Contemporary Management Issues in the 21st Century: Impact of Artificial Intelligence on Business Strategy and Human Resource Management

This report discusses the importance of artificial intelligence in business, its impact on strategy making, and its role in creating an efficient and profitable workforce. It examines the benefits of AI in the fast-food industry, particularly in the case of McDonald's, and its impact on human resource management. The report also provides recommendations for companies looking to implement AI in their operations.

Contemporary
Management Issues
in the 21st Century

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Four building blocks-.............................................................................................................3
Artificial Intelligence and business strategy-.........................................................................4
Impact of AI on management of human resource-.................................................................5
Recommendation-..................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

Introduction
The involvement of technologies in carrying out the business activities is increasing
day by day. It is making numbers of unique and innovative changes in the operational and
departmental activities of the companies, by which a mode of ease has been noticed in
completing the whole task of the firm. Enormous technological advancement, it might be
related to the formation of new business policies or proposal to expand the market in the
global market (Schneider, and Leyer, 2019). The overall role of technology in any business
industry is linked up to the smooth functioning of business and this directly ensure the
success of the firm. This given report is based on the importance of artificial intelligence in
the business, by presenting the different ways by which it can affect the strategy making
process of the company. It will also illustrate the role of AI in setting up the efficient and
profitable workforce within the firm.
Main Body
In a business institution the decision regarding practicing the different sort of works
and duties with the help of machines or technical tools helps in evolving the necessity of
artificial intelligence. It is beneficial for business firm in distinct way as it brings the true and
relevant insight of the external environment in which a company is operating. The main
objective with which company install the technology of artificial intelligence as it allows in
saving the time and money by eliminating its wastage in some unproductive activities. It
further helps in making the decision-making activity fast and useful by availing the right
opportunities for the growth of the organization. McDonald’s is a fast-food chain which is
operating successfully in different parts of the world. The management of the company wants
to expand the working structure of the business by implementing the artificial intelligence in
its restaurants. This because company has assumed that by this change there is a possibility to
make the fast-food chain more effective in the industry. For this company is evaluating the
certain points which may get influenced by this proposal.
Four building blocks-
 Conceding- It explains the idea where company try to build the such policies for their
competitors through which risk for the business lowers. McDonald’s is not making
such framework of the working where the company have to follow the changes of
their rivals in the industry (Naqvi, 2020).
 Confrontation- In this an organization prepare itself to take all the challenges in the
market and mold its functions as per the requirement of dynamic environment. In case

of need, it has been seen that company try to deal with its competition by offering
new and creative food products to their consumers.
 Competition- This implies the practice of analyzing the all aspects which could help
the company in conquering the global market. In food industry, wide range of
competition is present and for this McDonald’s has brought required changes in its
strategic planning (Trivedi, and Patel, 2020).
 Cooperation- When a company decides to align its overall activities with the
components which are revolving in the outer environment, then it reduces the
confusion in the operations. Company’s main aim is to related well with all the factors
which could not be controlled by the authority.
Artificial Intelligence and business strategy-
This new technology helps the company is collecting all the required information
which could be helpful in making different work phases and identify the areas which needs to
be changes so as to make them more profitable. With the help of Artificial Intelligence,
McDonald’s is able to reach the mass section of consumer data that supports in finding out
the right solution for the growth and prosperity of the business in the long term. Moreover,
the management of McDonald’s is using digital tactic to form a better supply chain
management with which company can avail all the information in respect to the availability
of resources and raw materials in the manufacturing units (Malik, Srikanth, and Budhwar,
2020). It assists the company to look out over the key substance which is necessary for taking
place the all needed activities of the restaurants. The involvement of artificial intelligence in
the functioning of McDonald’s decreases the risk of losing important documents, as it can be
kept safe by taking the help of advance technology and its upgradation in the firm. In addition
to this, it also allows the company to tackle the internal complexities and provides a best fit
solution for the same. So, AI is helping the company in procuring the numerous ways to solve
the current issues which are disturbing the activities of the firm. The safety of the data is done
with the implementation of artificial intelligence technology in McDonald’s effectively,
because it could be difficult for the company to go for an expert for this purpose. Lastly the
most useful thing which AI serve in the food chain company is that it entails the management
about the establishment of good relation with customers of the company. This technology
will give detailed regarding the preferences and tastes of the consumers and this allows the
management to take the required action so that these changes will have the least impact over
the profitability of the company.

