Introduction to Corporate Entrepreneurship
Corporate Entrepreneurship is a formal term denoting the process of evolution of new ideas as well as opportunities, which can be witnessed within business enterprises. In consequence to this process the level of profitability as well as strategies is improved to a great extent, thereby enabling the entities to improve their competitive position. The core of this concept lies at the notion of innovation. This combination enables businesses to undertake beneficial risks and move in a highly calculated manner. In pursuance to this concept companies like Mc. Donald have the potential to make significant alteration in the position of competition existing in the industry, and also develop an entirely n
Brief Background of Mc Donald
Mc Donalds is a company which is serving approx. 50 million consumers all over the world in more than 30,000 destinations. It is interesting to note that the primary focus of all strategies developed by the company till date has been the end consumers. Moreover, the process of innovation has always been a part of their operations, and in consequence to which they have reflected a constant streak of innovation (Yu and Hang, 2010). It can be stated that the entity has always believed in developing innovative strategies, undertaking an extensive product planning and produce products. In consequence to which the effect of changing the industry and gaining a competitive edge in the market could be produced. The ambition which is foreseen by the company is to see beyond what is being sold, and deliver good food through a creative and diversified team of people and stay committed to reduction of their footprint (Martinez, 2013).
In the past years, the company has clearly established its eye for potential opportunities and the key to occupy a high position in its industry. In pursuance to the same it has been observed that the culture prevalent within the organization and the kind of leadership style which is followed throughout the hierarchy is in itself imbibed with innovation (Our Ambition – Mc Donalds, 2017). This is the medium through which the company has been defining standards for the industry, since the time of its inception. However, there still lies scope in Mc Donalds, which the management has failed to explore till date.
Current Innovation Strategy
The innovation strategy of the company is driven from the idea of thinking bigger even at the time of starting small, but scaling at a higher pace. As stated earlier the key to success of Mc Donalds can be given to all the employees who have been associated with its operations (Martín-de Castro, López-Sáez and Delgado-Verde, 2011). It has been noted that the workforce within the organization is ingrained with the marketing principle of 5Ps – people, price, promotion, product and place. Through application of this marketing principle, the entity has been operating innovatively and has undertaken all customer oriented initiatives (Anderson, PotoÄnik and Zhou, 2014). It is interesting to note that primary triggers for commencement of the process of innovation and creativity are the demands of their consumers. One of the important places of this entire chain is occupied by the franchisees, who in essence are the operators of the business. One of the biggest challenges which the management has been facing is to merge the thought process of diversified franchises with organizational objectives, and it is not possible to function in a centralized manner. At this place the company has applied its highly diversified and comprehensive strategies to evolve a decentralized system of operating with the franchisees and encouraging innovation across the entire chain (Afonso, Monteiro and Thompson, 2010). The only necessity or requirement which the company has imposed on all is to abide by the highest quality of the products. This reflects the fact that maintaining the highest standards is an absolute requirement for the company. Further it has also been observed that the company has implemented a three-legged principle, in pursuance to which it operates on the basis of complete trusts placed upon both the suppliers and the franchises. The interaction with the supplier is extremely close, so as to enable the production team to develop and enhance their products through application of the newest of techniques (Kalyar, 011). Therefore, these stakeholders hold paramount importance for the management of the company.
The management of Mc Donalds is highly efficient and has always been undertaking the process of analyzing business opportunities in the market, in order to carve out specific unsatisfied needs prevalent in the market. In pursuance to the same, knowledge and experience has proved to be the key factors for enabling the entity to recognize and analyze the opportunities in a timely manner (Urigiien, Eldar and Dragoty, 2012). This effective usage of its resources and assets has enabled the company to target a niche market and realize profits. The opportunity analysis plan of Mc Donald firstly requires the management to describe the idea and the level of competition existing in the market, followed by an extensive assessment of national as well as global market in the context of specific idea. This step prepares a basic platform for the company, on the basis of which an entire team is developed for further evolving the viability of the business venture.
However, on analyzing the current status of the entity in the market, it is important to note that the company has reached a level of stagnation over the past few years. Though the company became a global empire with the innovative franchising model, but the same seems to be a common trend being followed by many (Hawkins and Davis, 2012). Lately, the Mc Donalds is lagging behind as it became complacent in its operations and did not make much efforts to attract increasing number of customers on the basis of current trends. Some of the attributes of customization, serving healthy and fresh food or ethical concerns are missing. Hence, this is the area which needs to be explored by the company. It is important to mention that this is a feasible opportunity, and the company can make high profits out of it.
The four major attributes which have integrated and strengthened relation of the company with its primary stakeholders are calculability, control, efficiency and predictability. The above mentioned four elements have been imbibed by the company at every level and within every process of the company (Jones, 2010.). Efficiency is maintained with the assistance of organizational policies and regulations which has ensured delivery of highly efficient work. The element of Calculability is reflected in the portion size and cost being offered through its products and services. In addition through this element the company has also implemented this element through addressing the perception of time consumption which is invested by consumers for availing the facilities of the company. In furtherance to the same the services of home delivery or instant deliveries at store were launched (Colapinto and Porlezza, 2012). One of the most innovative elements which the company has successfully achieved is that of predictability, through which it has been ensured that same products and services are offered at all the outlets. This has been successfully achieved through strict implementation of corporate rules and the manner of dictating by the managers. Lastly, for ensuring an effective control on all the process and human resources, technology has been utilized in the most effective manner (Galizzi and Venturini, 2012).
