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The McDonald’s Corporation is by far the world’s biggest chain of fast food restaurants specializing in hamburgers, where they serve around 68 million customers daily in 119 different countries all across the world with over 35,000 outlets. Its first ever headquarter was located in the United States of America in 1940, founded by Richard and Maurice McDonald and has been the world’s largest fast feeder as the years go by. McDonald’s have been ranked the world’s number 6 brand, with a total value of $35.6 billion. It is also known as the 26th largest advertiser in the United States, with a total budget of $888 million just within that country.

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1. Introduce mcdonalds
2. Introduce globalization is a what..
3. Organizational structure is a what and types of organizational structure
4.  Which 1 mcd use and it change bc of why (Case study)
5. SWOT of the decision changing the organizational structure
6. Analyze the SWOT
7. Personal opinion abt the decision based on SWOT data

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Summary of organizational structure change

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Summary of organizational structure change

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McDonalds first organizational structure is tall and narrow, since the it has many levels of organizational hierarchy and narrow span of control.The leadership style is also centralized. But due to globalization, McDonalds need to be more sophisticated in how they use local intelligence to address specific costumer needs. They also need to change the structure to put decision making closer to the costumers, since tall and narrow structure has too many layers of hierarchy and it reduce the communication efficiency of costumers wants. The organizational structure then change to flat and wide in 2015, and the leadership style became democratic. This structure has wider span of control and fewer hierarchy levels, causing the communication and information from employees to CEO easier, and the costumer demand is easier to be granted.

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“You’ve told us that there are too many layers, redundancies in planning and communication, competing priorities, barriers to efficient decision making, and too much talking to ourselves instead of to and about our customers,” Mr. Andres wrote. “If we want to grow beyond our current results, we need to evolve beyond our current model.”
The fast-food giant, which has acknowledged that some customers are leaving because of service problems and menus that they don’t find relevant, is planning to give leaders in its 22 U.S. regions more autonomy in making local menu and marketing decisions, according to a memo reviewed by The Wall Street Journal.

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- The Structure is narrow and Tall (2014)
- Changed to flat and wide structure (2015)
- Centralized - only CEO and people who is involved in decision making
-Centralized change to democratic

McDonald’s organizational structure was reformed in July 1, 2015 to improve the company’s handling of its global operations. McDonald’s organizational structure facilitates managing markets based on performance levels. As the largest fast food restaurant chain in the world, McDonald’s keeps evolving to address current and emerging market issues. The firm rolls out new products to maintain its performance in satisfying customers
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-As the country has grown more diverse, “we need to be more sophisticated in how we use local intelligence to address specific consumer needs. In short, we must evolve our culture and organizational structure to put decision-making closer to our customers.”

-McDonald’s has a divisional organizational structure. Each division handles a specific operational area. The aim of this organizational structure is to support autonomy and organizational flexibility.

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How has the organizational structure change since globalization?
-Globalization is the process by which the international exchange of goods, services, capital, technology and knowledge becomes increasingly interconnected
It implies many changes to the nature of work and organizations. This new Market dictates, or rather governs, the way corporations think and how workers are treated.

-Introduction of fast food

- Through Globalization, mcdonalds has been able to expand their franchise from America to other countries such as Indonesia, China, Moscow, Canada, etc.

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With reference to McDonalds, examine the impact globalization on organizational change

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With reference to McDonalds, examine the impact globalization on organizational change

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(organizational structure, strategy, operational method, technology, or culture)

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Due to lack of motivation, it may be hard to find job satisfaction in this kind of organizational set up. They may end up looking for a job somewhere else where they believe their efforts will be rewarded with a promotion, and employee turnover rate will increase

This type of organizational structure is rather risky for McDonald’s at first as the employees would need to adapt to the new structure.

Possibility of  work management become disorganized is bigger due to lack of supervision

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Consumers will be able to give feedback that are more likely to be heard up to the top level of the organizational structure.

Customers and employees has a higher chance to communicate with the manager directly.

McDonald’s will have a new start with the altered organizational structure which they can improve more and become better as a fast food company in terms of their products, service, and the outlet itself.

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-               Pressure of the main CEO is bigger since there are less managers to help decision making of the problems reported.

-               Lack of supervision for the employees since there are less managers to observe

-               Less motivation for workers because of lesser opportunity of getting promotion, since there are only very few space.

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-               The customer’s demand in different area can be granted easier with the approval of each franchisee’s CEO.

-               Communication and information delivery between employees and managers is more efficient.

-               McDonalds will have lesser expense on salary since lesser managers are needed.

-               Relationship between co-workers are better since there are less tense between senior management and the employees in the bottom of the hierarchy.