Corporate Strategy and Governance

This report examines the corporate governance issues faced by McDonald's in the UK, focusing on worker strikes related to pay and zero-hour contracts. It analyzes the importance of corporate strategy and governance, explores the impact of these issues on the organization's reputation, and provides recommendations for improving corporate governance practices and employee relations.

Corporate Strategy and
Governance

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Study..............................................................................................................1
Problem Statement .................................................................................................................2
Research Methods..................................................................................................................3
Timescale and Activities........................................................................................................3
LITERATURE REVIEW................................................................................................................4
DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH UNDERTAKEN..........8
REVIEW OF THE RESULT .......................................................................................................11
Primary research...................................................................................................................11
Secondary Research .............................................................................................................22
REFERENCES..............................................................................................................................24
Appendix 1 ....................................................................................................................................25

INTRODUCTION
Corporate governance refers to the system of rules, practices and processes by which an
organisation is directed and controlled (Kraakman and Hansmann, 2017). Corporate governance
essentially involves balancing the interests of a company's many stakeholders such as
shareholders, management, customers, suppliers, financiers, government and the community.
Not complying with policies and regulations might tarnish the reputation of organisation and
negatively affect the growth. In this context, focus of present report would be on analysing the
corporate governance issue faced by McDonald's while operating in United Kingdom.
According to Jones (2017), McDonald’s face strike for first time in the UK as workers
take actions over pay and zero-hour contracts. An extensive research will be carried out in study
in order to get insights of the issue. Corporate strategy and governance will be comprehended by
conducting literature review. To enhance the effectiveness of research, both primary and
secondary data analysis will be made in this report. Eventually, some of the best
recommendations will be given to the management of McDonald's so that they can eliminate the
issue permanently. Action plan will be formulated for the management which will help them in
implementing the recommendations effectively and efficiently.
Background of Study
Governance refers to the establishment of policies and continuous monitoring of their
proper implementation by the members of the governing body of an organisation. It includes the
mechanisms required to balance the power of the members (with associated accountability) and
their primary duty is of enhancing the prosperity and viability of the organisation (Tricker and
Tricker, 2015). Since corporate governance also provides framework for attaining company's
objectives, it encompasses practically in every sphere of management, from action plans and
internal controls to performance measurement and corporate disclosure. McDonald's is the
world’s largest American restaurant chain organisations in terms of revenue. It serves
approximately 69 million of customers in more than 100 countries every day (McCahery,
Sautner and Starks, 2016).
In 2017, the management faced corporate governance issues in United Kingdom
regarding over pay and zero hour contracts which leads to the disputes within the organisation.
The problem of McDonald's increases after workers stated the poor working conditions, drastic
1

cuts to employee hour and even bullying at work place to the media. Corporate governance and
strategy of the organisation tarnished badly. McDonald's has faced difficulties and issues
regarding redesigning of corporate governance strategies (Dias, Rodrigues and Craig, 2017).
Problem Statement
McDonald's in the United Kingdom faced issues regarding corporate governance and
policies which lead to the dispute among workers that eventually tarnished the reputation of the
organisation. Poor working conditions, bullying at workplace, drastic cuts in employee hour,
demand of zero hour contract and over pay were some of the issues that were discovered in the
United Kingdom(Yermack and et.al., 2017). Corporate governance is an important part of the
organisation and in order enhance the effectiveness and harmony within the company, it is
essential to formulate robust policies and regulations. The issue ignited when workers begun
strike. Ian Hodson, president of the Bakers Food and Allied Workers Union, called strike for
over pay and zero hour contract for workers working in McDonald's. In this context, report will
focus on analysing the issue in depth. Comprehensive understanding will be developed through
analysing reviews of other authors and senior researchers regarding the issue.
Literature review
According to Arora and Sharma, (2016) corporate governance refers to the way a
corporation is governed. It is the technique by which companies are directed and managed. In
order to enhance the effectiveness and positive corporate culture within the organisation, it is
essential and equally important for the organisation for developing robust corporate governance
within the company. Mishra and Mohanty, (2014) said that effective corporate governance
ensures the corporate success and economic growth. Strong corporate governance maintains
investor's confidence as a result of which company can raise capital efficiently and effectively.
Good corporate governance lowers capital cost of the organisation.
Berger, Imbierowicz and Rauch, (2016) elucidated that corporate governance can put a
positive impact on the share price of the company and it ensures that organisation is management
in a manner that fits the best interest of all. In order to sustain in the competitive environment, it
is essential and vitally important for the management of business organisation to have robust,
effective and efficient corporate governance and strategies. Larcker and Tayan, (2015) said that
the motive of corporate governance is to develop positive corporate culture within the
organisation. It is formulate so that employees and workers work in sincerely and in discipline
2

