McDonalds and Domino’s are the largest restaurant chains that aim to create exceptional dishes for people. Both chains belong to the fast food category, but each of them has its own specifics. Companies have various similarities and differences that are reflected not only in the organizational culture but also in the structure of the management of companies. The purpose of this essay is to trace the similarities and differences between top management in the reflection of financial and non-financial data.
Non-Financial Data
McDonald’s top management consists of the president and CEO, as well as nine senior managers. Each of these nine managers is aimed at leading a particular aspect of the company’s activities. The average tenure of management personnel in the company is 1.9 years, but the current CEO of the company, Christopher J. Kempczinski, has been in office for more than three years (Raj & Singh, 2020). During this time, Kempczinski managed to significantly raise the value of the company’s shares, as well as prevent a drop in the company’s revenues during the pandemic caused by Covid-19. McDonald’s has a high turnover rate of about 44% (Dudovskiy, 2022). Undoubtedly, this indicator may vary from country to country, but still, in general, the company does not practice specific strategies for retaining experienced employees.
Domino’s top management differs from McDonald’s, which makes the company much more efficient. Domino’s has a chief executive officer, as well as a chairman, a CFO, and a non-executive director (Trainer, 2022). The peculiarity of the company’s top management is that it is divided into four committees, which makes it possible to work more efficiently and effectively to achieve the goals of the organization. There is no specific data on the frequency of management personnel changes in Domino’s, but in general, the company is inclined to change significant persons of top managers upon their retirement. In Domino’s, there is a low staff turnover, which is because the company has a well-thought-out motivation system, and the roles of employees are distributed.
The similarity between the two companies lies in the fact that they both have an extensive system of management personnel that consists not only of CEOs but also of other heads of departments. The difference is that McDonald’s staff turnover is higher than that of Domino’s. Another difference is that Dominos tries to keep experienced employees in their places with the help of various tools that are unavailable at McDonald’s.
Financial Data
Despite all the advantages of the Dominos management structure, its financial component differs significantly from McDonald’s indicators. Thus, the final income of McDonald’s for 2020 amounted to $ 19,208 million, which is reflected in their annual report (McDonald’s Annual Report). This significantly exceeds the revenues of Domino’s company, whose revenues are also reflected in the annual report and for 2020 amount to only $ 4,117 million (Domino’s Annual Report).
Although Dominos’ incomes are significantly lower than McDonald’s, still, in comparison with the indicators of previous years, Dominos have increased their incomes, and McDonald’s incomes have fallen. Approximately similar are the revenues from franchise sales, which amount to $ 5,992 million for Dominos, and $ 5,261 million for McDonald’s (Domino’s Annual Report; McDonald’s Annual Report). In financial terms, the companies have almost no similarities since they are engaged in selling different types of products.
Although McDonald’s has been on the market for a longer time, it should still be noted that the structure of its management apparatus of Dominos is much more competitive and successful. This structure is more valuable because the company does not just have several managers who have specific goals and objectives, it divides managers into four groups, each of which is managed by one manager. In addition, other managers whose responsibilities are conveniently divided are part of the top management. In addition, the company Dominos has motivation for employees and does not set the duration of their work. This is a significant advantage over the more complex and less understandable structure of McDonald’s work.
References
Domino’s Annual Report. Web.
Dudovskiy, J. (2022). McDonald’s Leadership: A brief overview. Business Research Methodology. Web.
McDonald’s Annual Report. Web.
Raj, S. K. & Singh, N. K. (2020). Strategizing of fast food industries using a balanced scorecard approach: A case study of McDonald’s Corporation. International Journal of Humanities, Arts and Social Sciences, 6(6), 258-273. Web.
Trainer, D. (2022). Domino’s Pizza: Delivering a superior business model. Forbes. Web.