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Organisational structure of mcdonalds store

Paper Type: Free Essay Subject: Marketing
Wordcount: 3891 words Published: 1st Jan 2015

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Hospitality industry consist variety of fields surrounded by the service industry that includes lodging, bed and breakfast, event planning, restaurants, transportation and many others. Such a unit of hospitality is consist of either tiny or large groups like human resources department, management department, direct operations department and the maintenance department in order to provide quality service to customers. For this task, I will introduce the main hospitality industry of McDonald’s restaurant. I chose this establishment because I am working in one of these franchised stores. McDonalds are classified as a restaurant industry. Basically, the restaurants’ top objective is to serve food through their courteous and friendly crew members. McDonalds is a fast food chain kind of restaurant which aims to provide excellent quality of food and service to their customers. The company’s vision is to be the world’s best quick service restaurant experience by providing outstanding quality, service, cleanliness and value among customers.

McDonalds Company is a well established and famous brand name throughout the world.

The size of its business is in fact the world’s leading food service retailer in the world having more than 30,000 restaurants and serving around 52 million customers in 100 countries globally each day. McDonalds Corporation literally owns those stores but most of its businesses are owned by other independent people which are called franchisee. McDonalds has its own strategy in diversifying its products and services. Like for example, McDonalds in India which is a non-meat eating country. They think of other way in order for them to serve burgers to customers. They are using lamb meats instead of beef on their burgers. The company also have their own farm to grow potatoes and from there they cultured it on their standard way for them to serve quality French fries. The company also breed their own cows and poultry in order for them to have set their own standards for their own product which contribute a lot in their profit because they do not need to buy from other suppliers. They are producing their own product. They are the suppliers themselves. And it gives them much higher profit for the company. The company also set out environment friendly strategy by converting used cooking oils into biodiesel that they will be using for their various delivery vehicles transporting their product from places to places. The company also take into account the diversity among its employees. They employ friendly crew members from different races and different cultures. They train staffs very well making it as the foundation of its excellence in service to customers. In the upcoming future, McDonalds aims to even more grow their sales and profit. Deliver more satisfying service to customers. From time to time the company’s turnover arises gradually as they perform much better from time to time they are on the peak of their success to gain high profit and much lesser expenses for the corporation.

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Scope and scale of the business: the size of the business differs on the range of their production and the target market around the area. For example is the McDonalds residing at the town centre and McDonalds residing inside a shopping centre. Their target market differs from the other and that makes the McDonalds inside the shopping centre much smaller than the one at the town centre because its target market are only those inside the mall. While the others target market is the people all over and around the place where it is residing. Type of ownership is the company itself and others are franchised. Meaning, most McDonalds stores are owned by independent people known as the franchisees and some are owned by the McDonalds Company. When we say purchasing power as an example is the Big Mac index popularized by the economist, which looks at the prices of a Big Mac burger in McDonald’s restaurants in different countries. If a Big Mac costs US$4 in the United States and GBP£3 in the United Kingdom, the PPP exchange rate would be £3 for $4. The Big Mac Index is presumably useful because it is based on a well-known good whose final price, easily tracked in many countries, includes input costs from a wide range of sectors in the local economy, such as agricultural commodities (beef, bread, lettuce, cheese), labour (blue and white collar), advertising, rent and real estate costs, transportation, etc. Reference (^ “Big MacCurrencies”. The Economist. 1998-04-09. Retrieved 2007-07-24.)

McDonald’s services offered are food and beverage, eat-in or take away. They also offer drive thru service that makes it easier for the customers with cars to purchase McDonalds products.


