2.1 History & Industry of Organisation
Founded in the United States in 1940, McDonald’s started out in the Food & Beverage
Industry as a barbeque restaurant managed and operated by Richard and Maurice McDonald.
Subsequently, it was restructured into a hamburger stand with the use of production line
principles. In 1955, Businessman Ray Kroc purchased the chain from the McDonald brothers
and franchised it worldwide.
2.2 Mission & Vision
McDonald’s brand vision is to be the best quick service restaurant experience by providing
outstanding quality, service, cleanliness, and value, so that they can make every customer in
every restaurant smile. ...view middle of the document...
They have a
strong core of older workers and were one of the pioneers in the hiring of mature workers in
the 1980s (Audrey Chin, 2013).
2.5 Organisation Structure
McDonald’s adopts a divisional organisational structure which comprises of 3 different
divisions; each division handles a specific operational area. This is done to support autonomy
and organisational flexibility. Firstly, McDonald’s has a global hierarchy to cover all its
operations worldwide and to emphasize corporate control. Secondly, the most distinct feature
of McDonald’s organisational structure- performance-based divisions. McDonald’s used
performance as basis for the new divisions in its organisational structure: (a) U.S., (b)
International Lead Markets, (c) High Growth Markets, and (d) Foundational Markets and
Corporate. The U.S. accounts for more than 40% of McDonald’s revenues, and the lead
markets for 40%. The high-growth markets account for 10% of revenues. Finally,
McDonald's uses function-based groups to address the basic function in its business. For
example, under corporate operations, the company has a human resource management group,
a supply chain and franchising group, and a legal group...