...Operational Differences Between McDonald’s & Burger King McDonalds (McD’s) and Burger King (BK) are key players in the fast food industry and have been competing for many years. They both provide similar food that is prepared quickly for a low price. So what sets them apart? The difference between McD’s and BK is their corporate culture – operational management. The manufacturing method at McD’s follows the “Doing It All For You” versus “Having It Your Way” at BK. The “Made to Stock” strategy at McDonald’s depends on an inventory of products, with great emphasis on the standard sized patties, which are made prior to processing a customer order. This means that when a sale is made and food delivered to the customer, the products in the order come from “the bin” – finished goods inventory. Please refer to Exhibit 1 for the process flow diagram of McD’s. The Burger King “Made to Order” strategy entails an assembly to order method with multiple product options tailored to the customer preference. At BK the “steam table” is used to assemble each order at the time the order has been placed. The “Made to Order” method relies on semi-finished inventory this is due to the fact that the whoppers and burgers are different sizes and therefore require pre-assembly of buns and patties. Once assembled, the burgers and sandwiches sit in the steam table for up to 10 minutes which are discarded if not sold within that time. While this step in the BK process can lead to waste of goods...
Words: 1267 - Pages: 6
...Burger King Corporation Company Profile Reference Code: F8CC90C1-1A3C-499B-BB52-A2604879F62C Publication Date: Aug 2007 www.datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Americas 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 97503 119 f: +49 69 97503 320 e: deinfo@datamonitor.com Datamonitor Asia-Pacific Room 2413-18, 24/F Shui On Centre 6-8 Harbour Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: hkinfo@datamonitor.com Datamonitor Japan Aoyama Palacio Tower 11F 3-6-7 Kita Aoyama Minato-ku Tokyo 107 0061 Japan t: +813 5778 7532 f: +813 5778 7537 e: jpinfo@datamonitor.com ABOUT DATAMONITOR Datamonitor plc is a premium business information company specializing in industry analysis. We help our clients, 5000 of the world's leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for six industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Healthcare and Technology. Datamonitor maintains its headquarters in London and has regional offices in New York, Frankfurt, Hong Kong and Japan. Datamonitor's premium reports are based...
Words: 5719 - Pages: 23
...shares in primary stocks. At 09.35, investors start buying Burger King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong...
Words: 8858 - Pages: 36
...The Fast Food Industry The last 50 years or so have been turbulent ones for America. Millions of “Rosies” may have quit riveting but they did not quit working, and the Civil Rights Movement resulted in fundamental changes in American society that have leveled the playing field for most workers today. A costly police action was fought in Korea that is still smoldering today, and the last vestiges of the Vietnam War were finally played out in the most recent presidential election. During the last 50 years or so, America succeeded in landing a man on the moon and safely returning him to the Earth, and winning a costly Cold War. During this turbulent period in U.S. history, life has become faster-paced and more women have joined the workforce, all of which have been to the detriment of “traditional” American family meals, but all of which has been to the enormous advantage to the fast food industry. People around the world today may criticize America’s politics, but the fact remains virtually everyone loves American fast food and the industry has become firmly established around the world. This paper provides an overview of the fast food industry from the 1950s to the present, an analysis of what social effects were caused by and reflected in the industry, what marketing and advertising changes have taken place in the industry during this time, followed by a discussion of current and future trends. A summary of the research is provided in the conclusion. Review and Discussion ...
Words: 2578 - Pages: 11
...The influence culture has on the success of an International Franchise: The case of McDonalds in East Asia and The Americas. Executive Summary In the last six decades, the significance of franchises worldwide has grown to such a large extent that many successful high street shops as well as restaurants have a link to franchising. This dissertation is going to discuss the means by which an international franchise can become successful through the incorporation of cultural adaptations in a foreign country. This discussion would be restricted to international franchises in the fast food industry examining the case of McDonalds in particular as well as how its global success has led to the term known as McDonaldisation. Definition of Franchise: The right granted by a company to an individual or group to market its products or services in specific territory. Definition of Culture: Ideas, customs and social behaviour of a particular people or society. (These definitions are from a dictionary, is that allowed?) LITERATURE REVIEW This literature review would discuss the evolvement of franchising as well as how it has spread on an international scale. It would further enlighten us on the benefits franchising brings to individuals and the economies of various countries. Lastly, it would highlight the birth of the McDonalds franchise as well as how this business medium has adapted to cultural differences in various countries in terms of the operations and its...
Words: 7203 - Pages: 29
... This book was set in 10/12 New Baskerville by GGS Higher Education Resources, a Division of PreMedia Global, Inc. and printed and bound by Quebecor Dubuque. The cover was printed by Quebecor Dubuque. Copyright © 2010, 2007 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)7486011, fax (201)748-6008, website http://www.wiley.com/go/permissions. Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel. Outside of the United States, please contact your local...
