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Managing the Golden Arches Around the World

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Case Questions
1. Is Heinz moving toward centralization or decentralization? How is this move likely to affect the balance between line and staff positions?
Heinz is moving towards centralization. Heinz has brought all its brand under headquarters control. This will increase the authority with the line positions. Their importance will increase. Heinz will become more vertical.
2. What type of departmentalization is Heinz using? Why is this departmentalization appropriate for the company?
Heinz is using product type of departmentalization. It is having seven product categories. These are the department. This departmentalization is appropriate for Heinz because it helps Heinz focus on each product category. The products must adapt to changing tastes.
3. How do acquisitions, such as the purchase of Yoshida brand Asian sauces, affect Heinz's organization structure?
Since this is a new product area, Heinz's organizational structure grows vertically. There is an additional management layer for supervising and controlling the new acquisition.

Case Questions

1. Which organization design is McDonald's using internationally? How is this design appropriate for the company's international situation?
McDonald's is using geographical departmentalization. It has divided its global business into fiver regional zones and has delegated the decision making authority to each of the regional managers. This approach is appropriate because McDonald's has expanded globally and each of its local divisions have to respond fast and effectively to local tastes and changes. .
2. How does McDonald's working relationship with franchisees make it a learning organization?
McDonald's listens to the concerns of its ...

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