within the organisation. Corporate strategies are the strategies developed and formulated by the
organisations in order to gain competitive advantages. To eliminate the obstructions in steady
growth and obliterate the barriers for developing positive corporate culture, board of directors
and top management devise precise strategies that enhance the effectiveness within the
organisation (Anginer and et.al., 2018).
Research Methods
In order to carry out the research, appropriate methods will be selected. In this context,
the selected methods for research is described as below:
Research Strategy: Research strategy are the plans which help researcher in carry out research in
a precise and efficient manner. Both quantitative and qualitative method will be used in order to
carry out the research study.
Data Collection: Data collection is considered to be the most crucial part of research study.
There are two sources from where researcher can gather data which are primary and secondary.
In the present report, data will be collected from both; primary and secondary sources.
Data Analysis: Data analysis is the process of transforming raw data into meaningful
information. In the present study, thematic analysis will be used in order to analyse both;
qualitative and quantitative data.
Timescale and Activities
Task / Duration in week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Selection of topic
Developing the project
Preparing aim and objectives
Carrying out literature review
Developing research
methodology
Conducting primary research
Analysis of data
Evaluation of data
Conclusion and
3

recommendations
Draft submission
Final submission to tutor
LITERATURE REVIEW
Corporate Governance
According to Kraakman and Hansmann, (2017) corporate governance consists of rules,
practices and procedures established by the organisation which helps them in maintaining
discipline and prosperous environment within organisation. To enhance the brand reputation and
goodwill among competitors, it becomes rudimentary for business firms to establish robust
corporate frameworks, rules and regulations which are strictly and mandatory for employees to
follow. Tricker and Tricker, (2015) elucidated that in the present global business scenario, not
only large corporations but also medium sized companies must have effective board which
monitors and supervises the policies and procedures of the organisation frequently so that
organisation could be able to sustain in the competitive environment. The motive of establishing
corporate governance is to balance the interests of stakeholders who are directly or indirectly
associated with the organisation. McCahery, Sautner and Starks, (2016) said that stakeholders
involve shareholders, employees, staff, customers, suppliers, government, benefactors, society
and investors. Since corporate governance also provides framework for attaining objectives of
organisations, it also encompasses practically every sphere of management i.e. from action plans
and internal controls to performance management and corporate disclosure.
Arora and Sharma, (2016) connotes that corporate governance is an essential body of
organisation which governs the internal control through rules and regulations so that organisation
can attain its desire goals and targets in a harmonious manner. Board of Directors of organisation
are primary stakeholders of company which majorly influence the corporate governance.
Directors are elected by shareholders or appointed by other board members and they represent
the shareholders of company. The board is tasked with making important decisions such as
corporate officer appointments, executive compensation and dividend policy. Mishra and
Mohanty, (2014) argued that organisations who possess unstable board structure face difficulties
in sustaining in the marketplace. The doubt on reliability, integrity and obligation to shareholders
4

can be doubted due to bad corporate governance. Tolerating or underpinning in illegal activities
could create scandals.
For instance: Volkswagen AG in 2015 caught in scandal where the firm had rigged
engine emission tests in America and Europe. Berger, Imbierowicz and Rauch, (2016) said that
good corporate governance ultimately raises the brand value and image in front of its
shareholders and stakeholders. If company functions smoothly and legally, confidence of
investors enhance and they eventually increase their investment. Larcker and Tayan, (2015) said
that efficient governance within organisation establishes a clear set of rules and controls in which
stakeholders, directors and officers have aligned incentives. In the present era, to achieve high
level of corporate governance, organisations are now making redundant efforts. Kraakman and
Hansmann, (2017) argued that to establish robust corporate governance, board of directors and
manager should work abreast. In this manner, they can construct good governance structure
which enhances the productivity and profitability of organisation.
According to Tricker and Tricker, (2015) corporate governance and corporate strategies
are integral part of the organisation. In order to achieve higher sustainability, management and
directors need to consider that both the governance and strategies are aligned with each other
precisely. This will help the management to accomplish their desired goals and objectives. In
order to earn higher profitability, firms often ignore the corporate governance and ethics and
formulate rigid policies which directly affect the employees. McCahery, Sautner and Starks,
(2016) proposed that outsourcing firms can be the example of bad corporate governance. Many
outsourcing firms tend to formulate rigid policies which are unethical and directly affects the
psychology of employees. They formulate ambiguous terms and conditions to trap employees.
Fresh graduates who have limited exposure to the corporate environment and policies trap inside.
This negatively put impact on the psychology of employees and thus, they tend to quit their job
in limited time period.
According to Arora and Sharma, (2016) corporate governance is essential for developing
and retaining confidence in public which tremor due to scandals and frauds in recent years. It is
important to revive confidence of investors for further growth and development of the
organisation. Mishra and Mohanty, (2014) elaborated that communication and transportation
from country to country has become efficient and easy due to globalisation. Multinational
organisations are now listed with international stock exchange which triggers the need of good
5

