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Example research essay topic: Mcdonalds Corporation Organizational Structure - 1,128 words

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A brief history of the organization: Two brothers originally started McDonalds, they ran a single restaurant for 17 years in a single city in California. In 1954, Ray Kroc visited them to sell them a milkshake machine and saw a bigger vision. In 1955, Mr. Kroc began the new McDonalds System Inc. and in the first year opened 18 new restaurants across the United States, and he maintained the quality, the production line and the limited menu that the McDonald brothers had started. McDonalds tried to come to Colombia in 1983, but the economy was closed to such businesses.

They tried for 12 years before having success in getting the appropriate paperwork and permission to start a McDonalds in Colombia. At first, McDonalds didnt open doors to the public for consumption, like they have done before. They started working in Colombia to obtain the correct temperature at which to cook the fries to get the correct taste, and to obtain the correct menu and the same tastes as the company is accustomed to. At first they set the prices, while they are importing the supplies, at a higher level. Then later discounted the prices of the food to the customer. Today, Colombia is the fourth most important country in Latin America to McDonalds.

In its first year it surpassed all of the expectations that anyone had for the restaurant with the opening of 12 restaurants. Thanks to the high demand, they will continue opening McDonalds in the rest of the country. McDonalds is continually looking for businesses in Colombia to supply them with things they need. They continue to invest in the economy and the country.

McDonalds is working for a bigger part of the pie in the Colombian market, even though this pie continues to shrink. Organizational structure: The organizational structure is based on franchises, where the owner is an involved operator and not some unconcerned corporate entity. McDonalds believes that by keeping owners, or franchisers that are involved in day-to-day operations of their store, their drive for success is much higher. The McDonalds corporation does operate some stores, but this is only to open new markets or to continue establishing good market procedures and basic store operation. It is the desire of the corporation that each McDonalds location be individually owned and operated. When an owner is found for a restaurant, McDonalds shows them the restaurant and explains why they feel it is a good location.

The potential owner has the choice of purchasing the said restaurant or waiting for a new restaurant in a future location that he / she feels more comfortable with. After the owner has purchased the restaurant, he goes through a year of training so that the restaurant will continue in the way that McDonalds desires and the owner knows the system that McDonalds has used over their 40 + years of service. In 2000, there were twenty restaurants in three of the major cities in Colombia, with three of them being privately owned. The McDonalds corporation in Colombia has eight departments, human resources, purchasing, operations, finance, franchising, development, information systems, and marketing. Each department has a department head and a small staff. The corporate purpose is to provide the necessary support for the operation of the individual McDonalds stores throughout Colombia.

They also provide the communication with the international headquarters in Illinois and work with the McDonalds corporation for making decisions and operating McDonalds in Colombia. Organizations mission / vision or purpose: McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile. Description of international strategies to achieve the organizations mission or purpose: To achieve their vision, McDonalds is focused on three worldwide strategies: Be The Best Employer Be the best employer for our people in each community around the world. Deliver Operational Excellence Deliver operational excellence to our customers in each of our restaurants. Achieve Enduring Profitable Growth Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology.

For McDonald's to achieve its goal of being the world's best quick service restaurant experience, they must have the best experience for all McDonald's employees. So they formalized their beliefs into a People Vision and People Promise. Our People Vision defines what we strive to be as an employer. Simply put, we aspire to be the Best Employer in Each Community Around the World. Our People Promise is how we remind our people what they can expect and how high our goal is: To be the best employer in each community around the world. To the 1. 5 million people who work at McDonald's in 119 countries around the world, and to all future employees, we want you to know that: We Value You, Your Growth and Your Contributions.

Organizations planning process and cycle: McDonalds Colombia uses a 31 Q planning cycle. This is a three-year strategic plan, and a one-year tactical plan with quarterly revisions. A leadership council, consisting of the eight department heads of the corporation, makes the decisions. Decisions are made by consensus when possible. When not possible decisions are made based on the majority with due diligence to the opinion of dissenters.

Email, voicemail, meetings, hallways, newsletter and letters communicate decisions. Description of information and management control system: McDonalds has a large corporate structure to support the worldwide operations and the franchisers. This corporate structure is designed around advancing the McDonalds opportunity around the world and helping each McDonalds unit be successful and profitable. McDonalds Colombia has an Information Systems department responsible for the data collection and reporting. I failed to inquire further about McDonalds information system in my interview with Pedro Medina, and I have not received a reply to my email inquiry after the fact. I know that McDonalds uses extensive data collection and reporting for each store and region.

This data is used not only to help the individual store in planning and improving service but for corporate planning and the addition of future franchises. McDonalds Colombia works in cooperation with McDonalds International, having some degree of freedom to make decisions and handle the operation of the stores in Colombia. One example was the recent addition of a breakfast menu to four stores. This is a test market. McDonalds International Headquarters recommended against it, based on their data and information they felt that Colombians eat breakfast at home and would not be open to the idea of eating at a restaurant in the morning.

McDonalds Colombia made the decision to try it in the four restaurants with the highest potential for success, those with the most pedestrian traffic in the morn...


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