Mgt 230 Week 4 Paper
McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.
McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's will be provided over the course of this presentation as well as an evaluation of its organizational functions and an analysis of organizational design.
Organizational structure
“The McDonald’s Corporation has a divisional structure, which is made up of a board of directors, a chief executive officer and vice chair at the top levels of the corporation. The board of directors consists of the CEO and vice chairman, the president and chief operating officer, and group of independent directors. McDonald’s Corporation’s Board of Directors is entrusted with, and responsible for, the oversight of the assets and business affairs of McDonald’s Corporation in an honest, fair, diligent and ethical manner” (McDonald’s Corporation, para. 1, 2011).
There are several advantages and disadvantages of divisional structure. The divisional structure focuses the attention of employees and managers on results for the product, the customer, or the geographical area. Divisional structure is flexible and responsive to change, because each unit focuses on its own environment. Coordinating among different functions within the division benefits from singleness of purpose, because each division is a self contained unit, responsibility and accountability
McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's will be provided over the course of this presentation as well as an evaluation of its organizational functions and an analysis of organizational design.
Organizational structure
“The McDonald’s Corporation has a divisional structure, which is made up of a board of directors, a chief executive officer and vice chair at the top levels of the corporation. The board of directors consists of the CEO and vice chairman, the president and chief operating officer, and group of independent directors. McDonald’s Corporation’s Board of Directors is entrusted with, and responsible for, the oversight of the assets and business affairs of McDonald’s Corporation in an honest, fair, diligent and ethical manner” (McDonald’s Corporation, para. 1, 2011).
There are several advantages and disadvantages of divisional structure. The divisional structure focuses the attention of employees and managers on results for the product, the customer, or the geographical area. Divisional structure is flexible and responsive to change, because each unit focuses on its own environment. Coordinating among different functions within the division benefits from singleness of purpose, because each division is a self contained unit, responsibility and accountability
References: McDonald’s Corporation. (2008). Finance at McDonald’s. Retrieved from: http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_finance.pdf McDonald’s Corporation. (2008). Marketing at McDonald’s. Retrieved from: http://www.mcdonalds.co.uk/static/pdf/aboutus/education/