...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 buns and patties sit for 10 minutes and thendiscarded. In McDonald’s “continuous process” there is no such inventory and all the buns and patties aremated during the assembly process following the dressing. It should be noted that mating of the buns and patties before the assembly process in BK is a result of BK’s variety...
Words: 997 - Pages: 4
...McDonald's Food Chain Case Study It was early evening and one of the 25 McDonald's outlets in India was bustling with activity with hungry souls trooping in all the time. No matter what one ordered - a hot Maharaja Mac or an apple pie - the very best was served every time. But did anyone ever wonder as to how this US giant managed the show so perfectly? The answer seemed to lie in a brilliantly articulated food chain, which extended from these outlets right up to farms all across India. US-based fast food giant, McDonald's success in India had been built on four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and demands for a wider menu drive-through and sit-down meals - encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain. Around the world (including India), approximately 85% of McDonald's restaurants were owned and operated by independent franchisees. Yet, McDonald's was able to run the show seamlessly by outsourcing nine different ingredients used in making a burger from over 35 suppliers spread all over India through a massive value chain. Between 1992 and 1996, when McDonald's opened its first outlet in India, it worked frenetically to put the perfect supply chain in place. It trained the local farmers to produce lettuces or potatoes to specifications and worked with a vendor to get the perfect cold chain in place. And explained to the suppliers precisely why only one particular...
Words: 2734 - Pages: 11
...Himalaya Mall, Gurukul, Ahmedabad Cuisines Fast Food Opening hours 10 AM to 12 Midnight World's largest chain of fast food restaurants. The Golden Arches—the corporate emblem, symbolized pleasant, fast service and tasty, inexpensive food. Serve around 68 million customers daily in 119 countries. Operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Between 1990 and 1991, sales per unit had slowed down. Reasons: Consumers were changing management to wonder whether the company’s operating system, suited to the new circumstances the company faced McDonald’s was gathering flak from environmentalists who decried all the litter and solid waste its restaurants generated each day to counter some of the criticism, McDonald’s partnered with the Environmental defense fund to explore new ways to make its operations more friendly to the environment. INTRODUCTION McDonald’s is a limited menu restaurant is characterized by speed of operations. McDonald’s is the world leading retailer with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day. In India, the first outlets of the chain threw open their doors to the public in Delhi and Mumbai in 1996 within one month of each other. McDonald’s is present in 40 Indian cities with 250 restaurants and serves 650,000 customers daily. THE FOOD RETAIL INDUSTRY internationally, no doubt McDonald’s is considered the largest food service retailer in the world. The first restaurant...
Words: 2818 - Pages: 12
...countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). History The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedy Service System" in 1948 established the principles of the modern fast-food restaurant. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion. With the successful expansion of McDonald's...
Words: 4390 - Pages: 18
...with their corporate strategy. Their strategy or motto is “Plan to win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive . (McDonald's, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (McDonald's, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (McDonald's, "n.d."). This is in line with sales. These are the categories that the masses of customers tend to pay more attention to. There are over 32,000 units open and with them be accepted with taste, speed of service, and especially price, this is the draw for the majority of customers (David, 2011). Gaps in the product line or weaknesses in positioning When it comes to gaps or their weaknesses, Burger King and their fresh ground beef patties...
Words: 950 - Pages: 4
...(Executive) COMSATS Institute of Information Technology Virtual Campus – Pakistan INTRODUCTION OVERVIEW OF FAST FOOD INDUSTRIES The food industry is on a high as Indians continue to have a feast. Fueled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. An increasing number of international fast food chains rushing to India is because all of them see tremendous potential in for this type of business. The large upwardly mobile population in the urban areas tend to eat out more often or business or for leisure. The various players operating in India are the well-established Indian chains like Nirula's, Haldiram's and multinational companies like McDonalds, Pizza hut, Domino's pizza, etc. In addition to these, apparently some of the best known international food chains are looking at India. Among them are Great American Disaster, The Burger King, Mexican food chain Tacogrill, Move-n-pick, etc. are some of them to name. The players are fighting on products, pricing, positioning and trying to convert their first trials into regular purchase by providing delightful service quality. The focus is on product quality and standardization on taste. Consistency is the key, as its standardization in fast food as the consumer is short on time and wants to satisfy his taste buds with a consistent taste experience. Beyond this each player...
