LSC UoS - Contemporary Management Issues: McDonald's Case Study

This case study examines contemporary management issues at McDonald's in the 21st century, focusing on the four building blocks of strategy and HR theory: conceding, confronting, competing, and cooperating. It critically analyzes the role and impact of artificial intelligence (AI) on the overall business strategy and workforce management within a global environment. The study investigates how AI is used to solve employee and customer complaints, automate business processes, and develop strong communication channels. It also assesses the impact of AI on enhancing employee and company performance, optimizing resource utilization, and increasing technology adoption. The report concludes that AI plays a crucial role in streamlining business activities and improving overall efficiency at McDonald's.

Contemporary
Management Issues in
21st Century

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Four building blocks of strategy and HR theory.........................................................................3
Evaluate the role and impact of Artificial intelligence on overall business strategy and the
management of workforces in company within a global environment.......................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The management is basically defined as concept or procedure which is used by
organization for run their activities smoothly. It also assists company for maintaining strong
communication with employees. Due to keeping strong communication system company is able
to identify the real problems and wants of lower-level employees quickly. In management
various types of issues are occurred at the time of handling employees. Here the chosen
organization is McDonald's and the head office of this firm is situated in (UK Al-Omari,
Alomari and Aljawarneh, 2020). The company was established in 1955 and this firm is mainly
dealing with fast food products in different locations. The report will be covered four building
blocks of strategy and HR theory. It further covers critically analyse the role and effect of
artificial intelligence on the overall business strategy and the management of workforces in
organization within a global environment.
MAIN BODY
Four building blocks of strategy and HR theory
The four building blocks is basically defined as those elements which is highly important
for sustaining the vision, mission and objectives of company in long term. The names of those
four building blocks are
 Conceding – It is basically referred to the execution or initiative to an opponent to buy
time and reconstitute one’s forces.
 Confronting – In this step the main focus of McDonald’s management is to solve the
conflict or issues for sustaining their objectives in long term. Due to this the growth of
firm are easily increased at higher rate.
 Competing – It is defined to those actions or tactics which is carried by McDonald’s for
reducing the threat of competitors and also for sustaining competitive advantage in
market.
 Cooperating – It is defined as combining forces with other actors to achieve mutually or
synergistic effects and interest. In simple words cooperating is known as coordination
and this is highly essential for run company functions in smooth manner.
In aspect of HR theory here also four building blocks played major role for encouraging and
motivating the employees effectively. Those building blocks are -

 Business leader engagement and support – This is the first and very important block in
in HR theory. In context to McDonald, the management of this firm is mainly focusing
on three factors which is essential for enhancing the effectiveness of leader engagement
and support in workplace area between employees. Because effective leader engagement
and support is highly essential for moving the activities of employees in right direction. It
leads to enhance the profit of firm at higher rate. In this perspective the factors which are
consider by the management of this firm are interest of leader in HR and people
management problems in business, clearly a duty of relevant HR professionals and there
may be a situational consideration.
 Strategic opportunity – In aspect of accessing explicit techniques, and/or being in a
company where plans and intention of business are clear developing an ideal atmosphere.
This is beneficial for the community of HR to align with that tactics and to take on a
more roles in strategic manner (Davies and Smyth, 2018). In practice, very less
company’s represents in research were operates with explicit business tactics. In respect
of McDonald’s their main focus is to run their business with clear aims, objectives and
also with wide growth, profitability, or other performance targets to be gained.
 HR strategic competences and capacity - There is a guidance of substantial body which
is connected to the competencies that HR practitioners is able to demonstrate in efficient
strategic responsibility. HR business partners and directors of McDonald’s will be
required to show a wide range of HR and competencies of change management. They
required to contribute to the execution and analysis of business tactic and give suggestion
on the opportunities and implications for human capital management.
 Human capital management infrastructure - The majority of survey participants
worked in organisations that had adopted a shared service model for HR, but their
experience was often that the projected benefit in terms of releasing capacity to act more
strategically had not been realised. Adoption of a shared service model, supported by
self-service HR management technology platforms, was proposed as one way of
removing more routine and process-related HR and people management activity to leave
more time for HR to act in a strategic role

