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Submitted by conodiablo on February 17, 2008
Category: Miscellaneous
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Organization Paper
University of Phoenix Online
Organization Paper
Many companies would not be here today if not for the way they organized themselves. Organization is a very important function in the business world. Without organization companies can’t do all that they would like, because total chaos would set in ranging from top brass to the front lines. There would be no structure and nobody to hold accountable. Let’s take a look at some resources that make companies successful like the McDonald’s Corporation when the management function of organization is implemented.
Physical Assets
The McDonald’s Corporation has come a long way when you start discussing innovation. Not only are they the front runners in the fast food business, they are also one of the biggest prime real estate holders in the industry. Let’s jump back into time and see what the founder of the company was thinking when he put together the company structure including the organizational aspects. Ray Kroc was a salesman who sold Florida real estate to milk shake mixing machines. He came across two brothers who had placed a large order for milk shake machines. In 1954 after observing the success that was going on with the McDonald bros hamburger shop Ray was convincing enough to the brothers that he contracted with the brothers into becoming the franchiser of their name and system. The first franchise sold for around $950 were as today you need more than $250,000 to even be considered. Under the contract the McDonald brothers would make .5% of the sales from the franchises and Ray would get 1%. By 1960 McDonald’s had opened 228 stores bringing the company net worth to $16 million from $24,000 in 1958. Ray understood that there was more to making the system work, while making money from sales he also put resources into training the owners, and improving product which would lay the foundation for the company. In 1961 Ray paid the McDonald’s brothers $2.7...
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