O R G A N I Z AT I O N A L

A N A LY S I S Dr. Ghada Moustafa Labib

By
SAMEH HASSAN BERMO
AHMED MOHAMED SAMIR
AHMED MOHAMED ABDELHAMED
WAEL ALY KAMEL
 1. Internal and external
factors
2. Market & Trends

O R G A N I Z AT I O N A L 3. Mission & Vision

ANALYSIS 4. Culture & Work
TOPICS environment
5. Organization structure
6. Processes
7. Performance
8. Work practices & People
9. Technology
10.Systems
 1. INTERNAL &
EXTERNAL
FACTORS/ENVIRONME
SWOT Analysis NT
Strength Weakness Threats
• Delivery: Their Dependence on
Opportunities • High Competition in Quick
• Wide spread Brand Name • Expansion: there are still
• Strong organization structure other Companies Such as Uber Service Restaurants which
eats puts them in a risk in case available giant international lead to new companies enter
that facilitate data markets for the fast-food to
transformation between HQ of bad relationship with the market with lower prices
delivery company or poor enter in several Countries and same or better Quality.
and its branches around the world
• Strong Financial Statements customer service from Delivery • Inflation level increase due to
• Growing of the middle class in
adding to big assets values Company personnel (Pandemic , Russia &Ukraine
• menu price imbalance due to the Asian markets from the war) , Changed the customer
(45,511 BUSD) which give spending power point of view
them the power to make any inflation behavior , demand and
• Increasing complexity menu in as a result of Asian Counties spending habits .
financial Cooperation with Development in the last two
Banks , Companies to menu offering to include • Increase of the operational
healthier options to meet the decades which had a positive cost (HR cost , Technology
facilitate any needed cash impact on its economy as a
• Many Suppliers Want to deal expectations of new customers Cost)
total
With them as a result of their
work volume
• Quick Service Reputation
 2. MARKET A N D TRENDS

McDonald’s is taking new strides to meet customer demands. McDonald’s is

shifting from a Billions Served strategy to a Billions Heard perspective. With
the Billions Heard perspective McDonald’s will try to meet customer demands
for change for their products. These demands will be addressed with new
.products offerings and having an open door policy regarding food practices
 2. MARKET A N D TRENDS

• McDonald’s reported more delivery orders across its markets.

• As lockdowns ease, some trends, like higher checks, are
normalizing, but the company thinks that digital orders and
delivery are here to stay.
• Urbanization and a growing middle class in emerging markets
drive demand for meat and fast food restaurants – a clear positive
for McDonald’s
• Digitalization. Customers have become more used to
technological innovations and require higher quality services.
• Greater customer experience can be achieved through
digitalization of delivery and services in the restaurants.
 3. MISSION A N D VISION

Mission:
• “to be trusted, respected, and revered.”

Vision:
• “ to move with velocity to drive profitable growth and become
an even better McDonald’s serving more customers delicious food
each day around the world.”
 4. CULTURE A N D W O R K
ENVIRONMENT

McDonald’s has a culture that encourages

creativity, fun, and innovation. McDonald’s business
model is based on the “three-legged-stool” approach;
balancing the needs of its owners, suppliers, and
company employees. McDonald’s states that
balancing the needs of these three groups is essential
to the company’s success. McDonald’s also offers
mentoring opportunities for its employees and
special training for its managers to create successful
individuals.
 4. CULTURE A N D W O R K
ENVIRONMENT
The challenges McDonald’s is facing today has caused a
constant decrease in sales for nine consecutive months, and
a reported -2.4% revenue growth for the year ended 2014.
To combat the threats mentioned beforehand McDonald’s
needs to change customer perspectives on their views
related to the price and quality perception of their product
offerings. To focus on quality and value McDonald’s
should implement the following recommendations:
1-Emphasis on employee development to create a positive restaurant
environment
2-focus menu offerings to improve quality.
 Global hierarchy
5. O R G A N I Z AT I O N Performance-based divisions
STRUCTURE Function-based groups
Dynamic concept

Restaurant level
McDonald’s Executives

Company Hierarchy
Top level
Executives

Finance Marketing Sales Supply

Department Department Department Department

Country Head
Procurement
Logistics
Storehouses
 5. O R G A N I Z AT I O N STRUCTURE

Departmentalization and Decision Making

McDonald’s global presence advocates for the division of the business into 4 different
geographic regions. Although McDonald’s enforces uniform standards and policies
throughout its restaurants, food offerings may differ depending on geographic regions to
suit the taste of the local customers.