corporate governance. Berger, Imbierowicz and Rauch, (2016) elaborated that large
organisation’s investors are becoming challenge to the management of the company because they
are influencing the decision of the company.
The purpose of establishing rules, policies, procedures, terms and conditions is to
enhance the organisational compatibility. In present global competitive environment, new and
enhanced ventures are expanding very speedily which give stiff competition to existing ventures.
Thus, it is essential for management to focus on developing efficient and effective policies which
enhance retention, harmony and growth of the organisation.
Corporate Strategy
According to Larcker and Tayan, (2015) corporate strategy is hierarchically the highest
strategic plan of the organisation which defines the global goals and ways their achieving within
strategic management. Corporate strategies are part of organisational strategic management plan
which helps the management to gain competitive advantages within organisation. In order to
sustain in the competitive environment, it is essential and important for management to formulate
precise strategies and plans. Elmes and Barry (2017) said that corporate governance and
strategies are interrelated with each other. They are aligned by the management so that
organisation can work effectively and efficiently as well as drive towards growth and
development. Corporate strategy is radically different from all other types of strategies due to its
messiness and wide open boundaries.
Hickman and Silva (2018) stated that strategies in a business or organisation are
responsible for gaining competitive advantages in a particular market. This competitive
advantage further helps an organisation or business to sustain a leading position in the
marketplace among its competitors as well as to increase its sales and profit. The corporate or
business strategy helps in achieving organisational goals of a business by optimising various
functions performed by different departments in company. In order to increase effectiveness and
efficiency in these organisational functions, it is essential for management to analyse, develop
and implement the most effective strategies for their business. These strategies are developed for
each and every function or department of an organisation such as marketing, financial,
operations and human resources, etc. The corporate strategies are mainly developed in order to
achieve a higher position in market as compared to other competitors.
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According to Rees and Smith (2017) corporate strategy refers to the organisation's
processes, operations and ways in which its various functions or business activities can work
together to achieve a common objective or goal. According to Kageyama and Kosuga (2017)
corporate level strategy mainly deals with two major questions i.e. what businesses should the
organisation compete in and how headquarter should manage the wide range of business units.
The corporate strategy is an important element that combines various business units in a single
business or company. It is agreed by various studies that most effective use of corporate strategy
can be observed in the portfolio management of company. It is a procedure in which an
organisation creates their diversification through acquisitions. The major objective of an
organisation while implementing diversification is to add shareholder's value.
Laszlo and Cescau (2017) examined needs and wants of creating the global strategies
where firstly, the development of global strategy helps an organisation to be globally efficient. It
can be seen as a method to develop highly standardized goods and stay competitive in the market
such as McDonald and Coca-Cola. On the other hand, the development of global strategy will
also assist to create and spread innovations globally. The companies focus on spreading
innovation within every part of its business or functions so that it can remain competitive and
complete effectively with the rivals. Menz and Barnbeck (2017) stated that there are various
views among different authors or scholars as how to manage and control global strategies in a
diversified corporation. The is also identified that standardisation of products is beneficial for
effective strategy
According to Brewster and Hegewisch, (2017) products should be standardised in such a
way that it can be sold in various types of markets. It is also stated that mixture of different
actions or activities need to be taken for developing the competitive global strategy. On the other
hand, Rugman and Verbeke (2017) introduced portfolio management with many products
variable, in which the distribution and investment will be shared which leads to reduction of cost
and risks. Therefore, a company can easily achieve a high level of sales and profit in the market.
Comprising all the studies, it can be observed that corporate strategy defines the scope of an
organisation in terms of the markets and industries in which it operates or compete. The
decisions in this strategy consist of investment in diversification, acquisition, vertical integration
and new ventures as well as allocation of resources among various business units and
divestment.
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On the other hand, business strategy is differentiated by corporate strategy saying that it
is concerned with methods through which a business or organisation competes within a particular
market or industry. The term business strategy refers to plan of actions or activities developed in
order to reach at a specific aim or set of goals set by organisation. It is basically formulated with
regard to the concerning corporate strategy for company. It also reflects the strategies of the
overall organisation or business, it assists in informing and attracting investors about any new
products or ventures and convince them to invest in the organisation. Business strategy states
that if a business needs to be successful within an industry, it requires developing a competitive
advantage over its competitors or rivals. Therefore, this strategy is also known as competitive
strategy.
The above differences among both corporate and business strategy can be explained in
simple terms. The general question faced by an organisation is how do they make money? The
simple answer to this question corresponds to the basic strategic choices as where to compete
and how. In order to effectively react to these situations, most of the large organisations use
corporate as well as business strategies. The corporate strategy is generally the responsibility of
the top level management or team along with corporate staff. On the other hand, business
strategy is typically controlled and managed by divisional management in an organisation.
Corporate strategy can be called as the management plan developed or formulated by the
highest level of organisation department to operate and direct the whole company or business. It
adds value to the main plan or organisational strategy that helps an organisation to achieve its
goals and objectives. Therefore, more effectiveness in the degree of corporate strategy leads to
greater chances of business success. Corporate strategy is the major element of strategic planning
procedure. It determines company's growth objectives such as timing, direction, pace and extent
of organisation's development or growth. It highlights the functional patterns of business
activities and objectives with regard to strategic interest in various business units, product lines,
group of customers, etc. It also defines the way a business can start sustainable in the long run by
competing with its rivals.
DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH
UNDERTAKEN
There are various research elements and tools which are required in order to get the best
information about the topic or subject. There are different types of research methods which are
8

