I. As the owner of a fast-food enterprise seeking a loan from a bank to finance the construction and operation of three new locations, you have been asked to provide the loan officer with a brief analysis of the competitive environment in fast food. Draw a five-forces diagram for the fast-food industry, and briefly discuss the nature and strength of each of the five competitive forces in fast food. Do whatever Internet research is required to expand your understanding of competition in the fast-food industry and do a competent five-forces analysis

II. Value Chain Activities and Costs in Producing and Distributing a CD

1. Record company direct production cost: $2.40

Artist and repertoire $0.75

Pressing of CD and packaging 1.65

2. Royalties 0.99

3. Record company marketing expenses 1.50

4. Record company overhead 1.50

5. Total record company costs 6.39

6. Record company operating profit 1.86

7. Record companys selling price to distributor/wholesaler 8.25

8. Average wholesale distributor markup to cover distribution

activities and profit margins 1.50

9. Average wholesale price charged to retailer 9.75

10. Average retail markup over wholesale cost 5.25

11. Average price to consumer at retail $15.00

Source: Developed from information in Fight the Power, a case study prepared by Adrian Aleyne, Babson College, 1999.

Question: Does streaming music from the Internet give rise to a new music industry value chain that differ considerably from the value chain depicted above? Explain why or why not.