McDonalds
Corporation

Middle East &

Africa-Asia Europe North America Latin America
Pacific (AMEA)
 6. PROCESSES

Production Process for McDonalds by Amanda Pattison (prezi.com)

 7. PERFORMANCE

• The company must elaborate different systems of motivation for

every department.
• The personnel must have clear and attainable aims. It is better to
have one aim per a person.
• The aims must change: managers should have one aim for half of a
year.
• The rise of salary amount must be sensible for an employee.
 7. PERFORMANCE

• performance management in McDonalds starts from developing Individual

Performance Plan(IPP).
• During this stage, the managers will work with the employees to create a IPP to line
uptheir objectives with the business objective for the coming year.
• The objective should be ‘SMART’ and the employees are responsible for meeting
their objectives and documenting their achievements.
• It is essential for people and the company they work in to calculate their
performance and observe how well they are working. A staff must recognise what is
needed of him/her in the corporation and what standard of output is needed of
them to identify if they are pleasing this demand.
 8. W O R K PRACTICES & PEOPLE

Stakeholder Analysis
Internal Stakeholders External Stakeholders
Owners/Operators (Franchisees) Customers Environmental Groups
Employees Community Labor Unions
(McDonald’s New Employee Manual) Suppliers

Governments
Competitors
stackeholders
 8. W O R K PRACTICES & PEOPLE

Alcohol and Drugs:

You may not possess or use alcohol or illegal drugs in the
workplace, or while engaged in any job-related activity. You
may not work under the influence of alcohol, illegal drugs or
any substance that could prevent you from performing your
job safely and effectively. You may not distribute any drugs or
alcohol at work. You may not possess or consume alcohol on
Company premises except at McDonald’s–sponsored social
events where alcohol is authorized.
 8. W O R K PRACTICES & PEOPLE

Businesses must have a well-functioning operational practice.

For an organization to achieve success, it must have solid
operational processes regarding its product and service quality.
It is a major operational practice of McDonald's to provide
hygienic products using technology systems, to reduce the time
required for operations, and to provide training and
development programs for personnel. Also, establishing product
standards and distributing authority to various functional
divisions by personnel's qualifications and experience is an
option. McDonald's major operational practices include:

a) Delivering goods to customers' homes and offices

b) Operating its branches 24 hours a day
c) Seven days a week
 8. W O R K PRACTICES & PEOPLE

To accomplish its mission

We place the customer experience at the core of all we do.
We are committed to our people.
We believe in the McDonald’s System.
We operate our business ethically.
We give back to our communities.
We grow our business profitably.
We strive continually to improve.
 9. T E C H N O LO GY

McDonald’s is always at the front when it comes to

innovation within its restaurants. With the newly hired
Chief Digital Officer Atif Rafiq McDonald’s is looking to
implement new technologies in their restaurants. The advent
of the Smartphone era brings new technologies and
possibilities for fast-food ordering. McDonald’s can look to
develop applications to speed ordering and even create
ordering platforms to order food before the customer arrives
at the restaurant. Using touch-screen technology could also
speed up the process, and allow customer to order food with
touch-screen kiosks instead of having to order at the
counter.
 10. SYSTEMS

As one of the Biggest fast food Chain , McDonald’s Depends on speedee service system by
which they rearranged the production lines in logic order (receiving raw
materials ,cooking ,assembling ,finished goods) adding to mechanizing their kitchens with the
latest technology tools also by training their employees to do their tasks without any waste in
Production time and this to produce the customer requests in the shortest time with the lowest
operational cost that reflects low sandwiches prices , and this helped them in the following:
Increasing the Point of Sales Franchising Concept adoption that succeeded in
(Restaurants) around the world based on 1955 and increased after that by which the
the above mentioned , also owning the franchisee pays a minimum rent for a 20-years
land where the Restaurant built which period, also pays for the signs and interior decor
lead to increase their cash flow and of the restaurant, while getting innovative and
Assets value operational help from their parent company
 10. SYSTEMS

First Development Phase: Make to Stock

From 60’s to 90’s McDonald’s developed the speedee service system to the make to stock
which ends with finished goods inventory , and the customer order and served from this
inventory , at the end a target stock levels from each element are set and it is activated when
it reach this level
Second Development Phase: Make to Order

After 90’s McDonald’s developed the speedee service system to the make to order which is
activated only when the customer place the order and this makes inventory( work in process
and finished goods) is minimum .This Phase makes extensive use of the latest cooking
technologies and clever process Engineering also good arrangement between operation and
supply chain
Q&A