Introduction to Business and Management: A Case Study of McDonald's

Introduction to Business and Management
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Contents
Introduction:...............................................................................................................................3
Identify and explain the 3 levels of an organisation and their responsibilities, including
associated functional areas.....................................................................................................4
Identify and explain the roles and styles of leadership and management from theoretical
perspective. With reference to the case-study / article, interpret the leadership and
management style adopted in the organisation......................................................................6
Explain relevant effects of globalisation facing the organisation..........................................8
Explain your understanding of CSR and review two responses adopted by the organisation
..............................................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
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Introduction:
McDonald has been a world renowned and valuable food brand for over a decade. The
company’s primary mission and vision is to becoming to be world’s best and fastest quick
service restaurant and formalising their beliefs into “People promise and People Vision”.
McDonald is one of the best leading restaurant chains in the world. They started their
business in year 1940 in San Bernardino, California. The Main Purpose of this report is to
understand and explore the main reason behind the appeal of their restaurant chain to the
customers. These reports also explore the 3 levels of McDonald’s Organisation level as well
as functions associated with them by analysing the case study provided. This report provides
the overview over the various roles and styles of management and leadership adopted by the
McDonald by taking the reference of the case study. This report also presents the impact of
globalisation that has been facing by the organisation and understands the two key of themes
CSR and Globalisation considered by management and leadership position.
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Identify and explain the 3 levels of an organisation and their responsibilities, including
associated functional areas.
McDonald’s Organisational Structure was restructured in 1st July 2015 to improving the
global operations of the company globally. The Organisation Structure of MC Donald is
responsible for achieving the business objectives by the help of coordinating Organisational
components by help of a system. McDonald has a divisional form of Organisational
Structure. Every specific area has been handled by every division. The aim of this form of
organisational structure is to support organisational flexibility and helps in support autonomy.
Below we have analysed comparison between different forms of organisation structure for
understanding the organisation structure being followed up in McDonald’s
Mechanistic versus Organic Structures
Mechanistic structures are focusing on individual responsibility of employees and their
individual specialisation. While in Organic structure employees are working together and
focus on joint specialisation of their skills. In Mechanistic Structure Mechanisms are simple
and integrating and well defined hierarchy of authority while in Organic Structure
Mechanisms are complex and integrating among team and task forces (Lunenburg, 2012). In
Mechanistic generally communication are followed up in vertical form and decision is
centralised to one person of small team while in Organic Structure decentralisation authority
of controlling tasks is delegated and communication is lateral in nature. In Mechanistic
Structure rules are standardised and standard operating procedures are being used while in
organic structure coordination among teams through mutual adjustment and work process is
unpredictable in nature. Mechanistic Structure requires extensive written communication
while organic structure works on verbal communication. Mechanistic structure has informal
status and based on size of organisation while organic structure has informal status and based
on perceived brilliance (Lunenburg, 2012).
Vertical versus Horizontal Structures
Vertical Structured organisations have a long chain of management who are generally CEO
and top decision makers of the company and are delegating the authority to lower level
supervisors who are working on different chains of McDonald around the world globally
while Horizontal or flat structures don’t have any middle managers who are handling day to
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