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Mcdonald's Organizational Chart

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McDonald’s

Case Study
Organizational Chart

Prepared by
Judith Guest

McDonald’s operations are organized into a geographical structure with four key segments. These four segments are: (1) McDonald’s – USA, (2) McDonald’s – Europe, (3) McDonald’s - APMEA (Asia/Pacific, Middle East, and Africa), and (4) McDonald’s-Other Countries and Corporate (David, 2011, pg. 29). The organizational chart for McDonald’s is divisional structure and is broken down by geographic area. McDonald’s organizational chart works for them and improvements would be small. The chief executive officer (CEO) has upper management reporting directly to him in the form of executive vice presidents and one president. This may work well since they are so large and expand over countries. Reports are fed up through the organization to the CEO who can make informed decisions. To me, it may create a silo affect and I am not sure that everything that is going on is making it to the top of the organization. I believe that more middle management positions should be reporting into the mix. I look at the organizational chart and would like to see store management reporting to a district manager or director. From there, the district manager reports to a territory manager and then up to the division leaders then through the organizational chart that is listed in our textbook. This way, everything from the lowest is seen and analyzed by management. Not everything will make it to the top but it is still being analyzed by management. I have focused on how the CEO is at the top with six direct reports but what I really like is how the chief operating officer (COO) has the McDonald’s divided by countries and then for the United States by divisions. These are truly divided by area and the leaders of these country markets have to have the ability to know what each country needs or

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