McDonalds Organizational Structure - Essay Example

Report on McDonalds Contents Organization Structure 3 Main Products and services 5 Area of operations and trading link 5 Financial Structure 6 Training Provisions 6 History of the company 7 Future of the company 8 Interviews with key personnel 8 References 10 Organization Structure McDonalds organization structure can be divided into two levels one is geographic level and another in restaurant level. Restaurant level structure is consisting of General Manager at the top. Restaurant manager follows GM while 1st Assistant Manager follows restaurant manager; shift running manager also follows restaurant manager. The 1st Assistant Manager supervises 2nd assistant manager. Floor manager follows shift running manager. Floor running managers are subsequently followed by staff training crew. Crew members follow staff training crew. McDonalds’ is having a division organization structure at restaurant level. This structure consists of different teams focusing towards single products or service. In case of McDonalds’ regular operation General Manager is controlling assistant and staffs who are mainly focusing on selling different products and offering services to customers. In case of McDonalds’ decision makings are done in a decentralized manner. McDonalds’ has divided its organization structure into three geographic locations. Those are 1) USA, 2) Europe and 3) Asia pacific, Middle East and Africa. Chief operating officers of those three regions directly reports to the CEO for all company related operations. Company’s geographical organization structure has three main hierarchies for operating globally. This organization structure is very simple and well designed. (Source: Schiemann, 2009, p. 5) ( Source: Tony, 2004, p. 8) Main Products and services The main products of the McDonalds’ are hamburgers, chicken sandwiches of different types, French fries, breakfast items, desserts and soft drinks. In some markets McDonalds’ also sales vegetarian dishes and salads. It also sales some seasonal foods like McRib. Company is also offering soup in Asian market. It has given lots of importance to the local food. Company has done great localization of their menu. They also maintained local food taboos in different countries like India and Indonesia. McDonalds’ also sells beer in Germany and in various Western parts of Europe. McDonalds’ also provides different services to its customers like free Wi- Fi. Customers can access the Internet facilities by using their mobile phones and laptops without any charges. More than 11,000 restaurants have this super service around the world. The McDonalds’ is having a prepaid card service. It is named as Arch Card. This card helps customers for quick and convenient way of payment at McDonalds’. Customers can buy from any McDonalds’ restaurant with the help of this card (Molch, 2009, p. 182). Company is providing services in terms of giving space for child parties. These services are provided in limited locations. Area of operations and trading link McDonalds’ is World’s largest food chain companies in the world. It has over 30,000 branches in 120 countries around the World. Countries like Canada, Germany, USA, Brazil, France, Japan, UK and Australia provides 80% of company’s revenue. The company is head quartered in USA (Oak Brook, Illinois). Other than above written countries company is situated in Puerto Rico, U.S. Virgin Islands, Costa Rica, Guam, Japan, Netherlands, Panama, El Salvador, Sweden, Ecuador, India, South Africa, Colombia and many other places. The company’s domestic subsidiaries are McDonald’s Deutschland, Inc., McDonald’s Restaurant Operations Inc. Boston Market Corporation, Chipotle Mexican Grill, Inc. and Mac Development Co. Company’s foreign subsidiaries are McDonald’s Australia Limited, MDC Inmobiliaria de Mexico S.A. de C.V. situated in Mexico, McDonald’s Restaurants Pte., Ltd. Situated in Singapore, McDonald’s Restaurants Limited situated in United Kingdom and Restaurants McDonald’s S.A. situated in Spain and McDonald’s France, S.A. situated in France. The company’s area of operation is very large having presence in almost every country of this planet (Schiemann, 2009, p. 105). It is truly a global brand. Financial Structure McDonalds’ recorded annual turnover of $27bn and continued to increase its market share. The company’s turnover has increased by 12% to reach $27bn. Net income increases 11 % to reach $5.5bn. Company’s profits have seen a steady growth in last consecutive 9 years. The company has left behind the financial crisis very well. Company believes in franchise style of business around the world. Company has increased its dividend continuously from 1976 (Noel, 2009, p. 137). It is a very good and encouraging sight for any organization. Company’s shares are performing well in the market after the financial recession. Company’s graph is showing an upward trend in the market. Over all company’s financial structures are very strong. Company is having a well balanced debt and equity ratio. Company’s cash flow is also very good. Company has good earnings from different structure. Company is having a very high turnover. Training Provisions The company has very well designed training