1. How would you explain the value chain to a classmate? What are primary and support activities? What is outsourcing? How does outsourcing create value for the firm? What are the potential problems with outsourcing?
2. In the last few years, McDonalds has made a lot of changes to its menu, adding more healthy choices and more higher-priced items, such as those offered in McCaf (e.g., premium roast coffee, frapp, and fruit smoothies), and has also enhanced its in-restaurant services (e.g., free, unlimited Wi-Fi, newer interiors). Did McDonalds new prioritiesin terms of a broader, healthier menu and an improved in-restaurant experiencerequire changes to its traditional value chain activities? If so, how? Try to be as specific as possible in comparing the McDonalds from the recent past (focusing on low-cost burgers) to the McDonalds today.
3. What is a firm value chain and an industry value chain? What are the differences? Please give complete examples of each.
4. What is vertical integration? Horizontal integration? What is a recent example from the news of either a vertical or horizontal integration?

answer any one of these