Organizational

Structures
BOH4M Culminating Scrapbook - Unit 1
Table of contents
01 02 03
Types of Structures Structural Analysis of McDonald’s
McDonald’s Structural Advantage

04 05 06
McDonald’s McDonald’s vs. Conclusion
Structural Chick-Fil-A
Disadvantage
 01
Types of
Structures
Types of Structures

- There are three main different types of

organizational structures:
- Tall organizational structures
- Flat organizational structures
- Moderate organizational structures
- Each structure has its own pros and cons
and is used by different organizations to
suit their own unique features
Tall Structures
- A tall organizational structure
consists of many layers in a
hierarchy, and only a few people
on each level
- Each person controls less people
underneath them, leading the
structure to be more complex
- This leads to a long ‘length’ and a
short ‘width’
- In a tall organization, there are
more people in power
 Benefits

Benefit #1 Benefit #2 Drawback

Much easier to organize Well-managed because of Communicating issues

the company many people in the same between the different
level chains of leadership are
difficult due to size
Flat Structures
- A flat organizational structure has
less layers, with more people in
each layer
- A flat organization has a wider
range of control but less people in
power
- In other words, there are fewer
bosses but bosses control more
people
- In a flat organization, there are
less people in power
 Benefits

Benefit #1 Benefit #2 Drawback

Communicating between More democratic Organization may be

different branches is procedures due to less difficult to manage due to
management lack of people in power
easier
 02
Structural Analysis
of McDonald’s
What Structure is McDonald’s?

- Looking at the bigger picture, McDonald’s

has a tall organizational structure.
- Despite all its franchises, its executive
hierarchy clearly has a tall
organizational structure
- McDonald’s’ corporate structure has
multiple layers.
 03
McDonald’s
Structural Advantage
Advantages of McDonald’s

- McDonald’s is a very large corporation and

a franchisee of different international
operations
- The tall structure of McDonald’s corporate
helps support the size of the business by
having more people to manage different
parts of the company, keeping it well
organized despite its size
- This is the greatest advantage of
McDonald’s structure
 04
McDonald’s Structural
Disadvantage
Disadvantages of McDonald’s

- Despite its size and good maintenance,

communication between different levels is
difficult
- For example, if a franchised business has
an serious issue, it would take a long time
for it to be resolved depending on how
high up the chain of command it goes
- Furthermore, its sheer complexity makes
it difficult to know who to talk to
 05
McDonald’s vs.
Chick-Fil-A
What Structure is Chick-Fil-A?

- Chick-Fil-A has a flat organizational

structure, a major difference compared to
most franchises
- Chick-Fil-A is a family-owned business,
meaning that a small group of people at
the top of the chain of command control a
large amount of the people at the bottom
McDonald’s vs Chick-Fil-A
McDonald’s Chick-Fil-A

- Much larger than - Family-owned

Chick-Fil-A business
- Requires more - Owned and controlled
management by only a few people
- International - Only opens a few
organization restaurants every year

- Public company - Smaller business than

McDonald’s
- More complex, thus
- Really only available in
requiring a taller
North America
structure
 06
Conclusion
Effectiveness?
- All in all, because of
McDonald’s overall size as a
company, a tall structure
does have its pros and cons
- It is definitely well
managed, as seen by its
success on a corporate
level
- However, issues take a long
time to be resolved
because of this
 References

(n.d.). Wikipedia. Retrieved January 24, 2024, from https://fourweekmba.com/mcdonald-organizational-structure

Butcher, C. (n.d.). _H_ BOH4M - Lesson 1 - LN, Organizations.

McDonalds Organisational Structure: Case study & Culture. (n.d.). StudySmarter. Retrieved January 24, 2024, from

https://www.studysmarter.co.uk/explanations/business-studies/business-case-studies/mcdonalds-organisational-struct

ure/

Pereira, D. (2022, October 5). Chick-fil-A's Business Model. Business Model Analyst. Retrieved January 24, 2024, from

https://businessmodelanalyst.com/chick-fil-as-business-model/

Titus, P. (2023, November 8). Chick-fil-A Organizational and Management Structure. Financial Falconet. Retrieved

January 24, 2024, from https://www.financialfalconet.com/chick-fil-a-organizational-structure-management/

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