: Organizational Structure Essay

{text:bookmark-start} Running head: ORGANIZATIONAL {text:bookmark-end} STRUCTURE Organizational Structure Romanoff, T. Axia College of University of Phoenix MGT 330 Management: Theory, Practice and Application Peter Espeut October 26, 2009 Organizational Structure Planning and organization are crucial for an organization to achieve maximum effectiveness and success. Microsoft Company, for instance, has an organizational structure consisting of board of directors who include Steve Ballmer as chief executive officer (CEO), senior leaders, executives, and technical leaders.

Founded in 1975, Microsoft has grown today into a worldwide leader in software and services (Microsoft, 2009). The organizational structure of Microsoft proves to be efficient and effective. A comparison to other organizations demonstrates the importance of an organizational structure and shows commonalities as well as differences in structure. A further analysis of Microsoft Company explains the impact of organizational functions to the organizational structure. Lastly, the organizational design of Microsoft exhibits the best structure to meet the organizations needs.

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The organizational structure for Microsoft’s management, functions, and design all play a key role in the success of Microsoft. The organizational function of any company starts with the employees. Employees are grouped based on knowledge and experience into departments such as marketing, finance, human resources, operations, etc… and is referred to as departmentalization. “Organization structure is comprised of functions, relationships, responsibilities, authorities, and communications of individuals within each department” (Sexton, 1970, p. 3) and is depicted in an organizational chart. An organizational chart identifies the business functions and reporting order. There are two concepts that organizations are structured and they are differentiation and integration (Bateman & Snell, 2009, p. 290). Differentiation is defined as people who perform different tasks whereas integration is the where the differentiated people are coordinated to accomplish a specific goal. Division of labor is a part of differentiation, which divides jobs into maller tasks and when an employee performs a specific task, it is known as specialization. In some cases, companies divide organizational functions into divisional structure, which contain all the necessary resources required to function. For example, a software company might have a division for home software and a division for business software both providing development and support. Microsoft is the largest software company in the world that offers services for home and business. The company also provides entertainment through video games for Xbox and music for Zune.

In the case of Microsoft (2009) there are many different positions within the company from Business Services & Administration to Software Engineering: User Experience and has locations throughout the world. Since Microsoft’s main function is to develop software, it would stand to reason that the largest department within the company pertains to information technology with many specialized departments from development to support. Microsoft has many divisions within the company that include home software and business software and provide development and support.

The function of the human resources department is to organize the employees based on their qualifications. The finance department’s function is the flow of cash from accounts receivable to payroll. Microsoft is known all over the world but continues to have a marketing department that provides informational ads and websites. Microsoft continues to be a well oiled machine with the help of its organizational functions. According to Montalbano (2005, September), “Microsoft reorganizes makes sense for the largest software company, which was getting too big and unwieldy under its former structure to continue to be managed efficiently. (para. 1). Microsoft has changed to a three-division structure instead of six; the company now only has divisions in the product, service, and customer departments. According to Montalba no (2005, September), states, Rob Enderle, “The restructuring will enable Microsoft to more efficiently deliver products, combining technologies from divisions that previously had difficulty working together, because they were in separate organization. ” (para. 5). The disconnection of the departments was preventing Microsoft from effectively serving the customer and producing innovative product.

The reorganizing of Microsoft will allow the employee’s to communicate better between departments and management. This will allow the company to be more responsive to change and focus on excellent service, quality products, and the customer. Microsoft displays an effective and efficient organization due to the organizational structure, management, functions, and design. Microsoft consists of different committees such as audit, compensation, finance, governance, and antitrust compliance. Microsoft has a board of directors as well as an executive team. Microsoft, in fact, is similar to other company’s organizations, such as Dell.

