PAMANTASAN NG LUNGSOD NG PASIG

Mcdonald’s
corporation

ANDREA MAEY
Organizational M. PARLAN
Chart JOANNE V. SUELTO
Group Member
Revenue Process
Group Member

Expenditure Process Production/Conversion Process

KYLE C. DE VERA ERIKA JANE N. BOLIMA

Group Member Group Member

Treasury Process

RHEANE JADE C. GUMBAN

Leader

Corporate
Financial
Framework
Reporting
process
process CRISTALYN B. EVANGELISTA
Group Member

ROSEMARIE C. GABRIEL
Group Member

bsa 3a

Course, Year and Section

Mr. Jefferson Jordan Mitra

Professor
 Organizational Chart

CEO

Board of
Directors
Top Executives

Marketing Sales Finance Restaurant Supply

Department Department Department Department Department

Country Head Country Head Country Head Country Head Country Head

Marketing Regional Sales Finance Restaurant

Procurement
Manager Manager Manager Manager

Account
Advertisement Staff Training Logistics
Manager

Crew Members Storehouse

Figure 1: McDonald’s Organizational Structure

McDonalds has several top level or C-level executives who are responsible for decision
making, goal setting, finances, operations and ensuring smooth functioning. The following are the
top-level job positions at McDonalds. The highest position in the company is the CEO or Chief
Executive Officer who is Chris Kepmczinski from 2019 until now. Under him are the Board of
Directors with thirteen (13) members. Also, the CFO or Chief Finance Officer; the Chief Restaurant
Officer; the COO or Chief Operating Officer; the Senior Marketing Manager; and the Senior Sales
Manager are also part of top-level management.
 From top management, there are five (5) different department which includes: first,
the marketing department that takes care the marketing and advertising needs and matters of
the company. It also ensures that the business effectively protect and maintain its brand
image and gets the right exposure to gain more attention to the public. Each country or area
has a separate marketing department to handle the advertising and marketing of that specific
area. This department includes the Marketing Country Head; the Marketing City/State Head;
the Marketing Manager; and the Marketing Executives.

However, on the sales department, it is set to ensure that all sales related duties and
tasks are properly handled and run effectively. Every country has a separate sales head and
other sales employees to ensure the smooth running of the sales department of the country
which they belong. This department includes the Sales Country Head; the Sales City Head;
the Sales Executives; and the Sales Men.

The finance department of McDonalds, on the other hand, is the one that is
responsible to handle the finances, accounting and money matters of the business. It focuses
on ensuring the proper flow of money, right investment and proper handling of funds of the
company. Each country and area have a separate set of finance and accounting managers to
handle the finances of that division. This department consists of Finance Country Head;
Finance City/State Head; Finance Manager; and Accounts Manager.

Aside from the owners, directors and other chief executives, each branch of
McDonalds in the world is run by a core team member of which are known as restaurant level
executives. The executives of restaurant department are working for the smooth management
of each branch. This department consist of General Manager; Restaurant Manager;
1st Assistant Manager; 2nd Assistant Manager; Shift Running Manager; Floor Manager; Staff
Training Crew; Crew Members; Support Staff; Cleaners; Servers; Cooks; and Bakers.

Lastly, the supply department are responsible in overseeing and managing the
company's overall supply chain and logistics operations and strategies in order to maximize
the process efficiency and productivity. In addition, they also play a crucial role in
developing and maintaining good relationships with vendors and distributors.
 EXPENDITURE
PROCESS

In June 2000, McDonald’s formed a partnership with Accel-KKR, Inc. to establish eMac
Digital—a new company designed to accelerate the development of global internet-related
businesses. This partnership is focused to help on business-to-business opportunities that drive
efficiencies, maximize cost savings and create new markets and distribution channels. The
eMac Digital helped to strengthen McDonald’s through creation, development, and investment
on a new enabling platform that aided them to reduce its transaction costs that leads to more
effective communication within the organization, and improve the quality of its operations
through the use of eMac Digital technology. To help in providing better value in the supply
chain management, eMac Digital formed an e-procurement platform for McDonald’s as well
as to their suppliers to help them in managing information, transactions, sales orders, and
other functions. The e-procurement system allowed all the McDonald’s franchises across the
globe to buy everything they need to run their restaurants and communicate what other
supplies are needed from their suppliers through the network.

