ORGANIZATIONAL THEORIES STRUCTURE & DESIGN

“One world, One Burger”- McDonald’s

Erik Treasuryvala- M-09-54

 WELCOME TO
THE WORLD OF McDonald’s
 Hi, friends I am
Ronald’s
Guess !!!!!! Why I am here in IES HR
YES, I am here to tell you about
my story.
Story of McDonald's

But
Friends,

These is my friend who will help

me to tell you my story
Let me introduce him
Let me introduce to my friends, He is from MMS

Hi, this Is
Me

Hi, I am
Erik
 So, Let’s go, Listen My story, Agenda of My story is

AGENDA
• HISTORY
• SOME FACTS ABOUT
McDonald's
• VISION
• THE ORANIZATION & ITS
ENVIRONMENT
• A MODEL OF
ORGANIZATIONAL
EFFECTIVENESS
• A MODEL OF ITS
ORGANIZATIONAL
STRUCTURE
McDonald's Mission Statement

"McDonald's vision is to be the world's

best quick service restaurant
experience. Being the best means
providing outstanding quality, service,
cleanliness, and value, so that we make
every customer in every restaurant
smile."
One’s upon a time
When I
was Baby
 Mcdonald’s History
 McDonald's was started as a drive-in
restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937. The business,
which was generating $200,000 per
annum in the 1940s, got a further boost
with the emergence of a revolutionary
concept called 'self-service.'
 The brothers used assembly line
procedures in their kitchen for mass
production. Prices were kept low. Speed,
service and cleanliness became the
critical success factors of the business. By
mid-1950s,
. the restaurant's revenues had
reached $350,000.
 As word of their success spread, franchisees started showing
interest. However, the franchising system failed because the
 McDonald’s History
• At this point, Ray Kroc (Kroc), distributor for
milkshake machines.Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.

•He established a franchising company, the

McDonald System Inc. and appointed
franchisees.

•In 1961, he bought out the McDonald brothers'

share for $2.7 million and changed the name of
the company to McDonald's Corporation. In
1965, McDonald's went public...

Currently McDonald's operates in 121 countries &

having more than 30000 restarunt and serving 53 Mn
customers everyday
 De
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McDonald’s in India
McDonald’s History INDIA
• Entered in India 1996

• McDonald's India is a 50 – 50 JV
partnership between MCDONALD’S
CORPORATION (U.S.A) and two Indian
businessman Amit Jatia and Vikram
Bakshi

• Localisation:
 DON’T OFFER ANY BEEF OR PORK ITEM IN
INDIA
 IN PRODUCT LIKE MCVEGGIE, PIZZA
MCPUFF ETC.THEY USE SPICES
FAVOURED BY INDIANS
 SOFT SERVES AND MCSHAKES ARE
EGGLESS

• Actively Involver in many social activities likegi

CHILD EDUCATION, PULSE POLIOiesetc.
 History in India

• 1996 …the first McDonald’s restaurant opened on Oct.

13, at Basant Lok, Vasant Vihar, New Delhi. It was also
the first restaurant in the world not serving beef on its
menu
• 1997…the first Drive –Thru restaurant at Noida
• 1999…the first Mall location restaurant at Ansal Plaza –
New Delhi
• 2000…the first highway restaurant at Mathura
• 2001…the first thematic restaurant at Connaught Place
• 2002…the first restaurant in a food court at 3C’s, Lajpat
Nagar and the first restaurant at the Delhi Metro Station
at Inter State Bus Terminus
 The Organization and Its Environments

International Technological
dimension dimension

Competitors

Regulators Owners Customers

Employees
Physical environment
Board of directors
Culture
Political-
Economic
legal
Strategic dimension
dimension Suppliers
partners

Sociocultural
Internal environment dimension

Task environment
External environment
General environment
McDonald’s General Environment
Technological
International Dimension Dimension
• Restaurants in 121 • Improved information
countries technology
• About two-thirds of • More efficient
sales from outside operating systems
the United
States

