PROGRAM TITLE: Higher Nationals in Bussiness

UNIT TITLE: Management and Operation

ASSIGNMENT NUMBER: 1

ASSIGNMENT NAME: Assignment 1

SUBMISSION DATE: 24/5/2022

DATE RECEIVED: 24/5/2022

TUTORIAL LECTURER: Phạm Xuân Hùng

WORD COUNT: 3703

STUDENT NAME: Phùng Đăng Quân

STUDENT ID: BKC 12247

MOBILE NUMBER: 0766134529

 Summative Feedback

Internal Verifiaction
Table of Contents
I. Report introduction.............................................................................................4
II. The Company’s introduction............................................................................4
III. Define and compare the roles and characteristics of a leader and a
manager....................................................................................................................5
Leading a team:.................................................................................................7
IV. Critically analyze and differentiate the role of a leader and function of a
manager by applying at least TWO theories/concepts.........................................7
V. Analyze how the upper leader/manager of the company use
leadership/management approaches in at least TWO business situational
contexts.....................................................................................................................7
VI. Critically examine the strengths and weaknesses of the
leadership/management approaches......................................................................9
VII. Recommend how situational leadership, systems leadership, and
contingency SHOULD be applied in such contexts............................................10
VIII. Conclusion....................................................................................................10
 McDonald’s

I. Report introduction
The report will be broken into five major sections. The first section will provide background
information about the company.  The second section will talk about the definition of leader and
manager. Then the report will compare the differences between the characteristics and roles of
the leader and manager. The third part will be about 2 theories of how two famous people define
a leader and a manager. From there, the report will analyze the difference between a leader and a
manager mentioned above. Following that, in the fourth section, the report will show readers 2
McDonald's business cases and the CEO's leadership style. After that, the report will also
carefully analyze the strengths and weaknesses of Chris Kempczinski's leadership style. Last but
not least, we will further analyze for readers how situational leadership, systems leadership, and
contingency leadership should be applied by the CEO of the Company. 

II. The Company’s introduction

Name: McDonald’s
Website: (McDonald's, 2022)
Address: Headquarters in Chicago, Illinois, U.S
Phone number: 1-630-623-3000.
McDonald's Corporation is an American multinational fast food corporation, founded in 1940 as
a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United
States. They rechristened their business as a hamburger stand, and later turned the company into
a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix,
Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and
proceeded to purchase the chain from the McDonald brothers. McDonald's had its previous
headquarters in Oak Brook, Illinois, but moved its global headquarters to Chicago in June 2018.
(McDonald's, 2022)

Menu: McDonald's is the world's largest restaurant chain by revenue, serving over 69 million
customers daily in over 100 countries across 37,855 outlets as of 2018. Although McDonald's is
best known for its hamburgers, cheeseburgers, and french fries, they feature chicken products,
breakfast items, soft drinks, milkshakes, wraps, and desserts. The company also added salads,
fish, smoothies, and fruit in response to changing consumer tastes and a negative backlash
because of the unhealthiness of their food. McDonald's also has a combo like Happy Meal for
kids. (McDonald's, 2022)

The CEO of McDonald's is Chris Kempczinski. As President and CEO of McDonald’s, Chris
leads the millions of dedicated McFamily members who help create delicious, feel-good
moments for everyone. 
Before becoming CEO, Chris served as President of McDonald’s USA, leading the business
operations of approximately 14,000 McDonald’s restaurants throughout the United States. 
He has more than 25 years of experience working in premier global consumer companies.
He began his career in brand management at Procter & Gamble, and also held senior positions at
PepsiCo and Kraft Foods. 
In addition to serving on the McDonald’s Board of Directors, he is also a trustee of Ronald
McDonald House Charities. (McDonald's, 2022)

