This website uses cookies to ensure you have the best experience. Learn more

Mcdonalds Organizational Structure Essay

4250 words - 17 pages

MG209: Individual Assignment

McDonalds Business Portfolio

Submission Deadline: 12/12/14

Word count: 3, 163
Contents Page

Introduction Page 3&4
Theme 1 Page 5
* Remaining Market Leader while doing business overseas
* (i) Position and Structure as a Transnational corporation Page 5
* (ii) Focus on the Brand and Strategic Targets Page 6
Theme 2 Page 7
McDonalds External Dependencies and Influences on ...view middle of the document...

The company has its headquarters in America with approximately 1,200 restaurants in the UK, of which 600 are franchises employing 85,000 people, (McDonalds, (2011)). Indeed, McDonalds have made its mark in the fast- food industry with its brand ranked 6th in the world’s most valuable brands. Furthermore, its overall brand value has been estimated at $39.4 Billion, (Forbes, (2014)). Moreover, this year marks their 40th Anniversary, and it was ranked 7th in the Sunday Times 25 best big companies (The Sunday Times, (2014)).

The Sunday Times has also ranked McDonalds Restaurants 22nd of the 25 best big companies to work for and 59th in the top 100 graduate employers, (The times, (2014)). In detail, they were ranked 13th for wellbeing, 15th for a fair deal and 16th for leadership, (The Sunday Times, (2011)). And, given the current economic climate and lack of job security employees were 77% positive about the organization’s future. Evidently, they have built up a very reputable brand image by providing value for money and quality service enhanced by a strong corporate culture (See document 1). Indeed, their company mission is to be the best and chief fast food provider on a global scale and the best for employees in every community worldwide, (McDonalds (2014)).

Ray A. Kroc founded McDonalds in 1955 and set it up on a decentralized franchising model, which allowed each franchise restaurant a wide compartment of liberty to experiment (Love, J (1986)). However, today McDonalds is a large multinational organization organized into a geographical structure with five key segments; USA, Europe, AMEA, Latin America and McDonalds International. The structural design at the organizational level is practical meaning activities are grouped together from top to bottom, (Daft, (2013)). Finally, the structure at restaurant level is divisional, with various teams who focus on individual products or services, (Daft, (2013)). Therefore since McDonalds operates using three structures; functional for the corporation itself, divisional for the restaurants and geographic for its global market this means it has a model structure overall, (see document 2). The matrix structure allows them to be multi-focused so that either product and function or product and geography are being emphasized at the same time (Daft, R (2013)).

Today, McDonalds UK holds 16% of the fast-food market and sales have increased since last year because they were ready to capitalize on the horsemeat sandal that punished their chief competitor Burger King, (Woollacott, E. (2014)). However, since the recession they have had to change how they structure their business as disposable incomes decrease and many restaurant closures have taken place in rural areas, (Woollacott, E. (2014)). Recently, the company has undergone some restructuring after a significant decline in sales (see document 3) though implementing changes at restaurant level, but its current success can be attributed to an improved...

Other Papers Like Mcdonalds Organizational Structure

Mcdonalds Essay

7931 words - 32 pages -on-a-date-with-apple-or-mcdonalds#.UnWd73CsOuI u8 Appendix A: Staffing Models a. Staffing Quantity: Levels b. Staffing Quality: Person/Job Match c. Staffing Quality: Person/Organization Match . d. Staffing System Components Appendix B: McDonalds Organizational Structure Job Positions at McDonald’s •Trainee Business Manager: The

Taco Bell Essay

1171 words - 5 pages throughout the organization. By understanding that the company had to learn faster than its competitors Taco Bell gained a competitive position in the industry. The company created a culture of embracing continuous and intelligent change. Structure: To cut costs and increase speed of delivery the company created and fast and flat organizational structure. The role of the restaurant manager was changed to that of a general manager, giving them

International Franchising

3994 words - 16 pages franchising is considered to be a relatively low-cost, low-control entry mode, compared with the high-cost, high-control modes such as investment entry modes. Root (1994, p.28) explain that investment entry modes involve ownership of manufacturing plants or other production units in the target country. According to Quinn (1998), franchising has become the cornerstone of international expansion for companies such as McDonalds, Body Shop and Bennetton

Organization Structure: Is Flatter Always Better?

