Please write 1-2 page answer to Exercise #2, Chapter 1,
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Analyze the I/O model on McDonald’s, using the information from the opening case of Chapter 1. Please note that this is an individual assignment, not a team assignment. You can discuss your answer with your classmates, but you will write the answer yourself.
Please address the following questions as in the exercise:
What are external pressures and constraints McDonald’s is facing?
What are relevant resources available to other firms in the industry? Which ones are mobile (easily duplicated) across firms?
What strategies has McDonald’s used as mentioned in the opening case? Are these strategies successful?
Please pay attention to the following when you prepare the answer:
The purpose of this assignment is to do a reality check on I/O model, one of the two models we will use in strategic analysis, as in Ch2 and 3 to be covered in Week2. The two models are the theoretical foundation of strategic analysis and they are complementary to each other,
The key question in Assignment #1 is to identify the resources McDonald’s has that are mobile or non-mobile across firms. You will notice from the opening case that not all the resources are mobile across firms in the fast food industry. McDonald’s has some resources that are difficult to duplicate by its competitors.
The takeaway from this assignment is: not all the assumptions of I/O model (there are four) apply to McDonald’s. So we will need to combine I/O model to predict a firm’s competitive advantage. Again it is exercise 2 in the attached document.
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