III. Define and compare the roles and characteristics of a leader and a manager.
1. Definition of a leader and a manager
a. LEADER:
A leader means the person with the highest authority in the organization, who is the first to
decide on the issues of the organization. The leader is also the person with the highest authority
in linking individuals in the organization, recognized and followed by the members of the
organization. (Phượng, 2022)
b. MANAGER:
A manager is a term used to refer to someone who performs management work in organizations.
Managers exercise control over the activities and work of others and are held accountable for
their results. (Phi, 2021)
2. The roles and characteristics of a leader and a manager
a. LEADER:
A leader is someone who has a vision and he or she will plan the strategy for the whole
organization. Leaders will also use their influence to manage and lead others. The leader must
have the following characteristics:
Purpose:
It's difficult to encourage team members without a sense of purpose. A leader gives others the
ability to see the motivation behind certain goals, allowing everybody to participate equally.
Making the day-to-day process feel more purposeful helps maintain team motivation and
personal investment in larger goals.
Motivation:
A leader is a great motivator and creates value-aligned goals so team members feel personally
inspired to work toward the company’s vision. Paired with consistent outreach, a leader
empowers their team members to work passionately beyond their responsibilities towards a
common goal.
Vision:
A leader will often see the bigger picture and can unite their team members behind his or her
vision. By incorporating team strengths and core values, leaders inspire their team with an end
goal that resonates with individual values and inspires action.
Empathy:
Leaders empathize with their team members. It’s how they inspire people to work beyond their
responsibilities toward a shared purpose. By listening and sharing their appreciation for their
teams, leaders impart a sense of value. When leaders prioritize empathy and appreciate their
team members’ efforts, they can empower team members to see the vision for themselves and act
toward its achievement. Putting themselves in their team members' shoes also assists leaders in
addressing crucial concerns and providing answers.
Creativity:
Rather than focusing on the chain of command, leaders inspire their employees to ask "Why?"
and think in new ways to see the broader picture. With a lofty vision guiding their employees,
leaders embrace new ways of conceptualizing and strategizing. When it comes to creating
innovative and more effective pathways to long-term goal achievement and success, nothing is
off the table. (Shonna Waters, 2021)
b. MANAGER:
Managers are responsible for managing a specific department in their company. There are many
types of managers, but they usually have duties like conducting performance reviews and making
decisions. Managers are often the line of communication between a company's employees and its
high-level executives. The manager must have the following characteristics:
Leading a team:
A key responsibility of a manager is leading their team. They give direction to their employees
and answer their questions. They also delegate tasks to specific employees and ensure that
projects stay on track. Great managers commit to the role of being a fair leader to help increase
their teams' productivity.
Training employees:
Managers are often responsible for training their employees to perform their job duties and learn
new skills. They might also offer them professional development opportunities. Often, managers
also act as mentors to their employees and teach them skills that they can use as they advance
their careers.
Making decisions:
Another duty of a manager is making decisions for their department. Sometimes, managers make
difficult decisions, so it's important for them to have a strong decision-making process. This can
help them make the best possible decisions for the success of their departments. Often, managers
communicate with their employees and other people at their company to help them make the best
decisions.
Managing conflicts:
Managers also resolve conflicts when necessary, including conflicts between members of their
team. They often practice conflict resolution and mediation skills in the workplace. This can help
them maintain a positive work environment for their team.
Conducting performance reviews:
Another major responsibility of managers is conducting performance reviews for their
employees. Usually, performance reviews occur on a periodic basis. In performance reviews,
managers give their employees feedback and suggestions on how they can improve. They might
also help their employees set goals or track their progress in meeting goals. (Indeed Editorial
Team, 2021)
3. The difference between a leader and a manager
CHARACTERISTICS OF A LEADER
Have a vision:
Foresight is a must for leaders and this is also the difference between them and ordinary people.
When the new direction of development brings the opportunity for breakthrough success, the
leader can draw up an implementation plan and lead the organization in the right direction.
Be able to inspire:
When starting to implement a plan, the leader must accompany and inspire positively to motivate
employees to implement. Because during the process, there will be difficulties that easily
discourage people. It is essential to keep the enthusiasm to perform.
Sensitivity:
Sensitivity is a special quality that enables leaders to read the minds of others. From there, it is
possible to understand the thoughts and aspirations of employees to meet and have a way to
persuade and lead them. In cooperation, it will be easy to predict the direction of competitors to
prepare a competitive plan. (PachiPethi289, 2020)
THE ROLES OF A LEADER
Optimizing management decisions:
A leader who can optimize decisions will help the system work more smoothly and efficiently. A
leader is someone who helps the team respond to change. Leaders must know how to ignore
small problems to get the big picture. To have enough time to do that, leaders need to know how
to empower people to make their own decisions.
Balancing relationships:
This role becomes important when the leader wants and directs people to act towards a common
goal. This action only brings good results when the leader is able to manage and balance
relationships. (Mindalife, 2022)
CHARACTERISTICS OF A MANAGER
Be a good trainer:
Instead of solving problems as soon as they arise, good managers take the opportunity to train
employees. They guide the team and share necessary insights, giving their subordinates valuable
experience and growth opportunities.
Productive and results-focused person:
Good managers encourage their employees to be better, by setting an example and giving
criticism when necessary. Managers won't mind helping, as long as it's good for the team.
Good communicator:
Good managers are good listeners. This helps them get to know the team well, which in turn,
shows the right attitude towards their employees. In addition, managers are willing to share
information with their employees, letting everyone know the reasons behind information and
events. (Dương, 2019)
THE ROLES OF A MANAGER
Collecting information:
As a supervisor, the manager is the one who receives and collects information. Information is
collected through meetings, chats, or documents. The manager then distributes the information to
the subordinates on a daily basis.
Creating favorable conditions for joint work:
Managers must cooperate with their team of associates along with all employees in the company.
In principle, a good manager must put the interests of the group first. The manager's role is
therefore primarily to find a balance between the needs of the unit, the requirements of higher
management, and the needs of the employees. (Trường, 2021)

