Organizational Structure
McDonald’s Organizational Structure In 1940, Richard and Maurice McDonald opened the first McDonalds Bar-B-Q restaurant in San Bernardino, California. McDonalds offered hamburger, cheeseburgers, soft drinks, coffee, potato chips, and pie, which their big seller at that time was their 15-cent hamburger. McDonald’s achievement is constructed on the groundwork of personal and professional integrity. In 1955, a businessperson named Ray Kroc purchased the company from Richard and Maurice and began to take the company to new heights. Over the years McDonalds grew bigger and bigger and became what it is today which is the world’s largest food service retailer with over 30,000 locations in 119 countries. Below will outline McDonalds as a corporation and the organizational structure they have within the company.
Functions of McDonalds McDonald’s has over 30,000 restaurants in 119 countries which most of the restaurants are normally franchises; which they all obtain their food and packaging from the same official vendors worldwide. With that said, every McDonald’s organizational structure is the same so a McDonalds in the United States is the same as a McDonalds in China which all of the important decisions comes from the corporate level in the United States. McDonalds believe their success is based on their business model, which is represented by a stool with three legs, which are owner/operators, suppliers, and company employees. McDonalds has not been always the giant in the industry in an annual customer satisfaction study, McDonald’s was scored dead last among fast-food restaurants since 1992. In the fourth quarter of 2002, McDonalds has disclosed its first-ever quarterly loss, one reason why McDonald’s is struggling is that the consumers began to switch to its competitors, such as Burger King, Wendy’s, and Subway (Han, 2008). These other companies emphasized on giving customers fresher, hotter, better quality foods at lower price along with faster service than
Functions of McDonalds McDonald’s has over 30,000 restaurants in 119 countries which most of the restaurants are normally franchises; which they all obtain their food and packaging from the same official vendors worldwide. With that said, every McDonald’s organizational structure is the same so a McDonalds in the United States is the same as a McDonalds in China which all of the important decisions comes from the corporate level in the United States. McDonalds believe their success is based on their business model, which is represented by a stool with three legs, which are owner/operators, suppliers, and company employees. McDonalds has not been always the giant in the industry in an annual customer satisfaction study, McDonald’s was scored dead last among fast-food restaurants since 1992. In the fourth quarter of 2002, McDonalds has disclosed its first-ever quarterly loss, one reason why McDonald’s is struggling is that the consumers began to switch to its competitors, such as Burger King, Wendy’s, and Subway (Han, 2008). These other companies emphasized on giving customers fresher, hotter, better quality foods at lower price along with faster service than
References: Bateman T. S. & Snell S. A. . (2011). Management Leading & Collaborating in Competitive World. (9th). New York, NY: McGraw- Hill, Irwin . Burger King. (n.d.). Investor Relations. Retrieved October 19, 2012, from Burger King : http://investor.bk.com/ Han, J. (2008, November). The Business Strategy of Mcdonald’s. International Journal of Business and Management, 3. McDonalds Corporate. (n.d.). McDonalds Our Company. Retrieved October 18, 2012, from McDonalds: http://www.aboutmcdonalds.com/mcd/our_company Wendy 's. (n.d.). Our People/Responsibility . Retrieved October 19, 2012, from Wendy 's: http://www.aboutwendys.com/Responsibility/Our-People/