Business Structure of Mcdonald’s Corporation Essay

The organizational organize of a melody is a unique relationship formed when cheerctional areas, defined by purpose and specific roles, are associated. Proficient organizations are cap equal of success beca theatrical role of fluent operations between stable functional areas. This portion of our occupation project entrust fork out insight on the reaping line structure of McDonalds stack by analyzing the functional areas of business, victorious into consideration factors standardized technology, the basic laws of economics, and some key aspects of management. McDonalds Corporation runs its business in a similar manner to nearly completely fast victuals eating place establish ups, so its creative bubble for abstract business voice communication is not necessarily inventive. Throughout the MGT101 course and researching this business, m each terms (and/or their definitions) have been mentioned that I consider new to my vocabulary.To name a a few(prenominal) certifica tion the right or license granted to an individual or group to market a attach tos goods or channelize in a particular territory alike a business granted such a right or license. (Franchise, n.d.) Sustainability of, relating to, or being a method of harvesting or culture a preference so that the resource is not depleted or permanently damaged. (Sustainability, n.d.) Segment one of the constituent parts into which a body, entity, or amount of money is divided or marked off by or as if by natural boundaries. (Segment, n.d.) Corporation an railroad tie of employers and employees in a basic industry or of members of a profession organized as an organ of political representation in a corporative state. (Corporation, n.d.) knock business expenses (as rent, insurance, or heating) not guilty to a particular part of the work or product. (Overhead, n.d.) Capitalism an economic arrangement characterized by unavowed or bodily ownership of capital goods, by investments that a re determined by private decision, and by prices, deed, and the distribution of goods that are determined mainly by contender in a free market. (Capitalism, n.d.) Capital ingestion expenditure on acquisitions of or improvements to fixed assets. (Capital Expenditure, n.d.) taxation the return or yield from  each kind of property, patent, service, etc. in take. (Revenue, n.d.) feature Control a system for verifying and maintaining a desired take of quality in a product or process by careful planning, use of proper equipment, continued inspection, and corrective action as required. (Quality Control, n.d.) burger University the companys globular center of excellence for McDonalds operations training and leadership development. (McDonalds Corporation, n.d.)The organizational structure of McDonalds relative to the functional areas of marketing, kind-hearted resources, accounting, finance, and operations can be summarized by investigating each individually. For McDonalds Co rporation, marketing and advertising are what obtain sales. Whether directed towards children, adults, families, or concourse managing time restraints, McDonalds has a goal to make their victuals fun and affordable. Marketing is conducted not only by television, billboard, radio, newsprint, and internet advertising, but also finished sponsorships and promotions. A prime example of McDonalds sponsorship is evident with the future 2012 Olympics, where McDonalds is labeled the Official Restaurant of the games, targeting an audience tallyking say-so that McDonalds regimen is a wellnessy option.Beyond reigning over the entire games, McDonalds takes it a step further by acquire prominent athletes to force products and drive influence deeper into the general public. Marketing simulated military operation targeted at children include persuasion ground on fun by development toys in Happy Meals. For the thrifty and penny conscience, McDonalds promotes their sawhorse menu and offers coupons. By changing their menu options, McDonalds can promote seasonal and holiday options like milkshake flavors. The organizational structure of McDonalds Corporation is considered divisional, separated by geography. The business is managed as distinct geographical segments that include The United States, Europe, APMEA (Asia/Pacific, Middle East and Africa), and Other Countries & unified (OCC) including Canada, Latin America and incorporate. (McDonalds Corp, n.d.) McDonalds corporate website provided a pecuniary highlights spreadsheet for 2011 that offer insight into the accounting of its organization.The most significant costs and expenses associated with McDonalds are generally referred to as Company Operated Restaurant Expenses. Breaking that cut out further, the C.O.R.E. can be identified as food and paper, payroll and employee benefits, and military control and other direct expenses. In 2011, the C.O.R.E. costs totaled over $14 billion globally. The most significant source of revenue for McDonalds was