used to accomplish the research aims and objectives effectively. Research methodologies are the
concept which are used for determining the issues and methods to identify the problem with
regards to the topic of the study. The researcher has used various types of tools for collecting the
information in various areas of Corporate strategy and governance. The research methodologies
are described as below -
Research philosophy – The theory or philosophy helps in developing most significant design
which can be implemented or used by researcher for achieving key objectives of research study
effectively. It is very important to use a suitable instrument for getting most appropriate results
from the analysis. There are two main types of research philosophies, Positivism and
Interpretivism research philosophy. Positivism research philosophy is a plan which provides
suitable considerations of reliableness within the research study. This philosophy states that the
process should be separated and observation of the research must be repeatable. It often includes
manipulation of reality with variations within every single component for identifying regularities
as well as developing link among various elements within the society. Predictions can be made
with respect to observed and explained realities including the relationship among them. The
other research philosophy is Interpretivism, which states that reality and relevant information can
be determined only with the subjective analysis, interpretation of content or data collected in
research. The study of research topic or subject in its natural environment is a key component of
Interpretivism research philosophy.
Research approach – It is important to understand that a research can be carried out in various
forms for example, explorative, descriptive, explanatory, perspective and predictive approach. In
cases where research is to be conducted within the area where there is very limited information is
available related to the subject or topic, it is recommended to use explorative research method.
The determination related to a particular problem or issue is, on the other hand it can be properly
clarified with the implementation of exploratory studies of the problem. Secondly, descriptive
research can be observed that an extension of explorative research where perfect profile of
individuals, situations or events is presented. The phenomenon in which the research is
collecting information needs to be clear in the mind of researchers, which is the key of
descriptive research. In the present report explorative research is been used in order to collect the
most appropriate information regarding corporate strategy and governance within McDonald's.
9

The research will focus on quantitative analysis in which information will be collected by results
of questionnaire developed for the managers of Mcdonald's.
Research strategies – There can be qualitative or qualitative research strategies and researcher
can also use a combination of both the strategies. In research study the researcher required to
investigate the attitude or behaviour of top management towards a phenomenon related to human
resources and strategies within an organisation. It is easy to use qualitative research method
which is descriptive in nature. In the present report combination of quantitative and qualitative
research methods has been used to collect relevant data or information by managers of
Mcdonald's. A questionnaire for managers has been developed in order to gain knowledge
related to corporate strategy and governance within McDonald's .
Data sources – There are two types of sources for collecting data or information in a research
project such as Primary and Secondary source of data. In the present report researcher has mainly
utilised primary sources to collect most appropriate data form the managers of the organisation.
Primary sources of data are more relevant and provide more significant information related to the
topic of particular research. Such as information collected through questionnaires and surveys .
On the other hand secondary source of data refers to various articles, books and journals which
already used in various studies or researches.
Sampling – The sampling refers to group of respondents for whom questionnaire is developed in
order to collect relevant information or data in a research study. In the present report researcher
has developed a questionnaire for a sample of 10 managers in Mcdonald's to identify their ideas
and beliefs with respect to corporate strategy and governance. Sample in a research can be a
group of employees, managers, customers etc, which can provide sufficient information related
to the research subject or topic.
Research evaluation
 Validity – Validity generally refers to the reality of findings, there are various issues
such as morality, maturation, testing, instrumentation and ambiguity etc that can harm
research study. The reliability of research is based on these issues or threats that also
decrease validity of the research. In this research researcher has developed questions
considering the clarity of purpose to the respondents in order to avoid any
misinterpretation. It helps in achieving high level of validity in the research.
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 Reliability – Reliability refers to the capacity of measurement tools in facing various
effects or changes. In the present study Mcdonald's is targeted and focused, there are
differences among people interviewed and the techniques, policies and practices they
follow. In order to ensure the reliability of the research, a systematic and well structured
approach has been used to develop the questionnaire to perform quantitative survey.
Ethical considerations – There are various ethical considerations which are important to be
followed while conducting any research. There are various ethics and codes which are necessary
to be considered such as honesty, social responsibility, non-discrimination and confidentiality.
Researcher has ensured that each and every ethical code is been taken into consideration while
conducting the research. The managers have been informed about entire process of research,
permission was taken before conducting the interview. This helped in achieving the best results
and outcomes from research study.
Sources of error – There is a high possibility of errors while gathering information or its
analysis in research. If these errors are identified at right time it is easy to avoid them, there are
various form in which errors can arise such as processing, inference or interpretation. While
gathering primary information through surveys or interviews there are possibilities of measuring
the issues or errors. In a research study any such errors can be avoided by a deep revision of the
questionnaire prior to its presentation of the results and making interpretation. In the present
study researcher have used the case study technique in order to conduct the research. It is most
common and oldest research methodology used for a deep study of one or more individuals
which aids in revealing things that are real.
REVIEW OF THE RESULT
Primary research
Questionnaire
1. Do you believe corporate strategy and governance is very important for a company to
11

