The Role and Impact of Artificial Intelligence on Business Strategy and Workforce Management

This report explores the impact of artificial intelligence on business strategy and workforce management. It discusses competitive strategy models, HR theories, and the importance of talent acquisition, learning and development, and change management. The report concludes that AI has improved the efficiency and effectiveness of large organizations, but poses a threat to smaller ones. It also highlights the importance of adapting to the competitive global market.

MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Artificial intelligence has changed the human intelligence in machines all the labour
intensive techniques have changed into capital extensive techniques due to less time and less
cost. Many large organisations are using artificial intelligence at the time of covid-19 so that it
can remain competitive in the present world with less timing and cost of producing the products
and services (Zhang, C. and Lu, Y., 2021). This intelligence and methods also became threat to
the organisations which cannot afford these types of techniques and opportunities for many who
can afford its cost. This report will include using various competitive strategies models and HR
theory and critically evaluation the role and impact of Artificial intelligence on the overall
business strategy and the management of workforces in organisations within a global
organisations. Further, discussing the importance of talent acquisition, learning and development,
and change management in the current global competitive climate.
MAIN BODY
Artificial intelligence
This intelligence is increasing nowadays on very fast rate due to increasing competitions
and need of earning huge profits in the short run. This artificial intelligence plays a key role in
management because it gathers data which is based on facts and figure not according to human
assumptions and gut feelings (Kharub, 2018). Various organisations like TESCO, IKEA, Premier
Inn etc uses this technology for gathering various data or facts and figures to perform its task and
human resource functions. Due to covid-19 various pandemic has gave the importance of Tech
acceleration and increase the information technology systems to speed up the work and reduce
the time and cost of the firm (Tintara, 2020). Various other organisations uses different
competitive models and strategy for increasing its performances and competitions.
Competitive strategy model
Cost leadership strategy is used by company TESCO for decreasing the cost of overall
production and services or increasing the profits through competitive advantages. This technique
is effective for large organisations who is doing its business in large scale or in large products
with less cost or quality products (Kareem, 2019). TESCO is using this strategy with the help of

artificial intelligence in which the technology or computers gathers all information at 100 %
accuracy that a human mind cannot and saves all the cost of employing the persons for doing this
work. Human beings can only do the work at some appropriate limits and time in a day and using
artificial intelligence has no limits of working. So this strategy is used by this company to reduce
the overall cost of production with quality products (Hale, and et.al, 2019).
Another strategy which is used by many company like IKEA is using product
Differentiation strategy in which it involves development of unique products which are
attractive and increases the demand for the products to earn more profits (Cui, Y., 2021). Product
differentiation is used by IKEA for producing different kinds of products and services to increase
the price of its products to earn more margins.
Focus strategy is used by the company The Premier Inn developing and marketing the
products to a target market or focusing on increasing the sales with the help of various marketing
style using artificial intelligence like technologies used example online marketing, advertising on
social medias etc to increase the new customers. The focus strategy used by this hotel to have
complete focus on increasing the demand of its products and services through technical ways in
niche market (Albert, E.T., 2019).
Human resource model or theory
The company TESCO is using various theories of human resources like Maslow’s
hierarchy of needs in which all the human needs of the employees from top to bottom is
determined and fulfilled so that they work with motivation and with full efforts. This theory is all
about fulfilling the basic to higher level needs Tesco is providing all the Physiological level
needs like basic wages and salaries or Safety needs like insurances or various financial facilities
to the employees. Also fulfilling their Social needs like creating an environment in which can
communicate with each other or share their ideas and thoughts (Darling-Hammond, and
et.al.,2020). Self esteem needs like rewarding the employees on good performances etc and
lastly the Self actualisation needs This are the higher level needs of an employee to achieve its
dreams and positions in an organisations.
Another Human resource model which used by company IKEA is AMO theory in which
The managers and leaders categorise the three main components and working on them like
helping in increasing the Ability of each employees to the fullest by giving them the task in
which it has full knowledge and experience. Then the leaders are Motivating the employees to

