Module Code: SM0374 Module Title: Strategic Management and Leadership Distributed on: February 2012 Hand in Date: Task: Write a management report (word limit 3,000 words) addressing the following...

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Module Code: SM0374 Module Title: Strategic Management and Leadership Distributed on: February 2012 Hand in Date: Task: Write a management report (word limit 3,000 words) addressing the following questions: Question 1 [60 marks] Choose one company from the following list. For this company, explain how successful you think it is and discuss the strategic reasons behind that success. Go on to suggest strategies and/or actions for ensuring success in the future. a) McDonald’s Corporation b) Dyson Limited c) Singapore Airlines d) Cathay Pacific Airlines e) The Alibaba Group f) Pixar Animation Studios g) BMW Group Question 2 [40 marks] Discuss the proposition that strategic drift in an organisation is caused entirely by failure of leadership. Illustrate your answer using the company Research in Motion Limited (RIM) and one further example of your own choice. Go on to suggest ways in which companies can avoid strategic drift. The assignment should be written in Times New Roman, 12pt, left-justified, 1½ spacing. Start each answer on a new page. Your student ID (but not your name) should appear on every page. All academic and other sources must be cited and included in a reference list. No appendices are permitted. The completed assignment should be submitted in a clear plastic folder (polypocket). Guidance Question 1: We want you to tell the reader what is “special” about the company and justify your answer with analysis using frameworks carefully selected from those you have been taught. Success could be measured in terms of growth, profitability, market share and so on. But how has the company achieved this position which may well have taken several years? It could be due to, for example: • Exploitation of opportunities in the factors in the far environment including market growth • A favourable near environment • Strong strategic capabilities leading to competitive advantage • A clear competitive strategy consistent with strategic capabilities • Development strategies leading to growth • Methods of strategic development supporting the growth strategy • A well-managed international strategy • An effective innovation strategy • Good leadership • A combination of two or three of the above So, start off with an outline of the most important reasons behind the success stated in a simple, straightforward way with a brief explanation of each reason. Then, identify two areas from the list above (or another part of the module) which you think are most relevant to those reasons and use an appropriate strategic framework to show how the reasons have led to success. For example, you may feel that a value chain analysis (done properly) will capture the most important reasons and this can be linked to an analysis of the competitive strategy to show how the company’s value-adding activities have supported the competitive strategy. You can then go on to ask what external and/or internal factors might make it difficult for the company to remain as successful as it has been. Further guidance, including an example, will be posted on Bb. Question 2: You need to explain the relevant theory about strategic drift and leadership and outline arguments for and against the statement. Remember that the statement may be true, partially true or wrong! Use the company examples to explain the significance of strategic drift for two real companies and the role played by the leadership of the companies. Submission of Assessment: All assignments must be submitted via the Undergraduate Programme Office. Each assignment must be accompanied by an Assessed Work Form which must be completed in full. The assignment will not be accepted by the Undergraduate Programme Office unless the form is completed correctly. An electronic copy of the assignment should be uploaded on Bb in the SM0374 Assessment Folder. Marked assignments will be returned to students. It is advisable to retain a copy of your assignment for you own records. Your mark will be returned on the Assessed Work Form via the Undergraduate Programme Office. Word Count The word count is to be declared on the front page of your assignment. The word count does not include title page, contents page, glossary, tables, figures, illustrations, reference list, bibliography and appendices. Summarising and compressing the information in your assignment into the word limit is one of the skills that students are expected to acquire, and demonstrate as part of the assignment process. Word limits and penalties for assignments If the assignment is within +10% of the stated word limit no penalty will apply. However, if the word limit exceeds the +10% limit, 10% of the mark provisionally awarded to the assignment will be deducted. For example: if the assignment is worth 70% but is above the word limit by more than 10%, a penalty of 7% will be imposed, giving a final mark of 63%. Referencing in your work The Harvard method of referring to publications and of arranging references uses the author's name and the date of the publication. References are listed at the end of the text in alphabetical