Mcdonalds Competition Against Burger King

Mcdonalds Competition Against Burger mogulMcDonalds is one of the crush global solid food helping retailer which has much than 32,000 local restaurants serving more than 60 million great deal in 117 countries for each one day. More than 75% of McDonalds restaurants worldly concernwide are owned and operated by independent local public. The smart set serves the world some of its favourite foods World Famous Fries, Big mack, fundament Pounder, Chicken McNuggets and Egg McMuffin. The history began with our founder, Ray Kroc. The strong foundation that he established continues directly with McDonalds vision and the commitment of our talented executives to keep the shine on McDonalds Arches for years to come. . Its head office is located in Oak Brook United States. McDonalds heap is the worlds largest image of fast food restaurants, working worldwide in 117 countries with 400000 workers. It has 60 Million customers with 32000 restaurants worldwide. A franchisee, an affiliate , or the corporation itself operates e truly McDonalds restaurant. The corporations revenues come from the rent, royalties and fees paid by the franchisees, as intumesce as gross sales in company-operated restaurants. Its net operating income for the year ended 2010 is $7.673 Billion. The type of the company is public.Time Line1940 Dick and Mac McDonalds open MacDonalds Bar-B-Que restaurant on Fourteenth and E streets in San Bernardino, California1948 Dick and Mac McDonalds opened the 1st drive thru restaurant in San Bernardino, California.1949 cut Fries replace potato chips on MacDonalds menu1954 Ray Kroc becomes the first agent of franchise for the McDonalds br some others.1955 Ray Kroc opens 1st McDonalds in Illinois.1957 McDonalds started knowing for the motto QSC.1959 McDonalds started billboard advertising.1961 Ray Kroc acquires McDonald brothers for $2.7Million.1963 Ronald McDonald made his debut in a way to attract more children and families.1965 Television network adver tising begins.1969 The new creation for the restaurants roof introduced to replace the red and white design.1984 Training started providing for every level of McDonalds management worldwide for tonus assurance.1995 The new advertising theme have you had your break today? debuts.2004 ISO 14000.2005 fiftieth Anniversary.2008 introduces the most broad global packaging design in the brands perseveranceBurger pooveBurger power is the 2nd largest fast-food chain, behind only McDonalds. The company franchises more than 10,400 restaurants and owns close to 1,000 for a chain wide total exceeding 11,455, with locations in either 50 states and 56 countries. The company serves 15.7 million customers each day and over 2.4 trillion Burger male monarch hamburgers are change each year across the world. In the late 1990s and into the new millennium, Burger King was plagued by falling sales and deteriorating franchisee relationships. Burger Kings parent, Diageo Plc, sold the company to a gr oup of investors led by Texas Pacific Group in 2002.Miami entrepreneurs James McLamore and David Edgerton founded Burger King Corporation in 1954. Five years later, they were define to get bigger their five Florida Burger Kings into a all over the country chain. By the eon they sold their company to Pillsbury in 1967, Burger King had become the trine largest fast-food chain in the country and was on its way to second place, after industry leader McDonalds.Time Line1954 James McLamore and David Edgerton establish Burger King Corporation.1957 The walloper is launched.1959 The company begins to expand through franchising.1963 First Burger King outside the U.S. in Puerto Rico1967 Burger King is sold to Pillsbury.1975 Burger King introduces the drive-through window1977 Donald Smith is hired to reconstitute the firms franchise system.1978 BKC introduces new line-up of sandwiches (fish, steak, chicken and ham)1979 BKC introduce breakfast menu1982 Burger King claims its grilled burgers are better than competitors McDonalds and Wendys fried burgers.1983 BKC introduce The CroissanWich1988 BKC launches We do it desire youd do it chalk up campaign1989 Grand Metropolitan plc acquires Pillsbury.1997 The firm launches a $70 million French fry advertising campaign Grand Metropolitan merges with Guinness to corpse Diageo plc.2002 A group of investors led by Texas Pacific Group acquire Burger King2004Subservient Chicken is launched2005 BK Chicken Fries are introduced2006 BK goes public limited company2007 50th anniversary of the WHOPPER SANDWICHMain TopicThis report consists of different trading operations, research development of intersections, base, changes, and competitiveness of McDonalds and Burger King check to the requirement of this course work. How they do research and developing new products, how they manage their product and service superior, how they taking competitive priority on each others, and which systems and approaches they following to make their businesses successful in this competitive environment and satisfy their customers where expectations of the customers are very laid-back and changing their needs rapidly.Compare and Contrast of trading operationsHow They CookThe main difference end be seen in the kitchen of these two restaurants. How they prepare their burgers for customer bid McDonalds cooks their burger by a batch emergence where as Burger king make their burger by a machine paced assembly crop.McDonalds Batch ProcessMcDonalds fries their burgers on a big platen in batches of up to twelve. ii ore more than two batches can be on platen at same time in different stages of cooking. When a worker in the back says