Value and Fast Food Customers free essay sample

What situation did Skinner inherit when he became CEO? What are the current forces in the external environment that affect Skinner’s ongoing strategy? 2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? -Inherit the previous CEO Cantalupo’s turnaround strategy. This strategy referred as the †Plan to win† tried to target various critical areas that needed to be addressed. -Rapid market fragmentation, which is describing the changes of consumer taste have made once-exotic foods like sushi and burritos everyday options. Many fast food customers are looking for healthier and better tasting food. Moreover, competitions has been coming from quick meals of all sorts that can be found in supermarkets, convenience stores and vending machines. Demographic customers now working around theclock, expecting 24 hour access  to fast food, how toplease range of customers from kids to  contractors? Sociocultural customers preferences have changed tomore exotic foods, healthier food with better taste Economic current economic downturn means customers might be trading down  to McDonald’s if  they ant to eat out Global boundaries are disappearing, travelers moreopen to global consistency in food offerings GoldenArches are accepted, and expected, everywhere 2. Cost leadership has been the traditional strategy for thefast- food industry, but McDonald’s kept costs under control in order to achieve parity with competitors -McDonald’s tried to develop a differentiationadvantagewhile keeping costs at a reasonable level -Differentiation requires the creation of something that isperceived industry-wide as unique and valued bycustomers -Differentiation s achieved by a firm configuring  its valuechain activities to support its position so customers arewilling to pay a premium for something unique – could McDonald’s do this effectively? Value-Chain  Analysis: -Sequential process of value-creating activities -The amount that buyers are willing  to pay forwhat a firm provides them -Value is measured by total revenue -Firm is profitable to  the extent the value itreceives exceeds the total costs involved increating its product or service Value  ChainActivity How does McDonald’s create value? Primary: Inbo und  logistics: Hard  to  assess Operations:   Strived  for  consistency  across  the  chain,  withdiffering results. Refurbishing of restaurants,change in hours may help draw customers. Outbound  logistics:   Hard  to  assess Marketing and sales: Many product innovations failed, $1 menu  didn’t go well with franchisees. I’m Loving It campaign was attempt to reach all customers. Service:   Hard  to  assess Value  ChainActivity How does McDonald’s create value? Secondary: Procurement:   Info  not  available  in  the  case Technology development: Adoption of expensive cooking processesfailed to generate desired results.