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Human Factors in Organizational Performance

This document provides a summary of a project report on the human side of organizations. It discusses three main topics: 1) the effects of globalization on modern business management and environments, 2) how SWOT analysis can be used as a strategic planning tool to improve organizations, and 3) how environmental uncertainties influence companies, managers, and employees. It also analyzes two multinational companies, McDonald's and Lippo Group, as case studies. The document contains definitions of key terms, discussions of concepts, and diagrams to illustrate points.

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0% found this document useful (0 votes)
87 views24 pages

Human Factors in Organizational Performance

This document provides a summary of a project report on the human side of organizations. It discusses three main topics: 1) the effects of globalization on modern business management and environments, 2) how SWOT analysis can be used as a strategic planning tool to improve organizations, and 3) how environmental uncertainties influence companies, managers, and employees. It also analyzes two multinational companies, McDonald's and Lippo Group, as case studies. The document contains definitions of key terms, discussions of concepts, and diagrams to illustrate points.

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Human Side of Organization

Project Report

Industrial Engineering

Team Number: 13

Team Members:

Firhan Hidayat (2018370061)


I Putu Mega Utama Putra (2018370072)
M. Rezky Wardana (2018370076)
1. Introduction

In an organization, there are numerous aspects that affects the way the organization

operates and performs, including the human side of it. This is simply because organizations

are run by a group of people who become its members. Whether the organizations are

performing well or not depends quite highly on how good the human resources of the

organization’s have.

In this study, the authors discuss how several aspects from the human side of

organization is contributing to the organization’s performances, especially from the

perspective of the organization’s manager. The aspects that would be discussed are: (1)

globalization and its effect on business management and environment, (2) SWOT utilization

and how does it improve an organization, and (3) how environmental uncertainties influence

companies, managers and employees. The study would also be brought into a study case

analysis using two multinational companies, which the authors use: (1) McDonalds and (2)

Lippo Group.
2.Review and Discussion of Topics as Textbook/Lecture

2.1. The Effect of Globalization on Today’s Management and Business

Environment

2.1.1 Definition of Globalization

The first thing that is to be discussed in order to understand the relation of how

globalization could affect today’s management and business environment is to understand the

meaning that lies on this globalization definition. As stated through the given lecture, it is

defined as the trend of the world economy toward becoming a more interdependent

system​. In a broader term, it could be likely interpreted as the interconnected global economy

in which the economic situation in one country is giving significant effect to another country,

such as if they face any problem like crisis, recession, and etc, then the other countries will

also get the impact.

2.1.2 Effect of Globalization

The world today has evolved extraordinarily which neglect of how long the distance

travel also the time required to communicate between each other. The rise of sophisticated

technology such as email, voice call, etc. are playing a very important role to accommodate

alike this activity. This make things done become easier and result to a very positive effect. It

does really help as part of globalization to connect between all countries around the world

which later called as global village.

As a result, this brings up into what is called as the global economy, as also

mentioned earlier, in which it creates the existence of only one international market or global

market instead of many national markets. With this situation, it opens a big chance to have an
exchange goods, information, manpower, service, etc.among the global village. Globalization

now here are starting to affect today's management to help manage this cross-border

interaction as management practices.

2.1.3 Managing Globalization for the Company

To do management practices, it requires a good understanding especially about the

type of managers which are ethnocentric, polycentric, and geocentric manager, to those who

are acting as manager or an international manager. This due to a different situation that

might to manage and control to accomplish the goal. Like for example, dealing with

customers or partners from different cultures, buying components from foreign suppliers,

working for a superior from a foreign country, etc., which is basically laid off the differences

to be handled

In business environment side, due to globalization, it makes the firm can broaden their

market with making an international expansion. Firm can then get the advantages such as

new foreign supplier to fulfill their demand, open a new potential market when they have low

demand for the local, lower labor costs, access to finance capital, and avoidance of tariffs and

import quotas.

