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Corporate Governance Issue Faced By Mcdonalds

University: BUCKS NEW UNIVERSITY

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages 13 / Words 7000
  • Paper Type: Assignment
  • Course Code: BM628
  • Downloads: 0
Answer :
Organization Selected : McDonald's

INTRODUCTION

Corporate governance refers to the system of rules, practices and processes by which an organisation is directed and controlled (Kraakman and Hansmann, 2017). Corporate governance essentially involves balancing the interests of a company's many stakeholders such as shareholders, management, customers, suppliers, financiers, government and the community. Not complying with policies and regulations might tarnish the reputation of organisation and negatively affect its growth. In this context, focus of present report would be on analysing the corporate governance issue faced by McDonald's while operating in United Kingdom.

According to Jones (2017), McDonald’s face strike for first time in the UK as workers take actions over pay and zero-hour contracts. An extensive research will be carried out in study in order to get insights of the issue. Corporate strategy and governance will be comprehended by conducting literature review. To enhance the effectiveness of research paper help, both primary and secondary data analysis will be made in this report. Eventually, some of the best recommendations will be given to the management of McDonald's so that they can eliminate the issue permanently. Action plan will be formulated for the management which will help them in implementing the recommendations effectively and efficiently.

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Background of Study

Governance refers to the establishment of policies and continuous monitoring of their proper implementation by the members of the governing body of an organisation. It includes the mechanisms required to balance the power of the members (with associated accountability) and their primary duty is of enhancing the prosperity and viability of the organisation (Tricker and Tricker, 2015). Since corporate governance also provides framework for attaining company's objectives, it encompasses practically in every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. McDonald's is the world’s largest American restaurant chain organisations in terms of revenue. It serves approximately 69 million of customers in more than 100 countries every day (McCahery, Sautner and Starks, 2016).

In 2017, the management faced corporate governance issues in United Kingdom regarding over pay and zero hour contracts which leads to the disputes within the organisation. The problem of McDonald's increases after workers stated the poor working conditions, drastic cuts to employee hour and even bullying at work place to the media. Corporate governance and strategy of the organisation tarnished badly. McDonald's has faced difficulties and issues regarding redesigning of corporate governance strategies (Dias, Rodrigues and Craig, 2017).

Problem Statement

McDonald's in the United Kingdom faced issues regarding corporate governance and policies which lead to the dispute among workers that eventually tarnished the reputation of the organisation. Poor working conditions, bullying at workplace, drastic cuts in employee hour, demand of zero hour contract and over pay were some of the issues that were discovered in the United Kingdom(Yermack and et.al., 2017). Corporate governance is an important part of the organisation and in order enhance the effectiveness and harmony within the company, it is essential to formulate robust policies and regulations. The issue ignited when workers begun strike. Ian Hodson, president of the Bakers Food and Allied Workers Union, called strike for over pay and zero hour contract for workers working in McDonald's. In this context, report will focus on analysing the issue in depth. Comprehensive understanding will be developed through analysing reviews of other authors and senior researchers regarding the issue.

Literature review

According to Arora and Sharma, (2016) corporate governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. In order to enhance the effectiveness and positive corporate culture within the organisation, it is essential and equally important for the organisation for developing robust corporate governance within the company. Mishra and Mohanty, (2014) said that effective corporate governance ensures the corporate success and economic growth. Strong corporate governance maintains investor's confidence as a result of which company can raise capital efficiently and effectively. Good corporate governance lowers capital cost of the organisation.

Berger, Imbierowicz and Rauch, (2016) elucidated that corporate governance can put a positive impact on the share price of the company and it ensures that organisation is management in a manner that fits the best interest of all. In order to sustain in the competitive environment, it is essential and vitally important for the management of business organisation to have robust, effective and efficient corporate governance and strategies. Larcker and Tayan, (2015) said that the motive of corporate governance is to develop positive corporate culture within the organisation. It is formulate so that employees and workers work in sincerely and in discipline within the organisation. Corporate strategies are the strategies developed and formulated by the organisations in order to gain competitive advantages. To eliminate the obstructions in steady growth and obliterate the barriers for developing positive corporate culture, board of directors and top management devise precise strategies that enhance the effectiveness within the organisation (Anginer and et.al., 2018).

