...For years, McDonald’s and Burger King (BK) have been the world’s two largest and most successful fast foodchains. Both have battled out all these years over their operational differences which form the core of their corporate culture. The “Doing It All For You” (McDonald’s) vs. “Having It Your Way” (BK’s) stems fromtheir respective production methods. McDonald’s “Made to Stock” vs. BK’s “Made to Order” also originatefrom the differences in their respective processes.Exhibits 1 and 2 show the Process Flow Diagrams (PFDs) of McDonald’s and BK respectively. Exhibit 3 provides a detailed comparative analysis of the PFDs of these two fast food chains. The main operationaldifference between McDonald’s and BK is that McDonald’s cooks their hamburgers on grills using a “batch process” (a batch of upto 12 patties/grill) with human intervention to turn, sear, and pull. BK uses the machine based – Continuous Chain Broiler assembly process (8 burgers/meat chain) for the production of their burgers – similar to an assembly line in a manufacturing process thus, requiring no human intervention. For a “made tostock” process, it requires burgers in bulk and hence the batch process in McDonald’s. Whereas, for a “made toorder” process, it requires an assembly chain process where meat patties are placed at one end and after 80seconds they come out the other end, cooked – one by one. Also, since BK harps on “make to order” process, itrequires a semi-finished inventory – Steam Table in which mated...
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...An Introduction To Supply Chain Management Commerce Essay The term supply chain management was first coined by a U.S. industry consultant in the early 1980s. However, the concept of a supply chain in management was of great importance long before, in the early 20th century. Supply chain management is the word coined for the effective management of all the partners and the information disseminated between them. Take an example of Dell computers, Micheal Dell cant built his business just by selling the computers to the customers, but he need to see the complex problems of the customers and solve these problems through just in time manufacturing of the product, then how to minimize the wastage in the production then to evaluate what customers are doing and how they can make their production efficiently (NYT 2010), as the manufacturer cannot sell the product at the higher prices than the competitors are selling but through effective management you can actually reduce the cost, so concisely he need to be a master of supply chain management. Before supply chain management there was effective inventory control system exist but due to some pit falls like; no supply chain metrics, inadequate definition of customer service, , organizational barriers, inaccurate delivery status data, simplistic inventory stocking policies, inefficient information systems, ignoring the impact of uncertainties, and an incomplete view of the supply chain (Teigen 1997). There is a need for another system...
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...describe which competitive advantages Riordan has in common with McDonald’s and Burger King. This study will estimate, which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market. Research will explain why those competitive strategies were chosen and estimate how they may affect sustainability of long-term organizational performance. The examination will also explain how the global market would affect the business strategy of Riordan. Riordan Organization McDonald’s and Burger King The McDonald’s Corporation and the Riordan Manufacturing Company are both main industry leaders in their own field. One major competitive advantage that each company has in common is differentiating their products. Each company has a variety of items that meets the need of their consumers. The three companies sell both nationally and internationally. Burger King, Riordan, and McDonald’s increase their sales by offering price discounts, and sale promotions to ensure that their prices are affordable to everyone in need. All three companies use cost leadership, focus, and differentiation tactics to gain a competitive advantage over their competition. Another commonality between the three companies is that they use some type of reward and incentives program to ensure that they are recognizing their employees for operational excellence. Riordan Innovation Strategies Innovation Riordan...
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...entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity for quality growth in an industry that is simultaneously experiencing levels of maturity in the US and European markets. Internal analyses of the industry’s top players yields an in depth look into McDonald’s, Yum Brands, Burger King, and Darden Restaurants. McDonald’s is the industry leader in terms of revenues with $89B in 2013 systemwide sales, more than double of nearest competitor...
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...Analysis 4 3. Human Resource Management(HRM) Analysis 7 4. Marketing Analysis 8 5. Operational Analysis 10 6. Strength and Weakness of the Company 11 External Analysis 7. P.E.S.T.E.L. Analysis 12 8. Porter’s 5 forces 14 9. Critical Success Factors 16 10. Marketing Analysis 16 11. Opportunities 17 12. Threats 17 Current Strategies 13. Strategic Position 18 14. Proposed Strategies 18 15. Selection of winning Strategy: Feasibility 19 16. Description and Risk Assessment 20 References 21 Appendices 23 1. Introduction. Note: “All work within this report is taken from the case study unless referenced otherwise”. McDonald’s started as BBQ restaurant by (“mac and dick”) which also known as Maurice and Richard. The concept of the McDonald’s at that time was a typical drive in restaurant that offers variety of BBQ menu to choose from. The brothers realised that it is important for them to highlight the menu that get the intention the most. Mac and Dick eliminated McDonald’s carhops’ concept to make McDonald’s as a self- service operation. They also narrowed down the menu from 25 menu lists on focus only 9 menus that is hot sellers. This action will increase efficiency and as an act of cutting cost. McDonald’s came out with the strategies of fast services and low prices. As McDonalds grows, the brothers started to...
