Operational Difference †Major company stake is owned by franchises Essay Example for Free

Operational Difference Major go with stake is owned by franchises EssayAs I went through with(predicate) the historical span of Burger faggot History, the franchises of Burger exponent played a major part in expansion of the parent company from the early 1960s trough date. The relation of franchises and management has always been influential and significant in success and failures of Burger force History. Primarily, the company operated with major investment from franchises and minimal from the company, so the decisions and relationship with franchises was crucial. flack broiler a unique subterfuge that improved with decades in Burger King historyThe company was set-up on the basis of the oven called Insta-broiler for cooking burgers. The economic consumption had been inspired from McDonalds sprightly service. It was further mechanised into a gas grill without changing patties and self functional by means of a conveyor belt. Further, the contrivance was also customis ed and technologically advanced to produce Chicken sandwich, Chicken Whopper, Veggie burger, etc.Drive thru serviceThe company though was working hard on franchises and unique device to meet operational need it was mainly oriented to meet demand of harvest-tideion at Drive-thru restaurants. This was because the company had major part of its gross sales revenue i.e. 70 % from Drive-thru operations.Later this competence was adapted by McDonald and unalike competitors as well. However the effectiveness and efficiency of Burger Kings Drive-thru was easily highlighted.Competitive methods of Burger KingThe purpose of its competitive strategy is to build a sustainable competitive advantage over the organizations rivals. It defines thefundamental decisions that guide the organizations securities industrying, fiscal management and operating strategies.As there were many significant changes in the history of Burger King, eventually there were distinguishable competitive methods used in different span in history. Some of the significant competitive methods are listed as follows1 Initial decade in Burger kings history, Insta-broiler a device competitive in making burgers and technological advancements in the same gave it a competitive advantage.2 High amount of franchises worldwide executed major self-control stake and customised operations in the outlets. This was tightened and a new company structure was formed, followed by a new competitive aptitude. Year 1963 -19673 Push sale begin led increase in competitive break dissolute market and thus improve in personate in market. Burger King moved to second position in US fast food market afterwards McDonald. Year 1982-19854 Launched a Burger King Kids Club program that help the company to increase sales and successful entry into a new market segment. Year 1990-19955 Introduction of a TURNAROUND PLAN named Go Forward Plan, which was significant to hand objectives like increasing profit, create a customer image, te amwork, etc.Year 2000. One more advantage Burger King introduced was Revamped Chicken Whopper, helpful to compete with other competitors.Burger King McDonalds (BK is simply non as big as McD)Some of the basic company facts and objectives of both the companies, help us understand how Burger King is not as big as McDonalds in global terms.FactsBurger KingMcDonaldFounder 1941 by Richard and Maurice McDonald 1953 by Keith J.Cramer Present chain 12,150 outlets in 50 states and US territories and 74 countries More than 31,000 outlets in 119 countries Revenue $2.5 BillionNumber of employees 360,000 employees 1,500,000 employees (1.5 million) Customers 11.8 million customers daily worldwide 58 million customers across the globe Products offered Flame-broiled burgers including the Whopper, Burger King also offers chicken sandwiches, fish sandwiches, French fries, onion rings, salads, chicken fries and Croissanwiches for breakfast. McDonalds predominantly sells hamburgers, versatile types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In near markets, McDonalds offers salads and vegetarian items, wraps Calorie content A Burger King Double Whopper has around 920 calories A McDonalds Big Mac consists of 540 caloriesObjectivesBurger KingMcDonaldsMarket share 21.9 % in US fast food industry 44% in US fast food industry Value for money More bigger product for reasonable price Product size is smaller with inexpensive price Franchising More than 90 % of the outlets are franchised A little less than 30 % Suppliers The suppliers shift with various franchise in different locations worldwide. McDonald chooses best suppliers and type and quality of meat varies with country culture. Advertising The BK adverts were quite confusing and sending falsely messages in potential market which affected cultural values and also marking image at times. McDonalds often had appropriate ways of advertising and were adjunct to increase sales an d popularity of the brand.Issues relating to Burger KingThe case study is very critical in understanding the issues related with Burger Kings history. Some of the prominent issues from ultimo to present can be listed as followsFranchise management The company found it difficult to manage more than 90% franchise in the commerce of Burger King products and services. Crucial reason was also the percentage of stake ownership , which was initially 38% and was improved to 42% by Donald Smith, former McDonald executive. Changes in lead The