Impact of AI on management of human resource-
During COVID when there is unavailability of workforce in the business industry
then world met with the idea of AI technology which could be easily used in place of
physical labor. So, will the implementation of artificial intelligence in the business firm can
led the economy towards the mass unemployment? The answer will be no because there are
certain places of working where there is physical workforce needed, but AI technology has
successful takeover this position. On the other side, it also gives a rise to the new job
opportunities for the youth, as a professional and expert is needed while implementing such
practices in the business firm. This will lead to good knowledge and awareness of the
individuals about the new opportunities which are prevailing in the external environment and
take them toward the diversified career choices and supports in their betterment. McDonald’s
is now focusing on hiring such people for their business who proficient and have complete
understanding about the operations of these techniques. It will boost up the presence of
skilled and technological advanced employees in the firm who must have all the potential to
deal well with all the customers and improve their experience with the business (Kong, Hou,
and Sun, 2020). By utilization of AI in McDonald’s now there is not such thing which could
encourage biasness in hiring the personnel for the certain position in the firm. McDonald’s
also taking the action to bring the augmented reality in its restaurants, which will help in
providing the inner sight of the restaurants to all the consumers. This is the right technique to
attract the mass audience for the business and offer them good services. With this company is
moving towards the overall objective of the firm and make it achievable by their efficient
plan of actions.
Recommendation-
The primary thing which needs to be considered by McDonald’s is the amount of
investment which could be done by the management while involving the artificial
intelligence. It is because this particular technology requires a sufficient budget for its proper
occurrence in the business industry. Next, company must consider this technology to find out
the root causes which are restricting the firm to perform in the given market. By a detailed
analysis about the issues and complexities which are facing by the company, management
can clear mention the right use of the artificial intelligence for the firm. A good use computer
machinery will support in making the business operations more effective and attached
towards the current realities which are prevailing in the firm. Company can also implement
the use of system which will help in providing the recommendation to other individual by the
regular customer of the company. With this technique it will become easy for the

McDonald’s to examine about the loyalty of the customers towards the business. By
following all such advanced tactics of artificial intelligence model, company will define its
long-term vision and formulate the path that will guide the firm in achieving this (Kim, and
Kim, 2022).
Conclusion
The above given report went into a detailed discussion which is about the evolving
use of new advanced technology such artificial intelligence in the firm. Such technology open
new ways for the company in order to deal the issues and confusion which in going inside the
business management. It explains the advantages of artificial intelligence for the two main
departments of the company which are strategical and human resources. By this it has been
observed that these sectors of business require some theories and beliefs which move further
in number of stages to give the suitable option for the better working. Furthermore, it depicts
about the impact of the artificial intelligence in making the right piece of strategy that will
suits to the organisational objective. It has also mentioned the changes which could be
observed in the employee’s framework after the consideration artificial intelligence in the
company.

References
Books and journals-
Kim, T. and Kim, W., 2022. How does competition in the development of artificial
intelligence affect a firm’s technology search strategy? Evidence from the US
pharmaceutical industry. Applied Economics Letters, pp.1-5.
Kong, Y., Hou, Y. and Sun, S., 2020, July. The Adoption of Artificial Intelligence in the E-
Commerce Trade of Healthcare Industry. In International Conference on Digital
Health and Medical Analytics (pp. 75-88). Springer, Singapore.
Malik, A., Srikanth, N.R. and Budhwar, P., 2020. Digitization, artificial intelligence (AI) and
HRM (pp. 88-111). London: Sage.
Naqvi, A., 2020. Artificial intelligence for audit, forensic accounting, and valuation: a
strategic perspective. John Wiley & Sons.
Schneider, S. and Leyer, M., 2019. Me or information technology? Adoption of artificial
intelligence in the delegation of personal strategic decisions. Managerial and
Decision Economics, 40(3), pp.223-231.
Trivedi, S. and Patel, N., 2020. The Role of Automation and Artificial Intelligence in
Increasing the Sales Volume: Evidence from M, S, and, MM
Regressions. International Journal of Contemporary Financial Issues, 3(2), pp.1-19.