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GB570 Managing the Value Chain : Value Chain Analysis - Kaplan University

Value chain analysis solution.

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    VALUE CHAIN ANALYSIS 1 Value Chain Analysis Unit 4Individual Project Assignment Paige Harward GB570 Managing the Value Chain Professor Jerry Haenisch Kaplan University In your analysis of McDonald's value chain, how does the company integrate its demand chain, supply chain, and value drivers to maintain its competitive advantage and ensure customer satisfaction? Provide a detailed response (750 – 1000 words).

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    VALUE CHAIN ANALYSIS 2 Value Chain Analysis Since 195 5, McDonald’s has opened 34,000 outlets, employs 1.8 million people, and serves 69 million people a day on average in 118 countries. McDonald’s Corporation (NYSE: MCD) is headquartered in the United States and was originally owned by Richard and Maurice McDonald and business partner Ray Kroc. All McDonald’s restaurants have the option to be franchised, affiliates or owned by the corporation. Revenues come from the franchised restaurants by way of rent, royalties, and sales. McDonald’s revenues have increased from 22. 7 billion dollars in 2009 to 27.6 billion in 2012. With the increase in demand, it is assumed that McDonald’s will continue to increase revenue over the next 5 years. ( Value chain and competitive , 2012) Demand Chain Analysis The demand chain consists of three parts, marketing , sales and service. McDonald’s has had to consider how to create a demand for their product that is not available anywhere else. With this in mind, they have identified the customer and market wants and needs. They have also done a market opportunity analysis and identified value drivers. In this they have discovered the consumer wants a laid back atmosphere in a fast past world. The consumer also wants healthier food in a pretty package. In addition to the consumer wants, according the market analysis, McDonald’s has the opportunity to add convenience to an economy that needs them. The company has also discovered how to drive value by retaining and maintaining employees as well as continuously analyzing data with a state of the art database.

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    VALUE CHAIN ANALYSIS 3 Identification of Customer, Market, Wants and N eeds Over the years, McDonald’s has identified several wants and needs of the consumer. They have tried to maintain this through services such as free Wi - Fi and “Arch Cards”. Free Wi - Fi turns the fast food atmosphere into more of a laid back café style. To go along with the Wi - Fi , they also started the McCafe brand of coffees and lattes in 2008 . McDonald’s also has gift cards, Arch Card, that are pre - paid and come in several denominations to allow them to be given as gifts and used through the drive - through. McDonald’s has also recognized consumer wants for healthier food and odd hours. MCD has begun to change their food brands to offer healthier choices such as, grilled chicken sandwiches, yogurt parfaits, and apple snacks in the kids meals. They are now open 24 hours in many locations offering a midnight menu with smaller, cheaper options. ( Value chain and competitive , 2012) Market Opportunity Analysis MCD has taken the time to look at the current food trends. They have begun to see that while what the consumer wants is quality food at a reasonable price. They are noticing a trend in society in which the consumer no longer wants to eat just to survive, they want to consume for enjoyment. This means the consumer is looking at prices, convenience, and value. The consumer wants to know where their food came from. Taking this into consideration they have created a sustainability supply chain .( Sustainable supply chain, 2011 )

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