Research Methods

In order to carry out the research, appropriate methods will be selected. In this context, the selected methods for research is described as below:

Research Strategy: Research strategy are the plans which help researcher in carry out research in a precise and efficient manner. Both quantitative and qualitative method will be used in order to carry out the research study.

Data Collection: Data collection is considered to be the most crucial part of research study. There are two sources from where researcher can gather data which are primary and secondary. In the present report, data will be collected from both; primary and secondary sources.

Data Analysis: Data analysis is the process of transforming raw data into meaningful information. In the present study, thematic analysis will be used in order to analyse both; qualitative and quantitative data.

LITERATURE REVIEW

Corporate Governance

According to Kraakman and Hansmann, (2017) corporate governance consists of rules, practices and procedures established by the organisation which helps them in maintaining discipline and prosperous environment within organisation. To enhance the brand reputation and goodwill among competitors, it becomes rudimentary for business firms to establish robust corporate frameworks, rules and regulations which are strictly and mandatory for employees to follow. Tricker and Tricker, (2015) elucidated that in the present global business scenario, not only large corporations but also medium sized companies must have effective board which monitors and supervises the policies and procedures of the organisation frequently so that organisation could be able to sustain in the competitive environment. The motive of establishing corporate governance is to balance the interests of stakeholders who are directly or indirectly associated with the organisation. McCahery, Sautner and Starks, (2016) said that stakeholders involve shareholders, employees, staff, customers, suppliers, government, benefactors, society and investors. Since corporate governance also provides framework for attaining objectives of organisations, it also encompasses practically every sphere of management i.e. from action plans and internal controls to performance management and corporate disclosure.

Arora and Sharma, (2016) connotes that corporate governance is an essential body of organisation which governs the internal control through rules and regulations so that organisation can attain its desire goals and targets in a harmonious manner. Board of Directors of organisation are primary stakeholders of company which majorly influence the corporate governance. Directors are elected by shareholders or appointed by other board members and they represent the shareholders of company. The board is tasked with making important decisions such as corporate officer appointments, executive compensation and dividend policy. Mishra and Mohanty, (2014) argued that organisations who possess unstable board structure face difficulties in sustaining in the marketplace. The doubt on reliability, integrity and obligation to shareholders can be doubted due to bad corporate governance. Tolerating or underpinning in illegal activities could create scandals.

For instance: Volkswagen AG in 2015 caught in scandal where the firm had rigged engine emission tests in America and Europe. Berger, Imbierowicz and Rauch, (2016) said that good corporate governance ultimately raises the brand value and image in front of its shareholders and stakeholders. If company functions smoothly and legally, confidence of investors enhance and they eventually increase their investment. Larcker and Tayan, (2015) said that efficient governance within organisation establishes a clear set of rules and controls in which stakeholders, directors and officers have aligned incentives. In the present era, to achieve high level of corporate governance, organisations are now making redundant efforts. Kraakman and Hansmann, (2017) argued that to establish robust corporate governance, board of directors and manager should work abreast. In this manner, they can construct good governance structure which enhances the productivity and profitability of organisation.

According to Tricker and Tricker, (2015) corporate governance and corporate strategies are integral part of the organisation. In order to achieve higher sustainability, management and directors need to consider that both the governance and strategies are aligned with each other precisely. This will help the management to accomplish their desired goals and objectives. In order to earn higher profitability, firms often ignore the corporate governance and ethics and formulate rigid policies which directly affect the employees. McCahery, Sautner and Starks, (2016) proposed that outsourcing firms can be the example of bad corporate governance. Many outsourcing firms tend to formulate rigid policies which are unethical and directly affects the psychology of employees. They formulate ambiguous terms and conditions to trap employees. Fresh graduates who have limited exposure to the corporate environment and policies trap inside. This negatively put impact on the psychology of employees and thus, they tend to quit their job in limited time period.

According to Arora and Sharma, (2016) corporate governance is essential for developing and retaining confidence in public which tremor due to scandals and frauds in recent years. It is important to revive confidence of investors for further growth and development of the organisation. Mishra and Mohanty, (2014) elaborated that communication and transportation from country to country has become efficient and easy due to globalisation. Multinational organisations are now listed with international stock exchange which triggers the need of good corporate governance. Berger, Imbierowicz and Rauch, (2016) elaborated that large organisation’s investors are becoming challenge to the management of the company because they are influencing the decision of the company.