In addition, Microsoft implements different organizational functions such as employees, human resources, and finance departments that improve the success of the organization. Another factor contributing to Microsoft’s success is the organizational design. In summary, Microsoft would not be as successful without implementing the proper organizational structures, management, functions, and designs. References Bateman, T. S. , & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive World (8th ed. ). : McGraw-Hill Companies, Inc. Microsoft (2009). Corporate structure and leadership.

Retrieved October 21, 2009, from www. microsoft. com Microsoft (2009). Corporate Goverance. Retrieved October 21, 2009, from http://www. microsoft. com/australia/citizenship/about/corporategovernance. mspx Montalbano, E. (2005, September). Microsoft reorganizes; Allchin to retire in 2006.. http://web. ebscohost. com. ezproxy. apollolibrary. com/ehost/detail? vid= 3&hid=112&sid=6d77f30c-1085-44dc-a40c-852b1933b438% 40sessionmgr112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN= 18390330 Sexton, William P. (1970). “Organization Structure. ” In William P. Sexton, ed. Organization Theories. Columbus, OH: Charles E. Merrill.

Organizational Structure and Culture Essay

Undertaking 1. Organizational Structure and Culture

Produce a short study to compare and contrast the organisation construction and civilization of two different organisations:

A little ( i.e. less than 10 employees ) organisation runing on a local degree.

A big multi-national organisation

In your study you should besides notice on how the construction and civilization of each organisation affects the organization’s success and why.

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“Every organisation with more than one individual needs a construction so that workers have clearly defined functions, and are clear about the functions of others.” hypertext transfer protocol: //www.businessteacher.org.uk/people-in-business/organisational-structures/

An organization’s construction can be one of many, dependent upon its aims and atmosphere. For case, most little concerns may hold an entrepreneurial construction – fig 1 ( a ) , while medium sized and big concern may be characterized by the bureaucratic, pyramid or hierarchal construction, illustrated in Fig. 1 ( B ) .

Forms of organisation construction

Worker

Decision shaper

Fig.1 ( a ) The Entrepreneurial Structure

Employees

Middle directors

Departmental Directors

Directors

Information

Decisions

Fig.1 ( B ) The bureaucratic, pyramid or hierarchal construction

The Entrepreneurial Structure

The Hierarchical Structure

All determinations are made centrally

Decision devising is shared throughout the concern

Relies on the expertness of one or two people to do determinations

Specialization of undertakings is possible

Decision devising is efficient up to a point as determinations are make rapidly, subsidiaries understand to whom they are accountable, and small audience Is required.

Employees are each given a function & A ; processs are laid down which determine their behaviour at work.

Departmental constructions can be set up

Comparison of features of the Entrepreneurial & A ; Hierarchical Structures

Although the entrepreneurial construction works good for the little concern, as the concern grows, that construction can do inefficiency as much of the work burden is placed on those in decision- devising. The hierarchal construction allows the big concern to harvest the benefits of economic systems of graduated table through specialisation. However it has besides been ‘criticized for its inability to run into new demands” Hall et Al ( 2008 ) . An organization’s construction must be chosen carefully. The incorrect construction could take to hapless co-ordination, lifting costs, slow determination devising, and a failure to portion thoughts and reduced motive as employees are incognizant or what’s occurrence and why.

Organizations may follow one of the four chief types of civilization viz. ; power, function, undertaking, and individual civilization. Each of these civilizations in bend will impact the public presentation of the organisation and forces otherwise.

Within a power civilization, the chief component is control and determinations are centralized around one individual. It creates an ambiance of competition amongst employees as they compete to derive power as an accomplishment of their ain aims, therefore a political ambiance in the concern. The deficiency of audience can take to staff experiencing undervalued and de-motivated.

In function civilizations, unlike power civilizations, power is associated with a function instead than an single. Employees are focused on their occupation descriptions and are slightly specialised, thereby increasing productiveness for the organisation.

Undertaking civilizations, on the other manus, utilize squad working. Staff is motivated since they are empowered to do determinations within their squads. They feel valued because of their choice on the squad and have the duty of driving their squads to successful completion.