provisions. It has its own university for training. The name of that university is “Hamburger University McDonalds Centre of Training Excellence”. This the pioneer company for opening global food university. In this universities extensive training are given regarding different products, services and cleanliness of services. It is a revolutionary step taken by the company in 1961. The company provides leadership development training at every level of its organizational structure (Hill and Jones, 2007, p 48). It also provides career development training of the employees including personal growth, continuous learning and building of competencies. The company also arranges paid internships for students from different colleges and universities. Students take part in this activity acts as an integral member of the company and do their assigned projects for the company. The company also provides extensive training to the top managers at global level. It has recognized that global challenges are very critical in nature that is why is providing a training program related with global mobility. History of the company In 1955 Ray Kroc opened the account with the first restaurant in Des Plaines, Illinois, near to Chicago, and that was the creation of McDonalds’ Corporation. In the year 1957 company came up with its motto of Q.S.C. & V. i.e. Quality, Service, Cleanliness and Value. In 1959 company opened its 100th store in Chicago. In 1961 company opened its hamburger university. In 1963 company sold one billion hamburgers and open its 500th restaurant. It exceeded net income more than $1 million. In 1966 company was listed in NY stock exchange. Company opened its first international in Canada and Puerto Rico in 1967. In 1970 company opened its out let at every states of USA. In 1993 company’s first out let opened at sea in Silja Europa, situated between Helsinki and Stockholm. Future of the company Future of the company is very bright. The way the company is innovating and improving the company has very bright future ahead. It is focusing on Sustainable supply chain which would give company and uninterrupted supply of raw materials in the future. The company is taking child well-being and nutrition very seriously (Tony, 2004, PP. 12-123). It is coming up with different foods and beverages particularly for kids, trying to create awareness among the customers. On the way to earn revenue company is also taking care of environmental responsibilities as well. The company is considering some changes in packaging which would be more environments friendly. It has a clear objective of providing total employment experience to its employees. It is adding value to enhance employee’s engagement in the organization. It is returning a lot towards community. It is taking part in different volunteer, CSR activities. It is coming up with lots of programmes related with social awareness. Interviews with key personnel This section would show different questions and answers were ask during the preparation if the report. Chief operating officer of Asia pacific region gave the below written ideas. Q: - What steps are you following for enhancing service qualities? Ans: - He told that company is very much dedicated to enhance its service qualities across the across the world, Asia pacific region is a top priority for the company. He also added that company believes in continuous up gradation of its service quality. Q: - What is your idea about penetrating towards more and more local markets? Ans: - According to Coo, local markets in the Asia pacific region are going to be their top priority. Company wants to keep its firm feet in more and more local markets. Company is coming up with more and more local popular menus to penetrate the market. Company is focusing towards localization of its global brand. Q: - What is your idea about social and environmental responsibilities? Ans: - Social and environmental responsibilities are very important for McDonald. According to him company is coming up with different CSR activities and involving them with lots of awareness programmes which are going to benefit our society. Keeping environmental stability is a very important matter for the company. McDonald is fulfilling all different environmental guidelines. Q: - What is your view on modernization of employee’s skill? Ans: - Modern and skilled employees are assets of the company. Company is focusing very hard for enhancing the skills of the employee. Company is providing extensive trainings in their university. Q: - What is your view about customer relationship management. Ans: - Customers are king. He also added that maintain customer relationship is top priority of the company. Company is maintaining robust customer’s database. References Hill, C. and Jones, G. 2007. Strategic Management: An Integrated Approach. London: Cengage Learning. Molch, D. 2009. McDonald’s Russia: Managing a Crisis: Case Study. London: GRIN Verlag. Noel, H. 2009. Basics Marketing 01: Consumer Behaviour. London: AVA Publishing. Schiemann, W. 2009. Reinventing Talent Management: How to Maximize Performance in the New Marketplace. New York: John Wiley & Sons. Tony, R. 2004. Working for McDonalds in Europe: The Unequal Struggle. UK: Routledge. Read More