Mod Pizza: A Winning Recipe?

Reykjavík University                                                  28. September  2016

School of Business                                                       Individual project

Change management                                        

Mod Pizza: A Winning Recipe?

Student:                                                                                 Teacher:

Guðný Hrund Þórðardóttir                                         Hulda Dóra Styrmisdóttir

Id.1308754169                                                      

        The leadership at MODS Pizza is clearly a combination of transformational and transactional leadership, with a twist of ethical leadership. The owners are very concerned to make a good working environment for their staff and they also do wont to make a difference in the world. The have a goal to changes the way fast food restaurant in US operates. There main problems are expending the company in a fast way, that comes from the problem that they use a lot of the profit to pay their staff a good salary so there is not much left to use in investments for the growth. They also have trouble finding investors because of their vision. Most investors want a fast return in their investments. What can they do about that? What they could do is to try to find investors that have a lot of money and do not necessary need a fast return on their investments, but do want to give back to the community and get the feel good effect. That will of course take more time and work effort from the owners and the growth would be slower.

Another problem that MODS Pizza is facing is a high turnover whit the staff. The reason for that might be the opportunities that the staff has to get promoted, transferring of people with in the company and of how fast the company has grown. That problem might not be a big issue since the growth of the company is slowing down because of the trouble they are having getting new investors.

Leadership is a very complex phenomenon and it is not always clear what methods leaders are using in their leaderships. (Dinh et al).

The leadership at MODS Pizza is very special leadership, the founders of the company really want the perspective they started up with to come forward and survive.  Even in the fast growing environment they are working with. They are very passionate about their views and the feel good sensation that their vision brings to them. They seem to be using their own methods of leadership but in fact they are exactly using a transformational leadership in the foundation and then they ad a little of transactional leadership in to it. For example they are innovative, they do recognize the needs of their followers/staff and do what ever they can to inspire them to keep the culture of MODS Pizza alive. They are also very concerned about making a better future for their staff and the community. They are really promoting a significant change in how fast food restaurant operate in the US. They are really leaders in advocating changes in the fast food environment. The methods they use from transactional are that they do offer awards that improve the productivity and encourage hardworking in the shops. For example the “role model” award and bonuses for the general managers. They are also very tolerant and fair to their staff and do give them a chance to better themselves. For example with openness to give people a second chance at live and with the “FareStart” foster care system.  This combination of methods seams to be working for them at the moment. Weather or not that will work in the future when the company is bigger is something we do not know but time will probably tell. (bókin/glærur skoða) greinin.