McDonalds Case Study

Introduction

History

The original founders of McDonald's, and the fast-food concept, were brothers Dick and Mac McDonald. In 1948, they modified their drive-in restaurant, creating the standard for the contemporary fast-food restaurant of modern times. From the introduction of a limited menu of just nine items, and by focusing on efficient production and service, the brothers were able to halve the price of their hamburgers to 15 cents. In 1962, the golden arches were adopted as its corporate logo, with the introduction of Ronald McDonald as its mascot arriving the following year. In 1965, McDonald's Corporation went public, and by 1966 was listed on the New York Stock Exchange. In 1967, its first restaurants outside of the United States were opened in Canada and Puerto Rico. From then on it expanded rapidly.

Franchises

The McDonald's Corporation is the largest worldwide franchised food service organization. In the 1960's, Ray Kroc franchised restaurants for the low sum of $950, demanding 1.9% of sales. McDonald's are able to overcome cultural barriers that have previously hindered other organizations. Because the local people immediately translate both the product and service, there is little hint of what may be construed as US brand culture. McDonald's is simultaneously global and local. Clearly, an increase in the number of franchised restaurants leads to the direct effect of an increase in McDonalds' revenues. McDonald's can also boast that it is the largest retail property owner in the world.

Mission and Vision

To serve people with good quality food, fast and at low cost. McDonald's vision is to dominate the global food-service industry. Global dominance means setting the performance standard for customer satisfaction and increases market share and profitability through successfully implementing our convenience, value and execution strategies.

Structure of McDonalds

Organizational structure refers to the relationship between the tasks performed by the members of the organization and can be seen in the forms of division of labour, departments, hierarchy, policies and rules, and coordination and control mechanisms.

Considering the structural grouping at the corporation level and the popularity of franchising which is having a dramatic effect on the business strategy, a geographical structure can also be assimilated into the framework of McDonalds. The franchises cater to the distinct tastes and needs of the particular region and allow McDonalds to focus on the needs of the customers in a geographical area.

McDonalds falls into mechanistic organization for the reason that in its production