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The purpose of establishing rules, policies, procedures, terms and conditions is to enhance the organisational compatibility. In present global competitive environment, new and enhanced ventures are expanding very speedily which give stiff competition to existing ventures. Thus, it is essential for management to focus on developing efficient and effective policies which enhance retention, harmony and growth of the organisation.

Corporate Strategy

According to Larcker and Tayan, (2015) corporate strategy is hierarchically the highest strategic plan of the organisation which defines the global goals and ways their achieving within strategic management. Corporate strategies are part of organisational strategic management plan which helps the management to gain competitive advantages within organisation. In order to sustain in the competitive environment, it is essential and important for management to formulate precise strategies and plans. Elmes and Barry (2017) said that corporate governance and strategies are interrelated with each other. They are aligned by the management so that organisation can work effectively and efficiently as well as drive towards growth and development. Corporate strategy is radically different from all other types of strategies due to its messiness and wide open boundaries.

Hickman and Silva (2018) stated that strategies in a business or organisation are responsible for gaining competitive advantages in a particular market. This competitive advantage further helps an organisation or business to sustain a leading position in the marketplace among its competitors as well as to increase its sales and profit. The corporate or business strategy helps in achieving organisational goals of a business by optimising various functions performed by different departments in company. In order to increase effectiveness and efficiency in these organisational functions, it is essential for management to analyse, develop and implement the most effective strategies for their business. These strategies are developed for each and every function or department of an organisation such as marketing, financial, operations and human resources, etc. The corporate strategies are mainly developed in order to achieve a higher position in market as compared to other competitors.

According to Rees and Smith (2017) corporate strategy refers to the organisation's processes, operations and ways in which its various functions or business activities can work together to achieve a common objective or goal. According to Kageyama and Kosuga (2017) corporate level strategy mainly deals with two major questions i.e. what businesses should the organisation compete in and how headquarter should manage the wide range of business units. The corporate strategy is an important element that combines various business units in a single business or company. It is agreed by various studies that most effective use of corporate strategy can be observed in the portfolio management of company. It is a procedure in which an organisation creates their diversification through acquisitions. The major objective of an organisation while implementing diversification is to add shareholder's value.

Laszlo and Cescau (2017) examined needs and wants of creating the global strategies where firstly, the development of global strategy helps an organisation to be globally efficient. It can be seen as a method to develop highly standardized goods and stay competitive in the market such as McDonald and Coca-Cola. On the other hand, the development of global strategy will also assist to create and spread innovations globally. The companies focus on spreading innovation within every part of its business or functions so that it can remain competitive and complete effectively with the rivals. Menz and Barnbeck (2017) stated that there are various views among different authors or scholars as how to manage and control global strategies in a diversified corporation. The is also identified that standardisation of products is beneficial for effective strategy

According to Brewster and Hegewisch, (2017) products should be standardised in such a way that it can be sold in various types of markets. It is also stated that mixture of different actions or activities need to be taken for developing the competitive global strategy. On the other hand, Rugman and Verbeke (2017) introduced portfolio management with many products variable, in which the distribution and investment will be shared which leads to reduction of cost and risks. Therefore, a company can easily achieve a high level of sales and profit in the market. Comprising all the studies, it can be observed that corporate strategy defines the scope of an organisation in terms of the markets and industries in which it operates or compete. The decisions in this strategy consist of investment in diversification, acquisition, vertical integration and new ventures as well as allocation of resources among various business units and divestment.

On the other hand, business strategy is differentiated by corporate strategy saying that it is concerned with methods through which a business or organisation competes within a particular market or industry. The term business strategy refers to plan of actions or activities developed in order to reach at a specific aim or set of goals set by organisation. It is basically formulated with regard to the concerning corporate strategy for company. It also reflects the strategies of the overall organisation or business, it assists in informing and attracting investors about any new products or ventures and convince them to invest in the organisation. Business strategy states that if a business needs to be successful within an industry, it requires developing a competitive advantage over its competitors or rivals. Therefore, this strategy is also known as competitive strategy.

