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McDonalds and Nike: Organizational Impact Essay


Organizational Impact Paper

Technological advancement keeps on causing changes in various industries through innovations, creativity, and advanced designs. Currently, change is inevitable in every organization, and thriving organizations include those that adapt and adopt to change immediately once it occurs. Through innovative and creative designs, the efficiency of processes and quality of products and services have been enhanced.

Most importantly, organizations use innovations and creativity to underpin their competitive advantage in the market. The food and manufacturing industries are among other industries that have been affected positively by the tremendous innovations, designs, and creativity. McDonald’s and Nike organizations are examples of companies whose competitive strategy is focused on innovation, design, and creativity around the globe.

Innovations

Nike organization is known as the most innovative company that deals with sports shoes and apparel. In recent years, Nike has changed its strategic focus from risk management, philanthropy, improvement of labor, and environmental impacts on innovation and creativity (Nike, Inc report, 2012). The focus on innovation has influenced Nike’s corporate responsibility strategy enabling it to make products that are more suitable in the 21st century.

The company believes that for it to continue being the leading athletic brand round the world, it must provide innovative new products that are sustainable because future profitability depends on product sustainability. The increased focus on innovation and sustainability is aimed at helping Nike to have greater returns to its business, factory workers, and consumers. The reason Nike invests in innovation and creativity is to remain environmentally responsible in the 21st century as every organization strives to be green (Nike, Inc report, 2012).

The food industry continually experiences amazing innovations making it difficult for any food company to survive in the market. As a result, MacDonald’s restaurants restructured their competitive strategy focusing it on innovations and creativity. MacDonald’s restaurants continually introduce various novelties making the chain one of the international corporations that continues to drive innovation in the fast food industry (Cramer, 2009).

Some of the innovations are advertised well while others are designed in the manner that customers and even competitors cannot notice. For instance, due to rampant unemployment, MacDonald’s was unable to make enormous profits from 2007 to 2009 (Cramer, 2009).

This made the organization change its strategy by introducing an innovative breakfast version of its dollar menu to attract more customers. This implies that MacDonald’s has positioned itself in the market through technology and innovation to meet the needs of the dynamic market.

Throughout its history, MacDonald’s has remained the best seller of fast food, and this can be attributed to new technologies and innovations. It became the first to introduce specialty coffee, enabling its customers to enjoy a cup of coffee while discussing their issues.

Since it introduced the specialty coffee and offered it at affordable prices, it has gained a considerable share in the U.S. market, as compared to Starbucks. Innovation in the food industry is crucial as it helps organizations to develop creative new products. Through innovations, MacDonald’s has continued to get more profits and higher sales from the American fast food industry. It is not imaginable how the food industry could be without the rapid innovations introduced by MacDonald’s restaurants (Cramer, 2009).

Creativity and Designs

Over the years, Nike has changed its athletic products in terms of design and creativity to suit dynamic sporting events. Nike understands that innovation goes hand in hand with creativity and design. Initially, sportswear was huge and heavy, with poor shapes, but when Nike focused its corporate responsibility on sustainability and innovations, it produced new designs that utilize environmentally friendly materials.

For instance, the company has invested in considered design, which combines sustainability and innovative performance products for its target customers (Nike, Inc report, 2012). This design aims at reducing toxins and waste of material resources. Also, Nike introduces new designs into the market because it relies on the availability of natural resources.

The scarcity of resources has made the organization engage in making appropriate designs that correspond with the resources available. Being the leader in the sportswear industry, Nike has managed to influence other organizations from depending on the limited natural resources (Nike, Inc report, 2012).

On the other hand, MacDonald’s has never stopped to design new food products and introduce them into the market at the required time. MacDonald’s growth strategy depends entirely on its constant designs and the creativity it puts in the manufacture of its fast food. The company has managed to drive a lot of profits as well as win many customers through creative designs.

The company offers different food designs which appeal to many customers. MacDonald’s restaurants are known to include innovative and creative designs in their menu (Cramer, 2009).

Conclusion

In conclusion, innovation, creativity, and design affect a company’s strategy in several ways. Through innovative designs, organizations can survive in a dynamic and competitive market. Nike and MacDonald’s organizations have managed to be the leaders in their respective industries because of building their competitive strategy around innovation, creativity, and new designs.

The current market environment is competitive, and the ability of the organization to adopt to and adapt changes in its industry is the key to success and profitability. This is the reason why MacDonald’s and Nike organizations have incorporated innovation, creativity, and design in their overall strategy.

References

Cramer, M. (2009). The Emerging Role of Operations Research at McDonald’s. Retrieved from http://www.orms-today.org/orms-8-09/roundtable.html

Nike, Inc report (2012). Strategy: Innovation in the Offense. Retrieved from http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibility-strategy-overview.php?cat=cr-strategy

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IvyPanda. (2020, March 20). McDonalds and Nike: Organizational Impact. Retrieved from https://ivypanda.com/essays/mcdonalds-and-nike-organizational-impact/

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1. IvyPanda. "McDonalds and Nike: Organizational Impact." March 20, 2020. https://ivypanda.com/essays/mcdonalds-and-nike-organizational-impact/.


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IvyPanda. 2020. "McDonalds and Nike: Organizational Impact." March 20, 2020. https://ivypanda.com/essays/mcdonalds-and-nike-organizational-impact/.

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IvyPanda. (2020) 'McDonalds and Nike: Organizational Impact'. 20 March.

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