Quarter Pounders Up a complete batch is ready at the same timeBurger King Broiler ProcessBurger king cook their burger on continuous chain broiler. Semi prepared burgers are put on one end 80 second later they bring out the other end its cooked. This come apart of machine paced assembly process is ve ry common in industrial manufacturing processes.Teamwork VS Assembly LineAs both of these companies following two different strategies of operations comparable Mcdonalds batch process and King Burger assembly line. As in McDonald 12 hamburger are prepared in same time. They are book seared after 20 seconds on the grill, turned at sixty seconds and pulled at hundred seconds. When they come off workers over there must fastly add condiments wrap and shelve them. If there are two batches going there in different stages of cooking because its mean that speed is more meaty part to keep production on going. So its mean the staff must be motivated or the process gums up. Staff must be cooperative and willinging to help in another area in case of help required.Burger KingHere in Burger King there is no matter at what speed burger are prepared once they are cooked the rate limiting step is the cooking itself. One burger in a time comes off the chain broiler at the rate of 8 per minute, m aximum. The machine makes the process fast. As long as you can do your job of assembly process in seven and half seconds per burger that all which is required.Fast and Quick Service(Just In Time)How McDonald can stay on top? The answer id that when it is running good, the batch process allows for much greater throughput and faster speed of services. Speed plays an burning(prenominal) role in the popularity of food store. The batch process of McDonald can prepared 300 burger in one hour where as 200 for the continuous chain broiler of Burger king. There are type given by each restaurant for speed like McDonalds is faster than Burger king because prepared burger for 3 minutes where as McDonalds delivered only in 90 seconds.Capacity PlanningMcDonaldMcDonalds has a very strict standard for food preparation and its their goal to facilitate their customer as fast as they can. To meet this goal they set a plan of inventory of food production to meet surges in entreat. There are strict l imits how long the food can remain in inventory limits the heart and soul of inventory can be made this food limit allow to McDonald create a level between its production and the workforce required. This sort of strategy is called level production.Burger KingBurger king is using another sort of strategy. They once promoted their burger using a have it your way philosophy because Burger assemble burger when they receive an bon ton, because product is made when the demand appears. So Burger King has variation in labour need and this is the reason for customer to have wait. They nevertheless provide a product geared according to the requirement of customer. This sort of strategy is known as chase demand.Quality ControlBurger King uses the customer and market oriented surveys to manage the quality of service on regular basis.HSSP (Hazard Analysis Critical Control Point) program is the execution of strict operation and sanitation procedures. Our food safety program employs a broiler de sign and meat cooking procedures that fully cook products, killing any potentially harmful bacteria.McDonalds Q.S.C. V. Provide good quality, services to customer. Uses a cleanliness environment when customer enjoys their meal. The esteem of food product makes every customer is smiling.PriceBurger King uses affordable prices for quality food strategy so that its prices are less than its competitors.McDonalds came up with very high prices. The Company has certain value pricing and bundling strategies such as happy meal, combo meal family meal etc to attach overall sales volumes.ProductMcDonalds doesnt offer just burgers their well-diversified menu is also one of the key success factors.Burger King Burger King is offered flame-grilled burgers and offering a variety of food and other products those fulfilling the demands of all segments of society.Layout of RestaurantsMcDonalds Restaurants have included a playground for children and advertising geared toward children. The new strate gy of re-designing of layout of the braches create natural style with a particular tension on comfort introducing lounge areas and fireplaces and eliminating hard plastic chairs and tables. These facilities give comfort to customers and create satisfaction.Burger King The lay out of the restaurants are very wide and nation could comfortably spend time with their food.BrandingMcDonalds Has partnership globally with Coca Cola to sell their drink with their menuBurger King Has also co brand contracts with Coca Cola worldwide.InnovationInnovation is the lifeblood of any successful business. In modern times, demand and expectations of customers are high and looking for change. The companies have to act then to beat the competition and their survival.McDonalds has constantly introduced new products. The introduction is time such that the new product does not cannibalize the product already in the due date or growth stage.A perfect example of renewing a product in decline phase Frenc h Fries have been an important part of the McDonalds menu worldwide. In an attempt to revive the Fries, Macdonalds amend and re-launch it with new name and style Shake Fries. This is being served with spicy spice mix, which has resulted in increase in the sales of French Fries and has elevated it from to the decline stage. The company is also focusinging on nutrition and healthy food options for their