Words: 95516 - Pages: 383
...profit comes from selling hamburger so they made their menu very simple by selling only Hamburger, cheeseburger, soft drinks French fries and apple pie.in 1954 a turning point came in McDonald’s brother history. Ray Kroc a seller of Multitier milkshake visited McDonald and he liked the idea of McDonald. McDonalds corporation was built in those times and as a result Kroc started expanding their business by opening franchises for mcdonalds.1960 McDonald’s advertising campaign “look for the golden arches” gave McDonald’s sale a big boost.1965 McDonald corporation went public.in 1968 McDonald open its 1000th restaurant.1974 McDonalds started their business in UK and Newzealand.in 1980 McDonalds was facing very big competition from its rival Burger King and Wendy but McDonald with its innovation was experiencing boost in its sales.in early and mid-nineties McDonalds was having decline in their sales and as a result they start improving their business. Taste was improved and some new menu items were introduced. McDonald introduced first Kosher McDonald in Jerusalem and Halal McDonalds in India (1995 and 1996 respectively). McDonald start creating healthy image and invested heavily on refurbishment in...
Words: 531 - Pages: 3
...outraged by his conduct and the picture itself was shared through Facebook over 2,000 times. His argument was that the shells that he licked were used for testing when the Doritos Locos Tacos were initially introduced on the market and they were going to be thrown out and not consumed by customers. In addition to his own actions, across America there were several other incidents in which triggered consumers all over. One incident occurred at a Kentucky Fried Chicken location where a young lady was exterminated from her job for uploading a picture of her licking a pile of mashed potatoes from the fast food restaurant. Another incident occurred at a Burger King location where a co-worker had taken a picture of his feet inside of two lettuce containers, uploaded the photo and added the caption “This is the lettuce you eat at Burger King”. All incidents were in fact very upsetting and troubling. Rob Poetsch of Taco Bell of Ridgecrest, CA responded to the incident by stating “When we learned of the situation we immediately connected this restaurant’s leadership and although we believe it is a prank and the food was not served to the...
Words: 1092 - Pages: 5
...experience in the restaurant business in the past. In 1954 the first Burger King was open to the public in Miami, Florida (www.burgerking.ca/en/1122/index.php). By developing the first Burger King, James McLamore and David Edgerton had given the community a comfortable environment to eat inside of the restaurant, because the restaurant was the first fast food business to offer people the option of dining in the restaurant or going to the drive thru(www.burgerking.ca). With McDonalds being the largest fast food chain in the world, Burger King rates as the second largest hamburger fast food restaurant in the world, with Wendy’s following right behind it (Armstrong/Kotler, 450). Burger King came to be the second largest hamburger fast food chain in the world with a total amount of sales at $7.9 billion in the year of 2003, falling behind McDonalds with their sales being $22.1 billion (Armstrong/Kotler, 450). Burger King’s most popular product, the Original Whopper Sandwich was introduced to the world in 1957. The Whopper became a huge success and is still a world known sandwich that has a perfect fire-grilled taste (www.burgerking.ca/en/1121/index.php). This tasty hamburger was created to satisfy their customer so that any one as customer can have their food their own way which relates to their slogan "Have it your way", created in 1974. They state that their vision is to "proudly serve the best burgers in the business, plus a variety of real authentic foods....all freshly...
Words: 2588 - Pages: 11
...PAMANTASAN NG LUNGSOD NG MAYNILA (University of the City of Manila) Intramuros, Manila GRADUATE SCHOOL OF MANAGEMENT I. VIEWPOINT: The CEO and President of the company, Mr. Kerii B. Anderson II. TIME CONTEXT: 2007 III. PROBLEM STATEMENT In 2006, Wendy’s net income dropped by 58% and closed 199 restaurants during the year. High competition remains with other fast-food restaurants (McDonalds, Burger King and Yum Brands) Wendy’s is facing the prospect of being sold to Triarc owned by its largest institutional shareholder, Peltz. Under the pressure also of Pelz, Wendy’s sold Tim Horton’s even though it was a profitable company in the coffee and doughnuts business and Wendy’s has a plan to expand by penetrating breakfast food market. With the decreased sales and number of stores, and the influence of Pelz, the CEO is faced with the options to succumb to the demands of Pelz to sell the company or continue with the comprehensive Revitalization Plan. IV. STATEMENT OF THE OBJECTIVES To be able to increase market share and increase income by 30% within 5 years by growing franchise ownership and controlling operating costs with heightened commitment to quality products and services and expanded meal and food offerings. V. AREAS OF CONSIDERATIONS Strengths Global brand 1st to offer 99 cent value menu Number 1 in consumer taste tests and brand awareness Healthier food selections 122 new restaurant in North America Expert Management Atmosphere Better...
