1

Assignment
Management

Topic
1. Organizational Structure
2. Mission Statements

Contents
1. Organizational Structures
i. Samsung
ii. McDonald’s
iii. Gourmet
iv. Leopard couriers
v. TREET
2. Mission Statements
i. Google
ii. Intel
iii. Apple
iv. PEL
v. Fauji Fertilizers
 2

vi. Adam gee Insurance

 3

Samsung Organizational Structure

Divisional according to Product Types:

Samsung organizational structure is divisional and the company is divided into three key
divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device
Solutions (DS). The rationale behind the choice of divisional organizational structure
relates to Samsung’s large product portfolio and differences between products and
services the company offers to the market.

Accordingly, Samsung’s each division is managed separately taking into account the
characteristics of their products that have implications on new product development,
marketing, selling and other aspects of the business. Moreover, Samsung Electronics
has more than 200 subsidiaries around the world.

Figure below illustrates Samsung organizational structure:

 4

As it is illustrated in figure above, apart from three divisions, Samsung organizational

structure also integrates corporate management office and Samsung Advanced Institute
of Technology (SAIT). Corporate management office deals with overall management of
the group and also has administrative responsibilities. SAIT is Samsung Group’s R&D
hub, established as the incubator for the development of new products and services.

The senior management completed its review of optimal organizational structure on

April 2017 and decided not to convert to a holding company structure. Following a
series of recent scandals involving Samsung management that culminated in Jay Y.
Lee, the former de facto head of the Samsung conglomerate being jailed for 5 years it
can be argued that Samsung organizational structure will change in the foreseeable
future. Specifically, Samsung organizational structure may change to make governance
and decision making practices more transparent to eliminate or at least to reduce the
cases of future scandals.

Samsung Group Report contains a full analysis of Samsung organizational structure.

The report illustrates the application of the major analytical strategic frameworks in
business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis
and McKinsey 7S Model on Samsung. Moreover, the report contains analyses of
Samsung leadership, business strategy and organizational culture. The report also
comprises discussions of Samsung marketing strategy and addresses issues of
corporate social responsibility.
 5

McDonald’s Organizational Structure

A McDonald’s in Liberdade, São Paulo, Brazil. McDonald’s Corporation’s organizational

structure evolves over time to facilitate the firm’s management of global operations in
the fast food restaurant market.

McDonald’s Corporation’s organizational structure was reformed in 2015 to improve the

company’s handling of its global operations. A firm’s organizational or corporate
structure defines the organizational design and system through which organizational
components coordinate to achieve business objectives. McDonald’s corporate structure
facilitates the management of food service markets based on performance levels. As
the largest fast food restaurant chain in the world, the company keeps evolving to
address current and emerging market issues. Through this structure, the company rolls
out new products to maintain its performance in satisfying customers, especially in the
presence of other food service firms, such as Dunkin’ Donuts, Burger King,
and Starbucks.

Figure below illustrates Samsung organizational structure:

 6

McDonald’s organizational structure establishes the arrangement or pattern of

interactions among various business areas. Thus, structural characteristics are linked
to the company’s strategies. McDonald’s marketing mix (4P) integrates how the
corporate structure provides support for strategies and tactics. In this regard, strategic
alignment is essential between the company’s organizational structure, business needs,
and related efforts for competitive advantages. Through its corporate structure,
McDonald’s succeeds in managing efficiency and performance in its operations in the
global fast food restaurant industry.

McDonald’s Organizational Structure Type and Features

McDonald’s Corporation has a divisional organizational structure. Conceptually, in this

structure type, the business organization is divided into components that are given
responsibilities based on operational requirements. Each division handles a specific
operational area or set of strategic objectives. One of the aims of this corporate
structure is to support autonomy and organizational flexibility in satisfying business
needs in different organizational aspects and markets. McDonald’s organizational
structure has the following characteristics, arranged according to significance in
affecting food service business operations:

Global hierarchy:
McDonald’s Corporation has a global hierarchy to cover all its operations worldwide.
This feature of the organizational structure emphasizes corporate control in the context
of managerial control and direction. For example, McDonald’s CEO directs the activities
of all business areas through this structural characteristic. Mandates and directives are
passed from the CEO down to middle managers, and to the restaurant managers and
personnel in company-owned operations and among franchisees. This feature of
McDonald’s corporate structure is typical of most global business organizations.

Performance-Based Divisions. Performance-based divisions are the most distinct

feature of McDonald’s corporate structure. Prior to its reorganization on July 1, 2015,
McDonald’s had the following geographic divisions in its organizational structure: (a)
U.S., (b) Europe, (c) Asia/Pacific, (d) Middle East and Africa, and (e) Other Countries &
Corporate (OCC) including Canada, Latin America and Corporate. After the
reorganization, the company used performance as basis for the new divisions in its
organizational structure: (a) U.S., (b) International Lead Markets, (c) High Growth
Markets, and (d) Foundational Markets and Corporate. The United States division
provides the biggest regional sales revenues to McDonald’s. The combination of
international lead markets also represents a major chunk of the company’s revenues.
The high-growth markets account for a small minority of McDonald’s revenues, even
 7

Though these markets present considerable potential for business growth based on
rapid economic development.

