...Scholarly Activity 2 "Burger King Beefs Up Global Operations" Henry E. Jerkins Columbia Southern University International Business Professor Yvonne Balbin February 23, 2013 1 1. What is Burger King’s core competency? How does it relate to its chosen strategy? Burger King's core competency is the fact that they are the world's largest flamed-broiled fast food restaurant hands down. Simply put, Burger King's core competency means that they are more competent than their competitors when it comes to producing that type of goods and services. In addition, Burger King stands firm on its core competency of being the best at what it does when it comes to producing hamburgers and flame-broiled fast food. As a result of this strategetic move, it has positioned itself in becoming one of the markets leaders in the fast food restaurant industry. Further, it core competency is based upon its desire to set itself apart their competitors by way of differentiating their products. The differentiation of Burger Kings products are accomplished in two ways as it relates their competitors. First thing to consider is the manner in which the hamburgers are prepared, which is the flamed-broiled method. Secondly, is the various options that is afforded to the customers on how they would like to have their hamburgers prepared. The process has been the means that has allowed Burger King to become one of the market leaders in the...
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...Case Study Burger King Beefs Up Global Operations Rosalind Fields Columbia Southern University Burger King Beefs Up Global Operations by Rosalind Fields February 2012 Burger King leads the world in flamebroiled fast food restaurant chains and operates in all 50 states and 74 countries and territories of the United States. Daniels, Radebaugh, & Sullivan (2011) Burger King’s official websites states that it was founded in 1954 and currently serves over 11 million guests. Known as the Home of the Whopper, the same source explains that approximately 90 percent of Burger King restaurants are owned and operated by independent franchisees. Further explanation is given to the October 2010 purchase of the company by 3G Capital. 3G Capital is described as a firm that focuses on long term value creation. (www.bk.com ) Burger King’s is known for letting customers “have it their way; its core competencies are its flamebroiled burgers and the choices that it gives to customers for their burgers. This differentiates Burger King from the competition. (Daniels, J., Radebugh, L., & Sullivan, D. 2011 p.463) The company seems to have maintained its initial chosen strategy. Daniels, Radebaugh, & Sullivan (2011) supports this by explaining that although their menu has expanded over time, Burger King has been consistent with offering its flamebroiled burger and its signature product: ...
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...Burger King Abstract Burger King is a very well-known chain of fast food restaurants that serves over 11 million people daily. Their top competitor has been McDonald’s up until now, but this may possibly change in the near future. They have come a long way in the past few decades. They have faced good times and some not so good times. They have had good leadership as well as some that were considered sub-par. Included in the following paper you will find a SWOT analysis of Burger King and the effects of the issues discussed directly. The way a company handles the information that a SWOT provides can make or break a company no matter how small or how large they may seem. History/Background Burger King is a world renowned fast food chain, also known as the “Home of the Whopper,” that serves over 11 million clients across the globe (Burger King, 2014). They serve breakfast, lunch, and dinner. Burger King was not always like it is now. It was originally founded on July 28, 1953 by Keith J. Kramer and Matthew Burns as Insta-Burger King. After the company ran into financial difficulties a year later in 1954, it was purchased by its Miami, Florida franchisees, James McLamore and David R. Edgerton. They initiated a corporate restructuring of the chain, first renaming the company Burger King, then opening the first Burger King restaurant was in Miami, FL and was advertised as the “home of the whopper”...
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...Abstract McDonalds, Burger King, and Jack in the box have two things in common. They all are fast food restaurant and they started off selling burgers. Today all three restaurants is popular and offers the same product but the taste value propositions and is what separates each of them from being exactly alike. Value propositioning is “The full positioning of a brand- the full mix of benefits upon which it is positioned.” For any business differentiating themselves is just as important as serving their customers. For fast food chains such as; Mc Donald’s, Burger King and Jack in the Box of course they share similarities but they also have distinctive differences. Such as McDonald’s donates proceedings from their happy meals to a charity, Burger King charbroils their hamburgers and Jack in the Box has an ad pitchman named Jack. Fast-food restaurants and their value propositions Before McDonald’s started serving breakfast and coffee was known for being cheap and affordable. With over 31,000 restaurants, serving nearly 4.6 million customers daily, McDonald’s is the world’s leading fast food chain. McDonald’s opened in 1955 and opened its first foreign restaurant in 1967, just eleven years after opening its doors, and it wasn’t until 1983 that Mu nuggets were introduced. “I’m loving it” is just a mere reflection of McDonald’s success. Their slogan/proposition almost “ensures” that no matter what you order you’ll be satisfied. When it comes to being different McDonald’s is...