The above differences among both corporate and business strategy can be explained in simple terms. The general question faced by an organisation is how do they make money? The simple answer to this question corresponds to the basic strategic choices as where to compete and how. In order to effectively react to these situations, most of the large organisations use corporate as well as business strategies. The corporate strategy is generally the responsibility of the top level management or team along with corporate staff. On the other hand, business strategy is typically controlled and managed by divisional management in an organisation.

Corporate strategy can be called as the management plan developed or formulated by the highest level of organisation department to operate and direct the whole company or business. It adds value to the main plan or organisational strategy that helps an organisation to achieve its goals and objectives. Therefore, more effectiveness in the degree of corporate strategy leads to greater chances of business success. Corporate strategy is the major element of strategic planning procedure. It determines company's growth objectives such as timing, direction, pace and extent of organisation's development or growth. It highlights the functional patterns of business activities and objectives with regard to strategic interest in various business units, product lines, group of customers, etc. It also defines the way a business can start sustainable in the long run by competing with its rivals.

You can also read this: Potential Impact of Laws on Business

DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH UNDERTAKEN

There are various research elements and tools which are required in order to get the best information about the topic or subject. There are different types of research methods which are used to accomplish the research aims and objectives effectively. Research methodologies are the concept which are used for determining the issues and methods to identify the problem with regards to the topic of the study. The researcher has used various types of tools for collecting the information in various areas of Corporate strategy and governance. The research methodologies are described as below -

Research philosophy – The theory or philosophy helps in developing most significant design which can be implemented or used by researcher for achieving key objectives of research study effectively. It is very important to use a suitable instrument for getting most appropriate results from the analysis. There are two main types of research philosophies, Positivism and Interpretivism research philosophy. Positivism research philosophy is a plan which provides suitable considerations of reliableness within the research study. This philosophy states that the process should be separated and observation of the research must be repeatable. It often includes manipulation of reality with variations within every single component for identifying regularities as well as developing link among various elements within the society. Predictions can be made with respect to observed and explained realities including the relationship among them. The other research philosophy is Interpretivism, which states that reality and relevant information can be determined only with the subjective analysis, interpretation of content or data collected in research. The study of research topic or subject in its natural environment is a key component of Interpretivism research philosophy.

Research approach – It is important to understand that a research can be carried out in various forms for example, explorative, descriptive, explanatory, perspective and predictive approach. In cases where research is to be conducted within the area where there is very limited information is available related to the subject or topic, it is recommended to use explorative research method. The determination related to a particular problem or issue is, on the other hand it can be properly clarified with the implementation of exploratory studies of the problem. Secondly, descriptive research can be observed that an extension of explorative research where perfect profile of individuals, situations or events is presented. The phenomenon in which the research is collecting information needs to be clear in the mind of researchers, which is the key of descriptive research. In the present report explorative research is been used in order to collect the most appropriate information regarding corporate strategy and governance within McDonald's. The research will focus on quantitative analysis in which information will be collected by results of questionnaire developed for the managers of Mcdonald's.

Research strategies – There can be qualitative or qualitative research strategies and researcher can also use a combination of both the strategies. In research study the researcher required to investigate the attitude or behaviour of top management towards a phenomenon related to human resources and strategies within an organisation. It is easy to use qualitative research method which is descriptive in nature. In the present report combination of quantitative and qualitative research methods has been used to collect relevant data or information by managers of Mcdonald's. A questionnaire for managers has been developed in order to gain knowledge related to corporate strategy and governance within McDonald's .

Data sources – There are two types of sources for collecting data or information in a research project such as Primary and Secondary source of data. In the present report researcher has mainly utilised primary sources to collect most appropriate data form the managers of the organisation. Primary sources of data are more relevant and provide more significant information related to the topic of particular research. Such as information collected through questionnaires and surveys . On the other hand secondary source of data refers to various articles, books and journals which already used in various studies or researches.

Sampling – The sampling refers to group of respondents for whom questionnaire is developed in order to collect relevant information or data in a research study. In the present report researcher has developed a questionnaire for a sample of 10 managers in Mcdonald's to identify their ideas and beliefs with respect to corporate strategy and governance. Sample in a research can be a group of employees, managers, customers etc, which can provide sufficient information related to the research subject or topic.