achieve its organisation goal?
2. What are the main requirements for implementing an effective corporate strategy in you
organisation?
3. Do you think effective corporate strategies can helps in avoiding major issues related to
conflicts among employees?
4. What is the main area you organisation you think your organisation should focus on?
5. Does your organisation needs to improve its employment policies?
6. Do you find it useful to link corporate strategy ad business strategy with human resource
management of the firm?
7. Do your organisation follows the concept of strategic human resource management?
8. Do you believe in achieving a competitive advantage through human resource of the
company?
9. Do you consider your company following sufficient policies to link strategy and HR
management?
10. Do you find the policies formulated in times of economic crisis are useful to fight the
crisis?
Theme 1 – Importance of corporate strategy and governance
Do you believe corporate strategy and
governance is very important for a company to
achieve its organisation goal?
No. of respondents
Yes 7
No 1
Maybe 2
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Interpretation – This theme was developed in order to identify the importance of corporate
strategy and governance. The respondent were asked whether they think corporate strategies and
governance is important for McDonald's or not. 7 out of 10 managers said they agree, 1
employee disagreed and 2 employees were neutral. Therefore, it can be concluded that managers
believe in the fact that corporate strategy and governance is very essential for McDonald's to
achieve its business foals and objectives.
Theme 2 – Requirement for implementing corporate strategy
What are the main requirements for
implementing an effective corporate strategy in
your organisation?
No. of respondents
Training and development 5
Leadership development 1
Internal recruitment 2
Employee retention 2
13
Yes No Maybe
0
1
2
3
4
5
6
7
Column B

Interpretation- The other theme was developed in order to determine which is the major
requirement for organisation in order to implement effective corporate strategy in McDonald's.
The mangers were asked what they think is important element needs in implementation of
corporate strategy, 5 out of 10 managers said that Training and development is very necessary. 2
managers said internal recruitment, 1 manager supported leadership development and the rest
two said that employee retention is important. This theme concluded that Training and
development is a major requirement for any organisation in order to implement or formulate
corporate strategy.
Theme 3 – Corporate strategy avoids issues
Do you think effective corporate strategies can
helps in avoiding major issues related to
conflicts among employees?
No. of respondents
Yes 6
No 2
Maybe 2
14
Training and development
Leadership development
Internal recruitment
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Column B

Interpretation- Corporate strategy and governance is believed to be effective in avoiding major
issues or problems arises in an organisation or business. This theme was developed in order to
collect relevant information about manager's perception working in McDonald's. Researcher
asked the managers that whether they think effective corporate strategies can helps in avoiding
any issues or problems in McDonald's such as employees conflict, strikes etc. When this
question was asked to the managers, 6 out of 10 respondents agreed that corporate strategy helps
to avoid issues, 2 managers disagreed and 2 were confused. Therefore, it can be concluded that
corporate strategies can assist an organisation to avoid and resolve issues or problems arises
while performing business activities.
Theme 4 – Motivating employees
What is the main area you think your
organisation should focus on?
No. of respondents
Motivating existing employees 7
Leave without pay 1
15
Yes No Maybe
0
1
2
3
4
5
6
Column B

