Integrating Mcdonald’s Business Essay

AbstractIn this case study I will describe McDonalds personal credit line strategy and how it differentiates itself from the competition and describe the roots that make the foundations of its competitive advantage. I will uncover how they have aligned their business, human resources and staffing strategies and been successful through a recession. Finally I will discuss some executable talent-related threats that could eat away at McDonalds competitive advantage and answer the question somewhat a high turnover rate in a tight labor market being a problem. I will offer a recommendation based on my research for McDonalds to maintain their competitive edge in the marketplace for the next five years.Integrating McDonalds Business, mankind Resource, and Staffing StrategiesHow does a multinational company like McDonalds actually become even stronger and increase sales through one of the worst recessions in memoir? McDonalds is built on a foundation that gives it a competitive advantag e and a business strategy that is consistent, flexible, and specialized. McDonalds business strategy is the strong point strategy. According to Phillips & Gully (2009), Businesses pursuing a specialization strategy reduce on a narrow market segment or niche- a single product, a particular end use, or buyers with special pauperisations-and pursue either a differentiation or cost-leadership strategy within that market segment. Successful businesses following a specialist strategy know their market segment very well, and often enjoy a high degree of customer loyalty ( pg. 29, para 5.) McDonalds niche market is people, how do people and their needs and wants become the roots of a companys competitive advantage? Kiran Chetry at CNN had a intelligence with the Vice president of strategy and menu at McDonalds and this is what she said about what changed with McDonalds Well, thereare two things thats really attri stilled to McDonalds success.First and foremost, listening to our customer s, its menu variety, its value and affordable prices at McDonalds and the convenience that only McDonalds can offer. The other piece is our system conglutination around one plan. You know, under the arches we have a term called the three-legged stool. Its our franchisees, our suppliers and our corporate staff working to perishher. Those are the two things that have worked for McDonalds and our success. (Chetry, 2009, para 7.) The way they are able to fuse their business, human resource and staffing strategies is by tracking key indicators. Indicators that track product, service quality, speed, accuracy, turnover, productivity, customer satisfaction, sales and favorableness are the keys to a successful strategy. An article written by Janet Adamy for The Wall Street Journal stated McDonalds has been on a roll since 2003, when, to get out of a slump, it halted rapid expansion and instead focused on improving the food. (Adamy, 2009, para 11.) she goes on to say Behind the effort is an increased focus on examining reams of customer data measuring everything from whether customers are trading down to smaller value meals or dropping Cokes from their orders to exactly how much theyre ordain to pay for a Big Mac. (Adamy, 2009, para 13.)McDonalds has refocused its efforts and realized the importance of providing customers with quality food in a clean and organized environment with alert service at an affordable price. To bring all these things to their customers they need quality staff and they have built a strategy of hiring internally from referrals and marketing jobs in their restaurants. Now that the worst has seemed to pass with regards to the recession, the reality is that there could be some real talent-related threats to their labor pool. To keep a competitive advantage to offset possible turnover as more jobs open up and the labor market eventually tightens up the company has to find an incentive to keep the young and onetime(a) potential applicants from g oing elsewhere and also retaining the quality of employees that they have. The best way for a brand like McDonalds to attract and keep quality individuals is to offer incentives for increase within the company through education and leadership training.If they can open the window for ownership through a system of mentorship and promotion, the old stigma of getting a job flipping burgers becomes more like an apprenticeship in entrepreneurial opportunities that every employee willembrace. If an employee doesnt want to eventually own a franchise but wants to lean on becoming and going into management within the company, a succession of internal promotions based on merit, longevity, production, and talent reviews would also be usable for these types of employees. McDonalds is doing the right things when it comes to changing their menu and food and beverage selection to accommodate the needs of their customers. This has helped the company grow its net income from over 1 billion dollars in 2003 to over 4 billion dollars in 2008. (Adamy, 2009, para 15) The intricate parts and components of the people that McDonalds hires and the way they train them to keep the service and quality at the standards that they need to be at to be successful are the keys of success for this business and any business for that matter.ReferencesAdamy, Janet (2009). McDonalds Seeks Way To Keep Sizzling. The WallStreet Journal.Digital Network, March 10, 2009. Retrieved fromhttp//online.wsj.com/article/NA_WSJ_PUBSB123664077802177333.htmlPhillips, J. & Gully, S. (2009). strategic staffing. New Jersey Pearson Prentice HallChetry, Kiran (2009). Food for thought Why is McDonalds thriving? CNN.COM, March 18, 2009. Retrieved fromhttp//articles.cnn.com/2009-03-18/us/wells.qanda_1_mcdonald-kiran-chetry-prices?