McDonald’s Australia Case Study

This case study explores the organizational history, purpose, values, and structure of McDonald’s Australia. It highlights the role and functions of Andrew Gregory in managing operations, maintaining the environment, and management roles. The report also provides insights from McDonald’s approach to innovation, customer service, and sustainability.

Case Study 1
McDonald’s Australia Case Study

Case Study 2
Contents
Introduction..................................................................................................................................3
1- Summary of McDonalds..........................................................................................................4
2- Purpose, values and structure of the company.........................................................................5
3- Role and functions of Andrew Gregory that help in managing their operations in Australia..7
4- Maintain the environment of McDonald’s Australia...............................................................8
5- Management roles....................................................................................................................9
6- Learning from Andrew Gregory and McDonald’s Approach................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Case Study 3
Introduction
In the modern times it has become essential for the organisation in business to look at the
environment they are facing so as to make sure that they achieve higher growth. In this process
the role of top leadership becomes very crucial. McDonald is a bigger firm and hence being CEO
of the company in Australia has to deal with any kinds of strategic and day to day challenges
(Barreto, et al., 2015). It is the skills of his that helps in reducing the business. This report
highlights the organisational history of the company as well as the purpose and values of the
company. It also illustrates the role of Andrew Gregory as well as the skills of his that
encourages innovation, customer service and sustainability as well as the roles that is played by
him in various aspects of the business.

Case Study 4
1- Summary of McDonalds
McDonald’s is one of the biggest fast food firms in Australia. It was founded back in the year
1940 where it operated as a restaurant operated by Maurice and Richard McDonald in
Bernardino, California, united states. They started their business as a hamburger stand. The
major expansion of its business started in the year 1955 where the businessman named Ray Kroc
joined the franchise agent and begin to purchase the chain from brothers (Schaper and Buchan,
2014).
In the present time it is the largest restaurant chain in the world in term of revenue. It is operating
with around 36,900 outlets where it is serving more than 69 million consumers in approx. 100
nations. This firm is famous for its hamburgers but it sells many other types of products through
its outlets like soft drinks, ice-creams, French fries, cheese burgers etc. McDonald in the present
time is the second largest employer with approx. 375,000 employees working in all their outlets
including its franchises. Its official mascot was “Speedee” which got changed to golden arches
in the year 1962.

Case Study 5
2- Purpose, values and structure of the company
The major purpose of the cited firm is to serve their clients in the best possible environment and
hence achieving higher consumer satisfaction as well as ensuring higher growth rate. On the
other hand the values of the organisation includes the placing consumers interest at the centre of
their business, strong commitment to their employees by nurturing the skills and talents and
providing rewards to them for their achievements, maintaining standards in their business
conduct as well as looking for the community for which they are serving (Lamb, et al., 2015).
Organisational structure of the McDonald’s is hierarchical. At the top of the table is the president
or the chairman under whom there is CEO. Chief supply chain and Sustainability officer is under
the CEO. Under them lies executive vice president chief people officer. Apart from this there are
many other executives who are making at the top. Under the executives there are many zone
managers, under them lies regional managers. Under these there are managers of various
departments like the market, operational and regional human resource managers. Below them lie
franchisers and supervisors. Below them lies a store manager under them laid shift managers
who manage crow persons.

Case Study 6
Source: Organisational structure McDonald’s, 2018
They have defined their organisational structure in such a manner that each and every person
sitting at any particular level has some or the other roles (Jankauskaite, 2016). As it is a
multinational firm in so many countries hence this organisational structure suits them. This helps
the organisation in solving the problems they face in their operations. Since they have clearly
defined their organisational structure hence no confusion remains in the minds of the employees
regarding their roles. People at McDonald’s abide by the rules and regulation that company has
made for itself hence they help in effective management of the resources which help in achieving
the objectives of the firm. They train their employees in such a manner that they become capable
of meeting their purpose of serving the client in the best possible manner.

Case Study 7

Case Study 8
3- Role and functions of Andrew Gregory that help in managing their operations in
Australia
There are various roles and activities of the CEO Australia, Andrew Gregory (Rollins, 2014).
Some of them are as follows:
 To lead the company in conjugation with the board as well as the developing strategy of
the firm in Australia. The making of strategy must be based on the internal and external
factors that are influencing the business of the company within Australia.
 To hire the best of talents at the top of the company so as to ensure that smoothness in the
operations gets maintained.
 To authorise the annual budget of the firm and make plans for avoiding risk.
 To improve the standards of their operations by implementing new techniques into the
Australian business. They also have the role of implementing the strategies made by the
international CEO.
 To communicate effectively with the shareholders and stakeholders like government,
public etc.
The activities that he needs to do are:
 Planning the strategies that can be implemented in the business in order to face all the
challenges that are confronting the business of the company in Australia.
 Organising all the resources in the minimum possible cost so that smoothness can be
maintained in the business within the nation.