Benefits to employees 2
Interpretation – This theme was designed in order to determine what is the key area Mcdonald's
should focus on so that it can improve its performance and profitability. 7 out of 10 managers in
McDonald's said that motivating exiting employees can be very beneficial for the organisation, 2
employees said that employees should be offered various benefits such as incentives, Bonuses
etc. 1 manager said that employees should be provided leaves. Therefore, it can be concluded
that an organisation can achieve success and improve its performance by motivation the
workforce as it is very beneficial in enhancing productivity as well as efficiency in the business
activities.
Theme 5 – Improvement in employment policies
Does your organisation needs to improve its
employment policies?
No. of respondents
Yes 5
16
Motivating existing employees
Leave without pay
Benefits to employees
0 1 2 3 4 5 6 7
Column B

No 3
Maybe 2
Interpretation- This theme was developed in order to identify the need of improvement in
employment policies in McDonald's. The question was asked to 10 managers that whether they
think the organisation should improve the policies develop for the employees working in the
company. 5 out of 10 managers agreed that policies should be improved, 3 managers disagreed
and 2 managers were neutral. Therefore, it can be concluded from this theme of questionnaire
that McDonald's needs to make appropriate changes in their employment of human resource
policies in order to gain improvement. Effective employment policies can help in motivating
employees as well as it can lead to increase in productivity and performance of the overall
organisation.
Theme 6 – Link between corporate strategy with human resource management
17
Yes
No
Maybe

Do you find it useful to link corporate strategy
or business strategy with human resource
management of the firm?
No. of respondents
Yes 7
No 1
Maybe 2
Interpretation- This theme was developed in order to identify the importance of linking
corporate strategy with human resource management in McDonald's. The question was asked to
10 managers that whether they think the organisation should link its business strategy with
human resource management in the company. 7 out of 10 managers agreed that policies should
be linked, 1 manager disagreed and 2 managers were neutral. Therefore, it can be concluded
from this theme of questionnaire that McDonald's should link its business strategy with human
resource managements in order to gain improvement. Effective corporate policies along with
18
Yes
No
Maybe

systematic human resource management can help in motivating employees as well as it can lead
to increase in productivity and performance of the overall organisation.
Theme 7 – Concept of human resource management
Do your organisation follows the concept of
strategic human resource management?
No. of respondents
Yes 4
No 3
Maybe 3
19
Yes No Maybe
0
0.5
1
1.5
2
2.5
3
3.5
4
Column B

Interpretation - This theme was developed in order to identify whether McDonald's. follows the
concept of strategic human resource management or not. The question was asked to 10 managers
that whether they think the organisation follows the concept of strategic human resource
management.4 out of 10 managers agreed that yes it does, 3 managers disagreed and 3 managers
were neutral. Therefore, it can be concluded from this theme that the organisation follows the
concept of human resource management and its policies to manage the workforce in the
company.
Theme 8 – Policies to link strategies
Do you consider your company following
sufficient policies to link strategy and HR
management?
No. of respondents
Yes 6
No 2
Maybe 2
20

Interpretation- This theme was developed in order to identify whether the organisation follows
sufficient policies that helps to link corporate strategy with human resource management ion
McDonald's. The researcher when asked this question to 10 managers in the company, 6
managers agreed, 2 out of 10 managers disagreed and 2 managers were neutral. Therefore, it can
be concluded that McDonald's focuses and follows effective policies that support in linking
corporate strategy with human resource management in the organisation.
Theme 9 – Competitive advantage
Do you believe in achieving a competitive
advantage through human resource of the
company?
No. of respondents
Yes 6
No 3
Maybe 1
21
Yes No Maybe
0
1
2
3
4
5
6
Column B

Interpretation- This theme of questionnaire was developed in order to identify that whether the
organisation can achieve competitive advantage with the help of its human resources or
workforce or not. When the question was asked to respondents, 6 out of 10 managers agreed that
human resource helps to gain competitive advantages, 3 out of 10 managers disagreed and 1
manager was neutral. Therefore, it can be concluded that human resource are very helpful for an
organisation to achieve competitive advantages in the marketplace.
Theme 10 – Economic crisis
Do you find the policies formulated in times of
economic crisis are useful to fight the crisis?
No. of respondents
Yes 6
No 1
Maybe 3
22
Yes No Maybe
0
1
2
3
4
5
6
Column B