Operational structure

Functional structure

This is an organisational chart of a typical McDonald’s store. The operational structure of its organisation. It says here that in every store there is one business manager who is in charge on all the business operations of the store. It includes the stores managing duties, buying of stocks needed. See to it that the store is complying with the company’s strategy and rules on how to run the business properly. In the absence of the business manager the first assistant should take charge. The first assistant is also responsible for the scheduling of staffs. They are also doing some paper work like the inventory of stocks and sales. Supervise the shift managers in their tasks. The shift managers’ duty varies whenever time of shift they are doing. There are breakfast shift managers, daytime shift managers, closing shift managers and over-night shift managers. Their duty depends upon what kind of shifts they are into. Breakfast shift managers are responsible in opening the store in the morning. They are the starters for the business. They manage business operations and staffs as well as those paper works. Daytime shift managers are responsible during lunch time. Usually this is the busiest time of the day because people tend to go and dine at McDonalds during these times. They are responsible on business operations maintaining standards of work during these times as well as the paper works such as inventories. Closing shift managers are responsible during late night shifts. Basically managing staffs in closing the store. Cleaning up and sort out of things inside the store as well as those paper works inventory of stocks. Overnight shift managers are responsible on business operations when the store is doing 24 hours. Usually managing staffs in cleaning and preparing for the stores breakfast time. Crew members are what they called the life of the store because they are the people doing all the work inside the business. There are crew members doing the till service where in they are the one who are taking orders from the customer. There are also crew members inside the kitchen whose roles are to prepare and cook the food to be served and maintaining the standards of food that must be serve to the customers. Security department and the dog squads basically is responsible for the safety of the customers and the staffs as well. They install these closed circuit television cameras and sniffing dogs to carry out the security of the business.

The functional structure of their organisation consists of the main director of the company or also called as the chief executive officer (CEO). They are the most senior manager of the company. Their responsibility is the overall management of the company, as well as the staffs, budget and especially the customers. It could also include the business asset and all the company resources in order to make the potential profit.

In conclusion to these structures, we can see that the operational and the functional structure of hospitality industry work in tandem in order to achieve the total performance of having a much greater profit. They are all united to ensure the success of the business and to satisfy the wants and needs of their customers.

1.3B. Organisational structure of a hotel

Functional structure

Operational structure of a hotel

Functional structure of a hotel consists of the director who is mainly responsible in all business operation. They are the general stock holders of the company. The executive secretary who assists the general manager in paper works and business matters. Normally they are not visible around the building. They are usually in their office doing some paper works like scheduling staffs, statistics of income and supervising business strategies and many others. The director of sales and marketing that supervises all marketing operations and doing the inspection of the quality of the products. The chief engineer responsible in the maintenance of the establishment modernizing the equipments used in operations and carry out new ideas on how to improve services. Resident manager who supervise the front desk staffs and ensuring the proper service is taking place. They also do inspections over the room checking and improving the assets. Human resource department which tasks is to recruit and retain personnel and establishing promotions as well as commercialising the business. Food and beverages director who manages food safety and checking that the product they are serving is in good quality.

The operational structure is consisting of several departments that makes as the face of the business. They are the staff that the customers have contact with. The front office manager which tasks is to supervise the personnel under the department. It includes the reservations manager, front desk manager, guest services or the bell boys and the PBX manager. Another unit in the functional structure is the house keeping department. The executive housekeeper supervises its staffs ensuring that cleanliness is maintained. The department under the food and beverages manager consist of catering director, executive chef, restaurant manager, and the beverage manager. They are responsible in the food service production. Under the executive chef is the sous chef, steward, banchet chef and the administrative assistants.

In conclusion to this matter, i arrived into several thoughts that it is not mainly on the capital and stocks or products that the business is relying with but with the quality service of the personnel and professionalism of the higher ranking staffs that makes one good and high profitable hotel here in UK.


Peoples 1st is a hospitality, leisure, travel and tourism sector for skills council in the united kingdom that aims to sought out information on careers, qualifications and training in hospitality, tourism, travel and leisure. This council aims to help in individual on their strategic way in transforming skills and reforming qualifications, gives support to those who are into the delivery of apprenticeships for the most part of management and leadership, customer service and craft skills. It aims to improve communication through employers and training providers. as well as the employees and entrants helping them to be aware of the links between achievement and career development. It also aims to facilitate attraction and matching of skilled employees to good employers, building the self esteem and loyalty of their workforce. There are 14 industries that assemble within the sectors path. These are the contract food service providers, events, gambling, holiday parks, hospitality services, hostels and hotels, clubs, pubs, bars and nightclubs, restaurants and other self catering accommodation, tourist and travel service and the visitor attractions, each of which are independently united in many aspects. Most of which are mainly provision of food, drink, accommodation and leisure activities.

