LSC UoS BA: AI in McDonald's - Contemporary Management Issues Case

This case study examines the adoption of Artificial Intelligence (AI) by McDonald's and its effects on various aspects of contemporary management. It highlights how AI is used to automate business processes, gain customer insights, and improve employee engagement. Specifically, the case study discusses McDonald's investment in Dynamic Yield, an AI software that personalizes customer experiences and optimizes supply chains. The advantages of AI include improved inventory management, personalized menu offerings, and efficient order processing. However, the study also addresses the disadvantages, such as high implementation costs, potential for reduced creativity, risk of unemployment due to automation, and ethical considerations. The case study further explores how McDonald's uses AI in recruitment through partnerships with companies like Textio, streamlining the hiring process and attracting skilled employees. Ultimately, the analysis concludes that AI helps McDonald's achieve its targets by modernizing processes and fostering growth, despite the challenges it presents. Desklib provides students with access to this case study and many other resources to support their academic journey.

Contemporary
management issues

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
INTRODUCTION
AI is the ability of the machine to make the business capable enough for the technologies
to be able to support the three important business needs. Hence, it can be said as the factor that is

very important for the business needs for the automation of the business process, gaining insights
towards the ways in which the customers can engage with the employees.
MAIN BODY
AI is mainly used as the ability for working by using the computers it enables the system to
operate in more independent and intelligently. By using the AI in business it helps in making
decision in easy and quick way. With using the AI in McDonald mainly helps in bringing the
supply and demand of the products. As it also personalize the supplying networks with creating
the new ways for managing the inventory and promoting the key products served by the
McDonald's. by investing into the dynamic yield by the McDonald, it mainly impacts the overall
Strattera of the company and velocity growth plan being introduced. This software helps in
digitalising and integrating the services for the consumers. Further more, as By investing into the
AI assist in providing the immediate recommendations with one on one messaging and managing
consumer data. By spending into the dynamic yield mainly helps in data driving the organisation
with providing the opportunity which enhances the consumers experiences (Zhang and Patrick,
2021). The dynamic yield is the advanced AI software as With investing into this mainly helps in
providing the personalisations to the consumers with using different digital channels. AI in the
McDonald's mainly helps in upscaling the processes and helps in managing the inventory by
avoiding the running out of the products with limiting the delivery timings.
Further more, with adopting the AI in the company mainly promotes the growth with
promoting the vector plan for growth in the company (McDonald's Is Using AI and Data to
Optimize Its Supply Chain, 2022). When the AI used and adopted for the menu ranges and the
inventory systems it helps in promoting and withdrawing the stock items. Further more, During
the global distributions and the suppliers of the company, the AI system mainly aid in suggesting
those products and items which helps in maximising the profits and satisfying the consumers by
making the best use of the available stock. The main advantages of using AI in the company
which helps in fostering the processes and its internal operations to serve the consumers with
best products.
While adapting AI, This helps in predicting the order in much more easy manner for
every day. Also, it helps in taking the order by using the automates drive thrus in the business
which aid in taking initiative for taking the orders on time. Further more, while predicting the
menu offerings assisted the company in driving their sales (Walker, 2020). More over, in order

to process and foster the production, with adopting this system helps in deriving the ability to
control and centralise the personalized recommendations and the supply chain in the real time.
Also, investing into the AI and adapting technology due to fast moving technology it support the
company which it helps in analysing the demand of the items at different stores of the company
which results in managing the stock level. While the company uses the machine earning decision
based technology mainly helps in offering the products and suggesting the items which are more
popular to the consumers.
From the above analysis it was found that the business can have various forms of benefits
that help it to gain success. However, there are certain aspects of AI that is disadvantageous for
the growth of the organization. The business has been considered to focus a lot on the costs
aspect of the technologies that it implements (Mishra and Tripathi, 2021). Therefore, the AI has
to be considered as the costliest technology that it can implement for its operations. Due to the
use of AI there is a influence of lack of creativity in the organization that influences the results
and brings negativity to the growth of the organization. Being creative makes the business more
innovating and gives them the growth that they are looking forward to. It means that the business
can achieve the results very effectively and quicker than expected. Due to the increase in the use
of AI the business has been facing the issue of unemployment that is the result of the automatic
feature of the AI technology (Rana and et.al., 2022). Hence it has to be said that the claim of
using AI for the productivity can be the lack of employment for the society. In an organization
the utilization can AI might be the reason for the loss of ethics and understanding in the
organization. This means that the AI is a machine hence even after being so effective and
productive it is not going to be able to achieve the success that is required.
There are emotions attached to the feelings of the decision making of the humans which
is sometimes considered to be very effective for the organization to be able to achieve the results.
Meanwhile the AI software is lacking in the productivity and the ways in which it is going to be
able to manage the work and also be able to achieve the success for the organization and their
management of the operations (Sjödin and et.al., 2021). Therefore, the understanding of the
humans has been said to be dependent on the practices that help them to be achievable for the
understanding of the operational effectiveness (Mishra and Tripathi, 2021). AI is not at all
capable of being able to achieve the success as per the requirements for the business to be able to
achieve and carry out the actions that are required to be able to achieve the success. Being able to