Evaluate the role and impact of Artificial intelligence on overall business strategy and the
management of workforces in company within a global environment
Role of artificial intelligence on overall business strategy and management of workforces
In aspect of business, artificial intelligence plays the major role for enhancing the
effectiveness of McDonald's business strategy and employee in various ways -
 Solving employee and customer complaints – It is basically one type of strategy which
is used by McDonalds with help of artificial intelligence or other equipment’s. In aspect
of customers, company quickly understand that in taste wise which type of issues are
faced by them. After the proper understanding of their issue strong solutions are prepared
for them in products. But in respect of employee’s role of AI are highly essential for
identify that where they are get lack in their performance. Then according to that training
is provided to them which in enhance their work efficiency effectively.
 Automated business process – In aspect of business strategy artificial intelligence plays
the crucial role for reducing the errors at higher rate (Ghafar, 2020). Due to the use of
advanced technology, the effectiveness of the McDonald’s strategy is easily increased at
maximum level which leads to attract the customers globally in large number towards the
products of this firm. In the procedure of automation activities of company are run in fast
manner and the quality or standard of their goods and services are easily sustained in
market globally for long time.
 Developing strong communication – It is another role which is essential for both
business strategy and employees. Due to effective use of advanced or AI technology both
company and employees are able to identify the real taste and desires of customers
quickly. Then after the quick identification of customer needs McDonald’s easily
facilitates high quality services and goods to them for long time. For developing strong
communication with users management used different types of social media such
Facebook, Instagram, Twitter and others.
Impact of artificial intelligence on business strategy and management of workforces in
company -
In today’s time artificial intelligence is one of the advanced technologies which is highly
beneficial for organization. In aspect of AI McDonald's are get impacted in various way -

 Enhancing employee and company performance – It is the first impact of AI which is
produced on the performance of organization and their workers. Due to use of AI and
other advanced equipment’s top-level management and their employees are able to
accomplish their job roles and responsibilities in time. It leads to enhance their revenue
and the goodwill and performance of company within short duration. With help of
artificial intelligence employees of this firm is able to do their work with systematic and
attractive manner. In context to McDonald’s due to doing their all types of tasks in
systematic manner the all over growth and performance of employees are highly
increased with in organization. Then in this way firm is delivered high quality goods to
users in long term.
 Optimum utilization of firm resources – This means that with help of effective use
artificial intelligence employees within company is able to decrease waste in their goods
and services effectively. With help of using artificial intelligence McDonald’s is able to
enhance work efficiency of their worker’s at large scale (Heffron, 2018). For this
purpose, management of this firm is providing advanced training and machines to them.
In this way resources of this firm are used in optimized manner and products are
delivered to users quickly.
 Heavy use of technology – It is the major impact which is produced in McDonald’s
globally in various locations. Due to the high use of technology such as AI technology
and others in workplace employees are able to deliver their products to customers in time.
In today’s time various types of apps are highly used by customers for ordering their
desired food within low time. The main features of different types of apps which is used
by users is that in app the outlet or browser of company products are directly open. It
leads to enhance the user convenience and profit margin of firm effectively.

CONCLUSION
After the analysis of above data, it concludes that role of artificial intelligence in business
is highly important for run the activities of company in smooth manner. Due to the effective use
of above-mentioned building blocks in top level management of selected company is able to use
their resources in optimized manner for long time. By using resources in optimized manner, the
all over productivity and work efficiency of company are easily increased at higher rate. The
report will be covered four building blocks of strategy and HR theory. It further covers critically
evaluate the role and impact of artificial intelligence on the overall business strategy and the
management of workforces in organization within a global environment.

REFERENCES
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