Burger King’s core competency is fast food restaurant franchises specializing in made to order, flame-broiled hamburger sandwiches, particularly the “Whopper”. Using the strategy of industrial organization to capture market share Burger King offers a similar product (hamburgers) in a different way (flame-broiled). This strategy of product differentiation is part of the firm conduct category that Burger King uses to set itself apart from its competitors. In order to compete with its fast food competitors Burger King accentuates its core competencies in its marketing and product strategies, thereby leveraging market share.
Burger King uses a dispersed configuration for day to day operations as the majority of their restaurants are franchises with local suppliers. Yet Burger King Headquarters uses a concentrated configuration for marketing and development of products, as well as pricing. This centralization of marketing assists all franchises worldwide and provides the greatest value for the company, but the direction of available products and pricing has proven detrimental to the overall success of the firm. An article on CNNMoney.com describes the failure of the $1 double cheese burger to stimulate sales and how a number of franchisees filed lawsuits against the headquarters due to being forced to sell the double cheese burger at less than cost in order to boost revenues for the headquarters and shareholders and not the franchisees.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
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The fast-casual restaurant is one of the most competitive and fastest growing industries in the world. Chipotle has thought to have reinvented this category and this has led to their explosive growth in the early stages of the company. As it has leveled off, however, one can see where mistakes have been made leading to the sharp decline in their sales and stock. Starbucks has continued to grow, but has also seen declines in their stock. Comparing these companies, one can see how each have went from standalone stores to market leading companies. They must continue to innovate otherwise they will be seen as just another restaurant and no longer see growth.
In the 1950’s, one of the words to help describe America was faster. Americans craved faster cars, faster music, and faster lives. This was the perfect time for Ray Kroc to contribute his groundbreaking ideas for the fast food industry. At first, Ray Kroc was just a salesman for the Multimixer shake machine, while McDonald’s was just a single, small hamburger stand in San Bernardino, California, that offered quick service. Kroc saw the potential of this small stand (to which he had sold 8 Multimixers) operated by Richard “Dick” McDonald, and his brother, Maurice “Mac” McDonald. He signed a 99-year contract with the brothers and quickly noticed the immense success derived from the genius concept of the speedy, consistent restaurant. By 1965, McDonald’s was a franchise with over 700 restaurants scattered throughout America, and Ray Kroc had become a successful entrepreneur (Mcd). With an abundance of restaurants found almost anywhere in the country, McDonald’s was a major influence on the nation. With the large amount of restaurants, the company, understandably, picked up a share of critics along the way. Although some may have a negative perception on the role of McDonald’s, the emergence of this major fast food restaurant positively affected the culture of the 1950’s, and the decades following. It changed aspects of the nation’s restaurant industry, the daily life of Americans, and diversity within the workforce.
This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies Chipotle is using to increase operations and strategies used to compete against rivals in the competitive environment. Concluding with an overall evaluation of Chipotle’s business portfolio.
Demand for Panera franchising opportunities was very high, which allowed Panera to be picky about where and with whom they would do business. Panera determined where bakery-café locations could be. The franchisees bore the cost of opening new locations, and were required to obtain their ingredients from the home company. Expansion using the franchise model provided many upside benefits for Panera, while limiting the downside r...
The case of Burger King Corporation v. Rudzewicz, 471 U.S. 462, 105 S. Ct. 2174, 85 L. Ed. 2d 528 (1985) addressed the issue of personal jurisdiction and whether or not it violates the Due Process Clause of the Fourteenth Amendment. The plaintiff, Burger King, is a Florida corporation whose principal offices are located in Miami. The defendant, John Rudzewicz, was a resident of Michigan and a principal of a Michigan franchise. Rudzewicz, as a franchisee owner, had been given a license to use Burger King’s name and logo (trademarks) to operate a Burger King in Michigan. The contract between the franchisor and franchisee stated that the franchisor relationship (contract) is under the control of Florida. Other provisions of the contract include required monthly payments of fees and royalties to Miami headquarters, and all major decisions and problems had to be communicated with headquarters. In addition, the franchisee had to conduct business at a leased restaurant facility for 20 years. However, the defendant failed to fulfill franchisee obligations by not keeping up with his monthly payments of fees and royalties that he owed to Burger King in Florida. As a result, Burger King sued for a diversity suit against Rudzewicz in an effort to get back the money that they were owed. Burger King claimed a breach of contract, specifically the “Franchise Agreement”, between Burger King (the franchisor) and Rudzewicz (the franchisee). The case eventually made it all the way to the United States Supreme Court (Case Briefs).
