McDonald's Organizational Structure

In 1967, McDonald’s first international expansion occurred when the company opened in Canada. The company’s international division was formed in 1969 and has continuously and successfully grown since.

McDonald’s international division of the corporation has become extremely important to the company’s overall success and accomplishments. In the past decade, almost 90% of McDonald's  expansion occurred in countries other than the United States. Having business be in foreign countries has been much more profitable for McDonald’s than operating in the U.S.

McDonald’s is a centralized, international division company composed of franchisees and joint venture partners. Being an international divisional company it allows them to have separate divisions of work while remaining under the same company. McDonald’s uses its knowledge and experience to enhance its business in all foreign markets, allowing them to be one of the best. They utilize many different resources in order to perform overseas successfully and to eventually grow into more markets.

McDonald’s has always had a great and strong relationship with everyone in the company and those relationships have increased ever since the start of their international division. I believe that is McDonald’s keeps doing as they are, they will continue to be successful in all markets. Their brand, logo, and reputation also go along with being an international company. McDonald's is a known company internationally and will continue to be known by millions because of their quality, service, and reliable reputation that they have provided over the years.  

Corporate Governance

McDonald’s Corporation’s Board of Directors is entrusted with, and responsible for, the oversight of the assets of the business in an honest, fair, and ethical manner. The Board of Directors believes that great corporate governance is needed in order to fulfill their obligations to shareholders. McDonald’s believe that a good corporate governance is a journey, not a destination. I find this statement to be completely accurate because you want to take your time with information not immediately end up with a decision. With it being a

The Board of Directors sharing a McDonald's meal!
Note how happy and carefree they are, that is
what McDonald's is striving for in its business. 

journey they are committed to reviewing the corporate governance principles at least once a year, with a view of continuous improvement. While researching their principles, the one thing that I kept finding is that the one thing that they will not change is their commitment to ensuring the integrity of the Company in all of its dealings with shareholders. McDonald’s continued focus on leadership on corporate governance is an internal part of fulfilling their dedication and commitment to the shareholders. 

McDonald’s success is built on a foundation of both personal and professional integrity. Millions of people around the world trust McDonald’s. They earn the trust everyday by serving safe food, respecting their customers and employees, and delivering quality, service, cleanliness, and value. They build on their trust by being ethical, truthful, and dependable. Since McDonald's practices great governance it has lead them to superior financial performance.

McDonald’s organizational culture is different on all levels in the company but the one thing that they strive for is friendliness and respect for all. It is a team of individuals with diverse backgrounds and experiences that are working in an environment that encourages engagement. Diversity and inclusion are a big part of their organizational culture and everyday McDonald’s strives in creating an environment for everyone to contribute their best. In order to retain their great employees, McDonald’s does offer incentives and bonuses to all employees, not just the higher level positions. The rewards are unique to the individual based on their needs and wants. This will help McDonald’s drive higher level of employee commitment. They believe that when they improve the happiness of their employees, it improves customer satisfaction and positively impacts the overall business results.

Global Market

 When thinking about McDonald's and there international strategy, being a global corporation comes to mind first.  It is currently the largest fast food restaurant, serving around 68 million customers daily in 119 countries. There are 34,000 restaurants worldwide including the USA, Canada, Australia, Japan, China, Germany, Ireland, Norway, Mexico, Poland, and many more which employ over 1.7 million people. In order for McDonald’s to keep succeeding in being the largest fast food corporation they need to understand the needs of the different cultures they are providing too and establish great communication with all of their global restaurants.

McDonald's in the USA

There are numerous reasons why McDonald’s has gone globally; and by far the best decision that they have made. First, it helped increase the size of potential markets for the firm’s products & services. Second, there is a greater trend for outsourcing their products. Third, they took advantage of arbitrage opportunities. They were buying their products for a cheap price but then selling them in different countries and selling them at a higher price based on needs.  Lastly, they optimized the physical location for their business. They are succeeding in this area because restaurants are being placed in the most developed and established countries and where they are able to meet the customer’s needs, while still making a profit. I am glad that McDonald’s made the decision to go globally because it allowed them to expand their products, knowledge, and experience with others everywhere across the globe.

McDonald's in China 

Having overcome the political, economic, and management risks involved with expanding to being global, McDonald's is one of the largest global fast food corporations today. McDonald’s strategy to go globally was not something that happened right away. It took lots of planning, communicating, patience, and most of all hard work from everyone involved in the process. The corporation had to establish where they wanted all of their restaurants to be located, what they would serve based on their customers wants, and mainly to succeed in the process. I am a proud customer to say that they do a great job in all countries, well at least in the USA and Australia. McDonald’s has worked hard to get where they are today globally and have overcome many different risks but they are just beginning on their journey of changing fast food globally.