Question

The following are international and global companies, pick 2 in the same industry: Food and Beverage - or - hospitality

McDonalds

Burger King

Marriott

Hilton

Analyze and Assess

1) percentage of each of the 2 companies’ sales : Domestic% vs. Global %

2) profit margin of each of the 2 companies’: Domestic profit margin vs. Global profit margin

3) 2 global challenges/barriers faced by each of these 2 companies globally

Answer 1

Answer:-

McDonald's Organizational structure

McDonald’s organizational structure was revised on July 1, 2015 which helps the company to improve its global operations. McDonald’s organizational structure facilitates managing markets based on performance levels.

McDonald’s organizational structure has the following characteristics:

1) Global hierarchy: McDonald’s CEO directs the activities of all the business areas. It is passed from the CEO down to middle managers, and to the restaurant managers and finally to the personnel.

2) Performance-based divisions : McDonald’s used performance as basis for the new divisions in its organizational structure: (a) U.S., (b) International Lead Markets, (c) High Growth Markets, and (d) Foundational Markets and Corporate. The U.S. accounts for more than 40% of McDonald’s revenues, and the lead markets for 40%. The high-growth markets account for 10% of revenues.

3) Function-based groups :  The company has a human resource management group, a supply chain and franchising group, and a legal group. This characteristic of the organizational structure enables McDonald’s to address the basic functions in its business.

Burger King Organization structure:

The company was reorganized as a result of its merger with the Canadian firm Tim Hortons in 2014.

At present, Burger King’s organizational structure has the following main characteristics:

1) Global centralization

2) Functional groups- It has SVP for Global Operations, an Executive Vice President for Finance, and an EVP who functions as the Global ;Chief Marketing Officer.

3) Geographic divisions : It is divided into four geographic divisions-

.North America
.Europe, Middle East and Africa
.Latin America and Caribbean
.Asia Pacific