Question

McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin. This is an example of Select one:

a. analyzing support activities.
b. identifying the cost drivers for each activity.
c. analyzing primary activities.
d. analyzing competitors’ pricing.
e. assessing willingness to pay.

Answer 1

The correct answer is letter "D": analyzing competitors’ pricing.

Step-by-step explanation:

Companies tend to analyze their competitors' pricing to review what are other firms of the same industry doing to obtain revenue. This study usually involves verifying competitors' raw material, labor, and manufacturing pricing. The best practices can be adapted to the analyzing company so revenue can be maximized.