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Value Chain Analysis Primary Activities

McDonald's primary value chain activities focus on manufacturing and distributing goods to customers. Their key activities include: 1) Managing inbound logistics like sourcing raw materials from predefined suppliers and using vertical integration for quality control. 2) Operating centralized warehouses and distribution networks to deliver standardized supplies to each restaurant location using specialized production equipment. 3) Marketing and selling products using extensive print and media advertising campaigns as well as promotional activities and public relations.

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Rafael Capunpon Vallejos
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158 views2 pages

Value Chain Analysis Primary Activities

McDonald's primary value chain activities focus on manufacturing and distributing goods to customers. Their key activities include: 1) Managing inbound logistics like sourcing raw materials from predefined suppliers and using vertical integration for quality control. 2) Operating centralized warehouses and distribution networks to deliver standardized supplies to each restaurant location using specialized production equipment. 3) Marketing and selling products using extensive print and media advertising campaigns as well as promotional activities and public relations.

Uploaded by

Rafael Capunpon Vallejos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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VALUE CHAIN ANALYSIS

Primary Activities
MacDonald’s primary value chain activities are focused on the manufacture and
distribution of goods to specific customers. Analyzing key value chain activities, as
discussed below, will help the organization enhance its profitability.
a. Inbound Logistics
McDonald's only buys their raw supplies of vegetables and other raw materials
from set, pre-defined sources, so increasing capital and labor would boost demand
proportionally. McDonald's has used backward vertical restructuring to replace the
majority of its suppliers. It has done so for two reasons: to cut prices and to ensure the
highest quality of its unprocessed materials. These supplies include beef and milk from
its farms, which it uses in its products. Local grocery stores that sell fresh produce to
McDonald's are also among the other suppliers. McDonald's products also include raw
materials including flour, starch, yeast, and man more.
b. Operations
Because of the mass-production process, each restaurant chain must have a
delivery network to transport the food to each location. Warehouses house massive
amounts of materials a restaurant needs. Meat, paper goods, and cleaning supplies are
also included. Trucks deliver materials to each restaurant from the warehouses.
Warehousing and storage, like chain control, are centralized rather than handled by
each franchise.
Instead of having a number of different machines and stations for cooking a wide
range of food, the Speede kitchen spearheaded by the MCD brothers contains a system
that had a very big grill where one person could cook a lot of burgers at the same time,
a dressing station where people put the same condiments to every burger, a fryer where
one person could make french fries, a soda fountain and milkshake machine for snacks
and drinks, and counters. This facilitated the fact that they can mass produce their food
items without the need of an expert cook. This type of strategy facilitated and is
perfectly suited for fast food chains.
c. Outbound Logistics
McDonald's is dedicated to serving high-quality food and exceptional service at
an affordable price in a safe and friendly atmosphere. That is why they collaborate with
staff, franchisees, and vendors to offer a diverse range of food options and wellness
knowledge to help consumers make informed decisions.
McDonald's locations are available in a variety of styles, including sit-down
restaurants, drive-thru, counter-service stores in food courts, and ski-thru. The
traditional method of obtaining meals in a sit-down restaurant style entails a waiter or
waitress taking orders and delivering the food. McDonald's counter-service stores, on
the other hand, require self-service.
d. Marketing and Sales
MCD is the world's leading food service retailer, with over 31,000 restaurants in
118 countries and feeding over 58 million customers every day. McDonald's heavily
uses print and media ads to express its brand strategy to members of the intended
consumer group. This amount was spent on promotional campaigns, activities and
experiences, and public relations, in addition to print and media ads. 
e. Service 
One of McDonald's biggest strategic advantages is its high-speed customer
service. Also MCD adds value, on conducts of events, example is on birthdays and
other special occasions, the family can celebrate it without worrying on a lot of things as
most of the things will be provided by the franchise. They also give their valued
customers gift cards and discount cards that allow them to pay at a faster rate. Some of
the outlets also provide play areas for children so that they can learn and enjoy
themselves at the restaurants, and they serve smaller servings of food to children.

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