Words: 5300 - Pages: 22
...| Food Fight: The Day McDonald's BlinkedCase Study Analysis | Sullivan UniversityMGT 510 | | Kris Lutgring | | Executive Summary While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate throughout their respective operations structure, affecting the cooking process, approach to customization, equipment and technology, staffing, order processing and pricing. Background: McDonald’s versus Burger King In the quick-serve restaurant industry, no two brands have waged war over customer loyalty as publicly as McDonald's and Burger King. The rivalry dates back to the mid-20th century as both companies emerged on the national scene, battling for territory and franchisees. Similarities in menu, resturant decor, and locations all set the scene for a story only America could create. Both McDonald's and Burger King exploded onto the American palette in the 1950's. McDonald's set out to change their menu operations by investing in their food...
Words: 2457 - Pages: 10
...do line up with their corporate strategy. Their strategy or motto is “Plan to Win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive (NMINM's University, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you take a look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (NMINM's University, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (NMINM's University, "n.d."). This is in line with sales. These are the categories that the masses of customers tend to pay more attention to. There are over 32,000 units open and with them be accepted with taste, speed of service, and especially price, this is the draw for the majority of customers (David, 2011). When it comes to gaps or their weaknesses, Burger King and their fresh ground beef patties wins in the industry...
Words: 816 - Pages: 4
...Fruits | Whole fruits | Processed fruit products | | | | | Customer Market segmentation: (module 2) Grouping customers based on distribution. * Sells to retailers (supermarkets) and food services outlets. (sporting venues or cafes) * Also two main distribution channels as IN-Home [retailers where products are bought for home consumption] and Out-of-Home [food service outlets where products are bought ready for consumption]. A.PFL’s Strategic Framework Steps for strategic framework was listed therefore using the “rational approach” (module 1) currently on “build the base’ and they’ve move to next stage which is “develop and grow" by introducing new products across all channels. B. Managing Director’s Report (2010) Customer market segmentation (Module 3): * Psychographic: groups based on culture lifestyle and personality type, e.g) most AFL stadium supply rights. * Distribution: BP convenience stock exclusively Four’N Twenty and Herbert Adams products. Market leadership in petrol and convenience channel. * Lowered their cost base so they can remain competitive in a very competitive market e.g) closed and relocated the frozen fruit packing operation form Silverwater to Bairnsdale in Victoria. . (Strategy is to be low cost Porter(1980)) C. New Items Patties Foods win Reliance contract for BP sites (Module 4+3) Ansoff product/market matrix: (module 4) * Existing market and new products, therefore product development of “smoothie cubes”, fruit=packed...
Words: 843 - Pages: 4
...Unit 34 – Operations Management in Business (Word Count: 3598) Jason Hixson Tel: 01454 281141 Tutor: Mike Brayford Email: jason@rapidandsecure.co.uk Contents Page(s) Task 1 Nature & Importance of Operational Management 3 - 6 Task 2 Operations Management & Strategic Planning 7 - 8 Task 3 Production Process 9 Task 4 Techniques/Operational Plan 10 - 12 Bibliography 13 Task 1 Introduction: McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3...
Words: 4052 - Pages: 17
...Competitive Analysis Problems Recommendations Summary Pro-Forman Income Statement Pro-Forma Balance Sheet Notes to Pro-Forma Statements Appendix A: Competitors & Ratios Appendix B: Field Reports Appendix C: Product Analysis Appendix D: Restructuring Timeline Executive Summary Wendy’s is currently the world’s 2nd largest quick-service hamburger company, operating 1,438 stores and franchising 5,177 store in the U.S. and 27 countries world-wide. This highly competitive segment of the restaurant industry forces Wendy’s to compete not only in terms of food quality, price, convenience and value; but also for customers, employees and real estate. In 2011 and 2012, Wendy’s sales were $2,431 million and $2,505 million respectively. Despite this increase in sales, Wendy’s profit margin was only .2%. The major areas of concern for Wendy’s are its high cost of goods sold, high costs related to the owner ship of stores, its failure to communicate its brand and customer service. To combat these problems, ABC Consulting proposes that Wendy’s cut 100 underperforming store, and sell off franchise stores. Additionally, Wendy’s should reevaluate its employee training and retrain all employees on customer service standards. Create standardized procedures for preparing food, and retrain employees on customer service and finally increase product offerings consistent with Wendy’s goal of offering quality food - fast. ...
