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The main differences I am going to look at are the management styles related to each of the companies.

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Introduction

Introduction This report is looking at the key differences between the two companies that I have been independently researching. The main differences I am going to look at are the management styles related to each of the companies. It also looks at the different structures within the company such as the hierarchy of the company and the range of managers. Ethics is also going to be a key difference between the following companies as they have very separate ideas of what are good/bad behaviors for a business. Both companies are worldwide and well-recognized businesses with thousands of employees and multimillion-dollar profits. Company X In 1975, two teenage friends formed a company. It sold a form of computer language for a self-assembly kit computer based upon Intel processors. The friends were Bill Gates and Paul Allen, they named the company Microsoft. Revenues and profits rose dramatically in the early years. Windows 95 was what really put Microsoft on the map as they started to make billions of dollars in profit each year. Now Microsoft is one of the most profitable companies in the world and Bill Gates is the wealthiest man in the world! Microsoft is now installed in nearly all computers around the world; personally I have never been on a computer that isn't being run by Windows. That gives you an idea about how big Microsoft really is. ...read more.

Middle

Another problem is that they reduce the opportunities for promotion making staff much less motivated than they could be. The reason a flat hierarchy for Microsoft is due to the fact that they keep everything on the small side. This works well because although they have a very large headquarters with a large flat hierarchy, outside of this there is not really anything that contains a need for a the hierarchy So because it is flatter this means there is greater communication, which is a lot more efficient. The disadvantage of the flat structure is sometimes one worker could be in command of over 20 workers. This is hard to keep discipline and hard work amongst the workers. Regular meetings will have to be called to make sure all the workers know precisely what they are doing and achieve it at a respectful rate. Management Styles There are two main management styles these are what McGregor believes, theory x and theory y management. But aside from these there are four management styles that fit into those 2 and are adopted by people and companies around the world. These are autocratic, democratic, paternalistic and laissez-faire management. Microsoft and McDonalds both show different types or management styles. At McDonalds there is only really one type on management and that's a theory x. So the managers are generally autocratic, this means people get told what they have to do rather than asked or have a choice. ...read more.

Conclusion

Both McDonalds and Microsoft have to cover the ethics that are in the law such as the human rights act (2000) because they have to. An ethical business would go further than they have to. Microsoft from research has proved to be an ethical business it not only looks after its employee's really well but thinks about the needs for people when they make their products. They do everything by the book from looking at there website. McDonalds also looks like a ethical business although it doesn't look after its employees as well as Microsoft does, it doesn't seem to exploit them like other companies do. A lot of people in the USA have complained that eating McDonalds makes them fat but they can't really use this as an excuse. Because they have control of there own bodies and McDonalds isn't acting in an unethical manor to make them eat their food. Conclusion This report has looked at three aspects of Microsoft and McDonalds and compared them against each other. From this it has shown differences and similarities in its results. There seem to be more differences between the companies than similarities although from what can be seen there will not be many companies that act similar to Microsoft. Its seems to me that Microsoft stands alone as a mega company. McDonalds is worldwide but Microsoft will be used in nearly every computer system in the world and have even brought out their own console that is doing very well. ...read more.

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