Research evaluation

  • Validity – Validity generally refers to the reality of findings, there are various issues such as morality, maturation, testing, instrumentation and ambiguity etc that can harm research study. The reliability of research is based on these issues or threats that also decrease validity of the research. In this research researcher has developed questions considering the clarity of purpose to the respondents in order to avoid any misinterpretation. It helps in achieving high level of validity in the research.
  • Reliability – Reliability refers to the capacity of measurement tools in facing various effects or changes. In the present study Mcdonald's is targeted and focused, there are differences among people interviewed and the techniques, policies and practices they follow. In order to ensure the reliability of the research, a systematic and well structured approach has been used to develop the questionnaire to perform quantitative survey.

Ethical considerations – There are various ethical considerations which are important to be followed while conducting any research. There are various ethics and codes which are necessary to be considered such as honesty, social responsibility, non-discrimination and confidentiality. Researcher has ensured that each and every ethical code is been taken into consideration while conducting the research. The managers have been informed about entire process of research, permission was taken before conducting the interview. This helped in achieving the best results and outcomes from research study.

Sources of error – There is a high possibility of errors while gathering information or its analysis in research. If these errors are identified at right time it is easy to avoid them, there are various form in which errors can arise such as processing, inference or interpretation. While gathering primary information through surveys or interviews there are possibilities of measuring the issues or errors. In a research study any such errors can be avoided by a deep revision of the questionnaire prior to its presentation of the results and making interpretation. In the present study researcher have used the case study technique in order to conduct the research. It is most common and oldest research methodology used for a deep study of one or more individuals which aids in revealing things that are real.

REVIEW OF THE RESULT

Primary research

Questionnaire

  1. Do you believe corporate strategy and governance is very important for a company to achieve its organisation goal?
  2. What are the main requirements for implementing an effective corporate strategy in you organisation?
  3. Do you think effective corporate strategies can helps in avoiding major issues related to conflicts among employees?
  4. What is the main area you organisation you think your organisation should focus on?
  5. Does your organisation needs to improve its employment policies?
  6. Do you find it useful to link corporate strategy ad business strategy with human resource management of the firm?
  7. Do your organisation follows the concept of strategic human resource management?
  8. Do you believe in achieving a competitive advantage through human resource of the company?
  9. Do you consider your company following sufficient policies to link strategy and HR management?
  10. Do you find the policies formulated in times of economic crisis are useful to fight the crisis?

Theme 1 – Importance of corporate strategy and governance

Do you believe corporate strategy and governance is very important for a company to achieve its organisation goal?

No. of respondents

Yes

7

No

1

Maybe

2

Interpretation – This theme was developed in order to identify the importance of corporate strategy and governance. The respondent were asked whether they think corporate strategies and governance is important for McDonald's or not. 7 out of 10 managers said they agree, 1 employee disagreed and 2 employees were neutral. Therefore, it can be concluded that managers believe in the fact that corporate strategy and governance is very essential for McDonald's to achieve its business foals and objectives.

Theme 2 – Requirement for implementing corporate strategy

What are the main requirements for implementing an effective corporate strategy in your organisation?

No. of respondents

Training and development

5

Leadership development

1

Internal recruitment

2

Employee retention

2

Theme 3 – Corporate strategy avoids issues

Do you think effective corporate strategies can helps in avoiding major issues related to conflicts among employees?

No. of respondents

Yes

6

No

2

Maybe

2

Interpretation- Corporate strategy and governance is believed to be effective in avoiding major issues or problems arises in an organisation or business. This theme was developed in order to collect relevant information about manager's perception working in McDonald's. Researcher asked the managers that whether they think effective corporate strategies can helps in avoiding any issues or problems in McDonald's such as employees conflict, strikes etc. When this question was asked to the managers, 6 out of 10 respondents agreed that corporate strategy helps to avoid issues, 2 managers disagreed and 2 were confused. Therefore, it can be concluded that corporate strategies can assist an organisation to avoid and resolve issues or problems arises while performing business activities.

Theme 4 – Motivating employees

What is the main area you think your organisation should focus on?

