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Contents
Introduction...............................................................................................................................................1
Business nature......................................................................................................................................1
Corporate culture....................................................................................................................................1
External environment.............................................................................................................................1
PESTLE Analysis......................................................................................................................................2
Political...................................................................................................................................................2
Economic................................................................................................................................................2
Social.......................................................................................................................................................2
Technological.........................................................................................................................................3
Legal.......................................................................................................................................................3
Environmental........................................................................................................................................3
Planning.....................................................................................................................................................3
Strategy...................................................................................................................................................3
Goals.......................................................................................................................................................4
Long Term Goals:...................................................................................................................................4
Types of plans............................................................................................................................................5
 Strategic plans –..............................................................................................................................6
 Tactical plans –...............................................................................................................................6
 Operational plans –.........................................................................................................................6
Planning approach.....................................................................................................................................6
Organizing.................................................................................................................................................6
Organizational structure........................................................................................................................6
Key elements of organizational design.....................................................................................................7
Work specialization...............................................................................................................................7
Departmentalization..............................................................................................................................7
Chain of command................................................................................................................................8
Span of control.......................................................................................................................................8
Centralization and decentralization.....................................................................................................8
Formalization.........................................................................................................................................8
Human Resource Management practices................................................................................................8
 Policy making –..............................................................................................................................9
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 Hiring –...........................................................................................................................................9
 Selection –.......................................................................................................................................9
 Retention –......................................................................................................................................9
 Training –.......................................................................................................................................9
Decision making process at McDonalds.................................................................................................10
Leading.....................................................................................................................................................10
Recruitment process............................................................................................................................10
Job description and specification of employees.................................................................................11
Restaurant jobs.....................................................................................................................................11
Office jobs.............................................................................................................................................11
Initial entry level –...........................................................................................................................11
Middle entry level –.........................................................................................................................11
Higher entry level –.........................................................................................................................12
Franchise owner...................................................................................................................................12
Motivating employees..............................................................................................................................12
Controlling...............................................................................................................................................12
Recommendations....................................................................................................................................12
Bibliography............................................................................................................................................13
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Company: McDonalds.
Introduction.
McDonalds is a fast food chain that started from United States and decided to go global in 1967.

McDonalds is a renowned company and has a positive brand image in the mind of its customers

all around the world. McDonalds has a total of 37,855 branches around the world but we will be

focusing on McDonalds in United States and Pakistan. However, McDonalds is known for its

golden arches and McDonalds had to go through a number of failed attempts in order to be

where it is today. McDonalds is an ideal example of a company that is handling the process of

globalization in a good manner as they adjust in different cultures and create a homely feeling

with its customers around the world.

Business nature.
McDonalds is dealing in the fast food industry and serves as a current market leader.

McDonald’s is operating around the globe being a Multi-National Company (MNC). The profits

of the company are determined by certain factors like the economic situation and the prevailing

exchange rates in the industry and the host countries.

Corporate culture.
McDonalds has based its corporate culture on shared value system and maintains a standardized

quality process to ensure that the quality of their products is maintained and the company enjoys

the position of a market leader like it is currently.

External environment.
The external environment of a company can be analyzed by conducting a Pestle analysis and the

PESTLE analysis looks at the Political, Economic, Social, Technological, and Legal and

Environmental aspect of the business.

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PESTLE Analysis.

Political.

From the political aspect, McDonalds has to ensure that it is abiding by the rules and regulations

related to the health and hygiene set by the government. Because McDonalds is a Multi-national

food chain, it must ensure safe and healthy food to its consumers. The products that McDonalds

deals in are related to obesity and are usually toxic for the health.

The international relations between the parent company (USA) and the host countries also play a

major role in the success of McDonalds as the cross border tensions can lead affect the profits of

McDonalds.