To do the expansion, the firm can do several things. Global Outsourcing is by using

foreign suppliers to complete the demand. Importing which buys goods outside the country

and resells them domestically. Exporting which produces goods domestically and sells them

outside the country, and countertrading occurs when a firm barter for goods. Licensing is

when a firm allows a foreign firm to pay a fee to make or distribute the first firm’s product or

service. Franchising is similarly with licensing with having trade-off by sharing the profit
through using firm’s brand. When firms join forces to share the risks and rewards of starting

a new enterprise together in a foreign country, they form a joint venture. A foreign subsidiary

that is totally owned and controlled by an organization is a wholly owned subsidiary

Several other effects to the business environment caused by globalization which are

manager need to consider economic systems, economic development, infrastructure and

resources, and currency exchange rates in foreign markets. Managers need to be aware of

governmental systems and the potential for political risk. Managers need to bridge

cross-cultural gaps by understanding basic cultural perceptions embodied in language,

interpersonal space, communication, time orientation, religion, and law and political stability.

2.2 SWOT Analysis and Its Usefulness as Analyzing Tool for Companies

2.2.1 Strategic Planning and Its Importance

Many companies are engaged in strategic planning today. Strategic planning is a way

of helping an organization to be more productive by helping to guide resource allocation to

achieve goals (Gurel, 2017) . It is a strategic tool for managing or, in other words, it is part of

strategic management. Strategic planning is intended to influence the strategic direction of an

entity over a given period of time and to organize and implement deliberate and evolving

strategic decisions.

Strategic management is the ongoing decision-making process that allows an

organization to achieve its goals. Strategic management enables an organization to be more

proactive than reactive in defining its own future; it enables an organization to undertake and

influence actions rather than simply responding to them, and thus exercise control over its

own destiny (Wolf, 2013). Strategic management consists of five steps which are:
1. Establishing the vision and mission..

2. Establish the grand strategy (using SWOT and forecasting).

3. Formulate the strategic plan.

4. Carry out the strategic plan.

5. Maintain strategic control.

2.2.2 SWOT Analysis

One of the phases of the strategic management process is external and internal

analysis, also called SWOT Analysis. SWOT Analysis is a tool used for strategic planning

and strategic management in organizations. It can be used effectively to build organizational

strategy and competitive strategy (Gurel, 2017). SWOT become popular and many of the

companies use it since using the SWOT analysis can give the whole picture of the company

from outside and inside environment.

The starting point for analysis is the SWOT analysis where S stands for strength, W

stand for weakness, O stands for opportunity, and T stands for Threat. For S and W, it is for

the internal analysis of the company while the O and T is for the analysis on the external of

the company. This term is used widely since the SWOT analysis take the important role of

development of the company


Figure 2.2: SWOT analysis

A SWOT analysis provides managers with a realistic understanding of where the

organization is relative to its internal and external environments because when they know all

aspects that may affect the company, they can make a proper decision about how they can

maximize the strength of their company, resolve the weakness, catch up with some

opportunities and also reduce the possibility of the threat impacting the company.

2.3 How Environmental Uncertainties Influence Companies, Managers, and

Employees

2.3.1 Uncertainties and “Environmental Uncertainties”

There is a saying that comes from an American famous mathematician named John

Allen Paulos that says: “Uncertainty is the only certainty there is, and knowing how to live

with insecurity is the only security.”. It does a good job in representing how uncertainty is

something to be taken for granted in any context of time and location and the best way to
cope up with it is to embrace the fact that uncertainty would always be happening, not

avoiding it, and prepare its anticipation.

One of the uncertainty resources is called “environmental” uncertainties or “business

environmental” uncertainties. From the book, it could be known that environmental

uncertainties are the uncertainties that is coming from the external key variables coming from

outside the companies, which the company only have little to no power to influence (Kinicki

and Williams, 2018). The examples of environmental uncertainties are the performance of

suppliers, sub-contractors, competitors, consumer behaviour, weather, technology

advancement, and others, which is presented by the following figure

Figure 2.3.1: Examples of Uncertainty in Business (Civelek, 2015)

The environment uncertainties has a great impact on the company, its managers and

its employees. The explanation could be found below.

2.3.1 Environmental Uncertainties Influence to Companies


Companies would always expect that their business would run well and the goals are

achieved. It is the task of the company to make sure that everything is under control.

Therefore, companies should always monitor the way the companies are currently doing and

to seek and forecast the variables there is something that could affect the company. Yet, the

companies are always facing the risk of uncertainties which would hinder the project to

achieve the goals. To mitigate the risk of uncertainties and to adapt when the risk is

happening, the company would be forced to do some actions or revision.