Person civilizations involve persons who don’t needfully work closely together. They look toward to organisation for support, since most of them would be spouses and portion direction. For illustration, a group of attorneies.

The civilization best suited to the entrepreneurial construction is the power civilization as it is centralized around one person, control is the cardinal component. The hierarchal construction on the other manus can outdo be linked to the function civilization as the organisation is split into maps and each person within the map is assigned a function.

Undertaking 2 – Approaches to Management and Leadership

Briefly describe two different direction attacks and explicate how these direction attacks could be implemented in an organisation.

“Management” may non easy be defined ; nevertheless it fundamentally describes the procedure of acquiring things done in a co-ordinated mode.

The thought of “scientific management” was set out by Frederick Taylor, and refers to a direction attack in which it was believed that a undertaking should be complete in the “best way” . It was designed to cut down inefficiency and regarded money as the lone motivation factor to work. The “best way” is a method utilizing selected skilled workers to finish undertakings in the quickest clip, following a sequence that does non let for alteration. Workers are supervised to guarantee that methods are carried out as directed and would accordingly be rewarded or punished based on public presentation. It is straight linked to end product and follows the old expression, “a carnival day’s work deserves a just day’s pay” . Workers underachieving hence would lose net incomes whilst those overachieving would gain fillips.

This scientific direction attack can outdo be applied in mass production industries where labour is extensively specialized for case, vehicle assembly lines. It can besides be applied locally to Harris Paints Dominica Limited, a pigment fabrication company, in its production section as mass production occurs at that place. There is a clear division of the undertaking and duty between the proficient trough, besides caput of that section, and the production workers. There is merely one way- the best way- of pigment production ; scientifically tested and proven expressions. These are to be followed on a precise order to accomplish a concluding merchandise within peculiar specification bounds. Workers are manus selected for peculiar undertakings like tincting and trained consequently to execute these occupations. They co-operate along the production lines in conformity with the expression and occupation instructions for doing pigments. They are rewarded with economic inducements.

Though Taylor’s attack seemed appealing in early old ages, it subsequently became clear that factors other than money affected motive. This new tendency of idea was called the Human Relations School. This attack was founded after experiments conducted between 1927 and 1932. They were ab initio based on “scientific management” – the belief that productiveness was affected by work conditions, accomplishments and fiscal wagess. It nevertheless proved that these alterations truly didn’t affect productiveness, instead greater coherence and communicating through group interaction motivated workers, accordingly increasing end product. It farther explored the truth that persons need to be given chances to act upon their work environment and be continuously provided with challenges and involvement. They were besides motivated by the involvement displayed in their work. Overall, the Human Relations School implies that a “business taking to maximise productiveness must do certain that the ‘personal satisfaction’ of workers are met for workers to be motivated.” Hall et Al ( 2008 ) .

The Human Relations School attack can besides be applied to state of affairss at Harris Paints Dominica Limited. For case, employees are allowed to plan promotional runs, generate thoughts for, and bring forth activities that are used at concern carnivals and trade exhibition every bit good as to stand for the company at these events. One such juncture is the National Independence Expo hosted by the Dominica Export Import Agency ( DEXIA ) during Dominica’s 30th Independence day of remembrance in October 2008. This generates involvement and motivates employees to stand for the company. Another would be employees are given chances to utilize their voices for sound and Television adverts and event to plan the inside of the company’s administrative office. By and large, if employees are allowed to give thoughts and to some extent participate in determination devising they feel more motivated even if there may non be a pecuniary wages. Unlike the “scientific management” attack concentrating on productiveness entirely, the Human Relations School besides focuses on societal dealingss in the organisation.

Using illustrations from your ain experience, or from an organisation of your pick, discourse how directors following these direction attacks would utilize power and authorization in order to pull off their staff.