Political-Legal
Dimension McDonald’s Economic
• Government Dimension
food standards • Strong economic
• Local zoning growth
climate • Low unemploy-
• General posture ment
toward business • Low inflation
regulation
Sociocultural Dimension
• Demographic shifts in
number of single adults
and dual-income families
• Growing concerns about
Internal environment
health and nutrition
Task environment
External environment
General environment
 McDonald’s Task Environment
Competitors
• Burger King
• Wendy’s
• Subway
Regulators • Dairy Queen
• Food and Drug
Administration Customers
• Securities and • Individual
Exchange consumers
Commission • Institutional
• Environmental customers
McDonald’s
Protection
Agency

Suppliers
Strategic Partners • Coca-Cola
• Wal-Mart • Wholesale food
• Disney processors
• Foreign partners • Packaging
manufacturers

Internal environment
Task environment
How Organizations Respond to Their Environments
General Environment

Task Environment

Information
management

Mergers, takeovers,
Social
acquisitions,
responsibility
alliances
The
Organization
Strategic Direct
response influence

Organization
design and
flexibility
 Organizational Effectiveness
 Organizational effectiveness is the degree to
which an organization realizes its multiple goals.

 Efficiency is the amount of resources used to

produce outputs (ratio of inputs to outputs).

 Effectiveness is often difficult to measure in

organizations, especially those that are large,
diverse, and fragmented.
 Goal
FOUR ORGANIZATIONAL EFFECTIVENESS
Systems
Attainment APPRAOCHES

Strategic
Constituencies Competing
Values
A Model of Organizational Effectiveness
1 2 3
Acquiring the resources and combining them facilitates the attainment
needed from the in an efficient and of organizational goals…
environment… productive manner…
(Systems resource approach) (Internal processes approach) (Goal approach)

Transformation

Inputs Organizational Outputs

System

Feedback

5 4
and satisfies the
making it easier to
strategic constituents
acquire future
in the environment, . . .
resources.
(Strategic constituencies
(Combined approach)
approach)
 Competing values approach

• Developed by Quinn and Rohrbaugh in 1981

• It emphasizes on different indicators of

performance and tries to balance a concern
with various parts of the organization rather
than focusing on one part
Competing value Approach to Organizational
Design
• They found that organizations need different
kinds of structure to control activities when
they need to adapt and respond to change in
the environment.

• Eg: Mcdonald (Mcdonald’s Changing

Environment)
 McDonald Changing Environment
• Problems faced by McDonald due changing
Environment in early 2000s.
• Consumer taste shifting as health conscious.
• Environmentalist attacking the packaging.
• Increase in competition.
 Organizational Structure

• It had Mechanistic structure having

standardized operations and formalization.

• The burger and fries served in Delhi are tasted

& looked same as in India.
 Solution McDonalds came up with..

• McDonalds new approach to production was

based on flexibility.
• Designed menu that would appeal to local
customer.
• This led to shift McDonald from mechanistic to
organic structure
 Chicken Maharaja Mac
Chicken
Maharaja Mac™

2 Grilled chicken patties with a smoke-

flavoured mayonnaise, fresh onions,
tomatoes, processed cheddar cheese in a
toasted sesame seeded bun.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

255 32 54 26

Calories
in kCal / Protein% Carb% Fat %
serve

573 12 21 10

Menu
 McALOO Tikki
McAloo Tikki™

Fried breaded potato & peas patty

that is flavoured with a special spice
mix, fresh tomato slices, onion, and
veg. tomato mayonnaise between
toasted buns.

Nutrition at glance

Serving Protein Carb. Fat

size in gms / in gms / in gms /
in gms serve serve serve

150 6 53 15

Calories
in kCal / Protein% Carb% Fat %
serve

367 4 35 10
Menu
BYE BYE SEE U AT McDonald’S