a. 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 costs? Why?

b. In the last few years, McDonald’s has made a lot of changes to its menu, adding more healthy choices and more higher-priced items, such as those offered in McCafe (e.g., premium roast coffee, frappe, and fruit smoothies), and has also enhanced its in- restaurant services (e.g., free, unlimited Wi-Fi, newer interiors). Did McDonald’s new priorities—in terms of a broader, healthier menu and an improved in-restaurant experience—require changes to its traditional value chain activities? If so, how? Try to be as specific as possible in comparing the McDonald’s of the recent past (focusing on low-cost burgers) to the McDonald’s of today.