improve the practices is said to the reason for being able to achieve the practices to be able to
provide the uselessness for the results. The significance of the negative impacts is said to be the
reason for the development for the growth of the operations.
With adopting the AI in the business it mainly impacts in managing the workforce with
the drastic changes in the environment, also by in securing the employees with arising the job
risk for the companies while operating in the dynamic environment. With the rise in the use of
AI mainly impacts the jobs of the individuals due to the shorter time scale and the changing
events (Sipior, 2020). With using the AI it helps in removing the unconscious and biased hiring
of the employees in the workplace, but aid in ensuring to give the appropriate safety and benefits
to the employees with scanning and using the intelligent technology.
The using the AI in the workplace mainly helps in increasing the level of productivity,
increasing the importance of skilled jobs with specialising the job roles. This intends in solving
the problem with growing and gaining the set targets by employing the skilled and requirements.
For instance in the McDonald it mainly uses the AI and partnered with the textio. It is mainly an
augmented writing platform and the software which helps in streamlining the recruitment and
hiring process in the company as by posting the job language and helps in crafting the gender
neutral jobs on the app and using the brand language. With using this for every year the company
Is receiving 20 million applicants but hiring the 2 million which are skilled and competent
employees for the company as to gain the set targets on time (Gil and et.al., 2020). Also by using
this technology mainly helps in hiring fast and ensures for reaching the top talented personnels.
Thus, the main goal of the company is to hire and make happy to all the employees by
attracting the global talent in the workplace. By using this augmented platform ensures in
attracting most qualified and diversified individuals for working in the company. As the textio
collects the hiring data and crafts the job listings (Tarafdar, Beath and Ross, 2019). This
partnership for the company mainly helps in quick hiring and selecting the employees to attain
the set objectives. Also by using this technology mainly helps in building the unique culture in
the different languages being used by the company as for hiring the competent and skilled
personnels.
CONCLUSION
From the above analysation it can be concluded that using the AI with the fast changing
technical environment mainly helps McDonald's to attain the set targets by employing the

competent and the skilled workforces in the company. By adapting this emerging technology
mainly helps the company to hire the competent and skilled employees with giving the number
of jobs to attain success in the future. As by partnering with the textio mainly helps in collecting
wide range of data of the competent personnels for hiring in the company to attain the set targets
by modernising and fostering the selection and recruitment process.

REFERENCES
Books and Journals
Walker, C., 2020. AI Agents in Federal Agencies. Jotwell: J. Things We Like. p.1.
Zhang, Z. and Patrick, V.M., 2021. Mickey D’s Has More Street Cred Than McDonald’s:
Consumer Brand Nickname Use Signals Information Authenticity. Journal of
Marketing. 85(5). pp.58-73.
Rana, N.P., and et.al., 2022. Understanding dark side of artificial intelligence (AI) integrated
business analytics: assessing firm’s operational inefficiency and
competitiveness. European Journal of Information Systems. 31(3). pp.364-387.
Sjödin, D., and et.al., 2021. How AI capabilities enable business model innovation: Scaling AI
through co-evolutionary processes and feedback loops. Journal of Business
Research. 134. pp.574-587.
Mishra, S. and Tripathi, A.R., 2021. AI business model: an integrative business
approach. Journal of Innovation and Entrepreneurship. 10(1). pp.1-21.
Gil, D and et.al., 2020. AI for management: An overview. The future of management in an AI
world, pp.3-19.
Tarafdar, M., Beath, C.M. and Ross, J.W., 2019. Using AI to enhance business operations. MIT
Sloan Management Review, 60(4), pp.37-44.
Sipior, J. C., 2020. Considerations for development and use of AI in response to COVID-
19. International Journal of Information Management, 55, p.102170.
Mishra, S. and Tripathi, A. R., 2021. AI business model: an integrative business
approach. Journal of Innovation and Entrepreneurship, 10(1), pp.1-21.
Online
McDonald's Is Using AI and Data to Optimize Its Supply Chain.2022.[Online]. Available
through:<https://supplychainnext.wbresearch.com/blog/mcdonalds-ai-data-optimize-supply-
chain>