A Case Study on McDonald's

Introduction

Corporate governance defines as a system of rules, processes and practices under which a company can direct and control its operations. It involves  create balance among benefits of stakeholders like shareholder, customers, investors, customers and more. In context with McDonald's, its Board of Directors mainly focuses on leadership and continuous improvement which making governance policies. They give commitment to ensure integrity of business in all of its dealing with stakeholders (Chang, 2016). Present research therefore, helps this company in understanding the importance of corporate governance. This would aid in building effective brand image as well as create value of business also.

Research Objectives

• To evaluate the concept of corporate governance and brand value for McDonald's in business expansion.
• To ascertain the effectiveness of corporate governance made by Board of Directors of McDonald's.
• To determine issues of corporate governance failure in McDonald's.
• To identify methods by which McDonald's can overcome from governance failure.

Research Question

• How to evaluate the concept of corporate governance and brand value for McDonald's in business expansion ?
• What are ways to ascertain the effectiveness of corporate governance made by Board of Directors of McDonald's?
• How todetermine issues of corporate governance failure in McDonald's ?
• What are the different ways by which McDonald's can overcome from governance failure?

Literature Reviews

Concept of corporate governance and brand value for McDonald's in business expansion

As per views of Barnett and Salomon, (2012), it has ascertained that corporate governance seems to be a procedure for economic co-operation and development. It helps in making policies and principles to run business activities in appropriate manner. In context with McDonald's, its success is built on principles of personal and professional integrity. From financial perceptive, business value is considered as important factor which directly affects profitability. Therefore, both corporate governance and business value aid McDonald's in expanding its corporation on global level.

Effectiveness of corporate governance

According to research carried out by Eccles, Ioannou and Serafeim, (2012), it has evaluated that Board of Directors of McDonald's are entrusted with as well as responsible for oversight of business in a fair and ethical manner. They have also believed that effective corporate governance is considered as critical for fulfilling the obligation of company to shareholders. Along with this, employers of McDonald's good governance refers as a journey not a destination. Therefore, its BOD has used to review its governance principles on annual manner for continuous improvement. This company also give commitment to stakeholders and shareholders to concern on their benefits while designing corporate strategy and governance.  

Issues behind failure of corporate governance

According to Du and et. al., (2013), it has comprehended that there are various factors presence within organization, which leads to corporate governance failure. In context with McDonald's, its entire policies and principles are designed by its Board of Directors. They concern on benefits of each stakeholder while making policies. But due to some factors as given below, hamper adversely its brand value and performance.

• Lack of planning: Organizational planning covers long-term and short-term goals which specifies in what manner activities have to be done. Therefore, failure to plan will destroy the effectiveness of corporate governance as well as leads to completely break-down the structure as well.
• Conflict of interest: Since Board of Directors McDonald's concerns on each stakeholder's interest while formulating corporate strategies. Therefore, it creates various complexities under this process because of conflicts of interest. It leads to cause unethical practices also where workers adopt wrong techniques to accomplish their personal goals and objectives.

Methods to overcome from corporate governance failure

It has ascertained from the views of Benn Edwards and Williams, (2014), that there are various methods present through which Board of Directors of McDonald's can overcome from threat of corporate governance failure. It includes:

• Prioritize Risk Management: It refers to mostcrucial way by which occurrence of corporate governance failure can be minimized. In this regard, managers of McDonald's are required to establish a proper system at workplace which helps in minimizing risks.
• Ensure Timely Information: By givingtimely information to stakeholders, BOD of McDonald's can make appropriate decision about corporate governance (De Grosbois, 2012). This would help in getting cooperation of each stakeholder in running business successfully.

Research Methods

Research Design: It is a vital component of a research which shows in what manner data can be collected and arranged for further processes. It also defines the type of study like descriptive case-study, survey, observation and more), experimental and semi-experimental, etc. of a particular research. By defining a framework, investigators can find answers of framed research questions more appropriately.

Data collection: This method of research provides sources through which investigators can collect desired information about a particular. In this regard, primary and secondary source are considered as most beneficial research of data collection. Procedures of these methods can be described in following manner:-

• Primary source: It is considered as most beneficial method of research which helps in collecting reliable data rather than believing on collection of previous data. Primary research is used to collect data from respondent in direct manner. It includes interview, online and offline survey, questionnaire etc. The major advantages of this methods are to collect accurate data and information in  sufficient manner. It concludes main problems and reduce the unwanted usage of data as well. This method also helps in saving timing to gather relevant information rather than waste time to search data from other sources. Apart from this, one of the main disadvantage of primary researches is time consuming process to get informations. It is more expensive to conduct interview face to face.
• Secondary source: It is an another method of data collection where investigators can extract relevant information from other published sources. Secondary research provides methods like books and journals, internet websites, newspapers and more, from where various authors and writers have given their viewpoint on same topic. These type of researches methods seems like less expensive as well as time effectiveness also. Here the informations are readily available which aid investigators to get information more easily. But informations that are acquired by secondary researches method sometimes not give reliable information also. This leads to show major drawback of this technique of data collection.

Ethical consideration: It also refers as main aspect of research which indicates in what manner how to carry a research on a relevant topic. It assists investigators to follow ethic rules while conducting set activities research. Along with this, ethical consideration states project makers to do not enclose any kind of personal data of clients as well as keep it safe also. In this regard, some major characteristics that researchers should have are transparency, delegations, effective  and soft communication etc. Such skills and abilities of investigators help in getting cooperation of team members for achievement of goals and objectives.

Validity and reliable issues: This part concerns on reliability and validity of data gathered by investigators in a research. Therefore, it is necessary for researchers to take data from authenticated sources only.

Resource requirement: In order to carry out entire activities of resources, project managers of McDonald's are required to introduce proper resources. It includes capital, proper time, training and development programs etc. This would help in building confidence of team members and encourage them to give their best for achievement of goals and objectives.

Time Scale: In order to conduct the entire research as per required objectives, project makers of McDonald's will take approximate 4 to 5 months. In this process, they have used proper techniques to complete each activity in predetermined period so that optimum utilisation of time and resource can be obtained.

Reference

• Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.3213-3226.
• Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal. 33(11). pp.1304-1320.
• Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate sustainability. Routledge.
• Chang, J. F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.
• De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry: Commitment, initiatives and performance. International Journal of Hospitality Management. 31(3). pp.896-905.
• Du, S. and et. al., 2013. The roles of leadership styles in corporate social responsibility. Journal of business ethics. 114(1). pp.155-169.
• Eccles, R.G., Ioannou, I. and Serafeim, G., 2012. The impact of a corporate culture of sustainability on corporate behavior and performance (No. W17950). Cambridge, MA, USA: National Bureau of Economic Research.

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