history of Burger King marked approximately 20 changes in management. The changes in short term span affected oragnisation focus over goals and objectives, affected brand image adversely and lacked consistency in operation. Unwellnessy food The Company came prominently in highlight during the era from 2003 as potential customers had responded to be health conscious. The period marked spread of mad-cow disease and corpulency levels among children w as a rising concern. Market recession The US economy faced economic recession from 2006 and needs brand to take effective measures to sustain and avoid losing loyal customers to competitors.Recommendations for future development in UKThe Burger King opened its first branch/outlet in UK in 1977 on Coventry Street in London. Since then till date Burger King has 654 restaurants in UK ( out of which 73 are owned) whereas it has 139 drive-through restaurants. Considering the present fast food environment in UK, following recommendations come in lime-lightHEALTHY FOOD Burger King UK has currently many problems within the environment in company and surrounding, however one of the prime concern is healthy food. The company needs to produce fast food with less saturated fats and salt content. The problem of obesity in UK is high as well and addressing to this concern is the need of demand to survive over the competitors.PRIME LOCATIONS and EVENTS Burger King needs to increase its influenc e and market share in UK, by serving at prime hot spots as well as at travel destinations. The presence of Burger King on high streets and at various national rail stations and airport is reasonable, however it needs to be accessible at hot tourist spots and business oriented commercial areas.SPEED Burger King needs to increase its speed of delivering products and services to customers, as it has been competing with McDonalds over more than 50 historic period and still lacks speed during peak periods. Speed in operations helps to generate revenue in coping zone.Schools of strategy Burger Kings evolution (analyse critically) system formation is judgmental designing, intuitive visioning, and rising learning it is about transformation as well as perpetuation it has to include analyzing before and programming after as well as negotiating during Henry MintzbergHowever there is a difference in perspective leading to strategy arguments. Mintzberg identified this and tried to contes tation and answer different perspectives through his 10 Schools of system/Thinking. The burger King History prominently highlights two of them, explained as follows1 The Power School Strategy Systems as Processes of dialogAccording to the power school, strategy systems are described to be mainly shaped by power and politics, whether as a action inside the first step itself or as the behaviour of the initiative as a whole within its external environment. Strategies that may result from such processes tend to be emergent in nature, and take the forms of positions and actions more than perspectives. On the one hand parts of the power school (micro power) see strategy making as the interplay, through persuasion, bargaining, and almosttimes through direct confrontation, among narrow scope interests and shifting coalitions, with none dominant for any significant period. On theother hand other parts of power school (macro power) see the enterprise as promoting its own welfare by con trolling or cooperating with other enterprise (such as Franchises), through the use of strategic manipulation as well as collective strategies in various kinds of networks and alliances.EXAMPLE Burger King at different period in history, tried to take control over franchises by executing greater control over their operations and direct confrontation with various industry giants/ suppliers. These various processes implemented to achieve power through strategy highlights THE POWER SCHOOL.2 The Configuration School Strategy Systems as Process of shiftingThe school follows a formation approach wherein the organisation is transforming into one type of decision making structure into another. The school interrupts the period of stability by some process of transformation. It has configuration of strategy formation from other nine schools which are Design school Strategy formation as an architecture process prep school Strategy formation as a formal process Positioning school Strateg y formation as an analytical process entrepreneurial school Strategy formation as a visionary process Cognitive school Strategy formation as a mental process Learning (or Emergent) school Strategy formation as an emergent process Power school Strategy formation as a process of dialogue Cultural school Strategy formation as a collective process Environmental school Strategy formation as a responsive processThe school recognises a appropriate combination of any one or more of them taking into context a particular type.EXAMPLE Burger King history marks use of Positioning school in year 1980 -1983 to create a brand image and achieve second position in US fast food market.Click here to Continue Reading this ArticleRate This ArticleTags burger king, free essayCategory Business, Free Essays analogous ArticlesKicl students perceptions on the consumption of McDonalds, KFC and Burger Kings Analysis of Marks Spencers International StrategyRole of Advertisement and Sales Promotion in E LPSubscribeIf you enjoyed this article, subscribe to mystify more just like it. 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