Business Management - Assignment Example

An organization, whether big or small, is defined as a group of people working together to achieve common goals. The top management establishes the organizational goals. These goals are then redefined to obtain measurable performance targets. Such measurable parameters help the management monitor employees and ensure that they are on the right track. The management also develops strategies that will help the organization meet these goals. The implementation of these strategies requires a formal structure of authority and responsibilities.

A well designed organization structure facilitates coordination among the activities of employees and enables an organization to accomplish its goals and objectives. Even the culture of an organization is defined by the structure of an organization. The culture of an organization can divided into 4 categories, namely: 1. Hierarchy Culture 2. Market Culture 3. Clan Culture 4. Adhocracy Culture As discussed above that structure, culture, objectives and effectiveness of an organization are all inter-linked.

So an organization needs to define its culture very effectively. . As discussed above, the organization has proper hierarchical structure wherein there are ground staff that are there at the restaurants, restaurant managers, agency manager, area manager, regional managers and so on. The proper hierarchical structure maintains a proper reporting authority within the organization. Consider the example of McDonalds which has a decentralized structure in the company. Due to the importance of the quality, speed, and cost McDonald adopted decentralization methodology in its supply network, for example McDonald in China deal with over 50 suppliers which covers 95% of the raw materials, another example show the methodology of McDonald supply network is McDonald in United Kingdom, where McDonald rely on the local market for its supply for almost 60% of the raw materials.

Although McDonald rely on outsource for most of its supplies but it maintained the quality part with aim to standardize the meal in all its branch locally and globally, thus McDonald spent millions to found hamburger university, additional to the close training to the franchisers with aim to ensure that its franchisers will provide the oriented level of quality additional to the closely monitoring and supervision. In terms of location of capacity McDonald deal with Egypt Bakery Stores to supply part of African countries additional to Saudi market, Egypt Bakery Stores has selected by MacDonald due to the strong capacity, Egypt Bakery Stores has over 180 stores regionally, in terms of MacDonald in China, MacDonald selected to start its business in China market particularly in Shenzhen the economic zone of China due to the facilitates that Shenzhen offered to the foreign firms such as cheap power, freedom to hire and fire, cheap manpower, low