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Success of the McDonald's franchise
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McDonald’s Organizational Chart
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McDonald’s Organizational Chart
McDonalds has utilized an organizational structure that incorporates both function and geographical location. In the functional aspect, the chart has centered its focus on job functions. For example, functions such as worldwide supply chain development and franchising, human resources, and finance have been placed under executives. The company has also applied a geographical structure, in its chart, in order to decentralize its operations. This allows it to adapt its business operations to the needs of different markets. In that respect, the organizational chart features executives that have been placed in charge of four different regions, which are considered key to the operations of the business. In each of these markets, local versions of departments such as finance and marketing are operated (Mcdonald's, 2013).
The current organizational structure has numerous benefits for McDonald’s Corporation. For the purposes of improvement, the organization should further its use of geographic segments. In the recent past, the company has experienced either slow or no growth. In that respect, the organization needs to tailor its product range to different markets. This will assist in capturing attention from the various consumers. Use of segment heads will be useful in understanding different markets, hence driving growth in the organization. Increased segmentation will allow executives to track market feedback right from employees on the ground. This approach will also facilitate quicker response times to consumer needs. As a result, the organization will be able to maximize on its sales opportunities.
Various aspects of McDonald’s...
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...nt tool. It will keep track of processes, and the arising consequences. The objective placed on the functional executives is to ensure adaptation of global strategies and processes, to the local markets. This will assist in growing the organization’s market share in various markets, hence achieving growth in unit sales and profits. This objective may be measured through analysis of market share in the respective regions.
References
Mcdonald's (2013). McDonald’s Corporate Leadership :: AboutMcDonalds.com. [online] Retrieved from: http://www.aboutmcdonalds.com/mcd/our_company/leadership.html [Accessed: 17 Dec 2013].
South China Normal University (2013). Organizational Chart at McDonald's. [e-book] Shanghai: Available through: Google Scholar http://sfs.scnu.edu.cn/tblogs/chenxy/attachments/month_1112/p2011121145421.ppt [Accessed: 17 Dec 2013].
Management is a process that enables organizations to achieve objectives through the functions of planning, organizing, staffing, and controlling of their resources (Cole, 1996). In Summary, Tim’s coffee Shoppe has a simple structure of management where overall authority rests with the owner Tim, who is assisted by a Manager and an assistant. Tim’s mai...
More than 400 locations are currently in business which demands a business structure that is able to adapt to the location or region in where it is operating (Smithson, 2017). The foundational structural comes from a four-tier hierarchy which involves the headquarters, regional offices spread out around North America and the U.K., facilities of storage, and stores (Smithson, 2017). Each tier reports to the tier above it to keep a vertical line of communication going.
• Analyzing the value chain of the McDonald’s Corporation to determine where they can create using resources, capabilities, and core competencies, which have been discussed above.
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Chick-fil-A’s organizational structure can be described as a type of department, or functional, organizational structure, where the Founder/Chairman/ Chief Executive Officer (CEO) is at the top of the organization, followed by a President/Chief Operating Officer (COO) and several Vice Presidents (VP) of functional areas, such as the “Dwarf House,” finance, marketing, design and construction, and operations. In the Midwestern University location of Chick Fil A, the organizational chart looks like
The McDonald's corporate headquarters is located in Oak Brook, Illinois and sports a gift shop, a museum and McDonald's University, where manager, executives and franchisees receive training in the corporate culture--quality, service, cleanliness and value. Like Carl Karcher, Ray Kroc was not of wealthy stock. His early life mirrored
Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman that brung his marketing skill, that gave a new meaning to the business of fastfoods. He exploited McDonald successful and came up with a mix that spread throughtout the US.
The understanding of business structure, operations, hierarchy, and teamwork are all a significant and prevalent part for all employees in McDonald’s.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
Organizations in today’s world need to adapt and overcome many obstacles that are predictable as well as unpredictable. Max Weber outlines the five basic principles of bureaucracy which are as follows: The Division of Labor, Hierarchy of Authority, Written Rules and Regulations, Impersonality Principal, and Technical Qualifications. These basic principals were designed to maximize productivity and assert authority over subordinates in the workforce. (Weber, 1968) In present day the basic principles of Weber’s bureaucratic design are still visible in just about every organization. The only variable is to what extent they are applied.
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
McDonald’s restaurant was founded by two brothers, Richard and Maurice (Dick and Mac) McDonald, in 1940. They initially opened the restaurant under the name McDonald’s Barbeque which was located in San Bernardino, California. The McDonald brothers had a vision of a drive-in restaurant that focused on quality food and good service. They served a simple menu consisting of 20-25, mainly barbeque, items. In 1948 after eight years of operations the McDonald 's brothers discovered that the majority of their revenue was coming from hamburgers. With this in mind, they decided to change the menu and set their focus mainly on hamburgers. They also changed the name of the restaurant to simply “McDonald’s” and adopted an assembly line approach in the production process. After continued