Interpretation - Corporate strategy and governance is believed to be effective in avoiding major
issues or problems arises in an organisation or business. This theme was developed in order to
collect relevant information about manager's perception working in McDonald's. Researcher
asked the managers that whether they think policies formulated in times of economic crisis are
useful to fight the crisis in McDonald's such as employees conflict, strikes etc. When this
question was asked to the managers, 6 out of 10 respondents agreed that corporate strategy helps
to avoid issues, 1 managers disagreed and 3 were confused. Therefore, it can be concluded that
policies formulated in times of economic crisis are useful to fight the crisis.
Secondary Research
The researcher also analysed various secondary source of data in order to perform
secondary research. Various articles and journals concluded that corporate strategy is very
essential for every business or organization operating its activities for the purpose of achieving
product and success. corporate governance and corporate strategies are integral part of the
organisation.corporate administration and corporate methodologies are essential piece of the
association. So as to accomplish higher manageability, administration and executives need to
consider that both the administration and procedures are lined up with each other definitely. This
will assist the administration with accomplishing their coveted objectives and goals. With a
specific end goal to procure higher gainfulness, firms regularly overlook the corporate
administration and morals and detail unbending strategies which straightforwardly influence the
23
Yes No Maybe
0
1
2
3
4
5
6
7
Column B

workers. It is recommended that outsourcing firms can be the case of terrible corporate
administration. Numerous outsourcing firms have a tendency to figure inflexible strategies which
are exploitative and specifically influences the brain science of workers. They detail vague terms
and conditions to trap representatives. New graduates who have restricted presentation to the
professional workplace and strategies trap inside. This adversely put effect on the brain research
of representatives and in this way, they have a tendency to leave their place of employment in
constrained era.
Corporate administration is fundamental for creating and holding trust out in the open
which tremor because of outrages and fakes lately. It is vital to restore certainty of speculators
for facilitate development and improvement of the association. Various expounded that
correspondence and transportation from nation to nation has turned out to be productive and
simple because of globalization. Multinational associations are currently recorded with global
stock trade which triggers the need of good corporate administration. Explained that vast
association's financial specialists are getting to be test to the administration of the organization
since they are impacting the choice of the organization. Governance refers to the establishment
of policies and continuous monitoring of their proper implementation by the members of the
governing body of an organisation. It includes the mechanisms required to balance the power of
the members with associated accountability and their primary duty is of enhancing the prosperity
and viability of the organisation This competitive advantages further assists an organisation or
business to sustain a leading position in the marketplace among its competitors as well as
enhance its sales and profit. The researcher also identified that Corporate strategy can be called
as the management plan developed or formulated by the highest level of organisation
department, to operate and direct the whole company or business. It adds value to the main plan
or organisational strategy that helps an organisation to achieve its goals and objectives.
Therefore, the more effectiveness in the degree of corporate strategy leads to greater chances of
business success. Corporate strategy is the major element of strategic planning process, it
determines company's growth objectives. Such as timing, direction, pace and extent of
organisation's development or growth. It highlights the functional patterns of business actions
and goals with respect to strategic interest, in various business units, product lines, group of
customers etc. Furthermore, the researcher also determined that the corporate or business
strategy helps in achieving organisational goals of a business by optimising different functions
24

performed by various department in the company. In order to gain the effectiveness and
efficiency in these organisational functions it is very necessary for the management to examine,
develop and apply most effective strategies for their business organization. In order to achieve
higher sustainability, management and directors needs to consider that both the governance and
strategies are aligned with each other exactly. This will assist the management to complete their
desired goals and objectives.
RECOMMENDATION
In accordance with the research carried out, there are certain set of recommendations that
can be followed by McDonald’s. Following the given strategies will be effective enough for the
management to overcome the problems in effective manner. In this context, below given are the
some recommendations that can be followed by cited firm:
Training to workers: In order to perform any type of roles or task, it is required to have
certain set of skills and capabilities so that they are able to perform the tasks in effective manner.
In situations when workers are not sure about the roles that has to be played by them, then it
becomes difficult for them to put on their full efforts. In this context, workers should be
monitored in order to identify the areas in which improvement needs to be made. In accordance
with the findings made workers should be provided with training so that they are able to develop
their skills and capabilities. In addition to this, to perform any work, it requires to have certain
level of interest and willingness. These can be developed with the help of training and
development.
Monitoring performance: Each of the workers within the organization has certain set of
skills and capabilities. When employees perform as per the areas in which they have interest,
then it becomes favourable enough for them support the firm to grow. From the case, the support
from the side of workers is low but through proper monitoring positive impact can be developed
among employees. It is important that workers understand the condition that is faced by
management and support them in the worst conditions. All these are possible when management
has proper understanding about the support that workers provide when they face any type of
difficulties. In addition to this, the problems that are faced by workers can also be determined
when management monitors the performance of workers. Accordingly, immediate steps can be
taken with the help of which performance level can be improved.
25

