Operations and outbound logistic helpMcDonald contain cost because these toactivities go hand in hand, the both of them usethe help the firm stay on top of what they spend. Operations make sure that the employees are happy as wellas keeping both the workstation and cold station temperatures adjustedaccordingly. Outbound focuses on quality control and keeping the trucks in goodworking order. Service and inbound logistics will probably provide the most valuefor the customer. Service because it provides Macdelivery, operation hours from 11 am to1 am, birthday parties, free Wi-Fi, and service of fast food.
Inbound logistics is very valuable to the customer because McDonald received a lot of fresh food instead of frozen products. Support activities are firm infrastructurebecause over time McDonald has changedtheir look by giving all stores a faceliftto modernize. Also, HRM plays a hugerole in the support because it can give flexible hours, add incentive forholiday pay, determine salary and award vacation days, as well as coordinatebenefits.
Technology is the leader in all successful businesses because thereis always constant change in software. The upgrade of headsets and the just intime delivery has been a huge success for the firm. Procurement helps them tostay in and give guidance through the franchise agreement, and the farmer’sguidelines.The value chain for McDonald’s consist ofthe primary activities and the support activities. The primary activities areinbound logistic, operation, outbound logistic, marketing and sales, andservice. The support activities are firm infrastructure, HRM, technologydevelopment and procurement. Inbound logistic is where McDonald purchase most oftheir products fresh.
McDonald’s make sure that the temperatures of theworkstations are adjusted according to outside temperatures which is part ofthe operation. Outbound logistics play a role inmaking sure the freight trucks are inspected, quality control, random auditsare conducted. Marketing and sales are done by giving kids books with theirhappy meal, offering birthday parties. Serviceis important to McDonald’s because they have the Mac delivery service, long operating hours, information on partiesin advance, free Wi-Fi and the opportunity to receive the food at a fast pace(Nisam, n.
2aIt is in the best interest of the companyto study the internal resources, activities of a firm, and capabilities. Thisis imperative because it gives the firm the opportunity to evaluate their corecapabilities and see what their strongest and weakest points are. The use ofthe internal resources give the companyan edge to build on and extend on productsor services and add value. Recognizing that the firm’s structure is in theculture and routine (Rothaermel, 2017).Question 4.1.The high-endclothing giants such as David’s bridal a 60-year-oldwedding apparel and accessories saw a dipin sales in 2017 mainly because of a website redesign. Nine West, J.
Crew, Sears, Neiman Marcus, Eddie Baurand Vince all showed losses during the financial meeting in Washington D.C. (Unglesbee, 2017). It is not cleared stated why these giantsstruggled to keep their competitive advantage, but one might assume that it isbecause of online giants such as Amazon, Aliexpress, and others that sell at discounted price. This is an example of thestrongest force the buyer’s power becauseit either forces companies out of business or causes them to lower their price.
All of the forces are gaged towards competition. The threat of entrant sends a threat tothe industry by either additional capacity or additional competitors. Each oneforces an organization to either drop their prices or spend more money to keepthe customers happy (Rothaermel, 2017).
Bargaining power of suppliers causes a reduction in the firm’s ability tohave a superior performance because theycan raise the price of production, and reduce the profit potential (p.75). Onthe other hand, the bargaining power ofthe buyers can either demand a lower price or a better quality. The buyer’s power liein the hand of the consumers, but more significantly in the hands of largerindustries. The threat of substitutes gives hope that outside products orservices might meet the same satisfaction as the current industry.
This forceis a threat because it reduces industry profit by limiting the price that canbe charged for the products and services (p.82). Rivalry among existing competitors places athreat because it creates a competitive industry structure, such as perfect competition, monopolisticcompetition, Oligopoly, and monopoly. Organizations must be aware of exitbarriers too when dealing with rivalryamong existing competitors. Porter’s explanation of the broadcompetitive force sheds some light on the fact that being competitive is notalways a forceful factor. It is in the best interest of the business tounderstand the five forces and how it could affect the business. The fiveforces are rivalry among existing competitors, bargaining power of suppliers,the threat of substitute products orservices, bargaining power of buyers, and the threatof entrant.
Question 3.2Itis very important that all organizations pay close attention and understand thepower of external environment. The external environment has a lot of forces that can impact the organization. The forcessuch as politics, economic, sociocultural, legal factors and ecological, allwhich are consider demand shifters. All of the above could affect the income,the prices of content and substance, the customer’s preference, andexpectations; all causing a decrease in the demand for products or services(Rothaermel, 2017).
If an organization want to keep a competitive advantage,they must understand and be aware of the importance and threats to the environment that they are surrounded.