organizational management - mcdonald's

7/29/2019 Organizational Management - McDonald's

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BY:

Daniel Henry Wiyono (6083809)Yosia Rudy Darmawan (6083823)

Benny Tejo Pranoto (6083829)

Khanis Steven Kurniawan (6083849)

David Setyawan (6083804)Vega Rimayanti (6083065)

andy Zulkarnaen (6083076)

Hendry Lukito (6083828)

McDonalds

Corporation


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Organization & Stakeholders


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History ofMcDonalds

McDonalds established at 1940 by Dickand Mac McDonald in San Bernardino,California.

In 1948 Speede service system On 15 April 1955 Ray Kroc bought

lisence of McDonalds and use franchisesystem.

In 1963 Ronald Mcdonald In 1965 stocks McDonald sell to

public.


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All about McDonalds

Corporation

McDonalds product is food like

hamburger, potatoes , fried chicken, etc.

Mission of organization :

- Became market leader

- Share McDonalds market in east asian

- Give service life styles end user

- Good Investment

- Fill a need of customer in food product


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McDonalds Products

BigMac

French fries & icy blue float

Ice cream cone

Coca-cola

Mcflurry caramelFried chicken


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Value of organization

Input material : meat, bread, etc.

Process Interactive system

computer online ( 14045 )

Output quick and comfort service


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McDonalds StakeHolders

McDonalds central:

Chairman: Andrew J. (Andy) Mc Kenna Sr.

Vice Chairman and CEO: James A. (Jim)

Skinner President , COO, and Director: Ralph Alvarez

Stakeholders didnt have conflict than the

other. Stakeholder very influence is McDonalds

central
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McDonalds Corporation

Strategy

Focus to the customers problem

Work together among employee

Always expand an idea

Make comfort service


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DESIGN of ORGANIZATION


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McDonalds Challanges

No clear line of accountability and reportingwithin the organization

Defining the duties and roles of each memberorganization

The existence of dependence in theorganization of guidance and counselingemployers

The existence of attachment members of theorganization to organization rules

Many cases of decision making in theorganization carried out without going throughformal channels


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The role of classification in the

McDonald's is as follows Vice Chairman and Chief Executive Officer

President and Chief Operating Officer

Group President McDonald's Canada and Latin America

Executive Vice President and Chief Financial Officer

Executive Vice President and Global Chief Marketing Officer

President of Asia, Pacific, Middle East and Africa

Executive Vice President and Chief Operations Officer, McDonald'sUSA

Executive Vice President and Chief Human Resources Officer

President of McDonald's Europe

President, Central Division for McDonalds USA

East Division President - McDonald's USA

President, West Division for McDonalds USA Executive Vice President, General Counsel and Secretary

Executive Vice President and Worldwide Chief Restaurant Officer

President of McDonalds USA

Honorary Chairman
http://www.aboutmcdonalds.com/mcd/our_company/bios/jim_skinner.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/ralph_alvarez.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jose_armario.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/peter_j_bensen.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/mary_dillon.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/tim_fenton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/janice_l_fields.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/janice_l_fields.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/richard_floersch.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/denis_hennequin.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jim_johannesen.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/karen_king.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/steve_plotkin.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/gloria_santona.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jeff_stratton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/don_thompson.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/fred_l_turner.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/fred_l_turner.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/don_thompson.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jeff_stratton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jeff_stratton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jeff_stratton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/gloria_santona.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/steve_plotkin.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/karen_king.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/karen_king.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/karen_king.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/karen_king.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jim_johannesen.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/denis_hennequin.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/richard_floersch.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/janice_l_fields.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/janice_l_fields.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/tim_fenton.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/mary_dillon.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/peter_j_bensen.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jose_armario.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/ralph_alvarez.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/bios/jim_skinner.html


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Division and Innovation of the

Mcdonalds

McDonald's only has one division, the

Food and beverage division for

McDonald's main products related to

food and beverage. Drive-thru

Delivery order

Open 24 hours

Wi-fi


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Improvement of management to

improve operations

Create new innovations creative.

