McDonalds Internal Analysis

Instructions:

Review the following case and answer the case questions regarding Internal Analysis. The purpose of this activity is to help you understand some of the key concepts covered in this week's lesson.

Please answer the questions below; read carefully and answer completely to receive full credit. I am looking for how thorough you answered the question, how well you presented your information, and how clear you were. I am also looking for how you tie the lesson concepts and readings to your answers. "I think and I feel" answers without correlation to the lesson and examples will not be sufficient.

While there is no required word count, simply recalling text will not be sufficient. To submit your answer, click the assignment title. Please attach via Microsoft Word. To attach a file, under the submission box you will see the attach file section. Browse your computer and select the saved file with your answers, and click submit. If you have questions, please ask prior to the due date.

Thoroughly read the following attached case for specific case details. The purpose of this case is to help students answer the question of whether McDonald’s differentiation strategy is adequately supported by its value chain and other internal resources, McDonald’s must assess the relationships between the elements in its value chain. Please let me know if you have any trouble accessing the file.

Case Objective

To examine how a reevaluation of the strategy involves the assessment of internal activities and resources.

Case Question(s):

1. Review Chapter 3, Exhibit 3.1 to see the chart outlining primary and support value chain activities. Using the example chart below or similar, create an assessment of McDonald's value chain.

Value chain activity

How does McDonald’s create value for the “customer”? What challenges does McDonald’s have in its value chain?

Primary:

Inbound logistics (food & supply deliveries)

Operations (efficient processing of orders, quality control systems)

Outbound logistics (distribution to customers)

Marketing and Sales (motivated employees, innovative advertising & promotion)

Service (ability to solicit feedback & respond to customer issues)

Secondary (or support):

Procurement (relationships with suppliers for procurement of raw materials and supplies)

Technology development (state of the art equipment & software)

Human resource management (effective recruitment, incentive & retention mechanisms)

General Administration (effective planning systems to establish goals, access to operating capital, effective top mgmt communication, relationships with diverse stakeholders)

2. To further answer the question of how to support a competitive strategy, it’s important to consider the concept of the resource-based view of the firm, and the three key types of resources: tangible resources, intangible resources, and organizational capabilities. Determining whether the internal resources are valuable, rare, difficult to imitate, or difficult to substitute (VRIN) can help a firm sustain a competitive advantage. See Chapter 3, Exhibit 3.6.

In this section, outline the three key types of resources McDonald's displays. Using the key questions and implications outlined in Exhibit 3.6 of the text, apply the VRIN analysis to your discovery of their resources. Report them here.

3. In 2017 Easterbrook talks about growth based on what customers want: value and speed but has also been forced to respond to quality and cleaning up the supply chain, i.e. cage-free eggs. He also notes that consumer economic confidence is what ultimately drives customer visits. Review the following video and answer the questions below:

What other strategies could McDonald’s formulate to achieve a competitive advantage?