order by author's name. The general format of an electronic journal reference is shown below: Coutu, D. (2009) ‘Why Teams Don't Work’, Harvard Business Review, 87(5), pp.98-105. EBSCO [Online]. Available at http://searchebscohost.com (Accessed: 29th July 2011). Author/s name and initials are listed first, followed by year of publication in brackets. Then there is the title of article and the journal where article appears, which is in italics. Then state the volume and issue number (in brackets) along with the pages where article can be located. Finally add the name of the database you found the information, followed by [Online] and the web address. Wherever possible use the homepage URL rather than the full and extended web address. For further information go to the Referencing and Plagiarism topic in Skills Plus available from the Library website: www.northumbria.ac.uk/skillsplus You will find other useful help guides on Skills Plus to help you with researching and writing your assessments. Plagiarism and Cheating Your attention is drawn to the University’s stated position on plagiarism. THE WORK OF OTHERS, WHICH IS INCLUDED IN THE ASSIGNMENT MUST BE ATTRIBUTED TO ITS SOURCE (a full bibliography and/or a list of references must be submitted as prescribed in the assessment brief). Please note that this is intended to be an individual piece of work. Action will be taken where a student is suspected of having cheated or engaged in any dishonest practice. Students are referred to the University regulations on plagiarism and other forms of academic irregularity. Students must not copy or collude with one another or present any information that they themselves have not generated For further information on Plagiarism, see the Referencing and Plagiarism topic on Skills Plus. www.northumbria.ac.uk/skillsplus Important note about ARNA regulations The regulations specify that students must complete every assessment component contributing to the modules on their programme. This applies to all forms of assessment as defined in the module descriptor. Please note that: • if any assessment component is not completed, students will be failed in the module even if the module pass mark has been achieved; • if the requirements for referral specified in section 5 of ARNA1 are met, a resit opportunity will be given; • if unable to complete an assessment component because of extenuating circumstances, students should follow the procedure described in the Student Guide to Extenuating Circumstances1. This change was approved by Academic Board on 12 October 2009 in consultation with the Students’ Union. Students should consult their Programme Leader or Guidance Tutor if they have any queries. Independent advice and support is also available from the Students’ Union Advice & Representation Centre ([email protected]) or from a student adviser in Student Services. 1ARNA and the Student Guide to Extenuating Circumstances Affecting Assessed Work are available from http://www.northumbria.ac.uk/sd/central/ar/lts/assess/assproc/assdocstud/ Mapping to Programme Goals and Objectives: This assessment will contribute directly to the following Undergraduate programme goals and objectives. (Insert an ‘X’ in boxes where applicable, referring to Undergraduate Programme Specification Appendix X for mapping details) 1. Knowledgeable about the theory and practice of international business management Objectives: Our students will: 1. Acquire knowledge of functional areas of business and management. 2. Acquire knowledge of specialist areas of business. x 3. Apply their knowledge to business and management contexts. 4. Conduct contemporary research into business and management. 2. Skilful in the use of professional and managerial techniques and processes Objectives: Our students will: 1. Provide evidence of self reflection as a means of informing personal development planning. x 2. Demonstrate effective interpersonal communication skills and the ability to work in a team. x 3. Demonstrate critical thinking skills. x 4. Demonstrate problem solving skills. 3. Aware of ethical issues impacting on business and professional practice Objectives: Our students will: 1. Identify an ethical dilemma in a business situation. 2. Suggest ethical solutions to this dilemma. 4. Employable as graduates Objectives: Our students will: 1. In the context of securing graduate employment demonstrate the skills of self presentation. Question 1 Question 2
Answered Same DayDec 20, 2021

Answer To: Module Code: SM0374 Module Title: Strategic Management and Leadership Distributed on: February 2012...

David answered on Dec 20 2021
116 Votes
Question 1
McDonald’s Corporation
Background
McDonald's Corporation, largest hamburger chain and fast food restaurants, has
operations in 119 countries serving over 68 millions. It has restaurant chains of over
31,000world over. The company today is operating other restaurants such as Piles Café It
was founded in the United States back in 1940 as barbeque restaurant by Richard and
Maurice McDonald. In 1948, they realised the potential of becoming a big restaurant
chain and started using principles of production lines. Ray Kroc, a businessman became
th
e franchise agent in 1955. Later on, he purchased the company from McDonald
brothers as he saw a great potential of worldwide growth.
