Mcdonalds

Group Assurance of Learning Exercise 4

Business 400-D03

December 9, 2012

Part 1: Assurance of Learning Exercise 7A, Step 1, page 248

1. What type of organizational chart is illustrated for McDonald’s?

“MCD’s operations are organized into a geographical structure with four key segments. These four segments are: (1 ) McDonald’s—USA, (2) McDonald’s—Europe, (3) McDonald’s—APMEA (Asia/Pacific, Middle East, and Africa), and (4) McDonald’s—Other Countries and Corporate” (David, 2011, pg. 29).

2. What improvements could you recommend for the McDonald’s organizational chart?

• From a CEO’s perspective the organizational chart referenced on pg. 29 of our text, would be adequate enough. Most CEO’s only want to see who they will speak with on a daily basis, however, if the CEO is working in a headquarters setting depending on how many employees, the organizational chart should be broken down to divisions. If they are an “involved” CEO, they would want to see each division head and their employees. This will make the employees feel valued and engaged.

• From a segment perspective, each segment should break down to each MCD head in each city. This will give the VP of Europe to be able to contact that regional manager if any problems pop up.

3. What aspects of McDonald’s chart do you especially like?

Our group likes how each division is divided up into segments (east, west, central, etc). This allows each manager to speak with other division heads to see what is working in their store vs. what isn’t. This allows for cross-communication to profit MCD in the long run.

4. What type of organizational chart do you believe would best suit McDonald’s? Why?

We believe it all depends on the CEO. Some would have it broken down into each restaurant manager and some would leave as is on page 29. The best solution would to break it down to regional managers and store managers from a president’s...