Words: 7615 - Pages: 31
...PART I COMPANY PROFILE 1.1Name of the Company McDonald's Corporation McDonald's 1.2 Location of the Company (Head Office) Golden Arches Development Corporation 17th Floor Citibank Centre, Paseo De Roxas Avenue, Makati City 1.3 Locations of McDonald’s All over the Philippines there are McDonald’s. McDonald’s has grown to become one of the leading fast food chains with close to 300 restaurants nationwide. Mostly branches were strategically located at the malls and commercial buildings. 1.4 Website Address www.mcdonalds.com.ph 1.5 Background History of the Company The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California . Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having puffed out costume legs. McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services", which continues to be renewed through the end of December 2009. In the same year, on September 13, 1961, the...
Words: 7401 - Pages: 30
...organization? controls the market share of more than 3 food chains taken together in America? It’s none other than Mcdonald’s corporation USA. Looking at the above statistics makes one wonder that what is the driving force behind all these achievements? How is it that the chicken burger available in San Francisco is same as the one available in delhi? Many of these question have been answered in the book “Mcdonald’s: behind the golden arches” written by john love. But are these standards being carried out in India as well? The golden arches of Mcdonald’s are slowly becoming an integral part of the Indian landscapes. Everyone knows mcdonald’s is big, but very few know just how significant its impact on Indian business really is. The inside of Mcdonald’s remains a mystery. Mcdonald’s india is a joint venture of Mcdonald’s corporation with Amit Jatia and Vikram Bakshi. Amit jatia handles the operation in westerns region whereas Vikram Bakshi in the northern region. Mcdonald’s india is an employer of opportunities, providing quality employment and long term careers to the indian people. The average Mcdonald’s restaurants employees more than 100 people in 25 different position-from cashiers to restaurants managers. Mcdonald’s world class-training inputs to its employees can be seen in the present close to 2000 employees currently in Mumbai and Delhi. But the most overlooked facts of Mcdonald’s india are its contribution to the food industry. Six years prior to the opening of the...
Words: 16471 - Pages: 66
...Beirut campus Analysis of Mc Donald's Information System Done By: Rawan Al- Masri To: Dr. Abdo Haidar Year: Spring 2015 ACKNOWLEDGEMENT First of all I'm thankful to Almighty Allah who gave me strength for the completion of this project. Next, I'm heartedly thankful to my most respected and honored course instructor of Management Information System, Dr. Abdo Haidar who gave me an opportunity to do this project, and for his guidance, efficient teaching, and cooperation. . This study greatly acknowledges the cooperation and assistance of all those employees of McDonald’s, whose favors have helped me to precede my project, for that I'm very grateful. Table of Content 1. Executive Summary 2 2. Organizational Overview 3 3. Issue Analysis 12 4. Analysis of Information Systems 14 4.1 Customer relationship management 14 4.2 Knowledge Management 19 4.3 E-Procurement and McDonald’s 25 4.4 Supply Chain and Logistic Management Definition 29 5. Details Analysis of suggested Systems 35 6. Organizational Impact of Recent Systems 36 7. An overall analysis of organization 40 Conclusion: 42 Reference 44 Analysis of Mc Donald’s Information systems Executive Summary McDonalds is the world's largest chain of burger fast food and perhaps is one of the fastest and rapidly growing fast food chain restaurants in the world. It uses various Information Systems to thrive in a competitive marketplace of fast food industry. Some...
Words: 8679 - Pages: 35
...Economics: What is it? If someone asks you to define economics, what are you going to tell them? Without running to your book, let’s look at the word eco-nomics itself. The prefix ‘eco’ from the Latin word ‘oeco’ refers to household and ‘omics’ is a general term for a broad discipline of science which analyses certain variables. So the word economics can be defined as: ‘...A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants’ (Investopedia) ‘...The social science that deals with the production, distribution, and consumption of goods and services and the theory and management of economies or economic systems.’ (American Heritage Dictionary) ‘... The study of how society uses its scarce resources.’(The Economist) ‘...the branch of knowledge concerned with the production, consumption and transfer of wealth.’ (Oxford Dictionary) How is economics going to help me? Scenario 1: As a high school or college student, you about doing a number of different career options but why do you end up with one or two major interests?... Yes, you make a choice whether or not you want to be a Doctor, Lawyer, Entrepreneur, Accountant, Economist, among other professions. And economics has to do with making effective choices and how they impact you as an individual. This leads us to the first branch of economics. A group of concepts and explanations have been developed to explain the...
Words: 14318 - Pages: 58