the fullest by providing various opportunities and encouraging them by rewarding and
recognitions so that they work with full efficiency. The managers are providing all the
Opportunities to its employees so that they work with full efforts to achieve them.
Artificial intelligence helps in overall business strategy by reducing the cost of
production and helping the company to use capital intensive method to avoid all the labour
intensive techniques like recruitment, selection and training cost. This increasing use of
technology has reduced the use of human resources in many ways. Artificial intelligence helps in
increasing the productivity of the employees and reduces human errors, in develop new
inventions etc. However this is a threat to many small business organisations due to low
investment and less availability of funds to buy new technologies and products.
Importance of talent acquisition, learning and development and change management in the
current global competitive climate
Talent acquisitions is important because hiring and finding right type of people or
skilled peoples for the job is important because skilled and experienced people will directly
affect the company’s future performances. In a current competitive market the due to more
availability of highly knowledge peoples are facing huge competitions due to lack of knowledge
(Kho, 2020). If a company select or hire people with less knowledge and experiences, it creates,
difficulties in making any decisions, poor productivity, dissatisfied staff etc and leads to
inefficiency in overall goals of an organisations. The company TESCO has very skilled and
experienced employees working across the world and this company is making huge profits due to
cooperation within the working environment of the employees.
Learning and development is important for every organisation who is doing its
businesses in the present world due to rapid competitions in the market. The employees who are
old and have limited knowledge the company need to provide all the training needs and
knowledge to its existing employees to gain the knowledge of different areas or to get perfect in
present areas. The company IKEA is investing its funds in learning and development in which
each employees is trained and the team is developing new skills of the employees that are needed
to perform different task of different departments for more efficiency in work. Due to increasing
use of new technologies and methods the need to trained its employees for learning new
techniques and methods to remain competitive in the present world or global environment. The
training and development program is undertaken by this company to develop new skills of the

employees or boost their morale for increasing the productivity, for reducing the employees
turnover and improving the cultural environment of the business.
Change management is crucial for every organisation because due to increasing
technologies or rapid growth of population and trending changes in taste of the consumer
preferences has made it compulsory to change the policies according to the needs of the
customers (Wu, T.Y. and et.al., 2019). The change is important everywhere to protect the
company from any uncertainty, reducing the cost, and helps to improve the profitability of the
business. For example if a company wants change its policies related to the product any change
in the price or packaging, any ingredient then the company has to change all the things to make
its products more attractive and demanded in the market by the customer. Any new change if
introduced need to be firts communicated with employees so that they cannot resist the change
and team before implementing must have concerned with everyone in the company for more
creative ideas and thoughts. The changes have to be made by the company due to competitive
global market for survival and change can be any thing that will improve the efficiency of the
organisations and increase the productivity of the firm.

CONCLUSION
From the above report it has been concluded that Artificial intelligence has improved many
large business organisations performances and increase their efficiency and effectiveness of
working. Where as it becomes threat to many small organisation due to small budgets and less
growth or capitals. Furthermore, it has been concluded that competitive strategy models are used
by various organisations for reducing the cost, increasing the profits and to be competitive in the
present world with new innovative products with latest technologies etc. It also has been
concluded that various Human resources models are used by the companies for increasing the
ability or motivating the employees with various theories. Lastly it has been concluded that
hiring peoples and making them learn and develop their skills or changing company’s policies
for competitive global environment.

REFERENCES
Books and journals
Zhang, C. and Lu, Y., 2021. Study on artificial intelligence: The state of the art and future
prospects. Journal of Industrial Information Integration, 23, p.100224.
Kharub, M., Mor, R.S. and Sharma, R., 2018. The relationship between cost leadership
competitive strategy and firm performance: A mediating role of quality
management. Journal of Manufacturing Technology Management.
Tintara, I.D.G.W. and Respati, N.N., 2020. The Effect of Product Differentiation, Service
Differentiation, and Image Differentiation on Competitive Advantage. Am. J. Humanit.
Soc. Sci. Res, 4, pp.316-321.
Kareem, H.H., Dehham, S.H. and Al-Wahid, M.A., 2019. The impact of teaching the creative
writing by FOCUS strategy to develop. Indian Journal of Public Health, 10(6).
Hale, and et.al, 2019. Adapting Maslow's hierarchy of needs as a framework for resident
wellness. Teaching and learning in medicine, 31(1), pp.109-118.
Cui, Y. and Yu, G., 2021. A cross-level examination of team-directed empowering leadership
and subordinates' innovative performance: an AMO theory perspective. International
Journal of Manpower.
Albert, E.T., 2019. AI in talent acquisition: a review of AI-applications used in recruitment and
selection. Strategic HR Review.
Darling-Hammond, and et.al.,2020. Implications for educational practice of the science of
learning and development. Applied Developmental Science, 24(2), pp.97-140.
Kho, J., Gillespie, N. and Martin-Khan, M., 2020. A systematic scoping review of change
management practices used for telemedicine service implementations. BMC health
services research, 20(1), pp.1-16.
Wu, T.Y. and et.al., 2019, December. Sub-nA low-current HZO ferroelectric tunnel junction for
high-performance and accurate deep learning acceleration. In 2019 IEEE International
Electron Devices Meeting (IEDM) (pp. 6-3). IEEE.
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