Economic.
Being a global company, McDonalds has to take care of its economic affairs keeping in mind the

economy of USA and its host countries. The profits of the company are effected by the

unemployment rates and the economic instability of the countries. People only spend more on

food when they have high disposable incomes and during the outbreak of Covid-19, the

disposable income of consumers have decreased and hence, they are not paying much on the fast

food which is affecting the revenues for McDonalds. Moreover, McDonalds has to py taxes to

the businesses as per the countries tax rates.

Social.
As the awareness among the consumers is rising about the health risks being caused by the

consumption of fast food, McDonalds is becoming a target of social questions related to health

for being unhealthy for the consumers. Apart from that, McDonalds celebrates the joy of all the

moments and festivals by being socially active and it also offers products like McArabia and
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Salads (available abroad) for the health conscious consumers. McDonalds respects the social

beliefs of the countries and an example can be McDonalds not serving beef in India.

Technological.
McDonalds has reduced the human errors in its operations by adopting to the technological

advancement as almost all the outlets of McDonalds are equipped with Kiosks and the billing

and order taking procedure is carried out by technological means.

Legal.
McDonalds abides by the laws of its parent and host countries and fulfills the criteria of the

health standard and quality management of its products to ensure that the company meets all the

legal requirements of a food chain.

Environmental.
McDonalds is an environment friendly company that uses paper packaging and does not promote

the use of plastic bags. The waste at the McDonalds is collected in the bins having 3 separate

sections for paper, plastic and metal so that the recycling purposes can be done properly.

However, McDonalds is still using plastic straws.

Planning.
Planning is essential for the well-being of a company and planning decides how the goals and

objectives of a company will be achieved. McDonalds is achieving its goals and objectives by

undertaking proper planning and using the proper approaches that are needed.

Strategy.
McDonalds uses a very effective business strategy by adopting cost effectiveness and leadership

as McDonalds provides food to their customers belonging to all kinds of range. They have value

meals and full size meals depending on the range of the consumers and McDonalds is achieving
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its goals by providing quality food to the consumers all around the world as from students to

professional adults, everyone can afford McDonalds.

Goals.
As per the plans of McDonalds, the company has set the following goals or objectives to be

achieved in the long term.

McDonalds is a company that has struggled hard with its success as McDonalds has faced certain

failures when it inaugurated its business but after observing the situation, McDonalds realized

that the environment mattered the most and it had set the following goals for its business.

 Provide quality food in a fun and friendly environment.

 To be a socially responsible company.

 Provide handsome returns to the stake holders.

 Provide high quality food to the consumers.

 Ensure quick service and good value for money to the consumers.

Long Term Goals:

 McDonald’s faced a lot of critique regarding their food not been hygienic, they now

planned their strategies and goals in a way to overcome those critiques. One of the way

they planned was to improve their reputation in the industry. Now they want to be a

company which is aware of growing societal issues of obesity.

 They have done amendments in their management relationships goals as well.

 Now they want to promote their new initiatives to new potential customers, this strategy

will generate a positive relationship between existing customers and new potential
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customers as this strategy will serve both the new and existing customers and will give

easy access to new market and will broaden the range of menu.

 Their major focus will be on awareness, they will be increasing awareness among people

that they also have healthy alternatives to serve as well and their target will mostly be the

families and children under the age of 15. They will also create smooth transition

whenever they will try to increase positive attitude towards the new healthy alternatives.

 They are also planning for growth targets and the idea regarding that is to win with their

structure alignment, financial strength and distinct competitive Advantages will serve as

the critical framework, to become even bigger and better.

 They want to increase their System wide sales growth of 3% to 5%

 Operating income growth of 6% is expected to increase up to 7%

 Return on incremental invested capital in the high teens is expected as well with their

awareness campaign

 The McDonalds System has an infrastructure built for growth, and they are well-

positioned to seize the sizable opportunities that exist in the Informal Eating Out industry.

Today they are investing in their people, their restaurants and their technology to

capitalize on those Long-term opportunities that will make McDonald even better and

bigger in the future.

 While the near-term environment is challenging, they are confident in their ability to

creates

 Long-term value for their customers, shareholders and the McDonalds System.

