McDonald's Human Resource Management Strategy

This assignment delves into the human resource management practices of McDonald's Corporation. It analyzes the company's overarching business strategy, which combines cost leadership and international expansion through franchising. The analysis also examines McDonald's competitive advantages, such as economies of scale, fast service, and global product standardization. Furthermore, the assignment explores how McDonald has positioned itself in the market, its vision for continued global dominance, and its aims to provide quality food and excellent customer experiences.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Slide 1
Introduction:
In my part of the presentation, I have discussed about the human resource management of
McDonald. Here I have outlined the business strategy adopted by McDonald. I have also
discussed about how the company have positioned themselves over the years. In addition, I have
also tried to put forward the vision and the aims and objectives adopted by the company.
Outlining the Strategy of McDonald
McDonald is an American fast food and hamburger chain found in the year 1940. While
outlining the company’s strategy I have found that McDonalds adopts generic strategy that refers
to the basic approach followed in the development of its business and competitive advantage
(Sachdeva 2015). Thus, being one of the biggest fast food restaurants the company makes use of
the intensive growth strategy for supporting its continuous expansion and business development.
Thus, I have found that the business strategy followed by McDonald is a combination of
cost leadership and strategies for international market expansion. Moreover, franchising and
entry into the new market is a part of business strategy adopted by McDonald. I have also found
that the company also considers service and product standardization as a key to its business
strategy. Therefore, as we all know, the company tries to offer uniform menu that comprises of
not only hamburgers and cheeseburgers but also salads, French fries, shakes, desserts, sundaes,
soft serves, pies, soft drinks and other beverages (Shakhshir 2014). Further, I have also found
that the company considers local preferences and tastes while selecting its menu and undertaking

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the efforts for marketing. Thus, the company aims to adopt a business strategy that makes fast
food available to the customers at comparatively lower prices while making profit from it and
ensure worldwide business expansion.
However, I have presented the competitive advantage of McDonalds in a nutshell:
1. The company makes use of extensive economies of scale for achieving the cost
advantage.
2. Ensures the speed of delivery without comprising on the quality of service
3. The company ensures universality in taste for its products sold around the globe.
How have McDonald Positioned themselves?
Here, I would like to discuss how McDonald has positioned them. Now what do we mean
by positioning? Positioning refers to the selection of marketing mix most suitable for the target
customer segment. Positioning achieved through manipulating the marketing mix of 4Ps and the
position matrix (Ahmed et.al 2015). In this regard, I have found that McDonald has made use of
adaptive type product positioning and engaged in periodic re-positioning of services and
products as per the changes in the segment. Thus, the company has not only positioned itself by
being a family friendly low cost restaurant in fast food business arena but at the same time has
adopted a strategy of lower cost.
McDonald in the recent years has broadened the scope for appealing to a wider customer
base by incorporating a healthier option in the menu. Moreover, the company also tries to narrow
down mostly to the families with focus on reducing delivery time and cutting down food cost. I
have also found that the company has also tried to position itself by using modern and

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technologically advanced equipments (Gayle and Luo 2015). These equipments have allowed the
company to keep their cost lower. The company has also made sure they decrease the waiting
time and increase the volume served to the customers. McDonalds have stuck to its core market
even in the times of change although few of the outlets have tried to include playground and
marketing schemes that feature slogans and ads of family and friends. The company has also
incorporated the concept of happy meal for children thereby becoming a household name. Thus,
it can be said, that McDonalds adopts things differently compared to the competitors that have
helped it in positing itself in the forefront while setting a standard for the rest.
Do They Have a Vision, and What Is It?
Here, I would like to discuss about the vision of McDonald. McDonald follows a vision
statement of continuing to be at the top of the global fast food chain. The company also focuses
on a mission statement for designing and developing goods and services (Dimitrova and Petrova
2016). Thus, with over 36,000 worldwide locations we can say that the company has not shown
success but also resilience through aggressive marketing and innovation. Therefore, I can say
that the success of the company indicates its business effectiveness in the attainment of its vision
and mission statement.
What is McDonald’s Aim?
The fast food chain also has an aim without which I believe the company could not have
positioned itself. The primary aim of McDonalds refers to serving quality food that the
consumers can depend on. The company also focuses on its franchisees, employees and its
suppliers. The prime focus of the company lies in providing best quality food in a welcoming
and clean environment thereby ensuring exceptional customer experience (Alheritiere et.al

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2013). In addition, I have also found that the company strives to strike a balance between the
operators, suppliers and employees. Moreover, the company also focuses on a strategy called
‘play to win’ with special focus on products, place, people, price and promotion with a sustained
dedication on improvement of business operations. The company also creates opportunities of
employment in local communities and thus striving to help them in reaching their potential.
Thus, here we can all see that McDonalds strategy of ‘play to win’ along with financial
strength and distinctive competitive advantage has served as the framework behind the growth of
the company. In present times, this strategy also helps in guiding the execution and evolution of
the priorities for global growth.
Conclusion:
The presentation ends in the light of describing the aims and vision of the McDonalds.
There is also a description given on how the company has positioned themselves in the market.
Further, I have also mentioned the generic strategy adopted by McDonald in expanding its
business.

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References:
Ahmed, R.R., Kumar, R., Baig, M.Z. and Khan, M.K., 2015. Impact of Digital Media on Brand
Loyalty and Brand Positioning.
Alheritiere, A., Montois, S., Galinski, M., Tazarourte, K. and Lapostolle, F., 2013. Worldwide
relation between the number of McDonald's restaurants and the prevalence of obesity. Journal of
internal medicine, 274(6), pp.610-611.
Dimitrova, S. and Petrova, E., 2016. Mission and Vision of the Organization and Their Relations
with Corporate Social Responsibility. Plovdiv/BULGARIA, p.57.
Gayle, P.G. and Luo, Z., 2015. Choosing between Order‐of‐Entry Assumptions in Empirical
Entry Models: Evidence from Competition between Burger King and McDonald's Restaurant
Outlets. The Journal of Industrial Economics, 63(1), pp.129-151.
Sachdeva, A., 2015. Evaluation and selection of differentiation as a strategy for McDonald’s.
Shakhshir, G., 2014. Positioning strategies development. The Annals Of The University Of
Oradea, 977, pp.416-437.