Prepared By: Reham Al-Homayan Review class 3 McDonald’s Case Study

Prepared By: Reham Al-Homayan Please answer the following questions: 1- Draw Porter’s value chain and explain what it shows, and then describe each area of the chain by using examples of McDonalds case study? 2- What are processes and why do they matter? Discuss this statement with references to the McDonalds case study.

Prepared By: Reham Al-Homayan Answer Q 1: What is value chain (Porter Definition) and explanation. Draw Value chain diagram – p 52 More explanation regarding the diagram as following, Primary activities include : Inbound logistic, activities that include receiving, storing of materials same as McDonald receiving the raw materials of meat and vegetable (potato). Operation, Transforming input to final product. When McDonald transferee raw meat and potato into burger and French frieze. Mention the steps of preparation. Outbound logistic, activities of distribution the products to the buyers. Selling meals. Marketing & Sales, advertising, promotion, sales force, meal price, logo. McDonald branches, programs (give mom a night off), logo, menu and price. Services, activities related to providing service to maintain and how staff deal with customers. Car delivery, Hindus problem.

Prepared By: Reham Al-Homayan Continue.. The primary activities need to supported by main activities (support activities) What is support activities? Procurement, purchasing that include raw materials, supplies, office, equipment (burger preparation, car hops). Technology development, range of activities that improve the product and the process (slaughter). HRM, activities related to recruitment, hiring, training, development, … (the worker and slaughter system and other staff).

Prepared By: Reham Al-Homayan Answer Q2: Define the processes. Hammer said “Process is related group of tasks that together create a result of value to customers”. More details ch 13 McDonald produce both services and god by process of transformation P 17 (Input) (Environment) (Output) Materials (meat) Transformation Service Vegetable (potato) Process meals Facilities Staff Fig 2.2

Prepared By: Reham Al-Homayan Continue.. How to be a competitor ch 4 There are 4 principles of capabilities-based competition: -The building blocks of corporate strategy is the business process but not the product and market. McDonald have a different way in serve customers in different location and regions because of there way of setting and plan the business. They decide to change business process by innovative new system that cuts the cost, provide value to their customers and make more profit by applied automation to food. -Competitive success depend on provide superior value to customers. McDonald have different way by serving a meals with flavors according to customers needs. E.g McDonald branch around the world. -McDonald work as a whole -McDonald Management are responsible for decision making,planning, …

Prepared By: Reham Al-Homayan Continue.. How to shift into capabilities – based competitors p 46 McDonald transferee into competitive stage through: -By shift the strategic framework to achieve aggressive goals when the management decide to change the business process and applied automation to food. -Make sure the staff have the skills and the ability to work in the organization and we can find that in slaughter and how the staff deal with cattle, also the customer service staff. -Measurement and reward, customers feedback and suggestions, and improvement. -Only top management are responsible to take a decision, planning, leading the team.

Prepared By: Reham Al-Homayan Continue.. Competitive advantages ch 11 p 151 Successful companies have to focus on product/coast advantage or value advantages. McDonald focus on both. By lowering the meal price and in the same time provide high quality of flavors and test by using best ingredients. Also, McDonald focus on the relationship with customers by studying the customers, making special programs for kids, and add the value through the service they provide. How McDonald achieve competitive advantage?

Prepared By: Reham Al-Homayan Continue.. Marketing Management def, &demand ch 6 p Through marketing management McDonald was able to analyze, planning, implementing, and control of program design by creating a value to the customers. McDonald have a special way in handling customers and their demand by serving meals with different flavors (branches around the world) Also, provide a quick car service to customers Conclusion, BPR ch 13 BPR – Business Process Reengineering: the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measure of performance, such as cost, quality, service, and speed.