||While China has grown to be the world’s factory in the past two decades, it has also been transforming into a large consumer market gradually. The recently announced “Twelfth Five-Year Plan” proposed to accelerate the development of products and services would make the next five years the “golden era” for the Chinese fast-food restaurants chains.|
In 2011, the Chinese market spent around 40,000 billion RMB on outside dinning, with an expected 16% annual growth. Chinese fast-food chain is highly labor-intensive, and man power has now become one of the most urgent issues facing the industry.
This research is a case study targeting at a specific fast-food chain, looking into its problem and attempting to arrive at a strategic recommendations for its management. The study was conducted through case analysis, interviews, data collection, field observation, etc. Due to the new national policy changes, new strategies need to be adopted to avoid uncertainty within the organization structure and human resource. A SWOT analysis was carried out to derive at the key strategies, and for the organizational structure adjustments that must be made.
The final recommendations are two courses of action. First, is to adjust the hiring practice: startup a new company that will provide the required labor to the company, and will be in charge of ensuring the control of the company’s budget and profit margins. Simultaneously, it will solve the problems in the restaurant chains caused by the mobilization of labor from one region to another. Second, hire hourly paid employees in order to downsize the regular labor force and also cut down the costs in labor insurance and other benefits. It is also beneficial to those people who need employment but cannot commit to a full-time job.
Through the implementation of these new human resource strategies, the company will be able to downsize its labor and to increase productivity, thereby increase profits. By increasing profits and implementing a solid strategy, the fast-food restaurant chain will increase its competitive advantage and will be able to thrive in this growing industry, moving towards sustainable management.
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