McDonald’s business model is largely based on franchisees, suppliers and the employees working for the organization. The Fast Food Giant has always aligned its business strategy with the organizational people. McDonald’s value their people, both consumers and the employees and believes in serving the best quality products to consumers. The Organization has always focused on satisfying the consumers (Joyce et al. 2015). The business strategy is inclined to work effectively and provide the best quality service to its consumers. People of McDonald’s are focused towards achieving the same organizational goal.
Among the three corporate strategies, treating the consumers rightly has been the most important corporate strategy undertaken by McDonald’s. It has also been evident that the five ‘people principles’ reflected by the human resource strategy of McDonald’s include, respect and recognition, values and leadership behavior, competitive pay and benefits to the employees and staffs, continuous learning culture that automatically help in personal growth and development (Dundon and Wilkinson 2014). This particular business strategy can be regarded as the corporate strategy that helps the organization to gain competitive advantage in the market of operation.
There is no doubt that the foundation of McDonald’s competitive advantage depends largely depends on how the organization value its consumers and employees. Other competitive advantage strategies used by McDonald’s are cost leadership and business expansion strategies in the international market. Product and service standardization always lies in the cornerstone of the business strategy of McDonald’s (Sardar and Talat 2015). The restaurant also offers a large variety of food comprising of hamburgers, cheeseburgers, Mac burgers and various other options ranging from chicken wraps, Chicken Nuggets and a large variety of desserts as well including sundaes, soft serve cones and other beverages.
Cheap price of the food products. The Organization utilizes the economies of scale and the human resource of the organization to achieve the cost advantage (Miller 2016).
McDonald’s is true to its fast food format and is well known for its uncompromising fast delivery of food product to the consumers.
The quality and taste of food is universally accepted (Leekha and Sharma 2014). The consistency in the taste of the product has eventually helped in creating customer loyalty towards the organization.
McDonald’s believes that organizational effectiveness depends on having the right people assigned with the right job and responsibility. The service of the restaurant depends on serving people at the high pace. The Company’s success is largely depended on the way the staffs treat the consumers (Leekha and Sharma 2014). Therefore, depending on the changing needs of business, the staffing approach should also change. McDonald’s follows a learning culture as the organizational policy. A continuous trend of training and development is carried on in the organization to prepare the employees to meet with the dynamic demand of customers. McDonald’s has identified ‘people’ as one of the three corporate strategies, as the major component of the growth strategy.
It has also been found that McDonald’s has claimed to be the best employer in the community where it serves. The organization values the employees and considers their contribution is vital for the continuous growth of the organization even in the international market (Nadolny and Ryan 2015). McDonald’s adopt the ‘Five people principles’ as a part of their Human Resource Strategy. The human resource strategies include respect and recognition of the staff, values and leadership behavior, competitive pay and benefits and to be sure that the employees have enough resources to satisfy the needs of the customers (Kasperkevic 2016).
If the case of recruitment and staffing is considered, it has been found that most of the employees at McDonald’s are teenagers or they are in their early 20s. The Organization takes serious pride in hiring and employing the right people to serve the consumers right. In order to retain the employees, the business model emphasizes on the financial and the operational functions (Leekha and Sharma 2014). To ensure that the recruited staffs are efficient enough to serve the customers at its outlets, they undertake the strategy of hiring the local people. In addition to this, McDonald’s also hire people from the job career fairs and other local hiring centers. The skills and behavior of the recruited employees are identified and the most eligible candidates are hired.
The employees are trained to provide the quality service to the consumers. It has to be understood that the staffs of McDonald’s are not only responsible for serving the customers but there are staffs for other purposes like cleaning and quick service. All these require to ensure the right recruitment and staffing strategy of the employees and the same is ensured from the organization’s end as well (Nadolny and Ryan 2015).
The Organization takes great pride in its people and always try to focus on improving the condition of the people that they could serve the consumers well, but the in the recent labor market, the difficulty for the organization to attract the right talented group of people is inevitable.
The organizational strategies are effective enough to meet the competitive challenges in the market. For instance, the organization has always focused on the pricing strategy and has made the price of its product, competitive enough to compete with its competitors like Burger King, KFC, Chipotle, Taco Bell and others. A number of recommendations can be made to meet the competitive advantage in the coming years:
It is expected that if McDonald’s focuses on these strategies, the organization can easily overcome the challenges that might occur in future.
Dundon, T. and Wilkinson, A.J., 2014. Case Studies in Global Management: Strategy, Innovation and People Management. Tilde Publishing and Distribution.
Joyce, M.L., Krentler, K.A. and Lambert, D.R., 2015. Recruitment Without Responsibility: The Problem of Sojourner Adaptation. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 245-249). Springer International Publishing.
Kasperkevic, J., 2016 Ex-McDonald's CEO suggests replacing employees with robots amid protests Available at: https://www.theguardian.com/us-news/2016/may/25/former-mcdonalds-ceo-threatens-replace-employees-robots [Accessed on: 2-4-2017]
Leekha Chhabra, N. and Sharma, S., 2014. Employer branding: strategy for improving employer attractiveness. International Journal of Organizational Analysis, 22(1), pp.48-60.
Miller, C.J., 2016. Would Opening a Satellite Office in or near a Major Metropolitan City Be Beneficial in the Successful Recruitment and Retention of High Potential Young Employees?.
Nadolny, A. and Ryan, S., 2015. McUniversities revisited: a comparison of university and McDonald's casual employee experiences in Australia. Studies in Higher Education, 40(1), pp.142-157.
Neate, R., 2016 McDonald's in crisis: can it fight off the Five Guys threat? Available at: https://www.theguardian.com/business/2015/may/02/steve-easterbrook-mcdonalds-fast-food-big-league-burgers-shake-shack [Accessed on: 2-4-2017]
Sardar, R. and Talat, M.A., 2015. What managers believe as important while recruitment in fast food industry within Norway: A case study of Burger King and McDonalds (Master's thesis, University of Stavanger, Norway).
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