Foundation Business Management - McDonalds, Mercedes Benz, and Microsoft Corporation - Essay Example

McDonald’s works on the management model of employee empowerment in empowering the individuals to take business and customer service decisions on their own (Daft and Marcic 441).

Management Structure

The organizational or management structure of the firm reflected a large amount of decentralization which is focused on the Organic Approach. The organic approach reflects that organizations working in a decentralized fashion turn all the more complex in nature. It is observed that McDonald’s through the decentralized approach helped the individual business units to become business leaders on their own. These units spread along various regions of the world need to be managed in an integrated fashion by the central headquarters of the company. These units also differentiated largely based on varying tastes and cultures and hence needed to mutually adjust their needs so as to fit the corporate culture of the business organization. Henceforth it is observed that the organic structure of McDonald’s is highly complex and decentralized in fashion. Further, the units in such management structure become highly differentiated and thus needs to be closely integrated with the corporate philosophy (Hill and Jones, 427).

Culture of the Company

The culture of McDonald’s is composed of a diversified variety of people belonging to different regions of the world. Diversified organizational culture also emanates owing to the varying tastes of the consumers pertaining to such regions. 

The company in order to address the needs of such people belonging to diversified cultures is found to change their organizational policies. Thus the company changes both the product and service policies in order to fit both the western and Asian cultures in a simultaneous fashion (Stanford).

Mercedes Benz
Model of Management

Mercedes Benz mainly operates based on the philosophy of management innovation. The company in order to gain enhanced market share in the different nations works to innovate newer business processes and to produce newer designs. The process of innovation helps the company to meet the changing needs of the consumers and thereby adapts to the changing scenarios and periods. Working on the innovation process the company decided to open up overseas branches and also incorporated the business model of acquiring other automobile firms in foreign countries. These policies and innovative models helped in enhancing the potential of the automobile manufacturer to compete effectively while operating in foreign countries (Albaum, Duerr, and Strandskov  48).

Management Structure

The study of organizational philosophy of Mercedes Benz reflects that the organization renders increased priority to the model of innovation. The company through the model of innovation works in meeting the changing needs of the consumers based along with different periods and regions.  Mercedes Benz to foster such innovation works in a decentralized fashion. The people pertaining to the different units are granted the power to make decisions and to lead the separate units. The activities of the people are controlled thereby by the upper management body through effective communication and monitoring (Alkhafaji 54).

Culture of the Company

Mercedes Benz operates based on a company culture that focuses on accommodating the best possible products and services to the consumers. The company is found to work to render the best quality products pertaining to the different parts of the automobile and also to render effective sales and after-sales services to the consumers thus working to enhance consumer loyalty. Models and designs are created so as to match the parameters of fascination and perfection through collective actions of the people based along with separate units.

Microsoft Corporation
Model of Management

Creativity and innovation are the two buzzwords that can be coined in regards to the management ideology of Microsoft Corporation. The concerns work on the process of creativity through cultivating a sense of leadership among the human resources engaged in the different units. These people work in different groups which brainstorm to generate desired results. The management team fosters a high amount of excitement among the people so that they can perform in a joyous atmosphere to render increased productivity. Discussion forums are also held on a daily basis to gain potential feedbacks from peers and colleagues (Murthy 76).

Management Structure

The management structure of Microsoft Corporation works on the process of vertical integration with the Chairman leading the concern. The hierarchy is further transmitted down to include the Chief Executive Officer of the company and other heads controlling the seven different units of the corporation. These unit heads are referred to as the vice presidents of the different units who then work with the business managers of the different units to render productivity. Each of the vice-presidents reports to the Chief Executive Officer who in turn reports to the Group Chairman. This hierarchical structure vertically integrates the different divisions of the company (Williams 272).

Culture of the Company

Microsoft Corporation performs its business operations operating through a number of branches spread worldwide. Thus the company endeavors to embrace people belonging to different cultures and values their needs and beliefs. Thus the products and services produced by the company also tend to highlight such variegated cultures. The organizational culture of Microsoft works in recruiting the best quality professionals from diversified regions and thus tends to cultivate a multi-lingual culture. Cultural diversity entailed in the business organization makes it a multinational business corporation working on enhanced innovation and productivity to compete in the global atmosphere (Krizan et al. 27).