Case Study 9
 Andrew needs to have control over the business of the nation within Australia so that any
decisions of strategic importance can be implemented within the firm at the required
time.
 He needs to lead the firm with the approach of expanding their reach inside Australia so
as to increase the profit margins of the company inside Australia.
These roles are from the assistant managers at the restaurant as he takes the decisions of strategic
importance while the managers at the restaurant is only responsible for managing the day to day
operations (Financial review,2014). Andrew has to focus on the long term goals of the company
while the managers at the restaurant have to think about short term or daily goals.
4- Maintain the environment of McDonald’s Australia
According to the case study, Andrew Gregory, the CEO of the organization has adopted several
strategies to foster the profitability of the organization. He has adopted a humanitarian leadership
style and gives the wellbeing of employees’ utmost priority. The company motivates the top
performers through reward and recognition. McDonalds has made its employees its strength,
which has assisted the company in delivering excellent customer service (Zohar, & Hofmann,
2012). The company realizes that even in the eyes of customers, it should provide excellent
benefits to the employees. The company has designed incentive-based remuneration structure in

Case Study 10
which the organization recognizes the top performers of the company. The CEO also realizes
that today, several competitors are giving tough competition to McDonalds Australia. Therefore,
it has developed innovation strategy, so that it can remain ahead of the competition (Acar&Acar,
2014). The company has designed a digital marketing strategy, through which it remains
connected to the customers. The company receives feedback and makes the customer aware of
the new schemes and discounts. The company has collaborated with Paypal, American Express
and other companies to make the payment easier for the customers. McDonalds has established a
recognition program in which the innovators and major contributors of the organization are
recognized at a national level. The company realizes that recognition at abroad level motivates
the employees to perform in a better manner. The leadership has created a positive organization
culture, which gives importance to sustainability (Kincheloe, 2002). The employees are
motivated to behave in a responsible manner. They are given regular training for efficient
workplace practices and waste management techniques. It has assisted the organization in
developing a positive environment in the organization.

Case Study 11
5- Management roles
Andrew Gregory would be playing the role of management such as controlling profitability,
overseeing sales, optimising restaurant management and team management in different stores.
These management roles would be effective for him to make strengthening within the team
which will enhance the productivity of the employees as well as the organization. It has been
found from the case study that Andrew is focused towards building an effective culture where
teamwork is considered as central. It has been evaluated from the case study that there are 300
franchisees and approx 9000 suppliers in McDonalds to provide the quality services to the
customers. Andrew Gregory would be playing interpersonal roles because it entails three roles in
it such as the figurehead, the leader and the liaison. This role would be helpful for him to
perform ceremonial duties which increase the interaction between employee and employer. As it
has been analysed that Andrew Gregory has weekly conferences with his management team but
interpersonal role as a leader of him would increase motivation among employees (Mintzberg,
2013).
McDonalds has effective menu for its restaurant which approach a large audience of Australia. It
provides vegetarian as well as non-vegetarian food in its menu which is liked by people. the
change or add on is necessary for every restaurant as it is well known restaurant all over the
world so it is required for it to add on some changes in menu for brining different taste and
customers for the company. Healthy options are implemented in McDonalds such as Salads and
wraps. Andrew would be playing information role of management to provide the efficient
knowledge about information to the employee in making changes in menu. This role covers the
monitor, disseminator and the spokesperson. The aspect of monitor in the role would scan the

Case Study 12
environment for latest information. The disseminator of information role of management would
providing on advantaged information to the subordinates so that they can start to work on it after
getting training of how to make and serve (Nadolny and Ryan, 2015).
Organization’s commitment is essential for the employees as it help to work with employees for
the long time and maintain the good relationship with customers as well. Andrew Gregory would
be playing decisional roles as an entrepreneur, resource allocator, and negotiator and disturbance
handler. The role of entrepreneur would improve the unit of the restaurant through implementing
the projects. As a resource allocator he would allocate the responsibilities as per the job profile
so that confusion in working cannot be made. The negotiator will be committing about the
resources of organization in real time with the huge information (Burstein, Sohal, Zyngier and
Sohal, 2010).
In that manner, Andrew would be able to manage the management of McDonalds in effective
manner in which he has to adapt the different management roles for different conditions.

Case Study 13
6- Learning from Andrew Gregory and McDonald’s Approach
The approaches of Andrew Gregory and McDonalds are not compatible with any other
restaurants and other managers can learn from them how to operate restaurant with more than
9000 employee worldwide. It is quiet hard to manage the entire organization in an adequate
manner without conflicts and it has been doing by effective organizational structure of
McDonalds which is followed by each employees of the organization (Wright, Frazer and
Merrilees, 2007).
There is a huge difference in being a CEO at McDonald’s and being a CEO at non-profitable
organization. The aim of non-profitable organization is to make healthy society in which
Company is not focused towards profits. On the other hand, the aim of McDonalds is to satisfy
the customers by providing quality services in food which is helpful to increase the revenues of
the restaurant. Non-profit organization is exempt from income taxes as it has not to pay taxes to
the government while profit organizations as McDonalds has to pay tax which should be done by
CEO of the company. Being a CEO at McDonald Australia, activities would be comprised under
production, marketing of goods and services while the activities of CEO of non-profit
organization is providing social services, educational services, cultural services and religious
(Carver, 2011).

Case Study 14
Conclusion
It has been concluded the role of the management is important in every organization; it is the
assignment which has been made on case study of managing McDonald’s Australia. The
organizational structure and the role of Andrew Gregory as a CEO of McDonald’s Australia have
been mentioned. Overall, the description has been given on how to manage McDonald’s
Australia in an effective manner by the CEO of the restaurant.

Case Study 15
References
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Case Study 16
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