VALUE CHAIN ANALYSIS OF MCDONALD

Abstract

This research abstract focuses on the value chain analysis and business model of McDonald's, a global food service retailer that serves approximately 70 million customers daily across almost 35,000 outlets worldwide. McDonald's primary revenue comes from franchising the majority of its locations, offering a wide variety of fast food at a low cost while expanding its business abroad. The inbound logistics involve receiving, storing, and utilizing primary material to make burgers and other menu items. The franchise formats include conventional franchise, developmental license, and affiliate. McDonald's marketing strategy focuses on developing menus that cater to regional tastes while conveying the message of delicious fast food at an affordable price. Technology plays a crucial role in the value chain, enabling opportunities for collaboration across members of the corporate value. The success of McDonald's competitive strategy depends on its capacity to understand its capabilities and the preferences of the clients, creating an effective and efficient value chain that adds to the operational operations of the entire business. McDonald's challenges include maintaining its market share and customer base in a competitive market while addressing the unintended repercussions of globalization, such as the worldwide overweight epidemic. Performance management is a critical instrument for assessing the organization's potential to stay in business over the long and short terms, measuring the desired outcome with the actual outcome in daily activities.