IV. Critically analyze and differentiate the role of a leader and function of a manager by
applying at least TWO theories/concepts
1. Theory of leaders
Robert House with the theory of "Path-Goal" in 1971 defined a leader as an individual who has
the ability to influence, stimulate and encourage others to contribute to the effective and
successful operations of the organization they work for. It can simply be understood that House
defines a leader as someone who is able to create a vision for an organization or a group and
knows how to use his power to influence those who work for him. (Trần, 2013)
2. Theory of manager
The theory "Management according to science" published by Federick Winslow Taylor in 1890
defines a manager as someone who must clearly know their goals and how to organize and guide
employees to do their work in the best and most effective way. (Tạp chí Cộng sản, 2018)

Through the above two theories, it can be seen clearly that the role of the leader is to influence
and encourage others to work in the most effective way. The leader will be the one who must
have a broad vision and come up with the most effective working methods. From there, they will
convey the idea to the manager and the manager's task is to motivate and guide their employees
in the most detailed way to get the job done.
 Leaders are people who come up with ideas and methods of working most effectively. The
manager will be the person who directly works with the employees to ensure that the work will
be done according to the ideas that the leader has outlined. The manager will also be the one to
supervise and guide the employees to work.

V. Analyze how the upper leader/manager of the company use leadership/management

approaches in at least TWO business situational contexts.
1. First situation:
In early 2019, McDonald's was struggling to compete with the rise of innovative new American
fast food chains like Chipotle and Shake Shack. At the same time, former CEO Steve
Easterbrook was fired by McDonald's because of an affair with his employees. McDonald's has
decided to appoint Chris Kempczinski as the new CEO of the Company, who was holding The
Executive Vice President at that time.
Leadership Methods by Chris Kempczinski:
Unlike many new bosses who immediately discard the plans left behind by the old CEO, Chris
has come up with a new strategy based on the ideas Easterbrook devised when he was still CEO
of McDonald's. In the midst of the COVID-19 outbreak, Chris's approach has helped
McDonald's achieve many achievements when taking advantage of the opportunities brought by
the pandemic.
Since the beginning of 2019, McDonald's has drastically reduced the number of dishes on the
menu and focuses only on price and quality. Chris discussed with shareholders and important
McDonald's employees. Together they decided to change the way the Company does business by
bringing McDonald's back to founder Ray Kroc's favorite business model. That lifted
franchisees' market share to 93% in 2019, up from 82% in 2018. This action of Chris has helped
the Company to have a higher profit margin and a more stable source of income from land rental
and copyright. McDonald's also minimized its international facilities, selling control of the
restaurant in the Hong Kong and Chinese markets. The results were dramatic: McDonald's sales
surpassed $100 billion last year, operating margins jumped 43%, and its stock price skyrocketed.
Since 2015, McDonald's market capitalization has nearly doubled to $160 billion. (Châu, 2020)
2. Second situation
In late 2019 and early 2020, McDonald's, along with all other fast food brands, are facing
difficulties due to the impact of the Covid 19 pandemic. The company faced a heavy loss when it
could not maintain normal operations.
Leadership Methods by Chris Kempczinski:
Chris Kempczinski has implemented a very groundbreaking and large-scale plan. That's when
Chris requested McDonald's to buy a technology company that allows for a personalized drive-
through experience when buying the company's food without consulting anyone. The application
of the drive-through service may have cost franchisors a lot of money, but during the COVID-19
season, these improvements have brought great results. Under Chris' leadership, McDonald's
wisely leveraged the COVID-19 crisis to accelerate its transformation. As a result, the
Company's sales have increased sharply in recent months, especially in the US, where the
epidemic broke out. While many stores have to close, McDonald's has run extremely smoothly
and successfully thanks to the launch of digital initiatives, drive-through, and delivery services...
All of the above services have created a “contactless” experience that impresses
customers. (Châu, 2020)

