Q:

What is the organizational structure of McDonald's?

A:

McDonald's is a publicly-traded corporation, but most of its retail branches are not owned or operated by the company itself. Instead, they are owned by independent business owners through franchise agreements.

There are over 35,000 McDonald's locations in over 100 countries around the world. Only 19 percent of these locations are owned and operated by the McDonald's corporation, and the rest are owned by franchisees. Over 57 percent of McDonald's locations are conventional franchisees, and close to 24 percent are licensed to foreign affiliates or have developmental licenses.

A franchise is an independently owned and operated business, and in exchange for a licensing fee and a start-up fee, the franchisee gets to use the franchiser's name and products. In order to be part of the Golden Arches team, franchisees have to stay consistent with McDonald's expectations, but they receive the financial benefits of working with one of the world's most recognized brands.

The McDonald's corporation refers to itself, its franchises and its suppliers as the "System," and the company claims to use the System to identify local preferences and to bring desired dining experiences to the customers in each community. This is no small task as McDonald's has nearly 70 million customers in different communities across the globe.


Is this answer helpful?

Similar Questions

  • Q:

    What is the IBM organizational structure?

    A:

    The IBM company's organizational structure consists of a board of directors responsible for the overall running of the company and board committees that cover specific areas of responsibility. In addition, executive officers take care of hands-on operations and are the voice of the company.

    Full Answer >
    Filed Under:
  • Q:

    What is the organizational structure of the Coca-Cola company?

    A:

    The Coca-Cola company's organizational structure consists of a board of directors, elected by the shareholders, that has final decision-making power in the running of the company. Members of senior management and a number of standing committees carry out the decisions of the board of directors.

    Full Answer >
    Filed Under:
  • Q:

    What is the organizational structure of Walmart?

    A:

    According to Walmart, its organizational structure is comprised of a management team of five CEOs of various Walmart subsidiaries. These CEOs lead several more vice presidents in charge of the various business divisions of the parent company.

    Full Answer >
    Filed Under:
  • Q:

    What is the organizational structure of Microsoft Corporation?

    A:

    Microsoft Corporation features a divisional organizational style that allows each of its business sectors to operate independently of one another while still reporting to a central command. Various portions of infrastructure like retail, development and support are all part of the enterprise landscape. Microsoft uses a horizontal management landscape to minimize communication interference.

    Full Answer >
    Filed Under:

Explore