Business Structure of Mcdonald's Corporation Essay examples

2446 Words Dec 22nd, 2012 10 Pages
Ben Surato
Business Project Part Four – McDonald’s Corporation
Baker College

The organizational structure of a business is a unique relationship formed when functional areas, defined by purpose and specific roles, are associated. Proficient organizations are capable of success because of fluent operations between stable functional areas. This portion of our business project will provide insight on the business structure of McDonald’s Corporation by analyzing the functional areas of business, taking into consideration factors like technology, the basic laws of economics, and some key aspects of management.
McDonald’s Corporation runs its business in a similar manner to nearly all fast food restaurant chains, so its
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The organizational structure of McDonald’s Corporation is considered divisional, separated by geography. The business is managed as distinct geographic segments that include: The United States, Europe, APMEA (Asia/Pacific, Middle East and Africa), and Other Countries & Corporate (OCC) including Canada, Latin America and Corporate. (McDonald’s Corp, n.d.)
McDonald’s corporate website provided a financial highlights spreadsheet for 2011 that offer insight into the accounting of its organization. The most significant costs and expenses associated with McDonald’s are generally referred to as “Company Operated Restaurant Expenses”. Breaking that down further, the C.O.R.E. can be identified as food and paper, payroll and employee benefits, and occupancy and other operating expenses. In 2011, the C.O.R.E. costs totaled over $14 billion globally. The most significant source of revenue for McDonald’s was through sales at company operated restaurants. Although McDonald’s Corporation receives revenues form franchised store locations, its 1,552 company operated locations totaled over $18 billion in sales, while revenues from franchised stores brought in only $8 billion. The most profitable segment of McDonald’s Corporation in 2011 was Europe, slighting the United States in revenue by about $2 billion. (McDonald’s, 2011)
Financing the operations within this organization come mostly from retained profits and bank loans. Although

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