McDonalds - Company Structure and Organization - Essay Example

MCDONALDS By Location McDonalds Introduction McDonald’s is the largest as well as the leading hamburger foodrestaurants in United Kingdom. The company serves an approximation of sixty eight million customers in almost hundred and twenty countries. This company started in the year 1940 as one of the barbecue restaurants in U.S at that time with its core founders being Maurice and Richard McDonald (Mieth 2007, p. 90). Using the production line standard, Maurice and Richard recognized that their barbecue restaurant could stand to be a hamburger business in the year 1940. Ray Kroc, a businessperson, joined McDonald as the company’s franchise agent in the year 1955. He played role for the two brothers of purchasing the chain of their company’s production and his efforts oversaw the company’s global growth. The company is currently the largest producer of fast foods in United States and u can find its products in approximately hundred and twenty countries (Mieth 2007, p. 95). Company structure and organization The executive organizational departments of McDonald’s are as follows: the top leaders of the company are chief executive officer and chairperson, and COO (Chief Operating Officer). Under these leaders, there several departments, which are broken into: marketing, corporation affairs, human resources, regional managers, national operations, information technology, finance, and strategic planning (Kincheloe 2002, p. 45). There are also other functional departments in the company, which include franchising, customer services, hygiene, security, property and construction, safety, restaurant services, and supply chain. The company has a multi-department organizational structure; the CEO is the leader of the company with board of directors. The company’s board of directors consists of thirteen members, with whom eleven are directors. The CEO is the head of the company and manages the other departments in the company, which include operations, finance, franchising, and human resource departments. Main products/services McDonald’s serves in the restaurant sector industry and its name is famous in the world. The main products of the company are fries, burgers, as well as soft drinks. The company also offers chicken, desserts, milkshakes, French fries, cheeseburgers, and breakfast foods (Kincheloe 2002, p. 48). In addition, due to the expanding needs of McDonald’s customers, the management has also decide to expand its menu including other items such as fish, smoothies, wraps, fruits,/ and salads. Most customers prefer the company using some big names such as Quarter Pounder, Big Mac, Egg Mc Muffin, Filet o fish, and Chicken Mc Nuggets (Love 2008, p. 60). However, the company offers different products and services at different countries. The company primarily offers hamburgers, desserts, soft drinks, French fries, breakfast items, and chicken sandwiches. In most countries, the company sells vegetarian items and fruit salads, as well as wraps. In different seasons, the company offers McRib sandwich. This mainly adds appeal to the company’s products. In most countries, especially Asia, the company has started to offer other new products such as soup. This new type of deviation enables the company to attract many customers since it enables their services to adhere to regional foodstuff taboos such as offering foods that the market is mostly familiar. For instance, all McDonald’s restaurants in Indonesia offer McRice (Kincheloe 2002, p. 53). The company offers quality services to ensure that their customers enjoy a fast meal service at very reasonable products as well as ensuring that their products in the market are of high quality. Another service that the company offers to its customers is playgrounds where customers can go and enjoy themselves during holidays (Koontz & Weihrich 2010, p. 75). Areas of operation and main trading links McDonald’s is currently operating in many countries and one can find McDonald’s products in every corner of the world. The company has a wide range of potential markets. McDonald’s operates in more than hundred countries in the world. In most countries in the world, the company does not have presence and its focus is to concentrate on the markets that they normally operate. Currently, there are no firm’s dates that indicate that the company is willing to open new markets (Mieth 2007, p. 105). The company is currently operating in more than thirty-three outlets in the world. The list of the countries in which McDonald’s operates is the longest chain of operation in the world making the company the leading fast food restaurant in the world. Most of the company’s outlets, which are outside United States, serve as franchises. The list of nations in which the company operates follows the calculations of the firm, and has various non-sovereign countries. The leading countries are United States, Canada, and Puerto Rico (Love 2008, p. 65). To begin with, McDonald’s started its operations in United States in the year 1940. The locations of its first outlets in the country were California and San Bernardino. The current number of operating McDonald’s outlets in United States is 14,146. Secondly, in the year 1967, McDonald’s expanded its operations and opened other outlets in Canada and Puerto. In Canada, the restaurants are at British Columbia and Richmond. The company has more than 1400 outlets in the country. In Puerto Rico, the outlets are at San Juan with more than hundred outlets (Kroc & Anderson 2007, p. 67). McDonald’s also operates in other countries such as Costa Rica, U.S. Virgin Islands, Australia, German, France, Sweden, and many others. The company is yet planning to open new outlets in other countries in the world due to its rapid growth and development. The company is facing competition from subsidiary companies. McDonald’s has a large number of competitors in the industry of fast food. There are lines of many hamburger restaurants in United Kingdom and in other countries, which offer similar products to the markets in which McDonald’s operates. Although these subsidiary companies pose competition to McDonalds, the company always stays ahead of its competition through provision of constant services and products as well as use of celebrity (Love 2008, p. 74). McDonald’s uses a numbers of strategies that enables it to stay ahead of its competitors. For instance, the company offers its products and services at relatively fair and low prices. The company has also implemented advanced technologies, which aids in speeding up customer services. McDonald’s also provides training and career development programs to its employees, ensures quality leadership, and marketing strategies that are able to target the appropriate customers (Kincheloe 2002, p. 56). The restaurants have a variety of menu options, which make the company different from its subsidiary companies, and the company keeps on researching for new menu options. The headquarters of McDonald’s company is located at Oak Brook, Illinois. The entire McDonald’s corporation as well as all its services operates under this head office. There are also other numerous head offices in any nation where there is a McDonald’ restaurant. However, all these other branch offices operate under the instructions issued from the Illinois head office (Mieth 2007, p. 90). McDonald’s has a Chief Executive Officer and a board of directors that are responsible for a variety of the company’s tasks. The Headquarter comprises of many offices that cater for the numerous departments the company has according to the above-discussed organizational structure. Future plans/conclusion The plans of the company include expanding its operations to other locations and countries. The company also aims at expanding its menu options to include health food due to increased rate of obesity in many countries (Love 2008, p. 78). Lastly, the company is planning to offer chicken wings although there are not healthy diets. In conclusion, if McDonald’s continues with the fast accelerating speed it has currently, in years to come, the company will be having an outlet in almost all countries in the world. Currently, some of its products are in almost all big retail stores in the world. This report recommends other business managers to use McDonalds as a role model to enhance their companies’ growth and development. Bibliography Kincheloe, JL 2002, The sign of the burger: McDonalds and the culture of power, Philadelphia, Pa, Temple Univ. Press. Koontz, H, & Weihrich, H 2010, Essentials of management, New Delhi [u.a.], McGraw-Hill. Kroc, R, & Anderson, R 2007, Grinding it out: the making of McDonalds, [New York], St. Martins Paperbacks. Love, John F 2008, McDonald’s Behind the Arches, Paw Prints. Mattern, J 2011, Ray Kroc: McDonalds restaurants builder, Edina, Minn, ABDO Pub. Mieth, H 2007, The history of McDonalds, München, GRIN Verlag. Read More