Monitory benefits: There are certain set of expectations that workers have. Some people
prefer get satisfied when they get proper salary, for some it will be regarding healthy work
environment, etc. Management are required to make sure that they understand the preferences of
workers and take up initiative so that employees can be satisfied. In this context, basic aspects
like salary monitory benefits like incentives, etc. should be provided. This will be helpful in
order to boost up the moral and in making them to perform with their full efficiency. Further,
main focus by the firm should be done on determining the issues that are face by workers. When
immediate steps are taken to solve them, then it helps to develop positive perception within the
mind of workers.
Healthy Environment to work: In order to work within the organization, there are many
laws that needs to be followed so that all the workers are provided with appropriate benefits.
When healthy environment is provided in which employees can perform, then it becomes helpful
for the business to perform their set of roles in effective manner. Employees are the one who
have direct interaction with customers and in situations when workers fail to perform in effective
manner, then it becomes difficult for the business to operate effectively and efficiently. In this
context, appropriate steps should be taken in which workers should be provided with healthy
environment in which they can work in appropriate manner.
Improving inter personal relationship: As per the case, it is identified that the
relationship of workers and managers was not strong. In this condition, this has negative impact
over the business to grow in positive direction. In order to make the business to operate it is
important that managers have strong interaction with their subordinates. In order to do so all the
workers should be able to have strong communication. With the help of communication, it
becomes helpful to reduce the rate of confusions and in developing strong relationship with
employees. Apart from this, all the issues can be taken up immediate actions when managers are
able to consider the issues that are faced by employees and thus the condition faced by cited firm
can be solved.
26

REFERENCES
Books and Journals
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incentives, and tax avoidance. Journal of Accounting and Economics, 60(1), pp.1-17.
Arora, A. and Sharma, C., 2016. Corporate governance and firm performance in developing
countries: evidence from India. Corporate governance, 16(2), pp.420-436.
Berger, A.N., Imbierowicz, B. and Rauch, C., 2016. The roles of corporate governance in bank
failures during the recent financial crisis. Journal of Money, Credit and Banking, 48(4),
pp.729-770.
Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Larcker, D. and Tayan, B., 2015. Corporate governance matters: A closer look at organizational
choices and their consequences. Pearson Education.
McCahery, J.A., Sautner, Z. and Starks, L.T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance, 71(6), pp.2905-
2932.
Mishra, S. and Mohanty, P., 2014. Corporate governance as a value driver for firm performance:
evidence from India. Corporate Governance, 14(2), pp.265-280.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource management: The
Price Waterhouse Cranfield survey. Taylor & Francis.
Menz, M. and Barnbeck, F., 2017. Determinants and consequences of corporate development and strategy function
size. Strategic Organization, 15(4), pp.481-503.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are doing well by doing
good. Routledge.
Kageyama, A. and Kosuga, M., 2017. Corporate Strategy and Business Process Innovation in Japanese Company: A
Case of Panasonic Corporation. Holistic Business Process Management: Theory And Pratice, 14, p.93.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture, strategy, and change in
the new age. Routledge.
Elmes, M. and Barry, D., 2017. Strategy retold: Toward a narrative view of strategic discourse. In The Aesthetic
Turn in Management (pp. 39-62). Routledge.
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Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate Governance (pp. 49-78).
Gower.
Jacoby, S.M., 2018. The embedded corporation: Corporate governance and employment relations in Japan and the
United States. Princeton University Press.
Yermack, D., 2017. Corporate governance and blockchains.Review of Finance, 21(1), pp.7-31.
Anginer, D., Demirguc-Kunt, A., Huizinga, H. and Ma, K., 2018. Corporate Governance of Banks and Financial
Stability.Journal of Financial Economics.
Dias, A., Rodrigues, L.L. and Craig, R., 2017. Corporate governance effects on social responsibility
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Online
Jones, A., 2017. How to use the 7Ps Marketing Mix?. [Online]. Available
through:<https://www.independent.co.uk/news/uk/home-news/mcdonalds-strike-action-
uk-pay-working-conditions-zero-hour-contracts-cambridge-crayford-a7927581.html>
Appendix 1
Questionnaire
1. Do you believe corporate strategy and governance is very important for a company to
achieve its organisation goal?
2. What are the main requirements for implementing an effective corporate strategy in you
organisation?
3. Do you think effective corporate strategies can helps in avoiding major issues related to
conflicts among employees?
4. What is the main area you organisation you think your organisation should focus on?
5. Does your organisation needs to improve its employment policies?
6. Do you find it useful to link corporate strategy ad business strategy with human resource
28

management of the firm?
7. Do your organisation follows the concept of strategic human resource management?
8. Do you believe in achieving a competitive advantage through human resource of the
company?
9. Do you consider your company following sufficient policies to link strategy and HR
management?
10. Do you find the policies formulated in times of economic crisis are useful to fight the
crisis?
29