Business Management in McDonald's

This document provides information about the organizational structure, functions of a manager, and the role of the CEO in McDonald's. It also discusses how McDonald's maintains a sustainable work environment and overcomes competition. The document is relevant for the subject of Business Management and is suitable for college or university students.

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT

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Question 1
The franchise of Mc Donald’s was set by a man named Ray Kroc in the year 1955 in Des
Plaines, Illinois. The first Australian store of the company was set up in Yangon, Sydney in the
year 1971 and quickly wins popular acclaim. Fourteen years later i.e. in 1985 Ronald McDonald
House Charity was recorded in the official list of Australian charity. In 1986, company asserted
that they have started 9000th restaurants in Sydney, average of 100 persons were employed by
these stores. World Fort Mc Cafe was established by the company in Melbourne in the year
1993. Mc Donald’s succeeded in establishing its 100th Mc Café by 2003. Till 2016, company is
providing employment over 90000 persons through its 900 stores present in Australia (Badal,
2017).
Question 2
At McDonald’s organizational purpose is attained because the employee at all levels nurtures the
value of the company. The main purpose of the company is their operations are its driving force.
It includes what are their goals, who they have to ultimately serve and who they are. The
company is working in the direction which help them in delivering the extraordinary values,
assist them in satisfying its customers and provide provides a gratifying work environment for
employees. Many authors believe that the company continues plays an active part in innovations
and finds out different measures for increasing profitability by involving in ethical operations.
They also believe in rendering satisfying services to society and its customers and also they
value the feedback of their customers. The , main motive of the company is that their employees
should upheld the values at each level of the organization, if this will happen then the problem of
coordinating will vanish and efficiency will increase (Raghavendra, and Nijaguna, 2015).
Corporate Organizational Structure

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The company works under stiff structure. The structure complies of Board of Director at the top
followed by Managing Director or CEO, CMO, CFO; AND COO is governed by Managing
Director. Then they manage HR Team, Legal Team and Regional Managers who then manage
the activities of General/Restaurant Managers. This the procedure which is abides by the
company to operate efficiently (Nankervis, Baird, Coffey, and Shields, 2016).
The organizational structure of Restaurant:-
This structure consists of a General Manager at the top which supervise Restaurant Manager.1st
& 2nd Assistant Manager and Shift Running Manager, Floor Manager, Staff Training Crew; Crew
Members is headed by Restaurant Manager.
When company faces the situation of lack of stakeholders and faithful customers so it is unable
for the company to attain the objective or reach the goal. Employees, suppliers and partners act
as a stakeholder. Each and every group of individual has a great importance at every stage of the
company. Such group of individual is supported by the team of managers. These managers act as
a driving force that encourage and motivates the individuals such as kitchen staff by providing
them the feedback from customers. Innovative products are provided for sell in the stores by
partners of stakeholders. These stakeholders not only provide innovative products but also work
in the direction of cost minimization and profit maximization. Company acquires resources from
society in the form of raw materials, technology, finance, human resources. And returns back to
it through its Ronald McDonald House Charity. If, stakeholders work properly then it can pave
the way for the success of the company (Davies, 2016).
Question 3
The main functional area of the manager is to undertake four main functions of management
which are planning, organizing, leadership and controlling. This function can be broken down in
some activities of the manger.
 Planning: Andrew Gregory,acted as a enterpreneur for McDonalds. He analysed the
enviornment and grab the the first mover oppurtunities to enhance the effectiveness and
efficiency of the company .planning gives the concrete structure to the the opputunities so
grabbed.planning can also be done for finding out the best job for non manegerial

