GB570 Managing the Value ChainUnit4.DOCX

GB570 Managing the Value ChainUnit4

Value Chain Analysis

Unit 4Individual Project Assignment

GB570 Managing the Value Chain

Professor Jerry Haenisch

Kaplan University



Value Chain Analysis

Since 1955, McDonald’s has opened 34,000 outlets, employs 1.8 million people, and serves 69 million people a day on average in 118 countries. McDonald’s Corporation (NYSE: MCD) is headquartered in the United States and was originally owned by Richard and Maurice McDonald and business partner Ray Kroc.

All McDonald’s restaurants have the option to be franchised, affiliates or owned by the corporation. Revenues come from the franchised restaurants by way of rent, royalties, and sales. McDonald’s revenues have increased from 22.7 billion dollars in 2009 to 27.6 billion in 2012. With the increase in demand, it is assumed that McDonald’s will continue to increase revenue over the next 5 years. (Value chain and competitive, 2012)


Demand Chain Analysis

The demand chain consists of three parts, marketing, sales and service. McDonald’s has had to consider how to create a demand for their product that is not
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