Contemporary Management: AI's Role in Strategy & HRM - Essay

This essay examines the role of Artificial Intelligence (AI) in shaping global strategic management, focusing on its impact on business strategy and workforce management. It discusses competitive strategy models such as product differentiation, cost leadership, and focus strategy, illustrating their app...Read More

GLOBAL STRATEGIC
MANAGEMENT

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

INTRODUCTION
Artificial intelligence is nowadays plays a key role in the every organisations due its
increasing productivity and efficiency. Increasing use of digital technologies or machines has
reduced the human workforce due to more production with less cost (Cui, Y. and Yu, G., 2021|).
Every organisation need digital networks and analysis for doing its business internationally or
globally. Many large organisations during the time of pandemics or Covid-19 using AI or digital
tools and using capital intensive methods rather than labour intensive. Although it creates a lot of
opportunity for the large businesses but creates threats for many small businesses due to less
fund or less resources available. This report will include competitive strategy models and HR
theory and evaluating the role and impact of Artificial intelligence on the overall business
strategy and the management workforce in organisations. Further, it also include critical
discussion on the importance of talent acquisition, learning and development and change
management in the current global competitive climate.
MAIN BODY
Artificial intelligence
Increasing competitions and population has led the use of digital technologies everywhere
because Artificial intelligence increases the productivity of the businesses and reduces the cost of
employing more staffs, and machines for doing the work (Wu, T.Y. and et.al., 2019). This
intelligence has entirely changes the working of the companies every large company is using
digital technologies for marketing its products online or producing its products with more
advanced technologies to attract more customers or reducing the overall cost of making. Various
organisations like HSBC, Unilever, TESCO, IKEA etc are using all kind of digital technologies
or artificial intelligence for its business successfully in the international markets. Due to covid-19
many small or big firms were facing problems in selling its products to the customers this gave
the importance Artificial intelligence and tech acceleration for using all the technologies for
doing the work more effectively and with low cost.
Competitive strategy models

Product differentiation strategy is used by the company Unilever for producing the
products in a more different and advance way with the use of technologies or tools for attracting
more number of customers with same cost (Holzinger, and et.al.,2019). The main aim of this
strategy is to produce the products with more advance features or any change in its design and
structure so that the price can be increased with the same cost. Unilever is using this strategy to
increase the price for earning more profits with the use of new technologies for less cost of
production.
Cost leadership strategy is used by firm HSBC for reducing the overall cost of the
products and services (Wada, T., 2018). HSBC is doing its business on large scale and is the
largest bank with large customer and reducing its overall cost of services and products so that
more profits can be saved by cutting down the cost with use of Artificial intelligence.
Focus strategy is used by many firms one them is TESCO for focusing on its main
market to increase its sells with various digital tools for increasing the profits. This strategy
emphasis on niche market n which focus is on the target market where all the technologies are
used to increase the demand and sells of the company to earn more revenue by attracting more
number of customers with the help of use of AI in advertising, promotions, etc (Akintokunbo,
O.O., 2018).
Human resource model or theory
The companies are using HR models or theory for encouraging its team or staff for the
work with full accuracy. HSBC is a United Kingdom largest bank and having its employees
across the world and for motivating them it is using the Maslow’s hierarchy of needs for
motivating its employees by providing all the basic to higher level needs for employees
satisfaction (Fallatah, 2018). The company is fulfilling all the Physiological needs in which
company is providing all the basic wages or needs to the employees, all the Safety needs like
insurances, medical claim, etc for making its employee feel safe. Social and Self esteem needs
by providing friendly environment by holding discussions and meetings for interaction of each
departments and rewarding or recognising for good performances (Tran, and et.al., 2020). Lastly,
this company is providing self actualization needs by all the opportunity to its employees to
achieve its dream with organisational goals.
Another theory used by TESCO is AMO theory in which the leaders encourage its
employees to do the task with full ability by providing all kind of motivation with various

opportunities. This three categories are link to each other and the leaders of TECO is providing
this three thing for efficiency in the work and productivity in the firm.
Artificial intelligence helps in successful operation of the HR theory by using various
digital techniques for motivating and encouraging the employees with digital trainings and using
of tech acceleration to improve employees performances (Pillai, R. and Sivathanu, B., 2020).
Importance of talent acquisition, learning and development and change management in the
current global competitive climate
Talent acquisition is the process of company hiring and recruiting employees for the
vacant positions in the company. Due to global competitive market the recruitment process
becomes so important for improvisation so that more skilled candidates can be selected with
latest knowledge and experience for improving the overall efficiency of the firm (Akbar, and
et.al., 2019). In the prevailing markets many company are facing huge problems of training and
development of its employees due to less efficiency of work or less target on time etc. The
company IKEA is an international company dealing its products and services globally this
company is investing huge amounts of money on talent acquisition for selecting right people at
the right place with use of digital technologies or artificial intelligence.
Learning and development is the process of making the existing employees learn new
things and develop new skills for doing the work with more ease and efficiency. The productivity
of can be improved by skilled employees and newly developed skills helps them to work for
fulfilling their individual and group goals together. The company like TESCO which has
international market is producing new methods and techniques with the help of all the employees
knowledge so the development of them is necessary. This company is arranging training and
development sessions with advance digital technologies or methods for increasing the knowldeg
of each employees to remain more competitive globally.
Change management is a policy that every company need to adopt to remain competitive
in the present or future competitive global market. Due to increasing change in the micro and
macro environment the company need to change their policies related to their products or
services, methods of producing and advertising, methods of recruitment etc (Ramadas, J.P.P.,
2018). Changing taste of consumers shows that company need to change its products and
services so that more customers to be attracted, the company also need to change its cost or
production techniques to reduce its cost and increasing production for more sell or profits. All

the changes has to be communicated to the employees of the company first so that they can
accept or understand the change and work accordingly to make the company more competitive in
the present world.
CONCLUSION
From the above report it has been concluded that Artificial intelligence is crucial in every
small or big organisation to remain competitive in the present world. There are many competitive
strategy and methods for using artificial intelligence to remain competitive in the present world
by reducing the cost or making more advance products or focusing on target markets.
Furthermore, the company uses various HR models for motivating its employees for more
productivity in the work. Lastly, talent acquisition is important for selecting the more skilled
employees with learning and development of existing one for more profits and productivity and
work or change management is necessary to remain competitive in the global world with latest
technologies and methods.

REFERENCES
Books and journals
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
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.
Holzinger, and et.al.,2019. Causability and explainability of artificial intelligence in
medicine. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery, 9(4),
p.e1312.
Wada, T., 2018. Capability-based cost leadership strategy of Japanese firms. Annals of Business
Administrative Science, 17(1), pp.1-10.
Akintokunbo, O.O., 2018. Market focus strategy and organizational performance of
telecommunication companies in Port Harcourt. International Journal of Innovative
Research and Advanced Studies, pp.258-263.
Fallatah, R.H.M. and Syed, J., 2018. A critical review of Maslow’s hierarchy of needs. employee
motivation in Saudi Arabia, pp.19-59.
Tran, and et.al., 2020. HRM practices and employees’ innovative work behavior-IWB An
application of the AMO theory. Journal Homepage, 10(5).
Pillai, R. and Sivathanu, B., 2020. Adoption of artificial intelligence (AI) for talent acquisition in
IT/ITeS organizations. Benchmarking: An International Journal.
Akbar, and et.al., 2019. Success factors influencing requirements change management process in
global software development. Journal of Computer Languages, 51, pp.112-130.
Ramadas, J.P.P., 2018. The impact of acceleration programs on early-stage tech-startups
considering the founders’ background (Doctoral dissertation).
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