For example, if a competitor has managed to launch a similar product earlier than our

company, it would significantly impact on our own product's sales and promotion. Therefore,

in the future, in order for the company to survive in business operation, the company might

change its policy to prioritize time over the quality of the product or the cost.

The other example is like when the weather is unpredictable, a project might be

postponed until the weather is tolerable. In the future, the company might have to reschedule

the project timeline to keep up with the lost time.These are examples where the uncertainty is

affecting the company.

2.3.1 Environmental Uncertainties Influence to Managers

Managers are the people who are expected from the company to make the business

survive and under control. Even to the extent of doing it on a daily basis, managers are

decision makers and planners of the company. Thus, the quality of the managers would be

tested when they have to forecast the environmental uncertainties and make necessary plans

to anticipate each of the found uncertainties that could affect the company.

According to the Cambridge Dictionary (2019), planning is the act of deciding how to

do something. Besides that, not only how to do something, planning is also include the setting
up goals and its milestones. This planning is the basis on how the company's react to

uncertainties. Without good planning, a company is planning to fail. What kind of reaction,

policies, culture, ethical view, and etc, it is up to the manager’s plan who manage the

company to anticipate the environmental uncertainties. This is how the environmental

uncertainty is affecting the quality of the managers.

2.3.1 Environmental Uncertainties Influence to Employees

An employee is the workers who work for a business, organization or community.

These individuals are the organization's staff. In general, any person hired by an employer to

do a specific job is an employee. Uncertainties are also faced by the employees of the

company, especially on what could affect the quality of what they are being responsible and

being worked on.

The simple example that could affect employee performance is weather. When the

weather is very harsh, it hinders the employee to come to the office, making the employee

could not work on the job. Therefore, the company may need to facilitate the employee so

they could do their work on the go and to communicate with teammates, even without being

in an office.

The other example of uncertainties is that each of the employee are often tasked with

a repetitive work. Even though it is repetitive, employee might even find new troubles every

time the employees start doing the work again. This is due to the way that, even though it is

repetitive, there are still supporting aspects that may be different from each place and time to

another. For example, when an employee is being tasked to do monthly audit, there would

always be a new problem that each month could happen..


3. Review or Summary of Additional/Supplemental Information of Topics

3.1 Globalization’s Additional Research

By having the research, it is likely found that there are several effects by which

globalization are affecting today’s management and business environment. Firstly,

heterogeneous workplace, as of globalization, organizations around the globe are increasingly

heterogeneous work environments. Indeed, even representatives at a similar organization may

originate from an assortment of nations and societies and have various perspectives on and

moving toward their work. Managers must regard decent variety and adequately carry

individuals of differing foundations to work agreeably together. Foreign assignments, a

manager might be approached to take on an outside task. This requires the administrator to

meet people's high expectations of living in another nation, acing significant social and

language contrasts. Managers are progressively required to oversee representatives and

groups a few time zones away. With a remote group, a chief can't appear at a worker's work

area to address an issue. Administrators today should be skilled at innovation just as

overseeing remotely through email, telephone call, videoconferencing and different mediums.

Economics of scale, by selling crosswise over numerous mainland’s business can get

economies of huge scale creation. Location Flexibility, this makes them extremely

aggressive. numerous cutting-edge creation strategies and administration arrangements can be

dispensed anyplace. This permits to them gain the benefits of minimal effort work and other

asset charges. Managers should discover answers for multiculturalism, multinationality,

propensities and ways of life of their workers, and create methodologies which would

accommodate these
3.2 SWOT Analysis Additional Research

By conducting an external analysis, an organization identifies the critical threats and

opportunities in its competitive environment and also examines how competition in this

environment is likely to evolve and what implications that evolution has for the threats and

opportunities an organization is facing. While external analysis focuses on the environmental

threats and opportunities facing an organization, internal analysis helps an organization

identify its organizational strengths and weaknesses. It also helps an organization understand

which of its resources and capabilities are likely to be sources of competitive advantage and

which are less likely to be sources of such advantages. Based on SWOT Analysis,

organizations can choose the appropriate strategy.

3.3 Environmental Uncertainties Analysis Additional Research

Through further research, findings about the other knowledge of environmental

uncertainties are found. Here are several of them:

3.3.1 What makes things uncertain

According to Barbow et al (2000), uncertainty occurs when the details of something

uncertain, complex, unpredictable, and/or probabilistic circumstances. It also occurs when the

individual finds unavailable, contradictory or unreliable data or knowledge.

