Mgt 230 Week 4 Paper

Topics: McDonald's, Corporation, S corporation Pages: 6 (1799 words) Published: July 23, 2011
McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.

McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's will be provided over the course of this presentation as well as an evaluation of its organizational functions and an analysis of organizational design. Organizational structure

“The McDonald’s Corporation has a divisional structure, which is made up of a board of directors, a chief executive officer and vice chair at the top levels of the corporation. The board of directors consists of the CEO and vice chairman, the president and chief operating officer, and group of independent directors. McDonald’s Corporation’s Board of Directors is entrusted with, and responsible for, the oversight of the assets and business affairs of McDonald’s Corporation in an honest, fair, diligent and ethical manner” (McDonald’s Corporation, para. 1, 2011). There are several advantages and disadvantages of divisional structure. The divisional structure focuses the attention of employees and managers on results for the product, the customer, or the geographical area. Divisional structure is flexible and responsive to change, because each unit focuses on its own environment. Coordinating among different functions within the division benefits from singleness of purpose, because each division is a self contained unit, responsibility and accountability for performance are easier to target.

“Organizational structure types are the means by which companies group workers, processes and work flows to manage productivity” (Sharrieff, para. 1, 2011).

Benefits Decentralized
Greater level of
Customer focused
Market focused
Facilitates product,
geographic and customer
Greater collaboration
Delegation of tasks are
Allow for team approach Supports and enhances
Provides for comfort
among employees
Specialized skill levels
Simplifies training and
development Provides for the benefits
of functional and
divisional structures
Shared responsibility
More streamlined
Decreased costs across
the most areas
Better collaboration
Disadvantages Creates redundancy that
increase operating costs
Politics between
divisions can cause
Conflict. Independence vs. team
Less collaboration
Narrow span of control Higher managerial costs
Confusion in authority
Politics between
managers can cause

Organizational functions
Through the communication methods of marketing, branding gives an organization a recognizable face. This is done using colors, designs as well as images. McDonald’s branding is the Golden Arches (McDonald’s Corporation, 2008). McDonald’s identifies its key audience and creates a marketing mix to appeal to these people. The marketing mix consists of product, price, promotion, and place (McDonald’s Corporation, 2008).Market research analyzes the publics’ reception of products, the prices customers will pay, and the medium customers view as well as the restaurants customers visit. This gives McDonald’s information about the targeted group enabling the creation of a marketing mix that satisfies its...
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