Business Structure of Mcdonald's Corporation

2457 WordsJan 5, 201310 Pages
Ben Surato Business Project Part Four – McDonald’s Corporation Baker College The organizational structure of a business is a unique relationship formed when functional areas, defined by purpose and specific roles, are associated. Proficient organizations are capable of success because of fluent operations between stable functional areas. This portion of our business project will provide insight on the business structure of McDonald’s Corporation by analyzing the functional areas of business, taking into consideration factors like technology, the basic laws of economics, and some key aspects of management. McDonald’s Corporation runs its business in a similar manner to nearly all fast food restaurant chains, so its…show more content…
(McDonald’s, 2011) The operations of McDonald’s restaurants are supported by a system that involves three main components, what Ray Kroc titled the three legged stool. The first leg is McDonald’s and its core values of quality, service, cleanliness and value. The second leg is franchisees. Each encouraged to be innovative, but also required to operate within the core values established by McDonald’s. The third leg being McDonald’s suppliers, consistently supply products across business segments in order to recreate the McDonald’s 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. (McDonald’s Corporation, n.d.) Much like any major corporation, McDonald’s utilizes its functional areas to create compatibility within its infrastructure. As described in our text (Chapter 5 of Exploring Business), the success of a business lies in the ability to manage and grow. McDonald’s Corporation has established a system where the core areas work together to manage operations, money, people, sales, and the competition. The roles of the functional areas and how they work together give McDonald’s the ability to know their business, know their product, and know
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