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...McDonald’s 12 MIT Porter 5 forces and value chain analysis hamza akaouch ID: L0014MIMI1012 Class: BABS1 Contents 1-executive summary 2-introduction 3-Porter’s 5 forces 3-1 The competition threat 3-2 New entrance threat 3-3 Substitutes threat 3-4 Threat of suppliers 3-5 Threat of buyers 3-6 How can IT help to minimise theses threats ? 4-VALUE CHAIN : 4-1 Firm infrastructure 4-2 Inbound 4-3 OPERATIONS 4-4 Outbound 4-5 Human resources 4-6 Marketing &sales 5-Conclusion: 6- References 1-Executive summary : “information is power and it is for sale now “ Nowadays with the global economy and enterprises shift and emergence of the digital organizations makes a necessity in business today especially in the decision making process, it is important many reasons such as operational excellence ,the customer intimacy new products and business models : information system is very useful to enhance the way the company produces , delivers and sells to create wealth. Improved decision making , the competitive advantage or even the concern of survival. We will see below how does IT help McDonalds to minimise the threats based on the porter 5 forces and how does it enhance their value chain 2-Introduction: McDonald’s corporation is global company of fast food restaurants spread in 119 countries and serving around 68 million of customers every day via 32000 places . founded...
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...EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS External Analysis There are two conditions that are most significant in McDonald’s external environment that are: 1. The new trend in which customers are changing fast –food restaurants to healthier ones. 2. The arising competition to achieve growth in this industry. The fast-food industry is very complex and saturated. The key success factors in APPENDIX 1 show that in order to be able to compete there is a need for research and development, achieve differentiation with your competition, create quality with your products, and be price competitive. Large capital is needed to be able to develop new products in order to differentiate among competitors. The creation of quality is very important because the switching costs majorly in this industry are very low. This explanation is supported in APPENDIX 2: Five forces of competition. Although the environment is very competitive it is very difficult to enter because of the need of capital, the regulation faced by the government, and especially because of the customers loyalty towards other restaurants. The new trend that has being evolving during the years has also created areas of distress among competition. Nowadays customers want to change fast-food restaurants to a healthier one. That increases costs, because companies will have to change their operation and ingredients in order to satisfy their customers; nevertheless there is a good side, McDonalds will reach another...
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...Retail Location Analysis: A Case Study of Burger King & McDonald’s in Portage & Summit Counties, Ohio A thesis submitted to the College of Arts of Kent State University in partial fulfillment of the requirements for the degree of Masters of Arts by Niti Duggal December, 2007 Thesis written by Niti Duggal B.A. (Hons), University of Delhi, India 1996 M.A., Jawaharlal Nehru University, New Delhi, India 1998 MPhil, Jawaharlal Nehru University, New Delhi, India 2001 M.A., Kent State University, 2007 Approved by ____________________________________, Advisor Dr. Jay Lee ____________________________________, Chair, Department of Geography Dr. Jay Lee ____________________________________, Dean, College of Arts and Sciences Dr. Jerry Feezel ii Table of Contents Table of Contents ……………………………………………………………….. iii List of Maps and Figures …………………………………………….………….. v List of Tables …………………………………………………………………… viii Acknowledgments ……………………………………………………………… ix Chapter 1: Introduction …………………………………………………………..…… 1 1.1 Research Objectives ............................................................................ 2 1.2 Summary …………………………………………………..…..……. 4 2: Problem Statements ………………………………………………...……. 6 2.1 Size and Shape of the Retail Trade Area………….……………....…. 6 2.2 Summary………………………………………..………………...….. 9 3: Literature Review ………………………………………………………… 11 3.1 GIS for Business and service Sector Planning ……………………….11 3.2 GIS as a Tool for Retail Location Decisions………………………...
