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The Organization Chosen to Observe Is McDonald’s Essay Example

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Topics:

Fast Food, Mcdonald's, Structure

Pages: 3 (578 words)
Published: February 1, 2017
Type: Article

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McDonald’s Corporation is a popular fast-food chain under the retail sector. It has lived to create history since the 50s and is now a global fast-food chain with more than 30,000 locations in 119 countries including Germany, Brazil, Japan and recently India (James 2009). McDonald’s have around 40 million customers visiting the store each day. In the early 80s McDonald’s was famous for its fast food but now the restaurant is mainly famous for its burgers, ice cream and French fries especially.

McDonald’s corporate symbol is very recognizable and has been successful with advertising their brand image and logo in the minds of millions of people. Furthermore, another strength of McDonald’s is the customer’s perceived product value. Customers know what to expect when they walk in a McDonald’s restaurant. The biggest area of operation happ

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ens in the kitchen place where McDonalds employees stock, prepare and organize food to be sold to customers right after their order is taken, hence explains the term fast food. McDonald’s has two structures at two different levels; the first is at the corporate level and the second, restaurant level.

The corporate’s current design type is functional while the restaurant’s current design type is divisional. Image 1: McDonald’s Corporate Structure The image above illustrates a hierarchy in McDonald’s corporate structure. It consists of the Chief Executive Officer (CEO) on top followed by the chairman of the board to the board of directors. Legal and secretary comes after, followed by human resources to President of APAC and MEA which refers to Asia Pacific, Middle East and Africa where McDonald’s franchises first opened during the 80s and 90s.

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justify;">Standing 8th place in the hierarchy is Chief Operating Officer (COO) followed by Chief Financial Officer (CFO) to sales and finance managers (Leadership 2012). Henceforth, McDonald’s design type in the corporate structure is functional. Functional structures are normally used in rather big companies like McDonald’s. Employees within the company are differentiated to carry out a specialized set of tasks (Gailbraith 2010).

For example, the Human Resources department’s specialized task is recruiting and training as well as making sure the right people with the ight talent are able to work within the company. A functional structure is described by a large degree of formalization, creating standardized ways of operation. Decision-making in a functional structure is centralized at the top of the hierarchy, which in McDonald’s case, done by recent Chief Executive Officer (CEO) Don Thompson (Desmond 2012).

References

Becker, T & Glovin, D 2005 “McDonald’s Must Face Claim That Its food caused Obesity, Panel Rules” The Washington Post, January 26, viewed 1 November 2012 < http://www. washingtonpost. com/wp-dyn/articles/A36737-2005Jan25. html >
Desmond, J 2012 “McDonald’s: New Black CEO” The Root, March 22, viewed 31 October 2012 < http://www. theroot. com/buzz/mcdonalds-new-black-ceo>
Gailbraith, M 2010 “What is a Functional Organizational Structure,” viewed 31 October 2012, < http://www. businessmate. org/Article. php? ArtikelId=184>
James, R 2009 “McDonald’s Abroad,” Time, October 28, viewed 27 October 2012, <http://www. time. com/time/world/article/0,8599,1932839,00. html>
McDonalds 2012, The Official Board, August 10, viewed 26 October 2012 <http://www. theofficialboard. om/org-chart/mcdonald-s>
Melnick, M 2010 “American is officially the Fattest Developed Country in the World” viewed 2 November 2012 < http://healthland. time. com/2010/09/23/study-america-is-officially-the-fattest-developed-country-in-the-world/>
Schumpeter,

2011 “McDonald’s the Innovator” The Economist, viewed 28 October 2012, <http://www. economist. com/blogs/schumpeter/2011/06/fast-food-and-cultural-sensitivity>

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