A restaurant has, primarily, three kinds of operations i.e. affiliate, franchisee or the
company itself. The total revenue of the company comes from royalties, rent and
franchisees fees and most importantly from sales. McDonald's revenues posted 27 %
growth over 3 years ending 2007 to $22.8 billion. The operating income saw a 9 %
growth $3.9 billion in the same period.
McDonald’s was primarily engaged into selling hamburgers, chicken, cheeseburgers,
French fries, soft drinks, breakfast items, desserts and shakes. The menu got expanded in
wake of changing tastes and preferences; they added salads, smoothies, fruit and wraps.
Since its inception the company has gone through various changes. It is essential to adapt
to the changing business scenario to stay competitive. The company heavily relied on
management theories and they paid off.
Strategic Leadership
After Ray Croc acquired McDonald he already had a vision to make it really big that
counts and finally he made it. Great product or service offerings are not sufficient enough
to make an organisation successful worldwide but it takes much more; a vision and the
people who turn the vision into reality. Taylor’s scientific management approach finds
prominent use on McDonald. This rule has its relevance even today and it really pays off
to a great extent for the most of the companies. The strict routine, clearly specified tasks,
detailed checklists, uniformity and close control in indicate close links with scientific
management.
McDonald has established a system of reward in the whole business operation so that
they can capitalise upon the productivity front. According to Taylor, if all the employees
get the same incentives irrespective of their productivity, it will help increase low
productivity. Taylor's concept was to create a system of inequitable pay based on the
performance and it will pay off in the long-run (Freeman1996). McDonald has a number
of ways to motivate its employees. It has established competitive wage and promotion
programs, dedication, hard work and motivation. The performance gets recognised and
awarded in many forms; it may be simple encouragement or 'Employee of the Month'
award. Additionally, it offers gift certificates, free food, merchandise, etc and the
employees are provided with great opportunities to earn competitive total compensation
if they meet the goals or exceed. They offer long term incentives programmes for its loyal
employees and also provide with other benefits to keep them intact with the company. It
is quite important to change the perception of the loyal employees and various situations
which take place in the organisation can be analysed taking its perceptual connotation.
(Mullins, L.J.2010)
Scientific management theory gives extra focus on training workers scientifically rather
leaving them on their own to train themselves passively. McDonald has strong belief in
training programmes and they think it is a great tool to increase efficiency and
performance out of the workers. The training is provided right from top to bottom. The
company has standard set of methods defined to perform tasks (Christine,T., 2002).
Taylor found that there is only single method to optimise efficiency. This best method
can be found out using scientific management analysis and study. Staff at McDonald is
specialised to follow different procedures for production. The counter staff contribute
greatly to the sales by suggestive add ups.
The Hawthorne Effect finds its use in restaurant chains in the form of drive-through
timers. There were no ways of finding the speed of service at drive-through till the drive-
through timers came into being. Prior to the invention of these timers it was not possible
to set the timing benchmarks or performance judgement of the employees at drive-
through. After the introduction of timing devices, certain restaurant chains saw approx.
29 seconds reduction per order when it was peak rush times. McDonald' estimation was
that unit sales saw an increment of up to 1% for every 6 seconds saved at the drive-
through. It is interesting to note that these timers do nothing but give an evidence of the
speed of service. The employees only know that their speed of service is under
observation. This simple exercise increased the speed to a great deal which ultimately
helped in increasing the sales.
Co-operation can be regarded as superior to competition in terms of team productivity
and promotion of achievement (Kreitner & Kinicki 2001). At McDonald, each and every
employee has been allocated with certain jobs based on efficiency and skill sets. All
works are equally important irrespective of their type. Creativity and productivity are
closely interrelated and most the successful creative organisation encourages their
employees to “clown around” and some of them even promote laughter and joke. Cloning
around can give a bad impression...
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