Power in an organisation can intend a manner of pull offing others. Authority on the contrary, would be the ability to transport out a undertaking, and can be an illustration of power. There are four major beginnings of power that one can get. Power can be acquired through activity, personality or state of affairs.

Beginnings of power

Legalize

Expert

Personal

Political

Fig. 2 Beginnings of power

Assorted types of power would be used when following direction attacks. The “scientific management” attack would no doubt use the expert and legitimate beginnings of power. Legitimate power would be applied in such a manner that determinations would be passed on without audience. This is reflected in the “right way” thought, since there can be no changing of methods by employees, merely instructions to follow as delegated. Adept power is besides applicable to that state of affairs in the sense that it is based on specializer cognition. For illustration, the proficient director at Harris Paints is educated and trained in his peculiar field and he through tried and tested scientific expression instructs the production workers as to what they do, and how to travel about making it.

The Human Relations attack instead, can be associated with personal power. The Human Relations School attack takes into history the societal environment or workers and allows chance for determination ; the personal power theory claims that the personal appeal of directors allows for edifice of personality cults, pulling employees to them. It would intend therefore that the usage of this beginning of power would prefer effectual communicating and positive interaction between directors and staff. Directors would be better able to pass on their involvement in employees work. As associating to the same illustration of the exhibition, employees may be willing to propose thoughts and voluntary to take part without even being asked, because of the bing environment between workers and directors.

Undertaking 3 – Motivational Theories

Identify two different motive theories and depict how they could be observed in pattern. Include specific illustrations from an organisation, or organisations, with which you are familiar.

The assorted theories of motive purpose at either explicating the specific factors actuating people or are concerned with the idea processes that influence behaviour.

Maslow’s hierarchy of demands is a motive theory aimed at explicating specific factors actuating people. His theory consists of two parts: the categorization of demands, and how these categories relate to each other. The hierarchy is generated as a pyramid, each degree picturing a category of demands.

SELF-ACTUAL-ISATION ESTEEM NEEDS

-recognition for occupations done e.g. one-year awards

LOVE & A ; BELONGING

-support from colleagues

-effective teamwork

-interaction & A ; communicating

SAFETY NEEDS

-secure occupations

-work conditions are safe ( safety equipment & A ; dressing available )

PHYSIOLOGICAL NEEDS

rewards plenty to run into measures, nutrient & A ; other basic demands

employees have good working conditions

-promotions at work

-new and disputing undertakings on occasion

-increase in authorization

Fig.3 Maslow’s Hierarchy of demands in pattern at Harris Paints

The demands at the pyramid’s base are basic demands and must be satisfied before an employee can travel to the following degree, as each degree is dependent on the degree below. Once a degree is satisfies it becomes of less importance. For case, an employee would non be excessively concerned about being portion of the Harris Social Club if he can non supply repasts for himself. Self – realization is the really top degree, Maslow believed that though everyone may be capable, really few get to this degree. By and large in pattern, “there’s ever room for improvement” . If one therefore, is presently the state director, he may every bit good strive to go regional general director or even C.E.O. The chief issues with this in pattern at Harris Paints Dominica Limited is that some degrees don’t exist for certain persons – love and belonging, for illustration would non intend anything to the anti-social person as he would non care to belong to a group or even those who merely prefer being entirely. Another would be make up one’s minding when a degree has really been satisfied. It may be true that a individual has shelter, but he may be leasing and would really hold to have his ain place before he is really satisfied.

The Reinforcement theory is another motive theory. It seeks to analyse how persons become motivated and believes that wagess and penalties can be used to reenforce or modify behaviour. There are four types of support that can be applied to employment at Redi-Mix Concrete Ltd, a pre-mixed concrete provider in Dominica.

Positive: this involves utilizing pleasant wagess to promote a coveted behaviour. Employees are paid one-year fillips, because they see to it that customers’ concrete demands are delivered at the coveted location at the customers’ clip bespeak even if it means traveling beyond normal on the job hours, sometimes much earlier than start of their work twenty-four hours or subsequently than twenty-four hours terminal.

