Business Paper on McDonalds Company Structure and Information System

McDonalds Company Structure and Information System


Organization structure is a system defining how certain activities are executed in a company in order to achieve its short and long term objectives. Such activities may include rules, regulations, roles, and responsibilities (Han, 2009). An organization structure determine how information is conveyed from one level to another. As such, the organization can be centralized or decentralized. On the other hand, information system entails an organized system for the collection, organization, storage and conveying of information (Paul, n.d). Organizations rely on information systems to execute and manage their operations, interact with clients, customers, suppliers, as well as compete in the market. This document seeks to analyze Macdonald’s organization structure, as well as its information system.

McDonalds Organization Structure

Company Overview

McDonalds is one of the largest food retailing company in the USA as well as across the globe. The company has over 32 thousand restaurants in approximately 119 countries where most of restaurants are franchises.  It is the largest restaurant chain by value in the world, catering for over 70 million customers per day. The company continuously customize its products to include salads, white meat, smoothies and fruits in its menu, to cater for its client’s health concerns (Han, 2009).

Organization Structure

The company believes its success is solely based on their business model which incorporate operators, suppliers, employees, and customers. The company is operated by a franchise, an affiliate or the general corporation. It has a multilevel organizational structure which is headed by the CEO and the elected board of directors (Han, 2009).  The board of directors is composed of 13 members, eleven of whom are directors. The Chief Executive Officer leads a group of line managers in charge of different aspects of the organization like supplies, purchases and operations among others. Additionally, McDonalds have a centralized form of management where most of the key corporate decision are made in the United States. The company’s revenue arise from rent, royalties, fees obtained from franchises as well as sales in company operated restaurants (Han, 2009). The highest percentage of its revenue comes from countries like Canada, Germany, Brazil, China, Japan and France. 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, Asia/Pacific, Middle East and Africa, and Other Countries and Corporates including Canada and Latin America (Han, 2009).

Moreover, the company constructional design at the organizational level is functional. Functional construction is form of organizational structure where most of the works are done by different sections and later gathered to the CEO. Such a structure is highly utilized by large companies like McDonalds, which have branches in large parts of the world. In McDonalds, for example, functional constructions are grouped by a common map from the lowest management level to the top management and vice versa.  Ideally, the functional construction is a formalized and standardized way of operations, normally, incorporating perpendicular form of communication (Han, 2009). However, besides the perpendicular form of communication, McDonalds involve horizontal communication among its various sections (Han, 2009). Utilizing horizontal linkages helps the organization overcome some challenges accompanying functional construction such as slow decision making processes (Han, 2009).

At the restaurant level, McDonalds consists of a general director as the head followed by a restaurant director, assistant director, and a displacement running director and the staff preparation crew to be the lowest level of management. The construction design at the restaurant is divisional. A divisional construction incorporate various individuals concentrating on a specific merchandize or service (Han, 2009). Consequently, separate divisions can be organized with duties to cater for a specific merchandize, service, or customized merchandize. During normal operations, the general director is in charge of the restaurant operations and the general staffs chiefly concentrate on selling merchandise and supplying services.

As a consequence of gradually increasing globalization, markets complexness have increased as well. Hence, companies employ geographical distribution levels and selling points in order to earn a competitive edge in the contemporary dynamic business sector. As such, McDonalds has expanded to international markets, hence, it has enhanced its geographical construction and management since different geographical areas have different rules, regulations as well as varying customers preferences. The company has different presidents, each representing a different geographical locality like Asia, USA, Europe, and Africa among other key geographical areas. Consequently, the regional president is directly accountable to the CEO (Han, 2009).

McDonald’s information system

McDonalds utilize different types of information systems to carry on its daily activities.

Transactional Processing System (TPS)

Transaction happens when two individuals make a trade, and gathering information is referred to as transaction processing. Transaction processing incorporates handling, gathering, storing, adjusting, and recovering the transactions of an enterprise (Paul, n.d). Transactional framework is essential to answer routine inquiries, and it helps to conducts business like processing payrolls and managing employees’ records. It’s vital to store such information as most of business transactions involves finances, a key and critical element in business. As such, McDonalds has highly embraced the transactional processing systems to keep track of business activities (Paul, n.d).

Management Information System (MIS)

Management information framework is a system that provides essential information needed to manage an organization adequately. Administration data frameworks include three essential assets: innovation, information, and personnel to support the routine decision making processes (Paul, n.d). In McDonalds they execute MIS which is utilized to deliver intermittent reports, for example, a day by day rundown of representatives and the hours they work, or a month to month report of costs when contrasted with a financial plan. McDonalds utilized MIS because the aim of MIS is to provide profitability and insights that helps the management and the general staff understand the organization performance and hence forge future plans (Paul, n.d).

Made For You System

In this framework McDonalds utilize present day innovation to help McDonalds in its operations. As such, customers place orders which is directly received in the kitchen where the kitchen staffs prepare the order as specified.

Point Of Sale (POS) System

McDonalds is exceptionally bustling eatery, the fundamental priority for McDonalds is to convey best eatery encounter for the clients. Hence, McDonalds utilize the POS system to guarantee fast and accurate delivery of orders (Paul, n.d). Subsequently, the POS can be used to track massive transactions since it stores massive loads of data. With POS systems, each order is precisely transmitted to several works stations throughout the organization, hence, cashiers are able to know which orders are due and the kitchen staffs are able to know upcoming orders as well as how long a customer has been waiting (Paul, n.d).

Hyperactive Bob system

McDonalds actualized this framework to let their employees know when they are going to be occupied, this framework utilized PCs and cameras to screen movement and traffic entering the parking lot and drive ways in the restaurant (Paul, n.d).

Decision Support System

Decision support system is utilized to customize data endeavoring to make quality decision based on such data. McDonalds utilizes the decision support system to analyze the market in order to establish new opportunities. By using the DSS it helps the company choose or make the right decisions based on the quality of the data McDonald’s has used Wi-Fi in their restaurants to gather information about customer practice and lengths of stay and sales (Paul, n.d).




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