Question

If McDonald's were to map the profit pool in the quick-service restaurant industry, it would do all of the following EXCEPT

a. Define the industry's boundaries and size.
b. Estimate the profit potential in each part of the value chain.
c. Focus on unattractive industries ignored by competitors.
d. Select the strategy to use where the largest profit pools are located.

Answer 1

When McDonald's maps a profit pool, it defines the industry boundaries, estimates profit potential, and strategizes where to focus for maximum profit. However, it would not focus on unattractive segments ignored by competitors.

Step-by-step explanation:

When McDonald's maps the profit pool in the quick-service restaurant industry, the following steps are typically undertaken:

• Define the industry's boundaries and size.
• Estimate the profit potential in each part of the value chain.
• Select the strategy to use where the largest profit pools are located.

However, one action McDonald's would not do as part of this process is:

• Focus on unattractive industries ignored by competitors.

Mapping a profit pool involves understanding where profits are being made in the industry and does not typically involve focusing on parts of the industry that present no opportunity or are broadly ignored due to their lack of attractiveness.