Many companies target outperforming others with regard to marketing of their products (Rivera, 2013: 59). Hyundai and McDonald’s are not exceptional. It is important to note that the two companies have emerged as best in their respective industries. In addition, they are multinational companies. However, they have managed to outperform others due to their strategic approaches that they utilize in advertising (Vargas, 2013: 59).
In addition, the two organizations have objectives and goals that focus on satisfying customers’ needs because they believe that they are key to increasing competitive advantage in the competitive business world. The strategic approaches help the two companies to evaluate their strengths and weaknesses with the aim of outperforming others (Rangan & Sengul, 2009: 230). Arguably, the two companies face stiff competition from their rivals who produce similar products. This implies that there is a need for them to continue improving and change their culture to retain and attract many customers (Rangan & Sengul, 2009: 230).
One of the major differences is found in the products they deal with. Notably, McDonald’s deals with food restaurants while Hyundai deals with motor vehicles (Jurevicius, 2013). Another difference is witnessed whereby Hyundai has a rigid corporate culture and a hierarchy of seniority being at risk of reacting to external threats slowly. Notably, it has a centralized power structure and authority is not delegate within the company (Jurevicius, 2013). This is contrary to McDonald’s, which has a decentralized for of structure typified by flexible cultures, and the duties are delegated within the organization. Hyundai formalizes its activities because of its centralized structure while in McDonald’s there is no formalization of the activities due to its decentralized powers (Jurevicius, 2013).
Moreover, Hyundai is characterized by higher cost structure compared with McDonald’s. The food restaurants company have strong and powerful brands of high-quality that attracts many consumers. On the other hand, Hyundai has brands that vary in quality, which are sold in different markets, challenging the customers while choosing them. Additionally, Hyundai employs divisional structures while McDonald’s utilizes functional structures. Thus, it is important to state that the organizational structure is vital to increasing performance outcomes in all organizations. This is because it guides the objectives and goals of the companies.