3.3.2 The effects of Uncertainty on Someone’s Behaviour

Uncertainty influences the cognitions, beliefs, desire and actions of individuals (Van

den Bos & Lind, 2002). Thus, uncertainty is contributing in someone’s ability to make

decisions.
3.3.3 Principle of Uncertainty

There are some distinctive characteristics of uncertainty that discussed in academic

research, which are:

A. Uncertainty is fundamentally self-cognitive; is in the eyes of the beholder.

Even a person who possesses much information on the issue may still feel

uncertain (D.E. Brashers, 2013).

B. Uncertainty is multilayered and interconnected (Barrow, 1995). When things

are in the air at once, to start from making one thing visible can change the

whole scene. Likewise, when there are multiple uncertainties at once, the

resolution of one issue may let another appear or shift (Barrow & Kline,

2000).

C. Uncertainty is temporal; it can be short-lived or chronic (Lazarus & Folkman,

1984; Michel, 1990).

4.​ ​Discussion of how the topic is implemented in McDonald and Lippo Group

4.1 Company Profile

4.1.1 McDonald’s Corporation


Figure 4.1.1: McDonald’s Company Logo

McDonald's Corporation is an American fast food company founded in 1940 as a

restaurant in San Bernardino, California, United States operated by Richard and Maurice

McDonald. They rehabilitated their business as a hamburger stand and later turned the

company into a chain restaurant, unveiling the Golden Arches logo at a Phoenix, Arizona

location in 1953. In 1955, a businessman, Ray Kroc joined the company as a franchise agent

and went on to buy the chain from the McDonald brothers. McDonald's had its original

headquarters in Oak Brook, Illinois, but moved to Chicago in early 2018 with its global

headquarters.

McDonald's is the world's largest revenue restaurant chain, serving around 69 million

customers per day in more than 100 countries in 37,855 outlets (Chicago Tribune, 2018).

While McDonald's is best known for its hamburgers, cheeseburgers, and french fries, chicken

products, breakfast items, soft drinks, milkshakes, wraps, and desserts are also available. The

company has added salads, fish, smoothies and fruit to its menu in response to changing

consumer tastes and a negative backlash due to the unhealthiness of their food (Robbins,

2017). Revenues from the McDonald's Corporation come from the franchisees ' rent,

royalties, and fees, as well as sales in restaurants operated by the company. McDonald's is the
world's second-largest private employer with 1.7 million employees (after Walmart with 2.3

million employees), according to two reports published in 2018. (MSN, 2018)

4.1.2 Lippo Group

Figure 4.1.2: Lippo Group Logo

Lippo Group is an Indonesian-based conglomerate company. The company operates

as an international provider of services for property development and management. Mochtar

Riady is the founder of it. In Asia and North America, Lippo has a collective presence. Lippo

Group is one of Indonesia's leading real estate developers and is known for several

large-scale projects such as Lippo Village.

The Lippo Group began with Lippo Bank, which was later used as a platform for

regional development projects. In 2001, by providing international training (using English)

for specially selected accounting and computer science students, the Lippo Group delved into

the education market with the newly minted Putian University (in Putian, Fujian Province,

China).
Lippo Group controls in excess of $15 billion in assets with significant investments in

retail, media, real estate, banking, natural resources, hospitality, and healthcare industries.

The group's flagship operating platforms include OUE Singapore, Lippo Karawaci Indonesia,

Hypermart, Matahari, Siloam Hospitals Indonesia, First REIT, LMIR REIT, Auric Pacific,

and Lippo Incheon Development.

4.2 Globalization Impact on Companies

Globalization has a major impact on company around the world, and its impact can be

demonstrated in two ways: positive impact and negative impact. Its positive impact is the

promotion of innovation development, the promotion of rational resource allocation and the

promotion of human civilization. The negative impact is based on the global economy's

turmoil and global economic crisis. Generally speaking, the positive impact of globalization

on people is greater than its negative impact.

4.2.1 Globalization Impact on McDonald’s

Because of globalization, McDonald’s could introduce the american cuisine to the

world, which is burger along with a side dish of french fries and the drink of Coca-Cola. In

fact, McDonalds and Coca Cola are sharing the same vision so when the two groups are

embracing the new country as their market.

