Business Structure of Mcdonald's Corporation

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Ben Surato
Business Project Part Four – McDonald’s Corporation
Baker College

The organizational structure of a business is a unique relationship formed when functional areas, defined by purpose and specific roles, are associated. Proficient organizations are capable of success because of fluent operations between stable functional areas. This portion of our business project will provide insight on the business structure of McDonald’s Corporation by analyzing the functional areas of business, taking into consideration factors like technology, the basic laws of economics, and some key aspects of management. McDonald’s Corporation runs its business in a similar manner to nearly all fast food restaurant chains, so its creative bubble for abstract business terminology is not necessarily inventive. Throughout the MGT101 course and researching this business, many terms (and/or their definitions) have been mentioned that I consider new to my vocabulary. To name a few: Franchise -- “the right or license granted to an individual or group to market a company's goods or services in a particular territory; also: a business granted such a right or license”. (“Franchise”, n.d.) Sustainability -- “of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged”. (“Sustainability”, n.d.) Segment -- “one of the constituent parts into which a body, entity, or quantity is divided or marked off by or as if by natural boundaries”. (“Segment”, n.d.) Corporation -- “an association of employers and employees in a basic industry or of members of a profession organized as an organ of political representation in a corporative state”. (“Corporation”, n.d.) Overhead -- “business expenses (as rent, insurance, or heating) not chargeable to a particular part of the work or product”. (“Overhead”, n.d.) Capitalism – “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market”. (“Capitalism”, n.d.) Capital Expenditure -- “expenditure on acquisitions of or improvements to fixed assets”. (“Capital Expenditure”, n.d.) Revenue – “the return or yield from any kind of property, patent, service, etc.; income”. (“Revenue, n.d.) Quality Control – “a system for verifying and maintaining a desired level of quality in a product or process by careful planning, use of proper equipment, continued inspection, and corrective action as required”. (“Quality Control”, n.d.) Hamburger University – “the company’s global center of excellence for McDonald’s operations training and leadership development”. (McDonald’s Corporation, n.d.)

The organizational structure of McDonald’s relative to the functional areas of marketing, human resources, accounting, finance, and operations can be summarized by investigating each individually. For McDonald’s Corporation, marketing and advertising are what make sales. Whether directed towards children, adults, families, or people managing time restraints, McDonald’s has a goal to make their food fun and affordable. Marketing is conducted not only by television, billboard, radio, newsprint, and internet advertising, but also through sponsorships and promotions. A prime example of McDonald’s sponsorship is evident with the upcoming 2012 Olympics, where McDonald’s is labeled the “Official Restaurant” of the games, targeting an audience seeking assurance that McDonald’s food is a healthy option. Beyond reigning over the entire games, McDonald’s takes it a step further by getting prominent athletes to promote products and drive influence deeper into the general public. Marketing tactics targeted at children include persuasion based on fun by using toys in Happy Meals. For the thrifty and penny conscience, McDonald’s promotes their dollar menu...
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