The History Of Labor Market Competition Business Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. The company began as a Jacksonville, Florida-based restaurant chain in 1953 originally called Insta-Burger King. After the company ran into financial difficulties in 1955, its two Miami-based franchisees, David Edgerton and James McLamore, purchased the company and rechristened it Burger King. Over the next half century the company would trade hands four times, with its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking the company public in 2002. The current ownership group, 3G Capital of Brazil, acquired a majority stake in the company in a deal valued at $3.26 billion (USD) in late 2010.

At the end of fiscal year 2010, Burger King reported it has more than 12,200 outlets in 73 countries; 66 percent are in the United States and 90 percent are privately owned and operated. Over the course of its history the company has used several variations of franchising to expand its operations. The manner in which the company licenses its franchisee varies depending on the region, with some regional franchises known as master franchises and are responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances the company's and its licensees' relations have degenerated into precedent-setting court cases. â€" from Management Paradise


My name is Kevin van Seumeren, I am Human Resources Manager at Burger King, my CEO asked me to write the article which I’m going to present to you now. Human resource planning involves looking at the current workforce skills and motivation techniques and comparing them with what is going to be needed in the future. To do this Burger King has to take into account considerations both inside and outside the business and the skills that are needed.


Our goal is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources. We at Burger King encompass efforts to promote personal development, employee satisfaction, and compliance with employment-related laws.

To achieve this, the HRM department focuses on these three general functions or activities: planning, implementation, and evaluation. The planning function refers to the development of human resource policies and regulations. The HR Managers attempt to determine future HRM activities and plan for the implementation of HRM procedures to help BK realize its goals.


Following factors relate to what is already happening within Burger King. This includes how the organization is changing to cope with new methods of working or new demands made on it, such as the introduction of technology or new products or services. It is also a way of considering the new skills that will be needed in the future and those that the existing staff already has. The gap between the skills already present and those that are needed can be measured.

Internal factors:

Organizational needs - The workforce needs to be able to adapt to changes. Demand for products and services will affect the number of people needed in certain roles. Burger King can look to move into new markets, this could mean expansion and staff needing new skills such as languages. More staff may be needed in distribution if the business grows. Technological change can also affect the internal working arrangements - machinery leads to redundancies, new training may be needed etc. (Internet shopping and self-scan checkouts) Outsourcing production to cheaper countries.

Skills requirements - Assessing the skills of the current workforce is an essential part of human resources planning as it enables Burger King to build up a profile of the training, experience and qualifications that employees already have. This is very important whether the business is capital intensive or labor intensive. As the nature and type of work changes within an organization, so do the skills requirements. An organization must measure the skills levels of its workforce in order to plan for the future appraisals, awards, certificates etc.

Workforce profiles - This means that a manager can view and monitor the types of employee working for the business. They usually include details such as age, gender, ethnicity and availability. Knowing ages can help you plan for the future and also ensures that you fulfill any legislation requirements. Large gaps in ages can cause problems so this allows you to combat this. Profiling the qualifications and training of your workforce allows a business to make use of any special skills staff members have.

External factors:

Supply of labor - Nationally, the supply of labor is dependent on trends in unemployment and the types of skills that are needed by employers.

Labor costs - The cost of labor, as a percentage of the other costs within a business, will depend on whether the business is capital or labor intensive, as well as the extent to which the skills needed by that organization are available and accessible. In The Netherlands, labor costs are also governed by the national minimum wage.

Workforce skills - Using published national statistics, organizations can see the types of skills that are available in their local area or region. Businesses need to consider their future needs and those of their competitors in order to make sure they attract the right people, this may mean extra incentives being offered.

Government policy - Government policy and changes to education policies can lead to gaps in skills, or gaps in skills being addressed.

Labor market competition - As a business plans its workforce needs for the future, so do other businesses within the same industry. There may not be enough skilled employees for each business, so you may need to offer more money to attract the right employees. But, you need to manage your funds well to make a profit.

Changing nature of work - 'A job for life' used to be a standard idea in the workplace, but now employees need a wider range of skills and be willing to change employer and job role in order to stay in work. Overnight working, flexible working hours and working from home are now commonplace in the workplace. Flat organizational structures mean employees may have to move to get a promotion.

Employee expectations - Differing types of contracts (part-time, full-time, temp, casual, permanent) Everyone is different and employees may have business at home to take care of meaning they cannot work full-time.

Impact of automation - This addresses the changes in technology over time and how this affects an organization - such as the internet and email, no need for phone operators, customers entering their own details online.

Demand for products and services - A business may have to alter or change its HR requirements or staff levels based on the natural changes in demand for goods or services. A competitor such as McDonalds bringing out new technology making yours obsolete.