Evaluate any particular period.


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ORGANIZATIONAL STRUCTURE


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CEO

ASIA

AUSTRALIAMERICA

EUROPEAFRICA

Geographic Structure

Structure of Organizational


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Geographic Structure Advantages

Each unit of marketing has all the functions

Good be used if the marketing area are spread in various

locations

Each task of each division more clearly

Weakness

Difficulties in coordination between regions, it is because the size

of the company's marketing region is wide

Sometimes have difficulty in adjusting the environment because

each region has a different culture

Suggestions to improve for organizational structure to

be more sensitive to the arrangement of structures that

companies are able to coordinate properly


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STRATEGY AND ORGANIZATIONAL STRUCTURE


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Goods And Services Produced By

McDonalds

McDonald's sells food and beverages

especially burgers, but McDonald also sells

fried chicken, french fries, spaghetti, soup,

ice cream, coca cola, fanta, sprite McDonald's in every country has a

different menu example in indonesia sell

Mcrice


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Core Compentecy

Food fast restaurant (service

60s)

Innovation food and beverage

Delivery service

Drive-Thru


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Three levels of McDonald's

strategy1. Functional-level strategy

Functional strategy used is aproduct differentiation strategy

For example McDonald's produced a new drink like Icy Blue

float

2. Business-level strategyBusiness strategies used is aproduct developmentstrategy

For example McDonald's produced Mcflurry

3. Corporate-level strategy

Corporate strategy used is a related diversification

McDonald's is the company's main production is hamburger,

McDonald's did not produce a beverage, he cooperation with

coca-cola company as a beverage in the restaurant


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ENVIRONMENT OF ORGANIZATION


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ORGANIZATIONAL

DOMAIN Customer:

Children

Teenager

Adult

In 2003, McDonald's serves as many as 47

million subscribers per day.

In 2008, McDonald's customers increased

by 58 million customers per day.


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ENVIRONMENT OF

ORGANIZATION


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SYMBIOTIC RESOURCE

DEPENDENCE

Based on the dependence theory which

states that the organization depends on the

environment or other organizations to

obtain resources. Example: coorperation with coca-cola

according to transaction cost theory of

McDonald's uses a system of Franchising.


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factor of uncertainty to the

environment

Environtmental Complexity


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INTERNATIONAL ENVIRONMENTAL OF

ORGANIZATION


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McDonalds activities in

environment such as: Become a olympiade sponsor until 2012

Make a cooperation with FIFA to sponsor

football competition especially in world cup


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Stucture and Strategy

Strategy :

McDonalds use Multidomestic Strategy

to develop its business with franchise

Structure :

In its structure, McDonalds use

geographic structure because its possiblefor McDonalds to control international

activity


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Geographic Structure

CEO

ASIA

AUSTRALIAAMERIKA

EROPAAFRIKA


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The Important of Global

Learning

Each country has a different culture.

Because of that, global learning used to

know or comprehend every country


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Alliance Strategy and Profit

Alliance Strategy : McDonalds has network in various country.

So that used raw material also reside in theeach country.

Profit :

Advantage of McDonalds is to get morelarger profit because it can reduce the cost

of distribution. This reduction is caused byraw material dont from center but fromcountry which there are McDonalds.


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The Important of Global

Expantion

Agreement of global expantion is

important because it is relate to

distribution production process and

product marketing. Production processneed cooperation with other company so

that can be cost-saving and get

advantage.


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The Problem of McDonalds in

Its Developing

Customer:

The cultural of each country is different.

Because of that, McDonalds attention

food in each country

Foreign Competitor:

McDonalds will have a new competitor

because oppurtunity business


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Supplier:

McDonalds take raw material in country

which its take place Distributor:

The cultural can make difficult in distribution

Government:Rules in each country is different. So, it

make difficult in distribution and tax.