Function-Based Groups. McDonald’s maintains function-based groups in its corporate

structure. For example, in corporate operations, the company has a People group for
human resource management, and a Supply Chain and Sustainability group for supply
chain management and sustainability endeavors. Each group is under the leadership of
a corporate executive or senior manager. This organizational structure characteristic
enables McDonald’s Corporation to address the basic functions in its business. Groups
may be added or changed as the company grows and its target markets change.

Advantages & Disadvantages of McDonald’s Corporate Structure

An advantage of
the hierarchy in
McDonald’s
corporate
structure is its
support for
monitoring and
control of global
operations. Also,
the performance-
based divisions
have the
advantage of
enabling the
company in
implementing
strategies based
on market
performance
similarities and
related indicators.
For example, the
firm applies similar strategies for all lead markets. However, a disadvantage of
McDonald’s organizational structure is that it tends to generalize strategies for the
performance-based divisions. This issue limits business flexibility. Thus, McDonald’s
could improve its corporate structure by changing or adjusting how these performance-
based divisions are used in strategic implementation.
 8

Gourmet Foods Organizational Structure

Gourmet Foods is Pakistan's largest retail chain of food products with headquarters
in Lahore, Pakistan. It has seven processing units across the country and over 100
stores in Lahore. The company was founded by Muhammad Nawaz Chattha in 1987. It
has outlets
in Sargodha, Islamabad, Rawalpindi, Lahore, Multan, Faisalabad, Gujranwala, Wazirab
ad, Chakwal, Gujrat, Jalalpur Jattan, Sheikhupura, and Sahiwal. It also has international
outlets in London and New York City.

Figure below illustrates Gourmet Foods organizational structure:

 9

Leopards Courier Organizational Structure:

Leopards Courier Pvt. Ltd is offering courier services both, nation-wide and
internationally, since 1983. We have maintained a study pace of growth. We provide our
customers a well, prompt and quick service. Leopards Courier Pvt. Ltd is a company
geared towards premier courier services. Our aim is to provide quality courier services
at the most competitive rates. We provide dependable and responsible courier services
throughout Pakistan right from the beginning to the end as well as internationally.
Customers can feel confident that parcels carried by our team will be treated with care
and delivered on time, every time. Our countrywide diverse services and our dedication
to quality, all come together to form the most effective courier solution your money can
buy. We are committed to ensuring that each one of your shipments receives personal
care and attention.

Figure below illustrates Leopards Courier organizational structure:

 10

TREET Organizational Structure:

The history of TREET dates back to pre-independence days, almost a century ago,
when the highly dynamic personality of Sir Syed Maratib Ali envisioned the importance
of trade and industry in the sub-continent. He expanded his agricultural business into
trading and industrial partnerships. Soon after independence of Pakistan in 1947, the
business activities were further developed into industrialized operations. Treet
Corporation was setup in 1952 and is almost as old as the country itself. Companies
within Group are Semi-Autonomous units responsible for their own budgeting, new
products launch, market decisions and new venture exploration and pricing. Operating
as strategic business units, they are treated as internal profit centers by the corporate
headquarter i.e. Treet Corporation limited, the holding company. These business units
develop their business strategies though independently from other businesses but are
trained to remain in-tune with broader corporate business policies. Corporate strategy
(by the Parent Company) seeks to develop synergies across business units by sharing
and coordinating staff, making investments in these units and using them to
complement other corporate business activities.

Figure below illustrates TREET organizational structure:

 11

Google’s Mission Staement:

Google's corporate mission is “to organize the world's
information and make it universally accessible and useful.” Ever
since its beginnings, the company has focused on developing its proprietary algorithms
to maximize effectiveness in organizing online information.

Intel’s Mission Statement:

The Intel company mission statement is: "Delight our customers, employees, and
shareholders by relentlessly delivering the platform and technology advancements that
become essential to the way we work and live."

Apple’s Mission Statement:

Apple designs Macs, the best personal computers in the world,
along with OS X, iLife, iWork and professional software. Apple
leads the digital music revolution with its iPods and iTunes online
store. Apple has reinvented the mobile phone with its revolutionary iPhone and App
Store, and is defining the future of mobile media and computing devices with iPad."
 12

PEL’s Mission Statement:

To provide quality products and services to the complete satisfaction of our customers
and maximize returns for all stakeholders through optimal use of resources. To promote
good governance, corporate values and safe working environment with strong sense of
social responsibility.

Fauji Energy Private Limited:

To provide electricity to national grid in a safe, reliable, efficient and environmentally

friendly manner. And deliver exceptional services and support to customers. Thus
maximizing returns to the shareholders through core business and diversification,
providing a dynamic and challenging environment to our employees. Vide our
customers with premium quality products in a safe, reliable, efficient and
environmentally sound manner, deliver exceptional.

Adam Jee Insurance Company Limited:

AICL aims to deliver innovative customer solutions, owing to its wide-ranging line of
products. Its employees are dedicated to performing their best for its valued customers,
trained with all the skills necessary for a truly outstanding customer service. The
Company’s focus on strengthening and expanding its global presence is reflected in its
tapping the growth potential available in the UAE market. AICL in collaboration with
Hollard International, a South African company, has life assurance operations under a
separate entity namely, Adamjee Life Assurance Company Limited .