Question

McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin. This is an example of:_______
a. analyzing support activities.
b. identifying the cost drivers for each activity.
c. analyzing primary activities.
d. analyzing competitors’ pricing.
e. assessing willingness to pay.

Answer 1

Answer:

The correct answer is letter "D": analyzing competitors’ pricing.

Explanation:

Companies tend to evaluate the prices of their rivals and check what other companies of the same industry are doing to get revenue. This analysis usually involves testing the price of the raw materials, labor, and production of competitors. The best practices can be applied to the analyzing firm to maximize revenue.

Answer 2

Answer:

Option D is the correct answer.

Explanation:

McDonald has conducted competition and market analysis which tells about the competition analysis and the customers changing choices and reactions to offers. It helps in the understanding of the quality standard differences between the products of two firms.

In this case the McDonald conducted this research because the company thinks its better to understand its competitors strategy and progress to remain in the market. Upon investigating answers to these questions, McDonald find that Burger King has controlled its cost by the use of lower quality logistic.