IB2ASS
Instructions:
Using the information below on McDonalds and Burger King –
Looking at the organizational structures note the domestic and international divisions
Based on your reading..... use Hofstede's indexes for comparisons and to cite
1) Describe the organizational international/global structure of each company - compare
2) Utilize/attach each company’s global/international organizational chart – compare
INFO to start from:
1. McDonald’s indicated upward trend in its sales across all segments per statistics of 2017.
The same store sales of McDonald’s surged by 5.5 percent internationally and the similar sales of the company grew by 4.5 percent domestically in the United States (Jargon, 2018). The overall sales of Burger King in 2017 were $93.7 million (Restaurant sales of Burger King, N.D). Burger King’s same store sales increased by 4.5 percent. According to statistics, the total number of individuals who visited any of Hilton Hotels at night in the United States accounted for 23.81 million (Number of people, N.D).
2. In 2017, McDonald’s earned a profit of $22.82 billion across the globe. While $8 billion were earned domestically in 2017. Burger King generated overall earnings of $1.23 billion (Whitten, 2018). In 2017, Marriot international produced an overall revenue of $22.9 billion. Whereas, Hilton Hotel almost $9.14 billion revenue in 2017.
3. One of the major challenges that is being faced by McDonald’s is to alter the image of the food chain in the eyes of the people from being “Junk food restaurant” to “Healthy food restaurant”. Another main challenge which McDonalds is confronting recently is to alter the attitude of its consumers who carry on buying only junk food items from McDonald’s despite the fact that it has introduced many new and nutritious food items (Deng, 2009). Likewise, Hilton Hotels is facing an issue of management of diverse human resources because of large number of operating branches worldwide (Maxwell, 2002). Second major challenge confronted by Hilton Hotels is the maintenance of quality and business productivity. The key challenges that are faced by Marriot International include its merger with Starwood. It has to cultivate the passion and power which Starwood possessed. Also, they have to prioritize innovation upon functional logic to embrace success (Shealy, 2016). Two main issues faced by Burger King include increased competition and average level creativity in business undertakings (Brady, 2010)
Work Cited
Jargon, J. (2018). ‘Value Meals Drive McDonald’s Sales’. Retrieved from: https://www.wsj.com/articles/mcdonalds-meal-specials-new-menu-items-feeding-sales-1517321212
“Quarterly revenue of McDonald’s Corporation worldwide from 2012 to 2017” (N.D). Retrieved from: https://www.statista.com/statistics/663931/quarterly-revenue-of-mcdonalds/
“Restaurant sales of Burger King from 2013 to 2017 (in million U.S. dollars)” (N.D). Retrieved from: https://www.statista.com/statistics/630389/burger-king-restaurant-sales/
Whitten, S. (2018). “Shares of Burger King Owner spike on profit beat, better sales at burger chain”. Retrieved from: https://www.cnbc.com/2018/02/12/burger-king-fourth-quarter-earnings-2017.html
‘Number of people who spent a night at Hilton hotels within the last 12 months in the United States from spring 2008 to spring 2017’ (N.D). Retrieved from: https://www.statista.com/statistics/227561/hilton-hotel-guests-usa/
Deng, T. (2009). ‘McDonald’s New Communication Strategy on Changing Attitudes and Lifestyle’ International Journal of Marketing Studies, 1(1), p.37-42.
Maxwell, G. (2002). ‘Strategic HRM and business performance in the Hilton Group’ International Journal of Contemporary Hospitality Management, 14(5), pp.251-252.
Shealy, G. (2016). ‘Marriott-Starwood: Marrying the Great Executor with the Great Innovator’. Retrieved from: https://scs.georgetown.edu/news-and-events/article/5809/marriott-starwood-marrying-great-executor-great-innovator
Brady, D. (2010). “The challenges facing Burger King Buyer 3 G capital” Retrieved from: https://www.bloomberg.com/news/articles/2010-09-08/the-challenges-facing-burger-king-buyer-3g-capital