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Organization Change

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McDonald’s Plans to Change U.S. Structure, by Bob Cramer
Article Summary
McDonald’s Corporation has been going through a series of underperformances over the past three years, mostly marred by unwarranted restaurant outlays and menu changes. This has resulted in a slump in its market share as customers walk away from the fast food giant, often mentioning dissatisfaction in their experiences at their outlets. The company’s management credits this to poor service delivery and the institution of menus that are irrelevant to their target market’s needs. With this observation, the company has taken it upon itself to institute a number of changes to the organization structure it has in the US. This will be done by altering its management layers, which should resultantly place it at a better position to respond to its customer tastes and trends.
In order to achieve this, the McDonald’s is dividing its 22 regions across the state into four zones: Central, Northeast, South and West, from its previous three: Central, East and West. This is in a bid to have each region systemized around its local preferences. In another move to target a similar notion, the company has granted its executive across the 22 regions autonomy in their decision-making and menu structures to suit their individual consumer tastes in their respective managerial areas. This decision was followed by an explanation mail from its US president Mike Andres to the corporate staff and franchises stating, “The reality is that our current US structure is not optimized for the customer.” (Cramer, 2014)
The changes come at the wake of the worst quarterly earnings registered last month (October 2014) of a 4.1% drop in same store sales, a figure last recorded in the year 2003. The company also pointed out its need to adopt new payment systems such as Apple Pay to ease the process of ordering online and

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