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Applying Value Chain On McDonald's

This document discusses applying Porter's value chain model to McDonald's. It outlines both the primary and support activities in McDonald's value chain. The primary activities include inbound logistics (sourcing raw materials), operations (food preparation), outbound logistics (delivery), marketing and sales, and services. The support activities that help coordinate the primary activities are firm infrastructure, human resource management, technology development, and procurement.

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Mohammad Rakib
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79 views4 pages

Applying Value Chain On McDonald's

This document discusses applying Porter's value chain model to McDonald's. It outlines both the primary and support activities in McDonald's value chain. The primary activities include inbound logistics (sourcing raw materials), operations (food preparation), outbound logistics (delivery), marketing and sales, and services. The support activities that help coordinate the primary activities are firm infrastructure, human resource management, technology development, and procurement.

Uploaded by

Mohammad Rakib
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Management Information Systems

Assignment 2
Topic: Applying Value Chain on McDonald’s
Name :
ID:
Semester :
Course Code : MIS442
Section : 1
Submitted to :
Date of Submission :
We are going to apply the Porter’s Value Chain Model on “McDonald’s”. The company
pattern has both primary and support activities.

 Primary Activities
The primary value chain activities of McDonald’s are directly involved in producing and
selling the product to targeted customers. Primary value chain activities can improve the
performance of McDonald’s as explained below.

 Inbound Logistics

It is important to develop strong relationships with suppliers as their support is


necessary to receive, store and distribute the product. Inbound logistics requires a
company to focus on every aspect of transformation from raw material to finished
product.

McDonald’s inbound logistics are retrieving raw material, storing the inputs and
internally distributing the raw material and components to start production.
 Operations

The importance of operational activities raises when raw material arrives, and
McDonald’s is ready to process the raw material into the end product and launch it in
the market.

McDonald’s operational activities are machining, packing, assembling and testing.

 Outbound Logistics

McDonald’s outbound logistics include the activities that deliver the product to the
customer by passing through different intermediaries.

McDonald’s outbound logistics activities are material handling, warehousing,


scheduling, order processing, transporting and delivering to the destination.

 Marketing and Sales

At this point, McDonald’s will highlight the benefits and differentiation stage of offered
products to persuade the customers that its offering is better than competitors. Only
producing a high quality product at affordable costs and distinctive features cannot
create value until McDonald’s invests on the marketing and sales activities.

McDonalds's marketing and sales activities are- sales force, advertising, promotional
activities, pricing, channel selection, quoting and building relations with channel
members.

 Services

The pre-sale and post-sale services offered by the McDonald’s will play an important
role in developing customer loyalty. The modern customers consider post-sale services
as important as marketing and promotional activities.

McDonalds's services are home delivery, customer service.


 Support Activities
The support activities play an important role in coordinating and facilitating the primary
value chain activities. McDonalds can also benefit from its support activities as
explained below.

 Firm infrastructure

The firm infrastructure denotes a range of activities, such as- quality management, legal
matters handling, accounting, financing, planning and strategic management. Effective
infrastructure management can allow McDonalds to optimise the value of the whole
value chain.

 Human resource management

McDonalds can evaluate their human resource management by evaluating different HR


aspects, including- recruiting, selecting, training, rewarding, performance management
and other personnel management activities. The effective HR management can allow
McDonalds to reduce competitive pressure based on motivation, commitment and skills
of its workforce.

 Technology development

In technological advanced era, almost all value chain activities depend on technological
support. The technological integration in production, distribution, marketing and human
resource activities requires McDonalds to realise the importance of technology
development. It can be divided into product and process technological development
activities. Some examples are- automation software, technology-supported customer
service, product design research and data analytics.

 Procurement

The procurement in value chain denotes the processes involved in purchasing the
inputs that may range from equipment, machinery, raw material, supplies, raw material
and other items necessary for producing the finished product. Due to its linkage with
multiple value chain activities, McDonalds should carefully consider its procurement
activities to optimise the inbound, operational and outbound value chain.

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