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Lecture 12

ADMS 2400 - Lecture 12.docx

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Department
Administrative Studies
Course
ADMS 2400
Professor
Indira Somwaru
Semester
Fall

Description
ADMS 2400  Lecture 12 Dec 4 – Lecture 12 Iceberg Model of Culture  Top: 1/3 rd is visible artefacts (above the water line)  Mid: policies/procedures (at the water line)  Bottom: 2/3 rdis values, attitudes, beliefs (below the water line)  It is really hard to change culture because it is in your head and not visible.  Visible Artefacts o Physical setting o Mission statements o Rituals/ceremonies o Recruiting materials  Policies/procedures o Organizational charts/policy manuals o Operation policies o Recruitment methods o Dress code  Values, attitudes, beliefs o Employees behaviour McDonald’s Video  Up to late 1990s: o McDs expanded globally (30,000 stores worldwide) o New restaurants and no new products/service  By 2001-2002: o Profits declined o Closed stores worldwide o Re-think products/marketing  Lewin’s Force Field Analysis Forces Prompting Change Forces Resisting Change   Changing consumer tastes Success was based on original strategy (burgers/fries) Healthy choices lifestyle Established paradigm (“we are a hamburger company”) Losing “edge” Size (reduces flexibility in practices/thinking) Rapid growth Costs $$ Poor financial performance Bad economy Competitors Legislation Bad press  McDonalds Changes since 2002 profits decline: o New products/innovation o McCafé o Sandwiches made to order rather than sitting there o Lattes/Gourmet coffee o 24hr service since late 2009  new customer base (targeting adultsmore boomers, not focused on kids) o Wi-Fi o Customer reward/Promotions o Facilities upgrade (better/cleaner washrooms)  McDonalds should bring in: o Ethnic foods o Gluten free o Vegetarian options o All-day breakfast  McDonalds managed to successfully change itself because of: o Experience o Resources o Smart management  Effective strategic planning Why organizations resist change?  Structural inertia
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