Main objectives are to unite all hotel owners and investors in ensuring the quality service they will need to render to their customers.

Reference (http://www.people1st.co.uk/)

Springboard charity unlike the peoples 1st they help young, unemployed and disabled people to improve their projections in life through opening doors and guiding to partake their careers and jobs in hospitality, leisure and tourism. Springboard UK also raises funds to support charity works. They offer variety of support from national campaigns to custom-built and customized solutions to business challenges.

Their general objectives and key goals is to aspire people to work within the hospitality industry.

Reference (http://springboarduk.net/springboard-)

British hospitality association mainly focusing on the recruitment process and on how to retain good quality staffs. Their outstanding vision is excellence through people. They aim to deliver a stable workforce, lower cost and increase in profit, better reputation from others with improved morale and motivation.

This organisation differs from others in a way that they focus mainly on the excellence through their people working on hospitality and catering industry.

Reference (http://www.bha.org.uk)

Task 2

2.1 All businesses require staffs in order for it to run. For the hospitality industry, having the most reliable and dependable staffs makes the business quite smoothly and excellent profit status. These people are the mirrors of the company that is why it is important to choose and have the most promising staffs the company should have had. There are two departments that support the business structures. The functional department of a nursing home which consist of the business manager, deputy or assistant manager and administrator. Business manager, first assistant manager and maintenance team is the people under the functional department of a McDonald’s retail store. These people are normally those who are not visible around the establishment. The people working for the customers are all under the operational staff department. They usually are the people providing the service for the service users. In a nursing home there are the domestic staff kitchen staff and the care assistants who provide services for the residents while for McDonalds they have the kitchen crew members, till crew members and the shift managers.

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2.2 The business manager is usually the person that is not visible around the business. They usually are always inside their office doing paper works and managerial statistics. Their job description varies depending on where they are working. McDonalds business manager assess the consumption of food and beverage that will be used, and place orders with suppliers. They make sure the deliveries of fresh food and baked goods are in excellent quality. They order supplies of non-food items, such as dishes and silverware, cooking utensils, and cleaning products. They arrange to have equipment repaired or maintained and schedule other services. In a nursing home, the Home Manager’s role is to make sure that the care plan for each resident is updated. They oversee the medical and personal care of a group of patients and supervise the nurses and other caregivers who work together with those patients on a daily basis. Nursing home managers must have an associate’s or bachelor’s degree or certificate in nursing. They are required to be registered nurses in the course of their state of residence. Deputy Manager Job description is to work together with the home manager in overseeing the upkeep of nursing and ensure quality checks and maintenance of equipments. They are assisting with all administrative duties associated with the management and maintaining the records of residents and the inventories. They are also coordinating and chairing staff meetings and trainings when necessary including setting of agendas and taking the minutes. They assist the manager in ensuring that the home is running perfectly smooth and that the staffs are working to their fullest potentials. At McDonalds the first assistant manager supports the manager in the business everyday running of the shift. Ensuring the team deliver the excellent customer service, chairing in the trainings for the crew and stepping up in the absence of the business manager. The administrator in a nursing home Job description supervises clinical and administrative affairs of the business. It includes overseeing of staffs and personnel, financial matters, medical care, medical supplies and facilities. A qualification of being an administrator is to have a bachelor’s degree or a master’s degree to qualify to have attained the administrative license. There is no administrator in a typical McDonalds store because it is the duty of the manager to do the administrative affairs for the whole store. There is a certain administrator for the whole McDonalds Company instead.