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...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...
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...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...
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...Burger King is a worldwide and one of the leading chains of hamburger fast food restaurants with its headquarters in Miami, Florida in the US. The corporation started as a franchise restaurant chain, called Insta-Burger King over half a century ago. After two years of operation, the firm faced some financial difficulties and was bought by its franchisees and renamed Burger King. Currently the company is the world's biggest flame broiled fast food restaurant chain. Last year statistics indicated that Burger King managed about twelve thousands restaurants in all fifty states and in over seventy countries and United States. The company employed almost four hundred thousands people around the world. Burger King is ranked the second in the fast food hamburger restaurant market and plans to raise the net operating units by three to four percent every year. The company plans to achieve most of that increase through international operations (Hamstra, 1997). Burger King stands out and beats its competitors through the way its hamburgers are prepared. The hamburgers are cooked by flame broiled technique as opposed to grills and this is its core competency. The method of product preparation relates to its chosen strategy of providing the customers with a preference as to how they desire their burgers. Most of Burger King's restaurants are in the US and Canadian accounting for sixty nine percent of its 2.54 billion dollars income in the last fiscal year. Initially, the company commenced...
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...CBS News, Nov 16, 2009 Burger King (BKC) stores are losing money on the company's $1 double cheeseburger promotion, according to a lawsuit filed last week by the National Franchisee Association. The franchisees say the product costs them at least $1.10 per sandwich, and they're challenging Burger King's right to dictate maximum prices. Last summer, Burger King asked its franchisees if they would support the temporary double cheeseburger price cut, but they said no. Twice, in fact. But Burger King decided to roll it out anyway, so the franchisees have taken it to the courts. The economy has put chains like Burger King in a tight spot, and the choice seems to be between losing customers or bringing them in with lower prices that wind up hacking away at the bottom line. I have no idea what the legal agreement is between Burger King and its franchisees, so I can't speak to whether BK is right when it says the lawsuit is "without merit." But from a business standpoint, ignoring store owners on the promotion doesn't seem like the best strategy. McDonald's (MCD), in contrast, upped the price on its own double cheeseburger last December because of complaints from its own franchisees. Burger King lays out menu strategy August 24, 2010 | By Ron Ruggless Burger King Holdings Inc. plans to continue emphasizing its “barbell” strategy of promoting both value and premium menu items and said it remains optimistic that the September rollout of its new breakfast...
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...Fast Food Chains Abstract The purpose of the study is to analyze the application of concepts and theories of managerial economics in relation to the actual data and information from the fast food industry and related companies. Two fast food chains have been studied and analyzed throughout the project. MacDonald’s and Burger King have been chosen as part of Fast Food industry because both companies are the biggest and closest competitors of each other; they both provide an insight of the frame of the industry, advantages and disadvantages of franchise system and production techniques, demand and supply chains, keys of success and weaknesses that could bust or hinder growth in short- and long-term. The study concentrates on demand and supply structure in the industry, market forms in which the industry can operate optimally, scope of production, production techniques, cost structures, prevailing market conditions and their impact on the firm, and financial analysis of the companies. To collect the relevant data, the companies’ annual reports were critically analyzed and evaluated for exact position to be sorted, the current market conditions to be measured and their possible future effects on the firms working environment to be evaluated. Companies’ Overview McDonald’s is located in 117 countries and on 6 continents and operates over 32,000 restaurants worldwide. McDonald’s is the clear market leader in the fast food industry. For 2010 the company...
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...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 it supports their core value of “Have...
