Analysis of McDonald’s IT Governance Assignment

VRIO Analysis

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Abstract

The purpose of this assignment to choose a local company and perform an in-depth capability

analysis with is internal in nature. For this task, McDonald’s has been chosen as a target

company.

There are various methods /models through which an internal analysis can be performed. In

this, two methods can be considered as the models, which can be applied to McDonald’s and

identify McDonald’s strengths and weaknesses in its business capabilities. In doing so VRIO

model is chosen over VRIN model because the assignment requires an in-depth analysis of

and VRIN model is used to differentiate between the necessary capabilities and key

capabilities. VRIO framework highlights the capabilities, of an organization, which can

provide competitive advantage to the organization through the nature of its capabilities,

whether they are valuable, rare difficult to imitate and have organizational support. VRIO

framework helps to distinguish between strengths and weakness of the company and thus

helps to understand whether those strengths can really provide competitive advantage to the

company or not.