The chosen companies are the two market leaders in the fast food industry. The assignment is comparing two main competitor in the fast food industry: One is McDonald's and the other one is Subway. To what extent and how does the cho sen organisational structure reflect the specific corporate strategy of these companies? Discuss the respective structures critically". This assignment is answering the task to "compare the organisational structure of two direct competitors in an industry of your choice. 3 The fit between a chosen corporate strategy and the structure of an organisation has an important influence on how smooth the different organs of a com panys can work together to fulfil the corporates objectives. The weaknesses of a organisational structure are to be kept in mind when set ting up a corporate strategy or else the structure needs to undergo changes in order to follow the strategy. 2 There are various problems that can come up especially in large companies like a lack of coordination, information distortion and motivational problems. The organisational structure is highly important to be established appropriately because it presets the paths on which a company can create value and ultimately determines the efficiency of the value chain. 1 It helps managers to comprehend and to control the flow of activities. The organisational structure of any company can be understood as a vehicle that depicts the activities and connections of various divisions, business units and functions of that company. How good do the structures reflect the corporate strategies of the competitors?ĭeclaration in lieu of oath Table of figuresįigure 1: McDonald’s strategy mix of different approaches (strength of green colouring reflects the weighting Ansoff Matrix, based on Mintzberg et al.)įigure 2: Subway’s strategy mix of different approaches (strength of green colouring reflects the weighting Ansoff Matrix, based on Mintzberg et al.)įigure 3: Number of Subway stores worldwide from 2011 to 2018 A critical comparison of the organisational structures of McDonalds and Subway and their fit to the chosen corporate strategy.
Comparison of the competitors organisational structureĥ.
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