Negative: an effort to take a stimulation by providing an unpleasant stimulation that generates coveted behaviour. Employees are by and large given free dinner when working overtime past 7:00 autopsy. That hr could be shifted to 8:30pm so as to deter employees from lounging merely to run into the 7:00 autopsy timeline in order to bask dinner.

Extinction: entire backdown of a effect associated with the behaviour in order to diminish it. Employees are no longer paid for ill yearss unless they present a medical certification. This will deter intentionally naming in sick and still acquiring paid for the twenty-four hours, as employees would non truly desire to pass money traveling to the physician to obtain a certification if they’re non badly.

Punishment: in order to control unwanted behaviour, promote negative effects. In this case, employees are terminated for actions like larceny. Particularly, a instance where extra concrete than the sum paid for would be delivered to the workers’ friends in exchange for other trades or free for relations.

Identify an operational alteration that has taken topographic point in an organisation of your pick. Choose the leading manner which was ( or would hold been ) most appropriate in order to pull off and implement the alteration and explicate why.

Until late, there were five companies runing separately under the Harris Paints name in the Caribbean. The proprietors decided to do it a regional company with operating subdivisions in these islands alternatively. The alteration was implemented to derive competitory advantage across the part, for case in footings of transporting – the island nearest would transport to the distributer to salvage cargo costs, every bit good as to guarantee uninterrupted supply to distributers. In the event that their regular provider was unable to provide for some ground, a sister company would so be able to direct off that cargo and avoid any lost gross revenues. They would besides hold capitalized on nest eggs through majority purchases of natural stuffs and employees would bask equality throughout the board, in footings of wage and motion of labour between subdivisions. Though slightly independent, there are some procedures that must be done through its regional caput office.

The leading manner that was used to implement such a alteration was the bossy leading manner, one in which determinations are made by top direction, or proprietors and in bend passed down through the organisation. It was the best method of implementing that alteration because audience with each company’s Board of Director’s and stockholders would finally hold led to confusion and delayed treatment procedure. Furthermore, the treatment would hold generated thoughts, but the concluding determination would still hold been in the custodies of the proprietors. It was hence ; best to merely travel in front with the alteration.

Undertaking 4 – Working with others, teamwork, groups and group kineticss.

What do you understand to be the difference between squads and groups within an administration? How does the function of squads differ in big and little organisations?

The difference between squads and groups in organisations is that, a squad is normally a group with members who possess complementary accomplishments put together for a intent. Teams are specifically necessary to carry on complex undertakings and may hold independent subtasks. Through co-ordinated attempt, squads allow members to maximise their strengths and minimise their failings. A group, in contrast, can be termed a figure of individuals considered together sharing some relation, more specifically ends, or a common intent. See the undermentioned illustrations: Team – employees in an histories section fixing budgets for the following fiscal twelvemonth with a specific deadline. These same employees could run into and discourse day-to-day intelligence events during the lunch clip hr ; that doing them a group. By and big, both squads and groups have common intent ; a squad is normally set to accomplish a undertaking whilst groups are committed to common intent, similar working attack. A squad comprises a group but a group does non needfully represent a squad.

Team functions differ in big and little organisations. The squad construction may specify the full organisation in a little concern. This is extremely possible as there are few employees and all attempts may be needed to accomplish the set undertaking. Large organisations like Harris Paints, pigment makers, are composed of departmental squads each ego managed ; squad leaders in each store/ mill are besides in turn portion of a regional squad. Undertakings may be allocated to squads with squad leaders describing to a chief squad for determination devising.

Use the Tuckman and Jensen squad development theoretical account to your function in an administration.