No. of respondents

Motivating existing employees

7

Leave without pay

1

Benefits to employees

2

Interpretation – This theme was designed in order to determine what is the key area Mcdonald's should focus on so that it can improve its performance and profitability. 7 out of 10 managers in McDonald's said that motivating exiting employees can be very beneficial for the organisation, 2 employees said that employees should be offered various benefits such as incentives, Bonuses etc. 1 manager said that employees should be provided leaves. Therefore, it can be concluded that an organisation can achieve success and improve its performance by motivation the workforce as it is very beneficial in enhancing productivity as well as efficiency in the business activities.

Theme 5 – Improvement in employment policies

Does your organisation needs to improve its employment policies?

No. of respondents

Yes

5

No

3

Maybe

2

Interpretation- This theme was developed in order to identify the need of improvement in employment policies in McDonald's. The question was asked to 10 managers that whether they think the organisation should improve the policies develop for the employees working in the company. 5 out of 10 managers agreed that policies should be improved, 3 managers disagreed and 2 managers were neutral. Therefore, it can be concluded from this theme of questionnaire that McDonald's needs to make appropriate changes in their employment of human resource policies in order to gain improvement. Effective employment policies can help in motivating employees as well as it can lead to increase in productivity and performance of the overall organisation.

Theme 6 – Link between corporate strategy with human resource management

Do you find it useful to link corporate strategy or business strategy with human resource management of the firm?

No. of respondents

Yes

7

No

1

Maybe

2

Interpretation- This theme was developed in order to identify the importance of linking corporate strategy with human resource management in McDonald's. The question was asked to 10 managers that whether they think the organisation should link its business strategy with human resource management in the company. 7 out of 10 managers agreed that policies should be linked, 1 manager disagreed and 2 managers were neutral. Therefore, it can be concluded from this theme of questionnaire that McDonald's should link its business strategy with human resource managements in order to gain improvement. Effective corporate policies along with systematic human resource management can help in motivating employees as well as it can lead to increase in productivity and performance of the overall organisation.

Theme 7Concept of human resource management

Do your organisation follows the concept of strategic human resource management?

No. of respondents

Yes

4

No

3

Maybe

3

Interpretation - This theme was developed in order to identify whether McDonald's. follows the concept of strategic human resource management or not. The question was asked to 10 managers that whether they think the organisation follows the concept of strategic human resource management.4 out of 10 managers agreed that yes it does, 3 managers disagreed and 3 managers were neutral. Therefore, it can be concluded from this theme that the organisation follows the concept of human resource management and its policies to manage the workforce in the company.

Theme 8 – Policies to link strategies

Do you consider your company following sufficient policies to link strategy and HR management?

No. of respondents

Yes

6

No

2

Maybe

2

Interpretation- This theme was developed in order to identify whether the organisation follows sufficient policies that helps to link corporate strategy with human resource management ion McDonald's. The researcher when asked this question to 10 managers in the company, 6 managers agreed, 2 out of 10 managers disagreed and 2 managers were neutral. Therefore, it can be concluded that McDonald's focuses and follows effective policies that support in linking corporate strategy with human resource management in the organisation.

Theme 9 – Competitive advantage

Do you believe in achieving a competitive advantage through human resource of the company?

No. of respondents

Yes

6

No

3

Maybe

1

Interpretation- This theme of questionnaire was developed in order to identify that whether the organisation can achieve competitive advantage with the help of its human resources or workforce or not. When the question was asked to respondents, 6 out of 10 managers agreed that human resource helps to gain competitive advantages, 3 out of 10 managers disagreed and 1 manager was neutral. Therefore, it can be concluded that human resource are very helpful for an organisation to achieve competitive advantages in the marketplace.

Theme 10 – Economic crisis

Do you find the policies formulated in times of economic crisis are useful to fight the crisis?

No. of respondents

Yes

6

No

1

Maybe

3

Interpretation - Corporate strategy and governance is believed to be effective in avoiding major issues or problems arises in an organisation or business. This theme was developed in order to collect relevant information about manager's perception working in McDonald's. Researcher asked the managers that whether they think policies formulated in times of economic crisis are useful to fight the crisis in McDonald's such as employees conflict, strikes etc. When this question was asked to the managers, 6 out of 10 respondents agreed that corporate strategy helps to avoid issues, 1 managers disagreed and 3 were confused. Therefore, it can be concluded that policies formulated in times of economic crisis are useful to fight the crisis.

