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Organisational Structure and Design Analyses McDonald's - PowerPoint Presentation Example

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Organisational Structure and Design Analyses McDonald's

McDonald's focus on being better, not just bigger, has delivered even better restaurant experiences to the customers and superior value to shareholders. This approach has also helped its vision is to be the world's best quick service restaurant experience. "Being better" translates into greater business volume and also better margin for its operational activities.
Mc Donald's is among the best known fast food restaurants around the world. In 1955, Ray Kroc opened the first franchised McDonald's restaurant in Chicago. From Chicago, McDonald has expanded to many countries around the world. One of the most stunning achievements of McDonalds is its ability to maintain its world class food quality and efficient service time across all stores. These offerings have helped McDonalds' to retain the high brand value of its stores.
In 1971, the first McDonald's restaurant opened in Australia and presently there are 761 restaurants in Australia. Social Responsibility Report 2007 mentioned that there are 31000 McDonald's restaurants in 119countries.
McDonald's Australia Limited is an unlisted Australian public company. It is a franchise business with above two thirds of the restaurants run by franchisees in Australia and the remainders are operated by company staff. There are about 75,000 people employed by McDonald's and its franchisees in restaurants and management offices across Australia.


Slide 3

The functional structure adopted in McDonald's in Australia is a perfect fit for the scale it operates in. Large organisations require a high degree of specialization for smooth functioning(Donaldson, L. 1997, p.78). In addition, the functional structure allows employees to contribute in particular areas of expertise, transfer specialized knowledge, and benefit from economies of scale in utilizing manufacturing equipment. This set up also aids standardization that in turn helps reduce duplication and variations in systems and procedures (Giancola 2007, p.4). Besides, managers seek to protect their core activities from external influences through buffering. With bridging, managers attempt to manage their environments through various forms of negotiation, co-operation, exchange of information and other forms of reciprocity
This kind of structure has created a situation of mutual involvement by the employees into the various activities or decisions of McDonalds'. Employees also get the chance to transfer his/her knowledge from one store to another. These are the encouraging factors for the employees which will ultimately increase the level of job satisfaction.
Slide 4

Strength
The company has wide presence in many of the countries in the world; this has helped the company to achieve benefits of economies of scale. Because McDonalds' can easily divest from one particular country where the sales are underperforming and invest into better prospective market.
Due to wide diversification and presence over decades, the company has accumulated huge sum of cash reserve into its balance sheet. High brand value and effective operations also helped the compan ...Show more

Summary

This kind of structure has created a situation of mutual involvement by the employees into the various activities or decisions of McDonalds'. Employees also get the chance to transfer his/her knowledge from one store to another. These are the encouraging factors for the employees which will ultimately increase the level of job satisfaction. 3
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