/greatspeculations/2016/05/03/how-mcdonalds-is-effectively-executing-its-turnaround-strategy/?sh=596cc8984c69.

Thompson, Andrew. “McDonald's Organizational Culture Analysis.” Panmore Institute, 5 Feb. 2017, panmore.com/mcdonalds-organizational-culture-analysis.