Value Chain Analysis is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation. In 1985, Michael Porter, a Harvard Business School professor, introduced a basic value chain model in his book Competitive Advantage. This Value chain model focuses on set of activities that an organization carries out to create value for its customers. This model is mainly focuses on two parts such as primary activities and support activities. In-depth study of both primary and support activities provide the thorough understanding of business process.
INTRODUCTION TO COMPANY
McDonald 's is an American hamburger and fast food restaurant …show more content…
Conventional Franchising: In this method the franchisees have to pay rent and royalties on the percentage of sales and with this they also have to pay the initial fees when they open the new restaurant. In conventional franchising the company provide the land for business as company owns the land and building or they secure a long term lease for restaurant location. Here, the role of the franchisee is to pay for equipment, seating and décor and maintain the restaurant in good conditions.
2. Developmental License: Here, licensees provide capital for entire business. It includes land, malignance, décor. In this process McDonald’s never invest on capital. In fact, licensee has to pay the royalty on the basis of percentage of sales in addition to initial fees or grant of new license. McDonald’s cooperation has successfully used developmental license technique in more than 70 countries and for total 5,228 restaurants.
3. Affiliates: This technique franchising assign to limited number of foreign affiliated market. Here, McDonald’s receives royalties from affiliates on the percent of sales. This franchising method is accepted by many countries. Japan is one of the counties which has largest numbers of affiliates as around 3,100 …show more content…
McDonald 's has teamed with Echelon corporation to improve their kitchen equipment to lower energy consumption and increased efficiency. With this service the company can receive data on their equipment which lower labor cost used to gather data. McDonald’s uses biodiesel technology. This technology helped to reduce carbon emissions with the truck making the deliveries. In order to maintain the services like midrange server support, mainframe, networking operations, desk functions, user access messaging services, end to end application, security applications and networking operations McDonald’s is using ACS systems. This ACS system used to address the issues related to core technology and further it supports development, testing and quality assurance process. The company uses Nintendo DS system for e-learning training tool for new recruit staff over 3000 of their restaurants. This new technology is useful for the organizations to use less paper work and maintain a proper record of their employees. In recent days McDonald’s has introduced Wi-Fi hotspots in their restaurants globally. Also, the company has introduced electronic payment model and mobile ordering in some markets. In UK Market McDonald’s has introduced touchscreens for around 100 of its outlets where People can order and food can be picked up or delivered to the table and
INTRODUCTION TO COMPANY
McDonald 's is an American hamburger and fast food restaurant …show more content…
Conventional Franchising: In this method the franchisees have to pay rent and royalties on the percentage of sales and with this they also have to pay the initial fees when they open the new restaurant. In conventional franchising the company provide the land for business as company owns the land and building or they secure a long term lease for restaurant location. Here, the role of the franchisee is to pay for equipment, seating and décor and maintain the restaurant in good conditions.
2. Developmental License: Here, licensees provide capital for entire business. It includes land, malignance, décor. In this process McDonald’s never invest on capital. In fact, licensee has to pay the royalty on the basis of percentage of sales in addition to initial fees or grant of new license. McDonald’s cooperation has successfully used developmental license technique in more than 70 countries and for total 5,228 restaurants.
3. Affiliates: This technique franchising assign to limited number of foreign affiliated market. Here, McDonald’s receives royalties from affiliates on the percent of sales. This franchising method is accepted by many countries. Japan is one of the counties which has largest numbers of affiliates as around 3,100 …show more content…
McDonald 's has teamed with Echelon corporation to improve their kitchen equipment to lower energy consumption and increased efficiency. With this service the company can receive data on their equipment which lower labor cost used to gather data. McDonald’s uses biodiesel technology. This technology helped to reduce carbon emissions with the truck making the deliveries. In order to maintain the services like midrange server support, mainframe, networking operations, desk functions, user access messaging services, end to end application, security applications and networking operations McDonald’s is using ACS systems. This ACS system used to address the issues related to core technology and further it supports development, testing and quality assurance process. The company uses Nintendo DS system for e-learning training tool for new recruit staff over 3000 of their restaurants. This new technology is useful for the organizations to use less paper work and maintain a proper record of their employees. In recent days McDonald’s has introduced Wi-Fi hotspots in their restaurants globally. Also, the company has introduced electronic payment model and mobile ordering in some markets. In UK Market McDonald’s has introduced touchscreens for around 100 of its outlets where People can order and food can be picked up or delivered to the table and