AI Implementation at McDonald's: A Contemporary Management Case

This case study examines McDonald's strategic use of artificial intelligence (AI) and human resource (HR) practices to enhance its business operations and market position. It explores how McDonald's leverages AI to understand customer preferences, optimize online ordering, and improve overall service delivery. The analysis incorporates the building blocks strategy and HR theory to highlight the significance of AI in modern management. The case study also discusses how HR professionals at McDonald's support AI implementation through employee training, strategic planning, and infrastructure development, ultimately contributing to increased revenue, customer satisfaction, and a stronger brand presence. The report concludes that AI is crucial for organizations like McDonald's to remain competitive by enabling better decision-making, efficient resource allocation, and enhanced customer engagement. Desklib offers a range of solved assignments and past papers for students.

Case study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Using the building blocks strategy and the HR theory to understand the role and significance
of artificial Intelligence technology.............................................................................................3
Role of artificial intelligence technology.....................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals......................................................................................................................7

INTRODUCTION
In current scenario artificial intelligence plays a most significant role in the development
of the organisation (Collins and Moons, 2019). The organisation is able to perform its functions
with full efficiency with the use of artificial intelligence in organisation. The objective behind
preparing this report is to evaluation about the significance of technology though which
organisation can able to achieve its objectives in strategic manner. The chose organisation for
preparing this report is McDonald which is involved in proving fastest food services to its
customers. They prepares certain types of food items out of which it is popularly known for the
burger prepared by them. The organisation was established in 1940, having headquarter in
California. This case study includes the technology used by management of McDonald in order
to increase its market value and brand positioning. With this, it also includes certain strategies
which are being used by organisation with the objective for becoming a tough competitor in its
market industry.
MAIN BODY
Using the building blocks strategy and the HR theory to understand the role and significance
of artificial Intelligence technology
The human resource professionals plays a significant role in hiring employees who are
able to perform productive work for betterment of organisation (Goralski and Tan, 2020). Use of
latest and upgraded technology by the human resource department makes them effective to
perform the operations of organisation smoothly. With this they are able to prepare a proper
guidelines to its workforce, though which they understand about the working of organisation.
The strategies which are being used by human resource manager to conduct work properly are
stated below -
 Business leader engagement and support – The human resource professionals are the
one who provide support and assign roles and responsibilities to its workforce. The role is
being assigned by them according to the capabilities of employees so that they find easy
in performing the assign task. For the employees who are not able to achieve its targets
are being provided with the effective training sessions. The McDonald is able to make
expansion in its business operations by using ethical ways for conducting its activities.
With this, the use of artificial intelligence technology McDonald is able to perform its

operations easily. The workload of employees is also deducted with the help of using
technology within its businesses. Now it become easy for the employees to seek attention
of customers using technology. The online ordering facility is being provided by
organisation to its customers, which enhances their experience and satisfaction level. The
idea for providing online ordering services is being generated by McDonald with the use
of artificial intelligence. This technology helps in evaluating the demand of customer and
hence this data is being gather by organisation and further they takes action upon it. This
is how the employees of McDonald makes collective efforts to identify new strategies so
that they can fulfil the requirements of customers (Lyu and Liu, 2021). By performing
collective efforts the employees are able to develop team sprit among them with it
essential for performing operations of businesses successfully. The employees will also
provide timely feedbacks to each other related to ideas provided to them. The most
productive employee within the team is able to lead its team and become their leader.
This is how the other employees feels motivated to perform in a better manner in order to
showcase their skills though which they can also getter opportunity to seek higher
position in organisation. The human resource manager influence its workforce to become
productive though which organisational goals can be achieved and though its their self
goals can also be achieved. The human resource management also elaborates them about
the importance of using technology in order to achieve operations smoothly. Further, the
employees who are not aware about using such technologies are being provided with the
effective training sessions in make them productive.
 Strategic opportunity – The human resource department is being involved in
formulating such business strategies which helps the organisation for conducting its
business operations in a better and effective manner (Marcus and Davis, 2019). It is
essential for the human resource management to make continuous efforts in direction to
make required changes within its policies for the betterment of employees on regular
basis. The management of McDonald have analyses that the current market is focusing
towards the new technology and use of artificial intelligence technology can build the
future of company. Hence, they started forcing on proving effective sessions though
which employees can get aware about the demanding technologies. By learning such
technologies, employees are able to get long term benefit and can build their future

