McDonalds
McDonalds INTERNAL ANALYSIS8
The internal analysis of the firm describes the strengths and weaknesses the firm brings to its competitive environment. What resources or capabilities can a firm leverage against its competitors and/or to tap new markets? What weaknesses we might see that will handicap the firm in the future? You should perform the internal analysis using the value chain approach that we will discuss in class (see description below, as well). This approach consists of breaking the firm into the main activities in the value chain and then determining which activities may yield a competitive advantage for the firm. As an example, cost leadership can be the result of engineering capabilities. While sometimes difficult to use, the VRIO analysis is another good analytical tool which can help you to organize your thoughts and develop your case.
(B) Support Activities
(6) Firm Infrastructure. Analyze the activities that support the work of the entire value chain (e.g., general management, planning, finance, accounting, legal, government relations, etc.). For example, what are the chief elements of your company’s finance strategy (e.g., the use of debt, dividend payments, sales/purchases of stock, use of cash, etc.)? What is your company’s strategy for exercising social responsibility and being a good corporate citizen?
(7) Human Resource Management. How does your company recruit, hire, train, develop, and compensate its personnel (e.g., use of overtime, worker compensation)?
(8) Technology Development. What activities are completed to improve your firm’s product and what processes are used to manufacture it (equipment, basic research, product design, etc.)?
(9) Procurement. Describe the activities completed to purchase the inputs needed to produce your firm’s products (raw materials and supplies, machines, laboratory equipment, etc.).
In addition, the value chain analysis should include the following:
(10) Competitor Analysis. Benchmark each
The internal analysis of the firm describes the strengths and weaknesses the firm brings to its competitive environment. What resources or capabilities can a firm leverage against its competitors and/or to tap new markets? What weaknesses we might see that will handicap the firm in the future? You should perform the internal analysis using the value chain approach that we will discuss in class (see description below, as well). This approach consists of breaking the firm into the main activities in the value chain and then determining which activities may yield a competitive advantage for the firm. As an example, cost leadership can be the result of engineering capabilities. While sometimes difficult to use, the VRIO analysis is another good analytical tool which can help you to organize your thoughts and develop your case.
(B) Support Activities
(6) Firm Infrastructure. Analyze the activities that support the work of the entire value chain (e.g., general management, planning, finance, accounting, legal, government relations, etc.). For example, what are the chief elements of your company’s finance strategy (e.g., the use of debt, dividend payments, sales/purchases of stock, use of cash, etc.)? What is your company’s strategy for exercising social responsibility and being a good corporate citizen?
(7) Human Resource Management. How does your company recruit, hire, train, develop, and compensate its personnel (e.g., use of overtime, worker compensation)?
(8) Technology Development. What activities are completed to improve your firm’s product and what processes are used to manufacture it (equipment, basic research, product design, etc.)?
(9) Procurement. Describe the activities completed to purchase the inputs needed to produce your firm’s products (raw materials and supplies, machines, laboratory equipment, etc.).
In addition, the value chain analysis should include the following:
(10) Competitor Analysis. Benchmark each