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...benchmarking, value chain, balance scorecard and SWOT analysis should be undertaken. A firm should then identify its strategic positioning in the market: how it will sustain a competitive position. Furthermore, the strategic role of cost concepts will also be described in relation to product/service costing, strategic decision-making (cost driver analysis), planning/decision making and control/feedback purposes. Costs are now more complex than ever since large companies like Proctor & Gamble have a large product portfolio, and costs have become a vital element of a firm’s strategy. In order to understand these concepts fully, we will relate them to real businesses; in particular, we will analyze these concepts with relation to the McDonald’s corporation. Strategic Management Strategic management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization’s mission statement, developing policies and plans – often in terms of projects and programs which are designed to achieve these objectives – and then allocating resources to implement the policies and plans, projects and programs (wikipedia, 2010). A firm is said to possess a competitive advantage...
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...Business Policy and Strategy Lowell Miller April 14, 2016 Kiara Gitlin Strategic Case Strategic Case I. Core Problem/Issue McDonald’s current challenges consist of many things including their menu, product quality, appealing to millennials, and labor concerns. The new president and CEO, Steve Easterbrook, came at a time when the corporate giant was on its knees in desperate need of way to get back up. One of bigger issues is product quality because it relates to getting the younger customer as well as how the company is perceived worldwide. McDonald’s is one the top 10 biggest brands according to Forbes and Easterbrook desperately wanted to improve public perceptions of the McDonald’s brand. McDonald’s wants to position themselves as a modern, progressive “healthy” burger company in a highly competitive market. Their size made them a convenient target, and more than a decade of negative press including the 2001 book “Fast Food Nation,” the 2004 documentary “Supersize Me,” and Jamie Kennedy’s 2012 “pink slime” exposé had taken its toll. In July 2014, the Big Mac earned the dubious distinction of being America’s worst hamburger, placing last out of 21 in a study by Consumer Reports. McDonald’s also ranked lowest among peers in the 2015 American Customer Satisfaction Index. Fast food restaurants overall dropped 3.8 percent, but McDonald’s fell by 6 percent from 2014, holding firm in the last spot. As the baby boomers get older, the millennials are becoming a larger part...
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...com/cgi/content/abstract/45/2/115 Published by: http://www.sagepublications.com On behalf of: The Center for Hospitality Research of Cornell University Additional services and information for Cornell Hotel and Restaurant Administration Quarterly can be found at: Email Alerts: http://cqx.sagepub.com/cgi/alerts Subscriptions: http://cqx.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Downloaded from http://cqx.sagepub.com at SAGE Publications on December 2, 2009 © 2004 CORNELL UNIVERSITY DOI: 10.1177/0010880404264507 Volume 45, Issue 2 115-131 ARTICLE 10.1177/0010880404264507 Measuring Customerbased Restaurant Brand Equity Investigating the Relationship between Brand Equity and Firms’ Performance by WOO GON KIM and HONG-BUMM KIM Strong brand equity is significantly correlated with revenues for quick-service restaurants. In a study 394 respondents gauged the strength of seven quickservice restaurant brands doing business in Seoul, Korea. The study tested four elements of brand equity, namely, brand awareness, brand image, brand loyalty, and perceived quality. Of those attributes, brand awareness had the strongest direct effect on revenues, while loyalty had the least effect. Dividing the restaurants into high-performing and low-performing groups, the researchers found that customers differentiated the high-performing restaurants on several product-quality measures, including knowledgeable employees...
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...trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset Boulevard, are analyzed in...
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...macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsen s or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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...macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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...2014, the global fast food market is forecast to have a value of $239.7 billion, an increase of 19.2% since 2009. Market volume The global fast food market grew by 3.9% in 2009 to reach a volume of 208.1 billion transactions. Market volume forecast In 2014, the global fast food market is forecast to have a volume of 248.7 billion transactions, an increase of 19.5% since 2009. Market segmentation I QSR is the largest segment of the global fast food market, accounting for 70.9% of the market's total value. Market segmentation II Americas accounts for 47.4% of the global fast food market value. Market rivalry While particular segments of the fast food market can be concentrated - for example, the burger segment is close to being a Burger King / McDonald's duopoly - the market as a whole is fairly fragmented, with many independents as well as larger chains. Global - Fast Food ©...
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