1900 words - 8 pages bureaucracy and greater autonomy for employees’ to make decisions. Companies are able to reorganize their structure. An example of this is McDonalds who reorganized its management team to improve financial performance. They created two geographical responsible areas. The new positions focused on managing decisions in the USA while the other would concentrate on Europe and Asia. They believed that the new structure would mean getting improved lines of

Does the External Environment Determine the Success or Failure of an Organization?

1718 words - 7 pages changes and complication. If the changes large, it is more difficult for the company managers to make decisions based on the predict of the environment. Managers make a lot of different decision to help to construct relationships with the stakeholders which in turn influence the company outcome. (Management, 2002, p. 77 & 78). For instance, when a company is facing a stable environment, it should use a mechanistic organizational structure


5903 words - 24 pages maintain aspects of their corporate culture while still addressing local demands. In addition to an effective global strategy and selecting the best entry mode for expansion, the organizational structure of Starbucks Corporation also plays an extensive role in the continued success of the firm as a corporate enterprise. In recent news, Starbucks has rearranged their organizational structure to better accommodate the drive for exceptional customer

Change Management Memo

1094 words - 5 pages . McDonalds has a great percentage of this numbers and we are targeting the same number of clients. The stakes are high—fast-food breakfast sales last year rang up $34.5 billion, with MacDonald’s accounting for one-third of that business, per research firm Technomic. "Breakfast is a very routine purchase," said Allen Adamson, North American chairman at brand consultancy Landor. "Most people get their coffee in the same place; they start their day with a

Taiwan General Information

790 words - 4 pages The "client-server" organizational structure Challenges: North American and European markets are dominated by "big guns" like Intel and IBM; More multinationational companies have started entering the Asian market. Inbound Investment: HP, Qualcomm, Chanel, Starbuck, KPMG, and McDonalds Sources:

Rebuttal Articled - Essay

882 words - 4 pages food has been prepared, it must be packaged and delivered to the costumer. In order to insure the customer is satisfied with the product enough to want to want to return, all these employee must function together as a team or else the producers are worthless. The three companies I selected for this assignment are McDonalds, Bose Corporation and Motorola. From the reading I was able to determine the employee’s organizational structure within this


3677 words - 15 pages organizations do face difficulty as organizational culture and overall height of capabilities may act as an obstruction. Unquestionably, strategic marketing plan is mainly incorporated with competitive advantage, which needs establishment, defending and building action and maintenance in order to achieve better co-ordination of company activities (McDonalds, 2008). This results in learning how to use the various available processes and techniques

Hasbro Interactive

5281 words - 22 pages . Dusenberry and Mr. Baum. Mr. Hassenfeld approved that Hasbro Interactive to have separate and independent division with different reporting structure compared to other divisions. Mr. Dusenberry also was given authority to make all operational decisions, including those relating to organizational structure, product selection, and partnership agreements. This showed that insufficient professional advice given by Mr. Hassenfeld. Moreover, Mr. Baum

Related Essays

Motivation And Performance Manager Essay

516 words - 3 pages another” (Nelson I Quick , 2013). The research of the McDonalds Company, its strategy and structure shows that only an immediate fulfilment of employee's needs will increase an employee's performance. It is not necessary to fulfil all the needs of every level. In the reality an employee has a set of needs in every concrete moment. In conclusion, McDonald’s must elaborate different systems of motivation for every department. The personnel must

The History Of Mcdonald's Essay

2686 words - 11 pages >. "Training & Education." McDonald’s, n.d. Web. 07 Nov. 2012. <>. Vitez, Osmond, and Demand Media. "Centralized Vs. Decentralized Organizational Structure." Small Business. N.p., 2006. Web. 4 Nov. 2012. <>. "McDonald's Advertising." Wikipedia. Wikimedia Foundation, 01 Nov. 2012. Web. 09 Nov. 2012. <'s_advertising>.

Can A Nations Culture Drive Competitiveness

682 words - 3 pages between members of an organization can often be seen in the way policies and objectives are achieved for example the extent to which they are imposed by tight written rules and procedure. Structure: The way in which work is organized, authority exercised and people rewarded will reflect an emphasis on freedom or control, flexibility or rigidity If any American were asked to sum up the organizational culture of McDonald’s, they would respond

Control Mechanisms Paper

808 words - 4 pages and values in which can be both enabling and constraining to the organization. Control mechanisms are used to monitor progress and evaluate performance. Businesses, like McDonalds must have control mechanism in order to be more efficient in managing their business organization. Controls are implemented through internal controls, technology, social structure and culture. Internal controls are broadly defined as the standards and procedures