“Groups do non come into being to the full formed. B. Tuckman and N. Jensen ( 1977 ) suggested that groups pass through phases of development” Hall et Al ( 2008 )

The followers shows phase development for the Harris Social Club at Harris Paints harmonizing to Tuckman and Jensen:

Forming – employees suggest the thought of a societal nine ; word is passed around, individuals demonstrate involvement in prosecuting the enterprise. Ideas are generated as to what the nine will be like.

Ramping – employees run into and uncover personal ends and group ends and seek to make an understanding on what will be the club’s aims and scheme. Conflict and dissension is experienced as people’s ends are different.

Norming – An executive commission is voted in and regulations standard regulations are established. Ideas are continue to be shared by members, and concluding determination is processed by the executives. Information is so passed on to other nine members through an appropriate medium.

Performing – The group is eventually formed, an executive, regulations etc. are in topographic point. Club members now work to accomplish its aims. Members know their functions and live up to them. Activities autumn in topographic point.

Explain how communicating methods can impact squad public presentation in a big multi national organisation.

Communication takes topographic point in assorted ways among organisations:

Bavelas ( 1948 ) and Leavitt ( 1951 ) identified four chief types of communicating web, which are illustrated below.

Types of communicating webs

Large multi-national organisations can be considered by and large centralized groups – intending its members or employees portion really small in the determination devising of the full organisation. Nevertheless, within subdivisions and shops employees may be able to partake in determination devising ; these smaller groups are decentralized. The centralised groups follow the wheel and concatenation methods of communicating as shown above. Decision doing is extremely effectual, peculiarly if undertakings are simple, for case “deciding on the enlisting policy for a peculiar occupation, centralized groups like the wheel are faster and do fewer errors” Hall et Al ( 2008 ) . Members nevertheless are more likely to hold lower satisfaction degrees. When undertakings are more complicated, like “putting into pattern a enlisting policy for a peculiar occupation, decentralized groups may be more suitable.” Hall et Al ( 2008 ) . These decentralized groups usually use the circle and web methods. These methods portion duty and nevertheless may non be a genuinely effectual mechanism as they don’t guarantee that determinations are ever made.

Mentions

Hall D, Jones R, Raffo C, Aderton A ( 2008 ) 4th Edition Gray D, Chambers I.

Business Studies. Pearson Education, Edinburgh Gate, Harlow Essex CM202JE. Chapter 59 pg.335, 337 & A ; Chapter 72 pg.416, 417

Bavelas, A. , ( 1948 ) . A Mathematical Model of Group Structure. Applied

Anthropology, Volume 7.

Business instructor ( 2009 )

hypertext transfer protocol: //www.businessteacher.org.uk/people-in-business/organisational-structures/ [ Accessed on June2009 ]

Organizational Structure Essay

In 1940, Richard and Maurice McDonald opened the first McDonalds Bar-B-Q restaurant in San Bernardino, California. McDonalds offered hamburger, cheeseburgers, soft drinks, coffee, potato chips, and pie, which their big seller at that time was their 15-cent hamburger. McDonald’s achievement is constructed on the groundwork of personal and professional integrity. In 1955, a businessperson named Ray Kroc purchased the company from Richard and Maurice and began to take the company to new heights. Over the years McDonalds grew bigger and bigger and became what it is today which is the world’s largest food service retailer with over 30,000 locations in 119 countries. Below will outline McDonalds as a corporation and the organizational structure they have within the company. Functions of McDonalds

McDonald’s has over 30,000 restaurants in 119 countries which most of the restaurants are normally franchises; which they all obtain their food and packaging from the same official vendors worldwide. With that said, every McDonald’s organizational structure is the same so a McDonalds in the United States is the same as a McDonalds in China which all of the important decisions comes from the corporate level in the United States. McDonalds believe their success is based on their business model, which is represented by a stool with three legs, which are owner/operators, suppliers, and company employees. McDonalds has not been always the giant in the industry in an annual customer satisfaction study, McDonald’s was scored dead last among fast-food restaurants since 1992. In the fourth quarter of 2002, McDonalds has disclosed its first-ever quarterly loss, one reason why McDonald’s is struggling is that the consumers began to switch to its competitors, such as Burger King, Wendy’s, and Subway (Han, 2008).