Secondary Research

The researcher also analysed various secondary source of data in order to perform secondary research. Various articles and journals concluded that corporate strategy is very essential for every business or organization operating its activities for the purpose of achieving product and success. corporate governance and corporate strategies are integral part of the organisation. corporate administration and corporate methodologies are essential piece of the association. So as to accomplish higher manageability, administration and executives need to consider that both the administration and procedures are lined up with each other definitely. This will assist the administration with accomplishing their coveted objectives and goals. With a specific end goal to procure higher gainfulness, firms regularly overlook the corporate administration and morals and detail unbending strategies which straightforwardly influence the workers. It is recommended that outsourcing firms can be the case of terrible corporate administration. Numerous outsourcing firms have a tendency to figure inflexible strategies which are exploitative and specifically influences the brain science of workers. They detail vague terms and conditions to trap representatives. New graduates who have restricted presentation to the professional workplace and strategies trap inside. This adversely put effect on the brain research of representatives and in this way, they have a tendency to leave their place of employment in constrained era.

Corporate administration is fundamental for creating and holding trust out in the open which tremor because of outrages and fakes lately. It is vital to restore certainty of speculators for facilitate development and improvement of the association. Various expounded that correspondence and transportation from nation to nation has turned out to be productive and simple because of globalization. Multinational associations are currently recorded with global stock trade which triggers the need of good corporate administration. Explained that vast association's financial specialists are getting to be test to the administration of the organization since they are impacting the choice of the organization. Governance refers to the establishment of policies and continuous monitoring of their proper implementation by the members of the governing body of an organisation. It includes the mechanisms required to balance the power of the members with associated accountability and their primary duty is of enhancing the prosperity and viability of the organisation This competitive advantages further assists an organisation or business to sustain a leading position in the marketplace among its competitors as well as enhance its sales and profit. The researcher also identified that Corporate strategy can be called as the management plan developed or formulated by the highest level of organisation department, to operate and direct the whole company or business. It adds value to the main plan or organisational strategy that helps an organisation to achieve its goals and objectives. Therefore, the more effectiveness in the degree of corporate strategy leads to greater chances of business success. Corporate strategy is the major element of strategic planning process, it determines company's growth objectives. Such as timing, direction, pace and extent of organisation's development or growth. It highlights the functional patterns of business actions and goals with respect to strategic interest, in various business units, product lines, group of customers etc. Furthermore, the researcher also determined that the corporate or business strategy helps in achieving organisational goals of a business by optimising different functions performed by various department in the company. In order to gain the effectiveness and efficiency in these organisational functions it is very necessary for the management to examine, develop and apply most effective strategies for their business organization. In order to achieve higher sustainability, management and directors needs to consider that both the governance and strategies are aligned with each other exactly. This will assist the management to complete their desired goals and objectives.

RECOMMENDATION

In accordance with the research carried out, there are certain set of recommendations that can be followed by McDonald’s. Following the given strategies will be effective enough for the management to overcome the problems in effective manner. In this context, below given are the some recommendations that can be followed by cited firm:

Training to workers: In order to perform any type of roles or task, it is required to have certain set of skills and capabilities so that they are able to perform the tasks in effective manner. In situations when workers are not sure about the roles that has to be played by them, then it becomes difficult for them to put on their full efforts. In this context, workers should be monitored in order to identify the areas in which improvement needs to be made. In accordance with the findings made workers should be provided with training so that they are able to develop their skills and capabilities. In addition to this, to perform any work, it requires to have certain level of interest and willingness. These can be developed with the help of training and development.

Monitoring performance: Each of the workers within the organization has certain set of skills and capabilities. When employees perform as per the areas in which they have interest, then it becomes favourable enough for them support the firm to grow. From the case, the support from the side of workers is low but through proper monitoring positive impact can be developed among employees. It is important that workers understand the condition that is faced by management and support them in the worst conditions. All these are possible when man

Interpretation-The other theme was developed in order to determine which is the major requirement for organisation in order to implement effective corporate strategy in McDonald's. The mangers were asked what they think is important element needs in implementation of corporate strategy, 5 out of 10 managers said that Training and development is very necessary. 2 managers said internal recruitment, 1 manager supported leadership development and the rest two said that employee retention is important. This theme concluded that Training and development is a major requirement for any organisation in order to implement or formulate corporate strategy.

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