Modernism, Symbolic-Interpretive, Postmodernism Analyzing About Mcdonald

Topics: McDonald's, Organizational studies, Resource dependence theory Pages: 9 (3085 words) Published: April 7, 2012
Understanding organization:

Modernism, symbolic-interpretive, postmodernism analyzing about McDonald

1- Introduction:
The task of this report is to analyze McDonalds using the modernist analysis tools to describe the organization. McDonalds is a large Multinational fast food franchise originating from USA. McDonald’s main product which they produce is burgers but it now has a wide range of products available for a wider choice of customers. The reason for a wider range of products is due to the fact that it has grown so much to other parts of the world McDonalds has grown to become one of the largest fast food franchises in the world, almost every country in the world has a McDonalds at the moment due to its large spread across other countries it needs to come up with different products to satisfy customers from other countries which have different expectation and needs from another. For example in India it would not be wise to sell a Big Mac there simply because of the people religious belief is not to eat beef and consider at the cow a sacred animal in their society. Therefore McDonalds will have to come up with different products to satisfy the Indian Market. Moreover the way each McDonalds around the world will look and operate similar in many ways but it must also come up with different strategies such as store appearance or longer operating hours in order to make most out of the resources available. We will now extensively discuss the different ways in which McDonalds can be analyzed 2- Modernist analysis:

2.1- Environment:
Modernist theory defines environment lies outside boundary of the organization. It provides the organization with resources and absorbs its products and services. Moreover, it imposes constraints upon and demands adaptation from the organization. In McDonalds, environment the modernists theory that suitable to the company is Resource Dependence theory. By analyzing the inter organizational network, organization can understand the power dependence relationships that exist between it and other network actors. McDonalds depend on the resources that controlled by environment. In the resource dependence theories, environment was perceived as the source of scarce resources that were critical to a company’s survival. There are misunderstandings in the resource dependence, which are the lack of the control over these critical resources, rather than the lack of information, that gave rise to environmental uncertainty. Environment that contains high levels of resources are considered less hostile to the stability of the organization, while those with low levels of resources to act to increase the intensity of competition between firms. ‘The need for resources, including financial and physical resources as well as information, obtained from the environment, made organizations potentially dependent on the external sources of these resources-hence the characterization of theory as resource dependence.’ (Pfeffer & Salancik, 2003) Pfeffer and Salancik (1978) established 2 factors that influenced the level of dependence organizations had on particular resources. First, importance of overall resources for the company is critical in determining the dependence of corporate resources. In Australia, McDonalds has a great value in saving the resources. McDonalds recently introduced Standard new energy equipment for Restaurant. New McDonald's restaurants (McDonalds, 2011) now use Low Oil Volume (LOV) Fry Vats. LOV Fry Vats have a smaller size frying area, so it will use less oil and less energy to heat the oil. Moreover, it improves the cooking efficiency, and provides environmental benefit because the electric consumption is reducing by 4 per cent. As new McDonalds use the automated filtration system, that will reduce the amount of oil approximately 40 per cent compare to previous model. Second, Scarcity of resources is also a factor. The scarcer of resources, companies become...
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