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ORGANIZATION DESIGN AND TECHNOLOGY


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OUTPUT

Product:

Food

Beverages

Services: Fast service of serving time

Delivery service

cozy restaurant atmosphere

JOAN WOODWARD


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JOAN WOODWARD

THEORY

McDonalds is using Large Batch and

Mass Production Technology

Because McDonald's produce their food ona large scale and is supported with fast and

quick production

CHARLES PERROW


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CHARLES PERROW

THEORY

McDonalds is using task variability

method

Because in doing their bussines, they notonly face the same competition anytime.


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JAMES D. THOMPSON

THEORY

McDonalds is using lounge-linked

technology

Because the production process, whetherthe input activity, conversion and output

done in a series or sequence

Relathionship between


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Relathionship between

organizational structure with

technology used

Orgaizational structure used in

McDonald's is geographical structure,

this structure supports the McDonald's inexpanding its wings to various countries

in the world


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Managing New Technology

Environment


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Managing New Technology Environment

In their business Mc Donalds use combination of:

Massal production system and

Advanced Manufacturing technology (AMT)

They can make a lot of produck with same quality and

price to prove that they use Massal production system This system give Mc Donalds can get more profit

Not only quantity but quality, because that Mc Donaldsalso use AMT in theis strategy business.

They adapted very well and make many new inovationto reduce their weakness and increase their goodservice.


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Changing

Mc Donalds often change their business sytem, like:

a. Adopt new technology, so can be better than

competitor

b. Create a lot of trainning for their worker

c. Matching their product with customers want

ex : In Indonesia, Mc Donalds sell rice and fried

chickend. Increase their service and product quality


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Organization and Inovation


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Organitation and Inovation

Inovation, such as:

Product inovation

Service inovation

True pricing

Good service

Etc

Innovation purposes:Get more profit

Win in competition

Be the best seller


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ORGANIZATIONAL DEVELOPMENT


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ORGANIZATIONAL BIRTH

McDonalds established firstly on May

15 1940 by Dick and Mac McDonalds.

In 1955, purchased by Ray Kroc in order

to develop a franchise system at

McDonald's.



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(contd)

McDonalds entered a difficult

environment at that time.

They have to race with anotherrestaurant that emerge so quickly.

ex: Taco Bell, Hardees, Burger Chef,

Whataburger, and BurgerKing


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Organizational Growth

Until now McDonald's is a number 1

fast-food restaurants in the world.

They have more than 31.000 outlets

spread over 119 countries. Innovations that they made has never

stopped.

ORGANIZATIONAL GROWTH


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ORGANIZATIONAL GROWTH

(contd)

During this growth, McDonald's also

often exposed to the many problems.

Environmental issues

Materials that can caused obesity Economics Crisis

McDonald's has not entered decline

period because of their financial reportsin 2008 that still show an increasing

income.

PROBLEMS IN THE


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PROBLEMS IN THE

FUTURE

Competition

Less skilled labour


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CHANGES OF ORGANIZATION


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ORGANIZATIONAL CRISIS

The McLibel Trial involving McDonald's

with London Greenpeace

Critized by Eric Schlosser through hisbook Fast Food Nation

withdraw from 3 states and close up to175 stores due to economic crisis


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SOLUTIONS

Provide a healthy menu that has a high

nutritions.

Replace all the raw materials supply

with organic materials.


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MAJOR CHANGES

The most striking changes seen in

customer service.

the addition of menu variation

Improvements in some facilities a playground for children

Wi-Fi

Drive-Thru


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There are few things that are attemped to be

done by McDonald's:

Do Biomass Trial experiment to reduce waste and

processed again to become a source of energy

create a packaging from materials that can be

recycled Opened Green Building that can save energy up

to 25%.

EVOLUTIONARY


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EVOLUTIONARY

CHANGES Those changes can not happen in a short

time, but it takes many years to identify theopportunities that they can use to develop

Not a revolutionary changes

with all its benefits and drawbacks,

McDonald's has managed to prove to theworld that they are a leader and pioneer inthe fast-food restaurant industry

organizational management - mcdonald's

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