The fast food industry in New Zealand is contemplated on its intense competition involving international franchises for example, McDonald’s and local firms such as BurgerFuel which continue to expand with additional outlets across New Zealand. Wherein the competition between the surviving competitors has a strong force in the industry due to the high number of outlets, low switching and high aggressiveness between firms. The fast food rivalry amid prominent chains, for instance, McDonalds, Burger King, and countless others have strengthened as they “fight to offer the cheapest meal deal ever” (Marino, 2016). In fact, the main competition in this industry is cost-based
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
... the company $250 million. In addition, he gave operators a bigger say over which menu items they will push with local ad dollars. Despite all of the changes Burger King remains the No. 2 burger chain in the world. Moreover, they only have 6.1% of the fast-food sales, a far cry from McDonalds 83%. Although, they are a far second, the changes in Burger King have worked. The company has posted a 28% increase in operating profits, to $77 million, for the year ended September 30, 1994. Helping performance was the sale of 211 company-owned stores during the year to franchisees, which garnered $64 million. The continued performance improvement has impressed lenders, who have committed to issuing more than $500 million in loans and credit deals to franchisees for capital investment (Nation's Restaurant News). All this has made Burger King executives happy, but Burger King did experience another set back as James B. Adamson resigned in 1995. Robert C. Lowes former CEO of Grand Met's European food sector replaced him. Lowes is a capable replacement, but this continual change in top management continuos to hurt Burger Kings attempts to be the number one hamburger chain in the world.
A great example of an organization that practiced successful global marketing strategies and became one of the most famous brands - is McDonalds. What is the secret of such successful global strategy that made the company the biggest fast food chain in the world? This paper discusses the McDonald’s global strategy that established a successful international presence for the company. Report analysis the cultural differences that are managed by the McDonald and suggests a strategy for future global growth.
Burger King is an American fast food chain that was founded in nineteen fifty-three as instaBurger King. It was originally founded by Keith J. Kramer and Matthew Burns. After running into some financial problems along the way InstaBurger was no more. In nineteen Fifty-Four David Edgerton and James McLamore purchased the company and renamed it “Burger King”. Over the next couple of years ownerships were changed a couple of times to make sure the company was running at its absolute best. Its headquarters are currently located at 5505 Blue Lagoon Drive, Miami-Dade county, Florida, United States. The nineteen seventies were considered the best time for Burger Kings advertising, using short commercials displaying their food that just looked to eat
In 1954, Roy Kroc, milkshake machine salesman, visited a restaurant in San Bernardino that run by two brothers, Dick and Mac McDonald. The restaurant offered very limited menu but operated with great efficiency, focusing on quality and speed (Our History, 2016). He was so impressed by their operation that he seized the opportunity to become their agent. In 1955,
Restaurants chain is growing faster and faster to the world wide and a lot of
Beginning with one restaurant, Sonic has become the largest drive-in chain in the United States. While they are smaller than their competitors, they are still leading in sales growth, customer loyalty and customer satisfaction. Sonic restaurants saturate the southern U.S. This gives them the opportunity to expand to other area. However, Sonic is reluctant due to the colder climates and their basis as a drive-in restaurant. Sonic should look at adding or combining capabilities to it’s restaurants to increase competitiveness and make it easier for them to expand into other areas without limiting themselves.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
“McDonald's is the world's largest fast food restaurant chain, serving an estimated 68 million customers daily in 119 countries.” - Reuters in Los Angeles (2013). McDonalds is very powerful in the food industry. They cater to varies people from all over the world and they need to be able to cater for everyone needs. So what is it about McDonalds that enables them to have 47 million customers daily? They are able to retool their images and expand in the hospitality industry and still become increasingly popular each year. As McDonalds is a without a doubt known as the king of the fast food industry with franchises from Moscow to Rio de Janerio, t...