Global Franchises

Place Order Deliver Order

Emac Digital

Suppliers Logistics

Figure 2: McDonald’s E-Procurement Model

 McDonald’s expenditure cycle is centered on the E-Mac Digital, which is the E-
Procurement Model that is developed through the partnership of McDonald’s with Accel-
KKR, Inc. Emac digital is created so that the cycle would be optimized.

The expenditure process includes the requisition of goods, supplier selection, ordering
process, receipt and payment.

The cycle starts at the global franchises using the Emac Digital to place its order whether
it is kitchen utensils, kitchen supplies or even the uniform of its employees. The Emac Digital
will then connect the global franchises to available suppliers that also uses the network. After
the supplier received the purchase order from the global franchise, it will now then prepare
the supplies ordered and will use Emac Digital again to find logistics that is available and will
deliver the order. Then the logistics that accepted the order will then receive the ordered
goods and supplies and check its quality and quantity before contacting the global franchise
using the network to notify the receipt of ordered supplies or goods and will proceed to
deliver it. After the global franchise receive the supplies and goods ordered, it will then again
use the network as a medium to pay the parties involved in the process.

McDonald’s supply chain management can be seen in two different ways, the Cycle View
and the Push/Pull View.

Cycle View
McDonald's supply chain processes can be broken down into three different process
cycles where each is performed at the interfaces between two consecutive stages of a supply
8chain. These three process cycles are "customer order", "replenishment cycle", and
"procurement cycle".

The customer order cycle is created when the customer interacts with the employee of the
restaurant and places his order before making payment for the meal. Right after his order has
been taken, orders will be prepared in the kitchen where the kitchen staff will gather different
supplies and components (e.g., buns, lettuce, cheese, beef patty) to put together to form an
end-product (e.g., cheeseburger). In this cycle the demand is external.

On the other hand, the replenishment cycle is the one that connects the retailer and the
distributor. This is initiated when the retailers need to replenish the lack of supplies in the
restaurant for future demand where the goods are running out of stock. The replenishment
cycle is quite similar to the customer order except that the retailer is now the customer.
 Finally, the procurement cycle is the one that connects the distributor and the supplier
as the former needs to get supplies from the latter to distribute the goods to various retail
restaurant outlets. In general, the scale of an order increases whilst the frequency of the
order decreases in the supply chain when moving significantly far from the customer. This
can be illustrated for example; the customer only orders a set of meal daily from the
retailer, then the retailer orders heaps of lettuce weekly for its hamburgers that leads to the
distributors to get larger orders for more than one retailer monthly and the supplier gets an
even larger scale of order to cater the distributors needs every three months.

Push/Pull View
Other than the cycle-based process for supply chain operations, the push/pull view is
also another way to look at the processes performed in the supply chain. This process can
be divided into two categories based on the relative timing of the customer's order. Pull
processes are triggered when a customer places his order whilst the push processes are
initiated through the anticipation of a customer's order. In other words, the pull effect is
reactive to a customer's order wherein the push effect is speculating when a customer will
order.

McDonald's uses both pull and push processes. All processes except for those
involved in the customer order cycle are push processes. The products are pushed from
the suppliers to the distributors and then to the restaurants where customers will demand
the specific product that in turn creates a pull effect. This means that the Push/Pull
boundary will be situated before the replenishment cycle takes place and after the
customer order cycle occurs just when the customer order arrives.

The supply chain stages include customers, retailers, distributors, and suppliers.
Retailers will attend to the customers and put together the goods received from the
distributors to prepare the end-product to meet the customers' needs. The distributors will
then transport the required quantity of goods garnered from the suppliers to the retailers as
requested. Then the suppliers will procure and ensure that certain quantities of raw goods
are prepared for delivery once the distributors place their orders for them.