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These other companies emphasized on giving customers fresher, hotter, better quality foods at lower price along with faster service than McDonalds. With that being said McDonalds made the decision to close over 700 restaurants because they were performing inadequately. When this happened, the corporate team was thinking that they might not be competitive anymore within the fast food industry. The major competitors of McDonalds are Burger King and Wendy’s, who their structures are not much different from McDonalds because they are ran the same from a corporate standpoint. Burger king along with Wendy’s has multiple locations around the world but where McDonalds has, the upper hand is they having more franchises around the world than both Wendy’s and Burger King put together. With along the companies having the same structure they all have different views on how they run their businesses. One thing is for sure that each company’s decisions starts at the top and works the way down the change to each individual store or restaurant.

McDonalds believes the best people lead to the best business results (McDonalds Corporate). McDonalds wants to guarantee that they have the best leaders that can move McDonald’s into the future. Over the decade, McDonalds has strategically improved their efforts and investments in talent management, from applying a reliable and precise talent planning process at their own learning academy, which is Hamburger University. These investments are part of a complete worldwide talent management strategy to ensure they have high-performing, dedicated leaders, a diverse pool of candidates for the future and a culture that both requires and supports learning and development (McDonalds Corporate). In the Marketing, function of McDonalds they are dedicated to communicating responsibly, along with they would like to use their brand to make a difference in everyone’s lives. For years, McDonald’s global marketing strategy has helped ensure that their advertising and marketing is clear, appropriate and that it addresses all ages from children to adults.

To McDonald’s, the most vital tactical method for sustaining their leading position is to preserve their major markets while at the same time increase their business into the other developing markets. However, different consumer groups in different countries may have very different tastes and/or requirements (Han, 2008). Therefore, each full operating geographic unit of McDonald’s was required to solely responsible for producing and marketing its products in that region. Through this regional structure, McDonald’s could not only satisfy the local consumers’ needs in different geographical areas but also pursuing ‘maximum local development’ (Han, 2008). In fact, each McDonalds produces and markets somewhat different kinds of products in different areas, along with they even have different prices. McDonalds Competitors

McDonald’s organizational structure is a little different from most companies because McDonalds has so many different franchises around the world but the best structure that suits McDonalds I think is the centralized structure because McDonalds needs to make sure that control is supported through all of their franchises. McDonalds needs to guarantee that customer experience and quality is consistent at every McDonalds is maintained. At each location McDonalds has managers, assistant managers, and crewmembers. For the bigger decisions such as marketing and advertising, these decisions, come from the corporate headquarters and then are passed down to each store. For example, if the marketing department is promoting a new product, they will test it out at a couple locations and if the new product is a hit with customers, they will have that product at every location. This is why customers see new products on the menu only for a limited time because corporate headquarters is testing the product in different geographic areas. At McDonalds, each department has a particular job function and this allows McDonalds to be so successful around the world.

In conclusion, for 72 years McDonalds has been growing bigger and bigger to become one of the largest fast food restaurants in the world. McDonald’s achievement is constructed on the groundwork of personal and professional integrity. Although each franchise may have different menu items to suit, different customer needs. All the stores are run from one place in the United States, which is the corporate headquarters and here is where the men and women plan their next move to bring McDonalds to new heights around the world. Hundreds of millions of individuals around the world trust McDonald’s restaurants. McDonalds win that trust everyday by serving safe food, respecting our customers and employees and delivering outstanding Quality, Service, Cleanliness and Value (McDonalds Corporate). I believe that Richard and Maurice would be proud of what has become of their vision, which was to give individuals in San Bernardino, California a nice quick meal.

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