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Business Model Architecture Mcdonalds

In: Business and Management

Submitted By caleblifejourney
Words 405
Pages 2
Choong-Yil Kim
Submission Title: McDonald’s Business Model
[Use this document as a template by filling in your answers to the business model analysis questions below each underlined heading.]

A VALUE-CREATION MODEL
1. Who are the customers and what is the product/service offering?
There are two types of customers:
- Direct customer: franchisees and general customers that use McDonald’s own stores.
- Indirect customer: customers who look for fast & competitive price food with appropriate quality.
Products: Fast Foods & Drinks for general customer
Service: Company Brand Name & Ads, Standardized process to deliver fast food with low cost and consistent quality with high school kids who are paid minimum wage for franchisees.

2. How does the offering create differentiated value for them?
Operational Excellence to be able to make low cost, consistent quality and speed

3. What is the value chain? What parts is the business in?
McDonald dictates full of value chain from farm to their restaurants.
They even control entire process of each value chain with McDonald’s operation system.

4. What is the go-to-market strategy?
Speaking of McDonald corp. instead of each McDonald store, its GTM strategy is indirect channel strategy through franchisees with strong advertising.

B PROFIT MODEL
1. What are the sources of revenue?
For B2C (general customer), it would be transactional with fixed price.
For B2B, transactional and licensing are revenue model. McDonald’s franchise fees and brand usage fee are licensing. Sales of Ready to be cooked materials for foods are the source of main revenue.

2. What is the cost structure?
Fixed costs: franchise fees, and licenses (e.g. McDonald’s operator license), Rent, machinery, building, Insurance, bank interest,

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