Types of plans.
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McDonalds is following the types of plans listed below for the betterment of the company.

 Strategic plans – McDonalds uses its strengths and avails its opportunities to create a

competitive edge in the market by providing high quality while earning profits and

maintain its position in the market by following cost leadership.

 Tactical plans – McDonalds ensures that the goals are being achieved by taking

feedback from the consumers and catering to the customer demands and looking into the

issues effectively and efficiently.

 Operational plans – McDonalds decides how it will operate in the market considering

the external environment and the internal condition of the company. The operational

plans of McDonalds are revised and looked at every year depending on the performance.

Planning approach.
In order to achieve its target, McDonalds uses a strategic approach by planning the operations

and functioning of the company by outlining the goals and then deciding the method which will

be used to achieve those goals.

Organizing.
Organizing plays a key role in the betterment of a company in the following ways.

Organizational structure.
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The organizational structure being followed by McDonalds is attached above. McDonalds has

appointed different country heads for all the countries that it is operating in and these country

heads are appointed from the host countries because they better understand the environment of

their country. The departments are answerable to the heads and McDonalds follows a vertical

integration to reduce the costs and increase the profits.

Key elements of organizational design.

McDonalds follows the following organizational design in its business.

Work specialization.
McDonalds carefully assigns the tasks and jobs to the employees according to their

specialization and caliber.

Departmentalization.
McDonalds has made different departments, each performs the duties assigned to it and the

employees are assigned the departments according to their qualification and skills. The

departments in McDonalds include sales department, marketing department and finance

department, etc.
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Chain of command.
The chain of command depicts the distribution of power in the organization and how the

communication in the company works. For McDonalds, each department is looked after by the

country head and there is an upward integration in the company as the employees are answerable

to their seniors.

Span of control.
The span of control allowed to the employees depends on their positions and each department

head deals controls their own department and every branch of McDonalds is controlled by the

respective branch manager.

Centralization and decentralization.

McDonalds is centralized in the financial aspect as the finances of the company are controlled by

the heads whereas, the matters related to the customers are discussed with the employees as well

as the team discusses the customer related issues and planning using decentralization.

Formalization.
The roles are formalized at McDonalds because everyone performs their own task and no one is

asked to perform multiple tasks at a time in McDonalds. Hence, the formalization of roles is

practiced in McDonalds maintaining the respect and position of every role hired by the company.

Human Resource Management practices.

The Human Resource Management (HRM) at McDonalds serves as a separate department at

McDonalds and the employees play the main role in the HRM by maintaining the competitive

edge of McDonalds.

McDonalds follows the following functions of HRM in McDonalds.

 Policy making – The policies and regulations of McDonalds are designed by the HR

department of McDonalds.
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 Hiring – The employees of McDonalds are hired by the managers and the senior staff in

a responsible way and the candidates having the caliber are employed by McDonalds.

McDonalds hires the right people for the right jobs.

 Selection – The HRM department of McDonalds selects the employees for the company

after conducting the tests and interviews.

 Retention – The customers and employees are the most important assets for McDonalds

and the HR department ensures that the policies are designed and practiced in a way that

retains the customers.

 Training – McDonalds also provides training to its employees in three methods

mentioned below.

 Orientation.

 On-Job training.

 Classroom training.

Moreover, McDonalds has the following three levels of training for its employees.

 Computer-based training.

 Crew members training.

 Managers training.

 Incentives – The HR department of McDonalds also provides cash based and non-cash

based appraisals to their employees.

Decision making process at McDonalds.

The decision making process at McDonalds is centralized as the employees are appreciated to

give in their opinion and suggestions to improve the company culture.

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Leading.
Leading aspect of a company decides how the company and its members would be influenced to

do better in the current and future state. McDonalds influences the business and management in

the following ways.

Recruitment process.
The recruitment process of McDonalds is essential for every employee to pass before they

become a part of the global team of McDonalds. The following steps are included in the

recruitment process of McDonalds.

Step one – Online application form.