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staff.Mr. Gergory foussed on how to meet the company objectives. While comparing
with the assistant manager, it might think about the skills of their non managerial
employyes and plan as they will bale to perfrom in an effective manner. thus, Mt george
mostly focus on the big work to mee the objectives while assistant manager focus on
planning the dircet task to their employees.
 Organising: Mr. Gregory worked as a resource allocator and also exercise controlling the
resources present at each store. In contrast, non manegerial staff would be placed on the
tasked of promotion. Here, Mr. Gregory, focussed on a large scalewhile the assistant
manager focus on specific promotional setup tasks.
 Leading: As an eterpreneur Andrew motivates its employees by giving them incentives
such as pay rise , employees benefit etc.Whereas assistant manager did have such power
to motivate employees in cash or kind benefits. But it can motivate them by listening to
their pleadings, praising their work etc.
 Controling: Enterpreneur can solve the conflicts between the different levels by
interpersonal communications skills. He can also give the feedback to the non managerial
staff about their wrong performance of their work. Enterpreneur being a top level
manager has control on the behaviourual aspects and performance aspects of employees.
Whereas, assistant manger over the managerial employees (Howse, et.al, 2018).
Question 4
Andrew Gregory maintains the sustainable work environment throughout the country by
obtaining job-specific knowledge. The employees should possess the technical skill. Mr. Gregory
has worked as a customer service assistant, where he got the experience in portion control in
cooking. He gains the knowledge about the cost that is involved wastage of food during his
tenure of working at Melbourne as a corporate accountant. Now after attuning so much of
experience through his previous posts of customer service assistant and corporate accountant he
came to the position at which he can give training to the staff for minimization of wastage
(Duggal, and Alexander, 2018).

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He also maintains innovative or creative environment for employees so that organizational
culture can become peaceful and satisfying to overcome environment uncertainty, he guided the
business processes and techniques of production in the form of customer oriented services which
will make the customers more loyal. The company had to face obstacles in the form dynamic
environment and competition. To overcome this Mr. Gregory uses the technique of learning lab
restaurants with ‘create your taste’ concepts. This technique of “create you taste” is explained
below (Austin, et.al, 2018).
‘Create your taste’
McDonalds has opened a purpose built customer learning lab restaurant in Sydney Kicking off a
bold plan to transform Australians over the next three years. The Castle Hill restaurant, designed
to give customers a glimpse into the future of McDonald’s in Australia, is the first to offer a new
customizable gourmet burger menu called ‘Create Your Taste’. Using digital aids, customers can
build their own burgers from scratch, choosing from 19 ingredients. Customers are also treated to
table service, allowing them to sit down and enjoy a drink while they wait for their creation to be
made fresh off the grill and brought to their table (McMurtrey, and Rowley, 2016).
Question 5
A manager has to perform many functions which are far away from the basic job. A manager has
to perform many roles in his day to day operations. Such as, interpersonal role, decisional role,
informational role. Each of these is some of the important management roles.
 Andrew Gregory focused on managing the employees so that the commitment of the
company to the customers may be improved. This suggests us about the leadership
quality of the entrepreneur. This includes interpersonal role and leadership role. It
involves training, motivation and guidance.
 Mr. Gregory, as the entrepreneur performs the most important role of decision making.
He can remove or add products to the product line or change in design of the product etc.

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He while exercising the decisional role he takes into consideration the opportunities
present in the external environment.
 Andrew Gregory also exercises the informational role, under which he has to call and
reside over the meetings. The main motive of the meeting is to provide the information
gathered from external or internal environment (Larson, and Gray, 2017).
Question 6
In the present time, because of over opening of the companies the competition in the business
world is rising ever increasingly. McDonalds has to face much of the competition because from
the existing restaurants and the new outlets which are opening furiously. Mr. Gregory has
overcome this obstacle through innovation and improving procedures technologically. The others
can also learn from McDonalds about how to increase market profitability through innovation.
For becoming a CEO of Mc Donald’s and CEO of NPO is a great difference. McDonalds focus
on coordinating profits and managerial duties together. The company characterized as a for profit
organization uses the profit for growth prospects, but the Non for profit organization uses the
profit for the welfare of the society.
CEO of the for profit organizations and non for profit organizations not only differ in their
approaches but also in their duties they performed. All managers mainly perform same
managerial function functions such as planning, organizing, leading, and controlling. Planning
function is performed by the CEO for-profit organizations and not by non-for profit
organizations. In non-for profit organizations decisions related with strategy is taken up by the
top management employees and CEO has to liaise between them.
All together, it can be said as the approach and duties of the CEO of for- profit and non-for profit
organizations are different (McDonald’s, 2018).

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Davies, J., (2016) Lessons for Southern Rail from McDonald’s move to automation. The
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Duggal, R. and Alexander, P. (2018) Staff management training in McDonalds.
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Larson, E.W. and Gray, C.F. (2017) Project management: The managerial process. New York:
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