through sales at company operated restaurants. Although McDonalds Corporation receives revenues form franchised memory locations, its 1,552 company operated locations totaled over $18 billion in sales, charm revenues from franchised stores brought in only $8 billion. The most profitable segment of McDonalds Corporation in 2011 was Europe, slighting the United States in revenue by about $2 billion. (McDonalds, 2011) Financing the operations within this organization come mostly from retained profits and bank loans.Although McDonalds offers stock to be traded publically, the revenues generated do not provide the primary source of financing for franchised and company operated store locations. (McDonalds, 2011) The operations of McDonalds restaurants are supported by a system that involves three main components, what Ray Kroc titled the three straight- offshootged stool. The initial offset is McDonalds and its core values of quality, s ervice, cleanliness and value. The second leg is franchisees. Each encouraged to be innovative, but also required to operate within the core values established by McDonalds. The third leg being McDonalds suppliers, consistently supply products across business segments in order to recreate the McDonalds experience at every location. Creating an operating system based on the three legged stool philosophy, Kroc was able to invent the most integrated, efficient and innovative supply system in the food service industry, thus controlling inventory, quality and repetitive production within each business segment. (McDonalds Corporation, n.d.)Much like any major(ip) corporation, McDonalds utilizes its functional areas to create compatibility within its infrastructure. As depict in our text (Chapter 5 of Exploring Business), the success of a business lies in the ability to manage and grow. McDonalds Corporation has established a system where the core areas work in concert to manage operation s, money, people, sales, and the competition. The roles of the functional areas and how they work together give McDonalds the ability to recognise their business, know their product, and know their competition. (Collins, 2009) McDonalds management has established goals and values by which they operate. Focus on the employees, customers, suppliers, and instigator image has placed McDonalds Corporation on the cutting  bounds of franchised restaurant chains. Its values encourage employee development, environmental and supply chain sustainability, and unremitting improvement on every level.Whether franchise owners and operators are enrolled at Hamburger University (a training facility that teaches the McDonalds business system) or employees are taking advantage of leadership development programs, the management of McDonalds Corporation has intent to provide support and encourage development from all the people who make McDonalds stores diverse and successful. (McDonalds Corporat ion, n.d.) The impact and evolution of technology has enabled McDonalds to reach customers, suppliers, employees and restaurants at every corner of the globe. Technology of the times has held a premium value to McDonalds marketing strategy. The modest beginning of McDonalds marketing and advertising strategy has evolved since the 1950s with radio and newsprint ads. 1966 brought the first television commercial to the United States and in 2003 the first global ad campaign (titled im lovin it) is launched in Germany. (McDonalds Corporation, n.d.) Technologys impact on marketing and operations has been substantial.The internet provides an invaluable resource for collecting data points on market segmentation and analyzing global trends. scurrying accessibility to critical information has helped optimize supply chain operations and improvements towards sustainability. Global communication capabilities allow business segments to interface in mortal using webcams, saving time and money o n travel expenses. account dictation and finance departments use technology to improve error proofing and record keeping. agitate sharing is quicker and more secure, allowing restaurants within business segments to watch trends in sales and enable make upment to accommodate profitable operations. McDonalds restaurant distribution centers rely primarily on regional suppliers for produce, meat, buns, and packaging.Based on the information Ive collected about McDonalds, international trade has atomic effect on business operations. Unlike companies that rely on unconnected made (or mined) textiles and metal ores to make a product, McDonalds supply chain is strategic to obtain only the freshest ingredients from within each business segment. (McDonalds Corporation, n.d.) A safe bet could be made in the statement that nearly every McDonalds customer is every hungry, thirsty, or both. The products served by McDonalds restaurants are an array of breakfast, lunch, dinner and dessert items ranging from breakfast burritos and hotcakes, to hamburgers, french fries, chicken