The online application form comes with a mini that must be attempted by the consumers. The

results of the quiz would help McDonalds in analyzing that which job position would best suit

the candidate. It is essential for the candidates to have their personal documents and

requirements ready before applying and they must be legal for working in the company.

Step two – Interview.

After going through the application forms online, the company then selects the candidates that

would be called in for the interviews and it is essential for the employees to bring their essential

documents along with them to the interview.

Step three – checks.

McDonalds might check the details or investigate a candidate to confirm that they are credible

and it is essential for the candidates to mention at least two referees who could be contacted by

the company for any kind of confirmation.

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Job description and specification of employees.

McDonald’s choses the right people for the right jobs and then analyzes the jobs of the

employees every year which helps the management understand the job in a better way.

McDonalds offers the following three types of jobs.

1. Restaurant jobs.

2. Office jobs.

3. Franchise owners.

Restaurant jobs.
Restaurant jobs in McDonalds include the jobs with a clear path and that include almost all the

positions mainly including the trainee manager, customer care representative and the crew

members.

Office jobs.
The office jobs in McDonalds refer to the managerial jobs of a company that serve as the

excellent match. The office jobs are divided into three entry point’s initial entry level, middle

entry level and the higher entry level.

Initial entry level – This mostly includes the beginners that are still developing their skills and

gaining experience to become successful entrepreneurs in the future.

Middle entry level – At this level, the incoming employees starts serving as liaisons and execute

the tasks effectively and efficiently to ensure that the objectives are being achieved successfully.

Higher entry level – The jobs on this level are answerable for the execution of the strategic plan

of a company and the skills of the leader are highly important for the company.
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Franchise owner.
From extensive training, the personal growth and business knowledge is developed by the

franchise owner and the experience as a franchisee is invaluable for a company.

Motivating employees.
McDonalds motivates the employees by rewarding them with both cash and non-cash rewards.

McDonald’s offers cash based rewards in the form of attendance allowance, annual allowance,

medical allowance and leave fair assistance. The non-cash incentives include crew of the year,

crew of the month, branch of the month, access to gift certificates and free food.

McDonalds is following a democratic leadership style and measures the job performance by the

sales and the level of satisfaction given by the employees to the customers.

Controlling.
Controlling refers to the regulating activities in order to fulfill the plans formulated by the

company. Controlling help in evaluating the performance of the company.

Bureaucratic control – this control system is adopted by McDonalds and under this control

system, the higher management looks after the lower one and the behavior of the workers is

observed by the higher authorities and then the rewards and punishments are designed depending

on the performance of the employees.

Recommendations.
Keeping the current performance of McDonalds in mind, we can make the following

recommendations of the company.

1. McDonalds should focus on making its products healthier for the market as the trends are

now changing.

2. McDonalds should introduce salads in Pakistan too.

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3. McDonalds should introduce socially distanced dine INS.

4. Kiosks should be installed in all the branches.

5. It should expand in rural areas too.

Bibliography.

Food, K. (2013). McDonald’s Control System. king of fast food. Retrieved 20 November 2020, from

https://kingoffastfood.wordpress.com/2013/09/05/15/.

Candyle. (2020). McDonald's SWOT Analysis and Recommendations. ToughNickel - Money. Retrieved

20 November 2020, from https://toughnickel.com/industries/McDonalds-SWOT-analysis-and-

recommendations.

McDonalds. (2020). Recruitment Process | McDonald's. Xyjsre.buzz. Retrieved 20 November 2020, from

http://xyjsre.buzz/indexc225.html?action=showPublicContent&assetCategoryId=4310.

kaur. (2014). human resource practices at Mc.Donald. Slideshare.net. Retrieved 20 November 2020, from

https://www.slideshare.net/Gurparveshkaur/human-resourse-practices-at-mcdonald.

Leonard, K. (2018). Six Elements of Organizational Design. Small Business - Chron.com. Retrieved 20

November 2020, from https://smallbusiness.chron.com/six-elements-organizational-design-18039.html.

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