Team Members:
Swathi Naini
Harsha Vardhan Ravula
Ranadheer Chetukuri

Project 2:

Business Process Model for processing a loan


Team Project 1:

Organisational Structures

McDonald’s Divisional business structure and business strategies.

McDonald's is one of the largest food chain companies in the world and has much strength in its company that allows it to build a organizational structure. McDonalds has around 40 million customers visiting the store each day. It has over 30.000 branches in 120 countries including Canada, Brazil, Germany, France, Japan, UK, Australia, and the U.S. It derives 80% of its revenues from these countries. One of their greatest strengths and missions is to create an image in the minds of the people and introduce them to the fast food culture. The company functions with great delivery speed, customer care and cleanliness.

McDonald’s adapts a Geographical Divisional structure to ensure best business in its widely and globally spread Restaurants.

The organization divides its operations into divisions based on their geographical presence, different kinds of cultures are adapted locally to serve better to the local consumers.


Structural Dimensions:

Span of control : McDonald's is the number one food service retailer in the world with 1.7 Million employees in 119 countries. As this company targets the high productivity and quality there is a high span of control for the employees at all levels working for McDonald’s

Specialization : The main strength of McDonalds is its product value. Customers know what to expect when they walk into the store, great emphasis goes to human resources by satisfying both the customer and the employees. McDonalds is very innovative with new product lines, new trends and new tastes. Its diversity into their new business ventures is also considered a strength of McDonalds

Formalization : McDonald’s is a dynamic , employee and consumer oriented organization and hence it is less formalized and dedicated towards the quality and production

Centralization : McDonald’s is widely spread across 119 countries and due to its big size and presence in various locations , the decision making authorities are highly decentralized at every level..

Professionalism : the business of McDonald’s is mainly into consumer segment and involves directly interacting with the consumers and normal people of different types. To handle various situations and to ensure the best hospitality to the customers , all the employees are carefully recruited and trained accordingly. Hence McDonald’s exhibits high levels of professionalism.

Technological : Technological structure and financial assets of a company are an excellent market position which helps in the SCA ( Substantial Competitive Advantage ). McDonalds was started out to help people who has very little time to cook or was too busy to get into a proper restaurant. To maintain the best quality of the product and also to ensure the Health standards, McDonald’s adapt latest technology in food industry.
Size :
Total No. of Employees : 400,000 ( January 2010)
No. of countries operated in : 33000 restaurants in 119 countries
Revenue : US$ 24.075 billion (2010)[2]

Culture: As McDonald’s is spread across 119 countries with different cultures, the organization is widely diversified and adapts to the local culture, eating habits , consumer behaviors and other cultural aspects to satisfy the customers's


The functional structure is a structure consisting of a chief executive officer and a limited corporate staff, with functional line managers in dominant organizational areas, such as production, accounting, marketing, R&D, engineering, and human resources.

Here’s the basic Functional Structural chart of an organization:

Functional Structure of ‘Nokia Corporation.’

Nokia Corporation is a Finnish multinatinationalcommunications corporation headquartered in Kielaniemi, Espoo, a city neighbouring Helsinki. Its principal products are mobile electronic devices, primarily mobile telephones and other communications devices. It also offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform, and free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia has a joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications networkequipment, solutions and services.
The Nokia brand, valued at $25 billion, It is the 14th ranked brand corporation in Europe (as of 2011)sales in more than 150 countries and global annual revenue of over €38 billion and operating loss of €1 billion as of 2011. As of 2012 it is the world's second-largest manufacturer of mobile phones (after Samsung), with a global market share of 22.5% in the first quarter.

The Nokia House, Nokia's head office in Keilaniemi, Espoo, Finland.

A Formal Nokia’s Functional Structure:


A general organizational structure of Nokia clearly depicts the Functional organizational structure, where the Chief executive officer in the top level management and several other functional departments such as HR, Legal, Relations, production, technology(adapting new technology in smart phones), operations (locational operations and design), finance and market in the middle level management.

Structural Dimensions:

Span of control:As of 2012 it is the world's second-largest manufacturer of mobile phones. Nokia has 130,000 employees across 120 countries. Nokia is known for its quality, brand and standard, indicates the high degree of span of control over the employees in each level.
Specialization : Technology remains the ultimate strength of any electronics manufacturing company. It’s necessity to comply with the gradual advancement in the technology and to sustain, withhold its market capture from the competitors, results in a high degree of Specialization. Especially in this case R&D.

Formalization : Functional structure stresses on its specific individual functional lines to produce high quality products, formalizing each functional line to standardize the the process. So, Functional Structure is highly formalized.

Centralization : Though it functions across 120 countries, sales in more than 150 countries, Decision making is centralized by the top level managers and the degree of centralization is high because the product don’t have to take local and cultural aspects in to consideration and are similar all across.

Professionalism : As it delivers the post purchase services through customer care centres viz, Nokia care, customer satisfaction and retention are prioritized. Professionality is high as it adopts the corporate culture and the personnel are highly trained and staffed.

Environmental Dimensions:
Technological : Technology as we discussed before has a vital role in the electronics manufacturing companies like Nokia, where it’s existence in the market is determined by the advancement in the technology, the company adopts. Research and development area is pumped with large financial resources.

Size : The Nokia brand, valued at $25 billion
Total No. of Employees : 134,171 employees across 120 countries (as 2011),
No. of countries operated in : Sales and services in more than 150 countries
Revenue : global annual revenue of over €38 billion and operating loss of €1 billion as of 2011.

Culture:Nokia's official corporate culture manifesto, The Nokia Way, emphasizes the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy.
The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail.

Environment:Nokia is the second largest producer of mobile phones in the entire global mobile phone industry, where its tough competitor Samsung stands first as per 2012. Nokia–Apple patent dispute lasted long. Nokia has an Alliance with Microsoft and a joint venture with seimens known as Nokia Siemens Networks, Navteq is a Chicago, Illinois-based provider of digital map data and location-based content and services which was acquired by Nokia on 1 October 2007.

Strategy:Nokia to provide a standardized quality products, has launched its new models such as Lumia & 808 with advance features. Smart phones are going to be with windows operating system by Nokia.