sandwiches, and ice cream sundaesand a lot in between. Portioned meals are designed to suffice the appetites of all consumers, including the dainty eaters, mid-day snackers, and the average adult. McDonalds restaurants cipher the problem consumers face when seeking fast food at an affordable price and with good quality.Often found by major roadways and fueling stations, McDonalds restaurants provide quick and easy dining when traveling. Customers who use the services of McDonalds stores include all walks of life. Business men and women, health conscience eaters, children, and thrifty shoppers have a niche within the McDonalds marketing scheme. Finding and identifying every customer starts with good marketing. McDonalds uses cordial networking sites like Facebook and Twitter to follow consumer habits and trends. They conduct surveys to collect data on current customers and research other fast food operations in order to compete. Strong advertising campaigns using television, radio, the internet, billboards, and magazines take over customers through vivid imagery, nutritional statements, and brand recognition. (McDonalds Corporation, n.d.)Considering the varied demographics associated with over 33,000 global restaurants, McDonalds prices fluctuate from store to store. Their pricing strategy is set to accommodate regional business and market segmentation by analyzing the demographics touch each restaurant. In the United States, for instance, two McDonalds store locations will offer the same menu option at different prices based on the economic status of surrounding areas. McDonalds Corporation researches the areas well before opening a restaurant to determine the value of their product compared to the value of a communitys dollar. In shopping districts or roadways surrounding exclusive propinquitys, McDonalds will charge more for a value meal when compared to a less f ortunate area. Why? They know low-income consumers will likely not find their way to a higher-income area. By creating market segments, prices can vary based on the financial capabilities of its customers. (McDonalds Pricing Strategy, 2012) McDonalds business operations are instantly abnormal by supply and demand.Factors that play into their success revolve around competition, topical anaesthetic economies, and population. Restaurants located in areas with a high number of establishments serving food succumb to consumer choice and face the possibility of fewer sales. Likewise, restaurants in frown income neighborhoods rely on a customer base that faces the decision of quantity or quality. Many lower income families can stretch their dollar into some(prenominal) meals at the grocery where McDonalds would provide just one. Fluctuations in population can affect the demand for fast food meals, and therefore directly affect sales. (Collins, 2009) McDonalds has always held an op en door to offering a first job, regardless of experience or credentials. From there, McDonalds Corporation is dedicate to providing an opportunity for a career. Search the web (http//www.mcdonalds.com/us/en/careers/workinghere.html) and see that open positions across the United States are available at either a corporate or restaurant level, on a spectrum that covers all ranges of experience and entry level.Although McDonalds corporate website does not provide wages in the form of dollar amounts for either hourly or hire employees, less reliable internet sites might suggest restaurant employees initial wages range from around $7/hr. upwards to $10/hr., depending on position average management positions can offer in the neighborhood of $30k to $40k annually. According to McDonalds website, non-financial compensation packages for employees include company assisted health plans, paid holidays and vacations, access to career development opportunities and training, 401(k) contribution s, discounted meals, and even the possibility of a company vehicle. (McDonalds Corporation, n.d.)In closing, the strategic system McDonalds Corporation has organized to manage it business involves multiple factors. People that choose to combine McDonalds team are encouraged to continuously improve their careers, utilize dear potential, and assist with innovation to achieve the goals and mission set forth by McDonalds Corporation. The unique inter-relationship woven by functional areas of this business provide support within the company structure to assist employees at any level from top executives to restaurant crew members. Optimization of operations using technology and an innovate supply chain allow for the company to adjust constantly in response to trends and social influence.ReferencesCapital Expenditure. (n.d.) In Merriam-Websters online dictionary. Retrievedfrom http//www. merriam-webster.com/dictionary/ Capitalism. (n.d.) In Merriam-Websters online dictionary. Retrieved f rom http//www.merriam-webster.com/dictionary/ Collins, K. (2009). 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