In the event Mc Donalds implement these policies it shall transform the manner in which these strategies are being utilized. The management would be required to develop entirely new strategies. For instance new strategoes shall be required to be developed for the element of predictability (Howaldt, Kopp and Schwarz, 2015). The present model of providing same product with same quality at all the stores shall be transformed, with significant replacement of the products, and the manner the same are served.
Apart from the above mentioned organizational elements the company has also been continuously enhancing the creativity levels which prevail within all the processes and systems (Bigliardi and Galati, 2013). This has been accelerated through embracing diversity and expecting creativity from the workforce. Further, it has been observed that a very tolerate culture has been developed within the organization, in pursuance to which issues are always tackled in the form of challenges (Dubina, Carayannis and Campbell, 2012). Recognition and celebration are always preferred for further encouraging creativity. It is believed by the top authorities that are under an obligation to present a model of creative behaviour, pursuant to which they can expect creativity from the end of their employees. In order to introduce the said significant changes the culture of organization is likely to act as the enabling factor. The Participative leadership style shall enable the management to appraise their employees with the process of change. This shall eliminate all the resistance which may arise from the end of employees at all levels (Bain and Kleinknecht, 2016). Further, it is important highlight that the organization has a trend of bringing innovation to their products, although at a small level. In pursuance to the same, it can be stated that the management has often reflected the trait of innovation champion in the past. Thus, the organizational culture has the potential to successfully implement and sustain change in their present strategies.
Strategy for implementation of Plan
In order to implement this transforming plan, the management of Mc Donalds shall be required to evaluate the strategic plan, and assess it from all the perspectives. Once this assessment is undertaken a clear and holistic vision shall be developed for ascertainment of specific goals and targets. In the next step, an effective and efficient team shall be developed which understands the need of change as well as are appraised with all the technical knowledge (Vitasek and Manrodt, 2012). An effective training shall be provided to appraise them with specific goals and objectives. All the sources of finance shall be ascertained in advance so as to be avoid any form of error. Followed by this the plan shall be implemented under the supervision of higher management.
It holds no doubt in stating that Mc Donalds has been operating and functioning in the most innovative style. In pursuance to producing ideas of high quality current processes can be further improvised through adoption of the technique of brainstorming. It is a process wherein a team of people is led to undergo a session to interact with an extremely small structure, with the designated aim of evolving high quality and creative thoughts (Teeple, 2016).
Secondly, the company can also utilize the strengths of the technique of mind mapping, which can be characterized as an expansion of brainstorming. With the assistance of this management can ascertain the manner in which the brain’s of their employees function (Mujtaba and Patel, 2011). With the assistance of this tool the management of company shall be enabled to proceed in a specific manner, and develop strategies which are in consonance with the learning styles of the employees.
Lastly, prototyping is another recommendation which is a vital portion of the creative process. The company may adopt the practice of rapid prototyping, which in essence shall transform the thoughts and ideas into real models. With the assistance of this actual model, practical flaws shall be highlighted existing in the original idea (Sawyer, 2011). This could be one of the best models of ascertaining the areas of developmental needs and on the basis of the same constant improvement can be assured.
Mc Donalds is one of the most successful business enterprises existing in the global market, and has been operating on an effective model of delivering high quality products at a cheap price. The key to this position of the company is a constant streak to innovate its products and strategies, in order to satisfy the demands of consumers. The innovation council and the organizational culture have enhanced the quality of products being delivered to the market. However, there still lie certain lacunae which can be eliminated through adoption of the technique of brainstorming and mind mapping. The process of prototyping is another tool which shall enable the company to produce full proof strategies, and reduce the possibility of errors.
- Afonso, Ó., Monteiro, S. and Thompson, M. J. R., 2010. A growth model for the quadruple helix innovation theory.
- Anderson, N., PotoÄnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management. 40 (5). pp.1297-1333.
- Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output measurement. Springer.
- Bigliardi, B. and Galati, F., 2013. Innovation trends in the food industry: the case of functional foods. Trends in Food Science & Technology. 31 (2). pp. 118-129.
- Colapinto, C. and Porlezza, C., 2012. Innovation in creative industries: from the quadruple helix model to the systems theory. Journal of the Knowledge Economy. 3 (4). pp. 343-353.
- Dubina, I. N., Carayannis, E. G. and Campbell, D. F., 2012. Creativity economy and a crisis of the economy? Coevolution of knowledge, innovation, and creativity, and of the knowledge economy and knowledge society. Journal of the Knowledge Economy. 3 (1). pp. 1-24.
- Galizzi, G. and Venturini, L. eds., 2012. Economics of innovation: the case of food industry. Springer Science & Business Media.
- Hawkins, R. and Davis, C.H., 2012. Innovation and experience goods: a critical appraisal of a missing dimension in innovation theory. Prometheus. 30 (3). pp. 235-259.