Task 3


Recent developments on standards operating procedures such as food safety are very essential for a restaurant because it serves as a foundation for its success. Food safety includes numerous routines that should be followed to stay away from potentially severe health hazards. Food safety is important because food can transfer disease form one person to another and it serves as growth for bacteria that could possibly result into food poisoning. The European government makes directives and laws that the restaurants must comply with in order to maintain safety on foods. A development in levels of productivity in restaurants depends on the season. There are times that the restaurants are not so busy then the levels of production of products are low, if peak season comes then they will upgrade into a much higher level of producing their product. There are employee expectations in a restaurant as well. Employees are expected to give a high quality standard of service that should be given to consumers. Employee empowerment are intended to be more committed to their work and successful service encounter with the consumers for them to be able to render full customer satisfaction. Recruitment and retention of employees are decreasingly getting low for the hospitality industry that is why employers should develop a new trend in retaining and recruiting of employees giving them much more benefits for their jobs. They need to explore new market strategy and methods for attracting and retaining employees. Learning and development in restaurant pertains to those employees who do study as well. There are services in some restaurants that enable the employee to undergo educational learning and development in regards to their course that they are taking up. Flexible working hours are also in practice in the restaurants. For example in McDonalds, employees can choose the time they are available to work. There are varieties of shift patterns that they may choose from. Workforce competency which gives the opportunity for the employee to compete to each other to get the promotion and distinction in their workforce such example is the employee of the month and the employee of the quarter in McDonalds. In socio-cultural development, restaurants now a day offer variety of menus. Restaurants are not concentrating on only one type of cuisine. They are now complex in terms of menus because there are lot of different cultures and races here in Europe so they need to setup variety of dishes to choose from. Human resources in restaurant like McDonalds developed in many ways. They are now on an online based recruitment. Applicants are screened through web based application and there they could trace who are applicable for the job role they are looking for. Developments in security in restaurants increased in these past few years and this gave them more customers because consumers’ safety is practiced. Closed circuit television cameras are installed around the establishments to prevent intruders and crimes around the business. So that the customers feel safe the time they are inside the business premises. Uniformed and un-uniformed security guards and dog squads as well are on their eyes inspecting and guarding the business.

In managerial aspect of development in hospitality there is what they call key players in service. So the management has their key player in every shift pattern in order to provide good service. Quality assurance and control in hospitality grows high like in McDonalds they have their own standards and these standards are being practised globally on all McDonalds outlet. That is why their managerial strategy is unique. Branding and re-branding as we all know McDonalds’ as a very well known fast food chain worldwide. Their brand is exclusively for use for the company only. That is another managerial development of this restaurant. The respond to niche market that makes McDonalds very famous is that they are always at the edge on what is on demand in the market. And their effective implementation of food safety management system likes disposing of out of time goods and many more. Green environmental issues for example in McDonalds they convert used oil into bio-diesel and that is what they are using in their truck delivery transport, and its segregation and proper disposal of waste and the cleanliness of the workplace in and out. There are developments in the relationships between the educational and training providers from the business because most of the restaurants employ student workers and they are usually on the job training courses and others on internships.

In legislative development in hospitality, restaurants must comply with the food safety law that the government has set. There are standards that must be met in order to pass the inspection on food safety. In restaurants there are centralized tips policies in order to have fair treatment and fair distribution of tips from the consumers. Minimum wages are strictly enforced by the European government that the company must abide. The minimum wage here in United Kingdom is £4.82 per hour. Licensing on restaurant especially to those who serves liquors is inspected by the government. There is certain license required depending on what the restaurant is serving.


The current image of McDonalds Corporation is uniquely popular because in fact they are the world’s no. 1 fast food chain in the whole world. They have 31 million branches worldwide and serving 51 millions of customers daily. They employ 1.5 million people helping the unemployment figures decrease. Profits are very much likely to accelerate as the future comes for the company. The quality of food served by McDonalds is improving in a way that they are more aware of the nutrition’s that the consumers will get on their product. The business is more exposed to the media because it is globally well know. It is a great impact for their popularity because more consumers are being aware of what the restaurant is offering.


Reference (^ “Big MacCurrencies”. The Economist. 1998-04-09. Retrieved 2007-07-24.)

Reference (http://www.people1st.co.uk/)

Reference (http://springboarduk.net/springboard-)


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