Because of globalization, McDonald’s culture on being a restaurant is also change.

For example, a restaurant is supposed to be a place where the family could enjoy a gourmet

food, since the concept is if you want to eat fast, you eat something at home. Yet,

McDonald's introduced the world with a different idea, which is to make a restaurant, often

with a good facilities, yet offer a food that is fast and easy to make. Because of globalization,
McDonald could open their franchises all over the world, offering their idea of delicacy while

still adapting to the local taste and culture.

4.2.2 Globalization Impact on Lippo Group

Lippo Group is one of the biggest and richest group in Indonesia due to its activity in

doing multinational partnership with the company that is located outside Indonesia.

Therefore, globalization is actually also benefiting the Lippo Group

The Lippo Group in fact starts their business partnership for the first time with a

company that is coming from China. If globalization in that era is not vast enough to let the

founder of Lippo Group to engage a business partnership with the China’s company, Lippo

Group would not be as big as right now.

As Lippo Group to expand the business in Indonesia, Lippo Group sees that in

Indonesia, several of business idea is still not yet could be implemented massively. For

example, back in the day, when Lippo Group are investing in assets such as apartments, and

building department stores, the development of Indonesia’s area is still not yet good in all

areas. Therefore, to wait for the Indonesia’s area to be better in condition, Lippo Group invest

their money on doing business practices outside the country.

4.3 SWOT Analysis Implementation upon Companies

4.3.1 SWOT Analysis upon McDonald’s

McDonald's has been outperforming the market this year and recently set a new

all-time high. A SWOT analysis -- a look at strengths, weaknesses, opportunities, and threats

-- can help assess whether the fast-food giant can keep the growth on a high-calorie diet.
Strengths:

1. McDonald's has successfully rolled out new items like coffees, smoothies, and

Angus burgers, expanding the range of menu choices.

2. With a strong product offering, the company has grown income throughout the

recession, notching strong increases in same-store sales.

3. Operations are spread around the world, meaning the company is not exposed to just

one currency or economy.

4. Even trading near its highs, McDonald's serves up sizzling dividend yields that top

the 10-year Treasury. The yield comes with a side order of annual dividend hikes

dating back to 1976. The annual dividend payment has gone from 55 cents per share

in 2005 to $2.20 this year.

Weaknesses:

1. It will be harder and harder to find prime locations to build a set of golden arches. The

U.S. is saturated with its restaurants, so growth will have to occur internationally,

posing potential cultural challenges.

2. While the annual dividend hikes are likely to continue, the dividend growth rate has

been slowing and will probably continue to slow or level off.

Opportunities:

1. There are opportunities for new restaurants outside the United States, and McDonald's

has been taking advantage of them. China is a great opportunity for the company, as is

much of Asia.

2. Menu innovations are limited only by imagination.


3. Low interest rates provide cheap capital for growth. In addition to dollar-denominated

debt, McDonald's recently became the first foreign company to issue

yuan-denominated bonds in Hong Kong.

Threats:

1. Governments are considering regulations targeting fast food.

2. McDonald's faces competition from strong peers such as recent 11 O'Clock Stock pick

Yum! Brands and Burger King.

3. New product rollouts often have to go head-to-head with established players like

Starbucks coffee or Jamba smoothies.

4. Commodity price increases could increase costs while a weak economy limits the

ability to pass the price hikes through to consumers.

From the SWOT analysis, there are several points that may impact on the

development of the company. They will consider to optimize the strength and their

opportunity to be developed such as rolled the new item, strong product offering, get the new

restaurant outside the US and low interest rate. But, on the other hand, they must give more

attention to their weaknesses and threats and find the best decision to overcome those

problems.

4.3.2 SWOT Analysis upon Lippo Group

Lippo Group is dealing with multiple big business at once. In this study, the author

would choose one of its unit business to be analyzed, which is Mall Lippo Cikarang.
Strengths:

1. Strategically located at KM30, east of Jakarta

2. Better environment, infrastructure and complete public facilities for industrial and

residential tenants

3. Strong management with more than 20 years of experience in property development.

4. Solid cash flow with zero debt

Weaknesses:​

1. Low landbank inventory could restrain cash flow and increase acquisition costs,

which will crimp its profit margin.

