How Would You Describe Mcdonald's Business Strategy?

Topics: Strategic management, Labour economics, Employment Pages: 4 (1296 words) Published: November 9, 2011
1. Answer the questions for the case “integrating McDonald's Business, Human Resource, and Staffing Strategies" page 49, Chapter 2. [ 15 Marks]

Questions 1: How would you describe McDonald's business strategy? What are the foundations of its competitive advantage? Answer: McDonald’s business strategy is a specialization strategy. The organization is built on a foundation that gives it a competitive advantage and a business strategy that is consistent, flexible, and specialized. McDonald’s niche market is people. According to the case study, people are the company’s most important asset and its success depends on the satisfaction of its customers which begins with workers who have the attitudes and abilities required to work efficiently and provide good customer service. McDonald’s ensures that both customers and employees know how valuable they are. They make a people promise to the employees.

Question 2: How has McDonald aligned its business, human resource, and staffing strategies? The way in which McDonalds has aligned its business, human resource, and staffing strategies is by tracking key indicators. These include indicators that track product, service quality, speed, accuracy, turnover, productivity, customer satisfaction, sales and profitability. Question 3: What are some possible talent related threats that could eat away at McDonald’s competitive advantage? Would higher turnover or tight labour market in which it is difficult to find talented people be a problem? What would you recommend the company to do to maintain its competitive advantage over the next five years? There could most definitely be some real talent-related threats that will eat away at McDonald’s competitive advantage. These may include difficulty finding people with the right qualities and abilities to work in their restaurants. There is also a stigma attached to a job “flipping burgers” which is being sung and talked about by the rappers and R&B singers. This will possible...
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