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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].
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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
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
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Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
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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
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