Mcdonalds Organizational Structure

Decent Essays

• The issue that can be found in McDonald’s is that the sales keep dropping in 14 years. (Pinckard, C. C. ,2014, December 08).
• This issue happened is due to the rise of competitors in fast food industry such as Burger King, Subway, Wendy’s and so on.
• The main reason is because of the customer service provided by McDonald’s is far more inefficient and ineffective as compared to their competitors.
• Therefore, customers choose to switch to the other brands rather than stay loyalty to McDonald’s.
• McDonald’s does not blindfolded to see the shortcomings facing by the company, so they ousted the chief executive, Don Thompson, and replaced him with a track record of success across the Atlantic, Steve Easterbrook. (Griswold, A. ,2015 January …show more content…

(Corporation, M. ,2015)
• The initial step taken by Steve Easterbrook is to enhance and build up the efficiency and effectiveness of the company into faster and more customer-led decisions. (Corporation, M. ,2015)
• Thus, new market segments have been established to combine markets with similar needs, challenges, and opportunities for growth.
• McDonald’s plan to operate their organizational structure with a few market segments which include the U.S. market, the company’s largest segment which is having more than 40% of the company’s 2014 operating income.
• Second market segment is the High Growth Market, which is the market with the higher chances of expansion and franchising including China, Italy, Poland, Russia, South Korea, Spain, Switzerland and the Netherlands. This segment has contributed 10% of the profit of the company’s 2014 operating income.
• The last market segment will be Foundational Markets which are the remaining markets that have the potential to under a largely franchised model. Any activities related to corporate will be reported in this

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