VI. Critically examine the strengths and weaknesses of the leadership/management

approaches.
1. First situation
It is easy to see that Chris' leadership method is a democratic leadership method.
Strengths:
A leader who can maintain cohesion and inclusion makes team members feel more important.
When leaders demonstrate a willingness to listen to their employees' concerns, they feel valued
and ready to contribute to the business.
More opinions mean more input into the decision-making process. From there, leaders in
particular and the entire team, in general, can consider and come up with a more comprehensive
and objective action plan.
The more people who input, the more potential solutions there are. However, the final decision
will be reached after a careful examination, allowing management to identify constraints and
potential risks and make appropriate modifications.
Weaknesses:
Democratic leadership is less effective if team members do not have the necessary knowledge or
expertise to contribute to the decision-making process. In this case, training is required to equip
the Company's employees with the necessary knowledge.
There will be arguments because many opinions are discussed. In addition, if an employee's
personal opinion is not accepted, people may think that their opinion is not respected. As a result,
morale and employee satisfaction are reduced. (Nhi, 2021)
2. Second situation
It is easy to see that Chris' leadership method is an autocratic leadership method.
Strengths:
The leader will figure out the best solution himself and request the members to follow his
direction. This will help prevent projects from being delayed due to poor organization or
inconsistency.
Autocratic leaders will have significant power in forcing people to achieve deadlines. Because
some projects necessitate great leadership in order to complete them swiftly and efficiently.
Having an authoritarian leader supports the members of the organization to constantly hone their
skills so that the members can get the job done. Ultimately, this will improve the overall success
of the Company.
Weaknesses:
The authoritarian leadership style easily leads to disagreement and resentment among members
of the Company.
Autocratic leaders tend to ignore new proposals and fail to consult with other members.
Therefore, members feel that their skills and opinions are not respected and are not satisfied.
The leader's arbitrary decisions can eliminate innovative solutions to problems, jeopardizing the
company's overall performance. Today's workforce is more skilled and knowledgeable, and
contemporary trends encourage decision-making. (Nhi, 2021)

VII. Recommend how situational leadership, systems leadership, and contingency

SHOULD be applied in such contexts.
1. How Contingency leadership should be applied in the Company
Contingency leadership should be applied in the first situation. McDonald's should change the
structure as well as the organizational structure of the Company so that the business takes place
most smoothly. With the competition with fast food companies such as Chipotle and Shake
Shack at that time, McDonald's should do more marketing campaigns and offer more preferential
combos to attract more customers so that it can help the Company compete with Chipotle and
Shake Shack.
2. How Situational leadership should be applied in the Company
Situational leadership should be applied in the second situation. At the end of 2019, the Covid 19
epidemic has just broken out, causing many chain stores and fast food companies to close. Chris
should run McDonald's focusing on exploiting the method of ordering food online and he also
should focus on developing more on the Company's online ordering application so that it can
promptly deal with the Covid 19 pandemic.
3. How Systems leadership should be applied in the Company
Chris should hold an online meeting with senior McDonald's employees to discuss plans and
solutions to help the company cope with the emerging Covid-19 pandemic. Chris also needs to
have close and scientific coordination with all leaders and employees of McDonald's to be able
to solve the problems that the company is facing when the Covid-19 epidemic has just broken
out. 

VIII. Conclusion
Through the above report, readers can see the difference between a leader and a manager, as well
as how to discern the two using the two theories outlined above. The report also clarified the
leadership style of Chris Kempczinski, and analyzing the strengths and weaknesses of the two
leadership styles. In the end, the report also suggested how situational leadership, systems
leadership, and contingency leadership should be applied to McDonald's.
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