Words: 744 - Pages: 3
...oversaw its worldwide growth. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Main Competitors McDonald's Corporation Restaurants, Food Worldwide U.S. Don Thompson $ 27.56 billion (2012) $ 5.46 billion (2012) 1,800,000 (2013) Burger King Worldwide,Inc., Yum! Brand Inc., Subway, Wendy’s Company. Đoàn Thành Nhân…Individual Assignment Page 2 2. Mission and Vission : - Mission : McDonald's brand mission is become our customers' favorite place and way to eat and drink. Mc Donald operated in the worldwide relies on "Plan to Win"...
Words: 1970 - Pages: 8
...economies of scale. The power lies less with the supplier and more with McDonalds. Because McDonald’s is so large, the suppliers don’t have much power to drive up the prices of materials because they want to keep McDonalds as a customer, and they know the suppliers’ competitors would love to gain McDonalds as a customer. Losing a customer as huge as McDonald’s could break the supplier. McDonald’s also has to make sure the supplier can supply, given the large scale they need they need to make sure the supplier can meet their demands. The third force is threat of substitute products or services. In the case of McDonald’s there are many other fast food chains to choose from. The main competitors I see are Burger King, Jack in the Box and Carl’s Jr. In the case of Burger King and Carl’s Jr they try to show some...
Words: 323 - Pages: 2
...How many restaurants does McDonald’s have around the world? According to the McDonald's Corporation website, McDonald's has, "More than 33,000 restaurants around the world in 118 countries“, which reflects the popularity of fast food all over the world. McDonald’s, one of the leading quick-service restaurant industries, has become an indispensable fast-food chain of our lives. There is nothing more than ready-made food being served fast and right in front of us for the modern fast-paced life. However, concerns for the adverse effect that it has on our health still exist. Despite all the claims on the disadvantages that it has, I strongly believe that McDonald’s is an invention of the modern times for three major reasons: McDonald saves cost and time, helps to strengthen relationship with other people and promotes positive economic impacts. The most evident advantage of McDonald’s is that it saves cost and time. If one lives alone and tries to prepare for a meal, it’s going to be cheaper and quicker to buy a meal from McDonald’s instead of buying all the ingredients and cooking it at home. Besides the time an individual has to spend in the kitchen, there is the added effort consumed in washing and peeling the vegetable. No matter how much benefit you can get from fresh meals with vegetables, at the end of a hard-working day, when one returns home all tired and hungry, a McDonald would be a godsend. All this makes eating McDonald’s score more preferably over cooking a meal for...
Words: 716 - Pages: 3
...to take the blame. The first fast food restaurants developed in America in the 1920’s and the United States has grown to have the largest fast food industry in the world. Currently one third of American children are obese or at risk of becoming obese and 67% of Americans are obese. McDonald’s was invented in the 1940’s and has since acquired millions of lawsuits for their extremely unhealthy food. Burger King soon followed in the 50’s and has also received its fair share of lawsuits. Some believe that suing consistently is acceptable because they are using their freedom of using the court system but many believe that it is a frivolous waste of time. Because fast food has become increasingly available, many Americans use the opportunity to eat their food whenever they want it and at a low cost. Yet when the visits are far too often they look for someone else to blame for their mistakes. Take Gregory Rhymes for example. Recently 15 year old Gregory and his mother sued McDonalds for his extreme obesity. Weighing about 400 pounds, Gregory Rhymes would consume a burger, fries and a shake sometimes multiple times a day but claims he was not warned on how fattening the fast food can actually be. He and his mother were determined that the restaurant must be held responsible for Gregory’s current...
Words: 523 - Pages: 3
...Management 303 SWOT Analysis MANDATORY OUTLINE I. Organization History, including a Mission Statement if possible (10 points) According to the website About McDonald's, McDonald's is been in business since 1940. Dick and Mac McDonald open the first McDonald's as a BBQ restaurant in San Bernardino, California. "It was a typical drive-in with a large menu and car hop service." McDonald's mission statement states: "McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience." (http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html) II. Organizational Strengths and Weaknesses (40 points) A. First Organizational Strength 1. According to the website Ezine Articles, McDonald's has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. 2. "It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14,000 restaurants are situated in the US." (http://ezinearticles.com/?McDonalds-Business-Analysis&id=687438) B. Second Organizational Strength 1. According to the website Wordpress, McDonald's uses economies of scale for reducing the...
Words: 1119 - Pages: 5
