Mcdonald's Organization Chart Case Study

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The type of chart that is exhibited is hierarchical. The organization is hierarchical, and the structure of the organization is based on function. The key units are "restaurant," HR, Operating, Financial and Marketing. There are four geographic units under operations. These reflect the largest markets for the company. Note that in this structure, marketing is global, not specific to any one geography. This is actually something that the company recently had changed, where it used to do its marketing based on each individual country, now it tries to have a more globally cohesive marketing strategy.

I would not suggest any changes to the organizational chart at McDonalds. Quite frankly, this is one of the best run companies in the world. Changing something that works just for the sake of change is bad management. There needs to be a reason for the change. Right now, McDonalds is not implementing any new strategy. They are still trying to win their core restaurant business, using premium positioning in the quick service segment, and they are trying to grow globally. There is no one specific focus for geographic growth that would need to be singled out among the different geographic groups.

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Typically, the structure has smaller entities grouped in with larger ones -- so Africa (small) is in with Asia (large), and Canada (small) is in with Latin America (large). The major functional divisions represent the major functions that McDonalds performs (marketing, operations and HR). There is an idea to feature online and social media marketing within the Global Marketing department, but the org chart for that department has not been revealed - this division might well exist.

So given that the current organizational chart works well for McDonalds, and has done so for many years, and given that there is no major change in strategy that would require a new organizational structure, it is recommended that the company maintains the organizational structure that it already has. Vacancies will, of course, need to be filled, and the people in place need to have specific areas of focus (so for example India can be a focus country in APMEA.

The only thing that might be worth considering is creating a new post for EVP, Information Technology, something that is frequently recommended to….....

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