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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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...Introduction…………………………………………………………………..2 2.1 Burger King Background……………………………………………..2 2.0 Psychological factors………………………………………………………...3 2.1 Perception……………………………………………………………...3-4 2.2 Consumer learning and Memory………………………………………...5 2.2.1 Consumer Learning………………………………………………...5 2.2.2 Consumer Memory…………………………………………………6 2.3 Motivation………………………………………………………………..7 2.4 Attitude…………………………………………………………………..8 2.5 Personality……………………………………………………………9-10 3.0 Sociological factors…………………………………………………….10 3.1 Socio-culture……………………………………………………………10 3.1.1 Sub-culture………………………………………………………..11 3.1.2 Media……………………………………………………………...11 3.1.3 Family……………………………………………………………..12 4.0 Decision Making Process………………………………………………13 5.0 Conclusion…………………………………………………………………14 6.0 References…………………………………………………………………..15 1.0 Introduction Consumer behavior is a decision process and physical activity that an individual involve in obtaining, using and deposing of goods and services. In this report, it shows how psychological, sociological and marketing mix factors combine to influence customer purchase behavior and decisions of The Burger King. 1.1 Burger King Background Burger King is an American internationalization fast-food restaurant providing hamburger. Burger King has been very successful fast-food chains that provide healthy and big portion of burger. The headquartered of the Burger King Corporation is located in Florida, United States. Burger King Corporation is a very successful...
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...should be"), and then (3) highlighting the gaps that exist and need to be filled. Gap analysis forces a company to reflect on who it is and ask who they want to be in the future. Where is your company now? Burger King Holdings, Inc. was founded in 1953. Burger King is the world's number 2 hamburger chains after McDonalds. By the early 2000s Burger King is a little left behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of consumers agree that it meals taste better than McDonald ones but it doesn't have the excellent perception created the administrative power and the aggressive marketing of his main by concurrent. It was freed in 2002 from Diageo the number one in wine and spirit drinks, which owned it since 1997, after a merger with Guinness. Although owned by Texas Pacific Group for US$2.26 billion, it recovered its latitudes of the sixties. The number 2 in hamburger fast food came back progressively in the fight with McDonalds. Since 2004 their performance constantly increased. In their intensive marketing campaign it targeted particularly core young male market. Advertising Age estimated global measured advertising expenditure of US$356m in 2007; making Burger King the world’s number 95 advertisers. Burger King in Malaysia came in December 1997. To date, there are 20restaurants in Malaysia. Look out for more outlets in the near future. There are currently, 3...
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...Five Guys Burgers and Fries: Ingredients for Success Contemporary Business 508 July 21, 2012 Five Guys Burgers and Fries: Ingredients for Success By sticking to the basic philosophy of keeping it simple, Jerry Murrell, original owner of Five Guys Burgers and Fries, has grown a small family business to one of the largest and fastest growing franchise in America. “Sell a really good, juicy burger on a fresh bun. Make perfect French fries. Don’t cut corners.” That’s been the business plan since Jerry Murrell and his sons opened their first store location in 1986. (Welch, 2010, p. 76) This philosophy is different from competitors who rely on gimmicks and advertisements to entice customers. It is not unusual for competing fast food chains such as McDonalds, Burger King and Wendy’s to introduce new menu items. The new menu item may establish a permanent presence on the menu or disappear, never to be heard of again, shortly after the introductory period. The life span of the new item, unfortunately, is determined by customer response. These chains cater to our wants, our desires and our convenience. In the words of Burger King – “have it your way”. Most of us have experienced at least one of these chains, if not all, and can attest that the customer experience with food quality, facility and service often varies by location. Then there is Five Guys Burgers and Fries with a philosophy that has not changed since the day it opened. ...
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...Burger King Marketing Mix Introduction Based in Miami, Florida, Burger King is one of the worlds best known fast food restaurants (it is the second largest company in the world). The company’s 40,000 plus employees helped it earn over $190 million dollars in 2008. Its success is reflected in a 28.4 percent increase in net profits for FY 2008. Currently Burger King operates in about 71 countries worldwide, but it all began in Miami where the first restaurant was opened in 1954, and began to grow exponentially after the introduction of the Whopper sandwich in 1957. The firm became a publicly traded company in 2006. Product * As a fast food hamburger restaurant (FFHR) chain, Burger King produces, hamburgers, cheeseburgers as well as Fries, Salads, Hash browns, Onion rings, Coffee, Juice, Shakes, cookies and pies. * Burger King sets itself apart from competition with its “have it your way” theme which allows individualize each orders with many options including fries or onion rings, cheese, bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion. * The nation's No. 2 burger chain will add Starbucks Corp.'s Seattle's Best Coffee to all its U.S. restaurants in a phased roll-out that begins in the summer of 2010. Under the effort, more than 7,000 Burger King Restaurants will begin selling the coffee along with iced varieties that also come with a choice of plain, vanilla or mocha flavors and whipped toppings. * Burger King has signed a licensing deal...
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