Reference no: EM132080605

Below is a description on McDonald's reporting segment of its organizational structure posted on its website :

Question :

Based on this description and what you learn about corporate structure and control of this week module, please define the organizational structure that McDonalds adopts. Does it match McDonald's business or corporate level strategy?

Reporting Segments

Beginning July 1, 2015, McDonald's started operating under a new organizational structure with the following four segments that combine markets with similar characteristics, challenges, and opportunities for growth:

U.S. Market:

The U.S. is the largest market in the McDonald's System in terms of number of restaurants, revenues and operating income

We have a unique and powerful field organizational structuret hat, when optimized, gives us a significant competitive advantage

International Lead Markets:

Includes some of the largest, best resourced and most established markets in the System with strong, developed economies and, in most cases, similar competitive dynamics and opportunities for growth

Operating from a position of strength: largely reimaged asset base significant McCafé presence across most markets, and high average unit volumes and franchisee cash flows

Track record of innovation and sustained investement, particularly around our menu, operations and Brand

High Growth Markets:

Relatively higher restaurant expansion and franchising potential

8 key markets across Asia and Europe (China, Korea, Russia, Poland, Italy, Spain, the Netherlands and Switzerland)

All share a similar landscape of unpenetrated growth

Foundational Markets:

Largest and most diverse geographical segment spanning over 80 markets across parts of Asia, Europe, Middle East & Africa and Latin America

Markets with potential to operate under a largely franchised model

Contains almost all of our DL markets globally

Home to about 60% of the world's population and represents about one third of global GDP growth