McDonalds is one of the major fat food retailer in the United States as well as internationally. It offers more than 32, 000 restaurants in 119 different countries. McDonalds have more than 69 million costumers daily (McDonalds. com, 2013). I am interested in analyzing McDonald's framework design to be able to support competitive in local and global markets. I will concentrate in three levels McDonald's commercial organizational level, restaurants level, and geographic global level. Also, I'll study to see if McDonald's meet matrix framework elements or much less a whole business.
According to Daft "functional grouping and divisional grouping are the two most frequent approaches to structural design" (2013). Useful structure design means that every group with same function are grouped alongside one another to do their job. Corresponding to Daft "Functional grouping is places jointly employees who perform similar function" (2013). For example, lawyers are positioned in legal department. They are grouped together for their common activities. Divisional framework have multi-divisional among the organization mainly grouping is dependant on organizational result. "Divisional grouping means people are structured according to what the business produces" (Daft, 2013). It also called product composition.
Geographic structure is mainly done by business target customers in a seperate location than the organization location. Matrix composition is the framework that has several organizational framework. Matrix composition can have useful and divisional or geographic structure altogether. Matrix composition gas a unique characteristic is the fact that both efficient and product divisions buildings are implemented all together (Daft, 2013).
Decision making have two ways to be produced either centralized or decentralized, centralized decision making is performed by the most notable level of the hierarchy. Decentralized decision making, the contrary of centralized one, is done by the low organizational levels. Information writing and coordination have two ways of linkages vertical and horizontal linkages. Vertical linkages are being used to communicate between your top and bottom level of the business. Horizontal, on other side, communication is performed across the organizational departments.
McDonald's Commercial Organizational Structure
Appendix 1 illustrates the hierarchy of McDonald's commercial structure. It consists of the Chief Professional Officer (CEO) on the top, accompanied by the chairman of the mother board to the table of directors. Brand employs which contain social media. Chief Financial Officer (CFO) is next to brand which involves control division. Next are Main Operating Official (COO), Human Reference, Legal and Secretary, Restaurants, Procedure in america, Supply String and Franchising, the president Europe, and lastly the leader of Asia, Pacific, Africa, China, and Middle East.
Moreover, I would say that McDonald's structure design at organizational level is efficient. Functional structures are used normally by such big companies like McDonald's. We are able to see from the appendix that most of the work are done by different departments, and then gathered to the CEO. For instance, the human resource department's specialized job is training and recruiting in addition to assign the right certified person to the right position. "Functional composition activities are grouped jointly by common function from underneath to the most notable of the business" (Daft, 2013).
The functional structure is known by its large degree of formalization, and its own standardized means of operation. Usually the communication is done by vertical way. However, McDonald's uses horizontal communication among different departments. "Using horizontal linkages beat a few of the down sides of the functional composition" (Daft, 2013). In this type of structures, useful structure, decision making is mostly centralized and made at the by top degree of the hierarchy this is the CEO. In this case, it is performed by Don Thompson, current McDonald's CEO.
McDonald's Restaurant Structure
Appendix 2 illustrates the operational level in a normal McDonald's restaurants. It consists of general manager on the top followed restaurant manager. The restaurant director is accompanied by 1st Assistant supervisor and shift running manager on the other hand. The 1st assistant manager will package with 2nd assistant director, while on the other side, shift running manager deals with the floor supervisor, that is followed by the personnel training crew, and the personnel training crew is followed by the crew participants.
The structure in appendix 2 demonstrates McDonald's structure at the restaurant level is divisional. A divisional composition includes many teams concentrating on single products or service. "Separate department can be arranged with responsibility for individual products, services, and product groupings" (Daft, 2013). In McDonald's, during normal operation, general supervisor is the one who is in control of the helper and the staff are mainly focusing in advertising products and providing services. Decision making is mainly decentralized.
McDonald's Geographic Structure
As due to steadily increasing process of globalization, difficulty of markets is growing. The majority of companies want to type in global markets as important as home. This fast rate development provides new opportunities, however, additionally it is challenging. Companies to be able to remain competitive and operate effectively and profitably, issues and transnational activities are a necessity for the kids. Furthermore, McDonald's have extended to international markets. In order to compete and maintain in another type of regions, McDonald's have to have a geographic framework because each different region or country has different preferences and personal preferences. "Each region of the country may have a distinct preferences and needs" (Daft, 2013). Appendix 3 illustrates McDonald's geographic framework, the chart implies that McDonald's have three different regions United States, Europe, and Asia, Pacific, Africa, and Middle East. Each region's president reports right to the CEO.
Companies are encountered, upon getting into new market, whether to standardize their products or even to response and adjust to the neighborhood market requirements. The knowledge of each culture needs and the several action of customers and individuals are the main reason for success. Best way to meet international market is through geographic composition. McDonald's marketing strategies are based on customization and version of products to local requirements, choices, and preferences. McDonald's is well known because of its pork and meat burgers. In various countries, customers do not eat food that contains meat or pork credited to religious beliefs or culture customs. The following examples are to demonstrate how McDonald's geographic framework allow meet different areas in the world. The are determined to customize their food in order to success in various countries.
India, in this market most of the population do not eat beef. Because of this, McDonald's launched it chicken breast, seafood, and lamb to match Indians. Also, 20% of India's populace is vegetarians. McDonald's provides to this high number a complete line of vegetarian areas in its menu which include the McVeggie Burger and McAloo Tikki. In Japan, seafood is popular; as a result, McDonald's offers shrimp burger and shrimp nuggets. Also, green tea extract is popular in Japan which led McDonald's to provide green tea extract flavored smoothies. In Hong Kong, the favorite food is rice. To be able to enter the forex market, McDonald's has released it rice burger. The burger is made with two patties of rice rather than bread one.
McDonald's Matrix Structure
Since McDonald's corporate is using 3 different structures among its procedure, Functional structure for the corporate itself, divisional framework for the restaurants, and geographic structure for its global market, we can say that McDonald's composition all together is a matrix framework. Matrix structure can be utilized in order to achieve an effective and high quality products and function respectively. Daft illustrates that "an organization's composition needs to be multi-focused in that both product and function or product and geography are emphasized at exactly the same time. "(2013).
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