Essay on Value Chain Analysis : Mcdonald 's Corporation

2259 Words Oct 23rd, 2016 10 Pages
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.
McDonald 's is an American hamburger and fast food restaurant chain. It was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. McDonald’s is serving around 68 million customers daily in 119 countries. McDonald 's operates 36,525 restaurants worldwide, employing more than 420,000 people. McDonald 's Corporation shares a unique Business policy. The company mainly focuses on joint ventures, franchiser to earn maximum revenue. The McDonald 's Corporation 's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald 's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise…

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