Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
In the Management's Discussion and Analysis section of its 2005 annual report, the CEO of McDonald's Corporation discussed the strategic direction and financial performance of the company by referring
to the comprehensive revitalization plan initiated by the company in 2003: "in 2003, the Company initiated a comprehensive revitalization plan focused on maximizing customer satisfaction and strengthening our financial position. We redefined our strategy to emphasize growth through adding more customers to existing restaurants and aligned the System around our customer- focused Plan to Win. We streamlined processes such as new product development and restaurant operations, improved our training programs, and implemented performance measures, including a restaurant review and measurement process, to enable and motivate franchisees and restaurant employees to serve customers better." Among the improvements cited were:
(1) Improving the taste of many of the core offerings
(2) Streamlining processes such as new product development and restaurant operations
(3) Implemented performance measures to enable and motivate franchises to service customers better
(4) Achieved high levels of customer awareness worldwide
During 2005, McDonald's comparable sales increased 3.9%, earnings per share increased from $1.79 to $2.04, cash from operations increased $433 million to $4.3 billion and the company repurchased $1.2billion in common stock. (McDonald's 2005 Annual Report)
-Which of the improvements cited by McDonald's is an example of the extended value chain?

A) Number 1
B) Number 2
C) Number 3
D) Number 4