Opportunities:

1. New toll gate access at KM34+7 should increase property values as well as

company’s profitability

Threats:

1. Depleting industrial land with higher acquisition costs can hurt the company’s

profitability

2. A possible slump in demand for industrial land in Cikarang, while it expects

industrial supply of land to be increase in the Karawang area

Same with the McDonald's company, the Lippo group also have several strengths that

may be optimized such as it strategic location that may attract more customers to buy their
product, their environment, and their management side. But, based on their weakness, they

must consider how they can manage the low land bank inventory in the future, depleting

industrial land, and prepare a plan of possible slump in demand.

4.4 Cases of Environmental Uncertainties on Companies

4.4.1 Cases of Environmental Uncertainties on McDonald’s

As could be seen from the company’s profile, McDonald's is a very big chain

restaurant. Since it is opening its franchise internationally, McDonald's face a lot of

uncertainty, especially in the way people perceive McDonald and the way McDonald should

adapt their franchises into the local taste, which would be used as an example in this study.

McDonald's has faced a lot of problems in terms of its image on operating its

business. Environmentalist, consumer association, animal activist, food health agency,

anti-corruption agency and etc, are a group of people who often deemed that McDonald's is

an “evil” restaurant, doing unethical things for the sake of getting profit. Yet, it is actually

back to the franchise who commit the unethical act. Yet, the brand of “McDonald” is actually

getting affected as a whole. This is one of the uncertainties that has made McDonald's have to

be careful in managing their branches. To always emphasize on promoting goodness to each

local area of the franchises is something McDonald’s always been upholding to.

Furthermore, McDonald's is also face uncertainty in each country. Each country has

their own taste and preference. Therefore, McDonald adapt the restaurant to be suitable to the

local taste. For example, in Indonesia, the people love spice very much. Therefore, they open

a menu which provides extra spiciness to cope up with the condition. Furthermore,

Indonesian people could not eat without rice. Therefore, McDonald's has decided to change
its main course from burgers and frenchfries into chicken and rice, affecting its supply chain

entirely.

4.4.2 Cases of Environmental Uncertainties on McDonald’s

Lippo Group is one of the biggest companies who do multiple types of business at

once, such as in journalism (BeritaSatu), department stores and malls (Matahari, Hypermart,

Lippo Mall), internet connection provider (First Media), assets (Meikarta), film showing

(Cinemaxx), e-money (OVO), and many more. It is a very arduous thing to do for a single

group to be able to manage that much and diverse business operations. It would face

uncertainties that is very varying from one type of business to another, and it is up to the

Lippo Group to plan and mitigate the bad risk from it.

One of the environment uncertainties that could be faced by Lippo Group is the way

competitor is doing its activity. As could be known, First Media is a leading wireless fidelity

internet provider that is targeting the segmentation of middle-income consumer. In the

meantime, its greatest competitor is pursuing a little bit higher income consumer. Lippo

Group should anticipate when the competitor decided to breach a new market by launching a

subdivision product that is competing with First Media.

The other case that could happen is how their cinema business, Cinemaxx, is really

relying on the production of film out there, which is not in control of Cinemaxx. As can be

seen, the launch of Avengers: Endgame movie has made cinema over the world to be

overflowing with people who want to watch the video. In the end, Cinemaxx react with using

all the available studios to show Avengers: Endgame only to pursue high profit while the film

is still booming on the media. This kind of uncertainty is what makes Lippo Group adapt with

the condition of the market.


5. Conclusion

By doing this study, it could be known that the three aspects mentioned are greatly

impacting on how organizations do their business operation. First, from globalization, with

the help of globalization, the sharing of information, ideas, integration of culture, is

happening faster. It often brings benefit to companies. Yet, globalization flow also brings bad

impact to the company which could lead to conflict, such as culture clash. Second, SWOT

analysis is a very helpful tool to know in what kind of condition a company is actually

located in. Furthermore, to recognize all of the SWOT element, which are strength, weakness,

threat, and opportunity, is a fundamental for company to accomplish if they want to achieve a

greater height of self-quality. Lastly, the way uncertainties are happening in the environment

is also contributing to the way company run business. Uncertainties comes from all sources in

any kind of form, and it is the task of the company to anticipate all the uncertainties and make

necessary preparational actions according to that. If a company could implement the actions

of the mentioned three things, the company would be in better condition in the future.
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