Study The Internal Resources, Capabilities, And Activities Of Firms

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Discussion Question 4.1
Why is it important to study the internal resources, capabilities, and activities of firms? What insights can be gained?

It is important to study the internal resources, capabilities, and activities of a firm because it will allow either the firm itself or its competitors to identify that firm’s core competencies and ascertain how that firm is realizing its competitive advantage(s) in the industry through these three factors. This information can then by utilized by the firm itself to continue to build on these competencies and continue to develop them into higher levels of competitive advantage. Other firms can exploit this information to imitate or perfect this company’s advantages for itself.

Discussion Question 4.2
Conduct a value chain analysis for McDonald 's. What are its primary activities? What are its support activities? Identify the activities that add the most value for the customer. Why? Which activities help McDonald 's to contain cost? Why?

McDonald’s primary activities in the value chain analysis include supply chain management (purchasing raw materials, produce, paper products, etc.), operations (preparing food, taking orders, etc.), marketing and sales, and service and support (gift cards, play places, etc.). Its support activities include infrastructure restaurants, distribution networks, etc.), human resources management (hiring and managing employees), information systems (point-of-sale systems, new touch screen ordering,
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