This week’s discussion looks at business and staffing strategies. We will be dis

Question

This week’s discussion looks at business and staffing strategies. We will be discussing the Integrating McDonald’s business, human resource, and staffing strategies case at the end of the chapter.

•       Describe McDonald’s business strategy? What are the foundations of its competitive advantage (what are the sources of its success)?

•       Discuss McDonald’s business strategy and how it aligned with its business, human resource, and staffing strategies?

•       What are some possible talent-related threats that could eat away at McDonald’s competitive advantage? Would higher turnover or a tight labor market in which it is difficult to find talented people be a problem? What would you recommend the company should do to maintain its competitive advantage over the next five years?

Explanation / Answer

1) Describe McDonald’s business strategy? What are the foundations of its competitive advantage (what are the sources of its success)?

McDonald’s business strategy is an action plan, which targets growth of the business and excellence in operations of business. They have a specialization strategy. The sources of its success are the people and the processes used by the company. They are the foundations for the company to have a competitive advantage over others. McDonald’s hires staff that is customer service-oriented. It further trains the staff to provide excellent sevices. This in turn helps the company to evaluate and improve the alignment between the staffing and strategies of its business.

2)  Discuss McDonald’s business strategy and how it aligned with its business, human resource, and staffing strategies?

For the growth of business and for achievement of excellence in the operations, it is required that the company ensures that the employed staff is efficient and customer-service oriented. The strategy of the business should aim at providing excellence in services to the customers, training the staff for better performance and retention of the existing talent.

McDonald’s has adopted a strategy that focuses on the above. It is hiring customer-service oriented staff and provides training for improvement of the performance. It focuses on satisfaction of the customer. It focuses on development of leaders in a good working environment with values needed to satisfy the customers. It is more people-oriented. This in turn helps the company gain competitive advantage with benefits.

3) What are some possible talent-related threats that could eat away at McDonald’s competitive advantage? Would higher turnover or a tight labor market in which it is difficult to find talented people be a problem? What would you recommend the company should do to maintain its competitive advantage over the next five years?

The possible talent-related threats that could eat away McDonald's competitive advantage are lack of experienced staff, and dissatisfied employees ready to join other company by giving resignation. This can be due to the fact that employees demand higher pay and the company ignores the claim due to its current position in the market. The company should consider the threat if the talented employees are not satisfied. Higher turnover will be problem for the company as it will loose talented staff. A tight labor market would not be a problem as it has to be understood that capacity and efficiency matters more than just a degree/qualification.

To maintain its competitive advantage for the next 5 years, I recommend that the company should maintain its strategy as it is doing now. It should focus on customer satisfaction as well as employee satisfaction.

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