bright. The employees will be able to find out new strategic ways for achieving
organisational goals by using artificial intelligence. This is how the management
influence the employees to make use of technology can provide better goods or services
to its potential customers.
 Human capital management infrastructure – With the use of artificial technology the
organisation is capable for proving effective services to its customer base. McDonald is
able to provide effective services to its diversified customer base by evaluating their
demands using latest technology (Nishant, Kennedy and Corbett, 2020). The business
operations of McDonald is contentiously expansing as they are able to analyse market
and demand of customers. The current market and customer analysis is only possible with
the help of new technology. McDonald is able to prepare a better infrastructure by
making use of technology. As McDonald is operating across the world, so they have to
face certain challenges for operating its businesses to different areas. The culture, taste
and preferences of customers varies form country to country, thus it makes difficult for
their workforce to serve the product which can satisfy customer demand. The assign task
and objectives of employees could also not achieved when they are unable to understand
customers requirements. Hence, use of new technology makes the employees understand
about customers behaviour through which they can avail product or services desired by
them. The customer base of the organisation increases when they get the desired product
or services and brand value of company also enhances. Strategic HR competencies and capacity – The new strategics which is being prepared
by human resource professionals leads to make growth in operations of businesses (Pan
and Zhang, 2021). The formulation and implementation of new strategies or policies
though which growth in living standard of employees can take place is also responsibility
of human resource department. The employees are being motivated by providing them
reward thus, McDonald's human resource department have formed reward polices though
which performance of employees could be improved. The employees can improve its
capacity to perform work when they make use of technology such as artificial
intelligence. As this technology acts as the best tool for understanding customers taste
and market demand.

Role of artificial intelligence technology
Now a day organisations are involved in making effective use of technology for
conducting its business operations. In order to achieve goals the organisation make use of digital
tools and technologies for preparing their infrastructure (Wirth, 2018). With the use of artificial
intelligence McDonald is able to evaluate the demand of customers. The businesses are able to
save it time, cost and efforts by making use of artificial intelligence technology within the
businesses. The capacity to take businesses decisions also improves and the chances of mistakes
can be easily avoided by the use of artificial intelligence. The insights functions use by
McDonald helps in analysing the preferences of customers and this is how they can offer the
product desired by customers. The customers feels satisfied this is how the customer base of
McDonald keeps on enhancing. Thus, the revenue as well as profit of McDonald grows rapidly.
With the use of artificial intelligence the access of large data can be availed without any security
issue. McDonald is able to create more intelligent tools using artificial intelligence. They are
involved in using advance computing technology which make the ordering processing easy.
Hence, the productivity of organisations could be enhances by making use of artificial
intelligence to perform business operations.
CONCLUSION
From the above case study, it can be concluded that the use of technology such as
artificial intelligence helps organisation in carrying out its operations smoothly. Artificial
intelligence is the effective tools which can be used by organisations to evaluate the need and
wants of customers along with the current market trend. The use of artificial intelligence by
human resource department can lead to perform work in a better manner by employees. A lot of
time and efforts could be saved by organisation if they are making use of artificial intelligence.
The employees are able to attain new opportunities when they are involved in making use of new
technology. This is because demand of customers can be evaluated easily and by making team
efforts strategies could be framed though which customers can be availed.

REFERENCES
Books and Journals
Collins, G.S. and Moons, K.G., 2019. Reporting of artificial intelligence prediction models. The
Lancet, 393(10181), pp.1577-1579.
Goralski, M.A. and Tan, T.K., 2020. Artificial intelligence and sustainable development. The
International Journal of Management Education, 18(1), p.100330.
Lyu, W. and Liu, J., 2021. Artificial Intelligence and emerging digital technologies in the energy
sector. Applied Energy, 303, p.117615.
Marcus, G. and Davis, E., 2019. Rebooting AI: Building artificial intelligence we can trust.
Vintage.
Nishant, R., Kennedy, M. and Corbett, J., 2020. Artificial intelligence for sustainability:
Challenges, opportunities, and a research agenda. International Journal of Information
Management, 53, p.102104.
Pan, Y. and Zhang, L., 2021. Roles of artificial intelligence in construction engineering and
management: A critical review and future trends. Automation in Construction, 122,
p.103517.
Wirth, N., 2018. Hello marketing, what can artificial intelligence help you with?. International
Journal of Market Research, 60(5), pp.435-438.