NICHOLAS KOINANGE PRINCIPLES OF MANAGEMENT MNGT 105 SPRING 2012 CRN 90049 RESEARCH PAPER TOPIC: McDONALDS CORPORATION

INSTRUCTOR: JOHN MECHAM

McDonalds Cooperation is worlds largest fast food Restaurant chain in the world, serving more than 68 million customers daily in 119 countries worldwide. McDonald was founded in San Bernardino, California in 1940 it has grown to more than 33000 units worldwide and still growing. A Businessman Ray Kroc joined the cooperation as a franchisee after a while then he approached the McDonald brothers to buy the whole company. He acquired it in 1954 and builds it to be the most successful fast food chain in the world. All McDonald restaurants operate as a franchisee, an affiliate or as a corporation itself. All its revenues come from the royalties fees, rent and fees paid by the franchisees and by the revenue from the sales from its restaurants. This has enabled McDonalds to accumulate so much wealth and assets in its transactions with its associates. McDonalds has demonstrated its strength such as brand recognition, strong steady growth in local and global markets and not forgetting its over role leadership in management. Refer to figure B. The management is so dynamic being led by Mr. Jim Skinner as the C.E.O has proven the success of McDonald and its dominance in the fast food industry for so many years. The products and services that McDonald is involved in reflect three types of strategy employed by the organization on different levels of management. It has perfected the management style and has worked to its advantage. Refer figure A. The Management has a strategy formulation that allows the organization to have managerial levels. This will however help to accomplish its mission and achieve its goals the managerial levels are corporate level, business level and functional level. The corporate level fundamentally is concerned with the selection in which the company should compete in and with the development and coordination of all the business and its products. This level manages growth and development of organization to maximize the ability to create growth. Corporate level strategy is also concerned with the overall corporate responsibilities. This level identifies the overall goals of the organization. What type of business in which the company should be involved in and the way in which business should be integrated and managed. Corporate strategy is also involved in coordinating resources across business units and consequently investing its financial resources across other business and how they should be governed through direct corporate intervention.

Figure: A Planning and Strategy Formulation

Figure: B The Hierarchy of Authority and Span of Control at the McDonald's Corporation