Strategy on Mc Donald's

1. INTEGRATING MCDONALD's
BUSINESS, HUMAN
RESOURCE, AND STAFFING
STRATEGIES.

2. INTERESTING FACTS ABOUT
MCDONALDS:
 McDonalds opens a new restaurant every 14.5 hours.
 62 million footfalls in a day all over the world.
 Largest distribution of toys.
 US$75 million per day.
 To earn enough to buy a Big Mac, the average person in India has to work almost 6 hours.

3. Overview
 Believes that people are the most important asset.
 Focuses on achieving profits through customer satisfaction.
 Advertises inside the restaurant, career fairs and local job centres.
 Hires and trains the best and potential employees.
 Wants to become the best employer in the community.
 Makes people promises and people principles to its employees.
 Internal promotions done.
 Recognizes people’s efforts in productivity, sales and profits.
 Employee commitment, retention and loyalty.
 Good customer service like accuracy, quality of products and services
which leads to customer satisfaction.
 Increases the footfall and thereby increasing the productivity.

4. QUESTION 1
 HOW WOULD YOU DESCRIBE MCDONALDS BUSINESS STRATEGY?
WHAT ARE THE FOUNDATIONS OF ITS COMPETITIVE ADVANTAGE?

5. MCDONALD’S BUSINESS STRATEGY:
 OPERATIONAL FACTORS
Its business strategy revolves around “customer satisfaction”.
It seeks to achieve profit by providing the following to the customers:
 Product and Service quality
 Cleanliness
 Quick service
 Value
 Accuracy

6.  PEOPLE FACTORS
 KNOWLEDGE , SKILL AND ATTITUDE (KSA)
 McDonalds claims to be the ‘best employer’.
 “we value you, your growth and your contribution”
 Employee commitment, retention, productivity, and
customer loyalty.

7. MCDONALD’S COMPETITIVE
ADVANTAGE:
 Cost leadership – They are cost leaders who offer their food which
cannot be matched with their competitors.
 Differentiation – They focus on speedy delivery of food.
The two competitive advantage comply on the vision of the company
“ To be the world's best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness, and
value, so that we make every customer in every restaurant smile.”

8. QUESTION 2
 HOW HAS MCDONALDS ALIGNED ITS BUSINESS, HUMAN RESOURCE,
AND STAFFING STRATEGIES ?

9.  People oriented strategy.
 Claims at becoming the best employer.
 Hire the best people and then retain them by ongoing training.
 People promise – “ we value you, your growth and your contribution”
 HR Strategy reflected in people principles – competitive pay and benefits,
learning and development, personal growth.
 Identifying people’s practices which impacts the firm’s turnover, sales,
productivity and customer satisfaction.
 Ensuring that employees work in a good environment.
 Promoting from within the organization.
 Improving company’s results through good customer service, Employee
commitment and retention.
 Good customer service = increase in footfalls.

10. QUESTION 3
 WHAT ARE SOME POSSIBLE TALENT RELATED THREATS THAT COULD EAT
AWAY AT MCDONALDS 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 DO TO MAINTAIN ITS
COMPETITIVE ADVANTAGE OVER THE NEXT 5 YEARS?

11. TALENT RELATED THREATS THAT
COULD EAT AWAY MCDONALDS:
 Difficulty in finding people
 Own franchisee due to enough training and work experience
 Possibility of the teenage employees to switch to other companies.

12. WOULD HIGHER TURNOVER OR TIGHT
LABOUR MARKET IN WHICH IT IS
DIFFICULT TO FIND TALENTED PEOPLE
BE A PROBLEM?
No, it would not be difficult to find talented employees in tight
labour market due to various reasons.

13. RECOMMENDATION TO THE
COMPANY:
 Expand its outlets in various parts of India.
 Regular SWOT analysis.
 Detail study of changing trends.
 Training according to the changing demands.
 Providing health and financial benefits to the employees.
 To adjust prices.

14. THANK YOU 