Essay on Organization Desgin

2132 Words Jan 4th, 2015 9 Pages
Vol. 3, No. 11

International Journal of Business and Management

The Business Strategy of Mcdonald’s
Jing Han School of Economics, Yunnan University No.2Green lake north Road, Kun Ming, Yunnan 650031, China E-mail: hanjing0928@hotmail.com Abstract As one of the most successful fast food chain in the world, throughout the development of McDonald’s, we could easily identify many successful business strategy implementations. In this paper, I will discuss some critical business strategies, which linked to the company’s structure and external environment. This paper is organized as follows: In the first section, I will give brief introduction to the success of McDonald’s. In the second section, I will analyze some particular strategies used by
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Obviously, it is extremely important for McDonald’s to choose the most appropriate strategy to be successful. From my personal point view, to be an Analyzer is the most suitable strategic position for them to develop their business as a whole especially when they facing an extreme complex continuously changing world. As Miles and Snow defined that “The analyzer tries to maintain a stable business while innovating on the periphery. It seems to lie midway between the prospector and the defender. Some products will be targeted toward stable environment in which an efficiency strategy designed to keep current customers is used. Others will be targeted toward new, more dynamic environment, where growth is possible.” (Richard L.Daft) It is also very important to consider how McDonald’s applies these strategies and how their strategies interact with their business structure and the external environment. 1. How McDonald’s business structure influences its strategy? The McDonald’s business structure is based upon a geographic structure. When log on their website, you will be asked to choose the country that you are interested in. Actually, McDonald’s divided its operations into five geographical divisions.

(www.McDonalds.com)
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International Journal of Business and Management

November, 2008

As shown in above pie charts that around 65% of McDonald’s restaurants and approximately 75% of its revenues are generated in the United

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