customers.Burger King innovations in nutrition, quality, value and taste are all important attributes that can help our guests and their children make choices that promote healthy living.In July 2007, BKC identified two cooking oils with cypher trans-fat that passed our rigorous operative, supply and consumer criteria allowing us to start providing all of our restaurants in the U.S. and Canada with zero trans-fat oils.In 2008, we initiated a limit of 600 milligrams or less of sodium in all of our Kids Meals advertised to children under 12 years old.In May 2009, we introduced lower s odium CHICKEN TENDERS, reducing sodium by 36 percent.BKC has joined the American Heart Associations (AHA) Industry Nutrition Advisory Panel (INAP), a partnership between the AHA Nutrition Committee and food industry leaders. INAP brings together representatives from the food industry and science to share information and plan cooperative programs in the areas of diet and nutrition and cardiovascular disease.Maintain Quality, Value and Taste Nutritionally balanced products should withal taste good. If our foods are nutritious and taste great, parents will order, it and kids will eat it.The Burger King always searching new ways to develop new product not only for variety in term of quality of food and nutrition for health of their customers. The are some latest innovations from Burger King BK BURGER SHOTS, with BKTM juvenile Apple Fries, MINUTE MAID apple juice, CHICKEN TENDERS with BKTM Fresh Apple Fries, Hamburger with BKTM Fresh Apple Fries,Philosophy of McDonaldsMcDonalds conside r People its philosophy. They provide the best employment experience for our employees to achieve their goals of providing our valued customers with the worlds best quick-service restaurant experience. They strive to recruit the best, hire the best, and provide the best place to work.PeopleThe Company is the well aware of value of both its employees and customers. It knows the reality that a happy employee can work well with conclude as a happy customer. Human resources continuously working on finding new ways to motivate their customers (employees). The company focuses on critical hiring, best training and motivating employees through best present structure and benefits.Philosophy of Burger KingPhilosophy of Burger King to give option to customer to choose the food and we innovate. Burger Kings goals seemed quite clear. They want to individualize each customers order and provide the fastest service possible. Burger King gives the customer many choices and to accurately and quickly provide whatever the customer chooses. This policy is reflected in their slogan, your way, right away. in operation(p) under this policy makes it very easy to achieve their goals. To facilitate fast service Burger King engrosss customer orders on a continual basis. One employee takes the customers order, the customer then moves down the line where another employee is preparing the order. Customers also get their own drinks while they are waiting for their meal.Burger King providing the innovative and healthy food options to their customers.ProblemsBurger King Corporation is the second largest fast food restaurant chain in the world and growing their franchise network through globally. The company needs to do a lot to sustain the performance in this competitive environment. Burger King has good operational systems designed to provide customers with efficient and responsive services. The success of the operational system of Burger King is directly related to the degree of co-operat ion and co-ordination among these three subsystems. Any attempt to improve the efficiency, quality and responsiveness of the operational system must focus on these subsystems and their interactions. On the other hand increasing customers demand and expectations are challenges. Burger King is facing the following some problems in operations which affecting the quality services as compare with competitorsStaff motivationInventory systemsEquipment upgradeCustomer accessibilityRecommendationsBased on the analysis we can conclude that The Company should start by solving their internal issues so that they could perform batter and could achieve their objectivesStaff MotivationThe turnover rate is high employee are not staying long due to lack of motivation. The company should focus on retaining their staff. The company should plan an internal marketing so that they could address these issues. For this the company should give their employees betrothed made training to serve the customers a nd coordination between them. The structure of the pay should be revised as per market based and give them incentives and benefits on their best performance. They should place the team building activities to create team bonding within the teams.Inventory Management SystemsThe company is using inventory and supply chain systems those are not latest and affecting the efficiency of the company, due to this company is facing the inventory wastage and storage expenses. If the company do focus on improving, inventory systems that could reduce the appeal of materials handling and waste.EquipmentThe company is the second largest company and need to update about the technology and equipment those are using within the operations. The company is spending huge amount of money on marketing, innovation and employee but if the food processing equipments not giving desired out could lead to loss of revenue, service and resources. The company should up-grade the systems that will help the company to perform better.Customer AccessibilityBurger King is facing very fierce competition. The company has less accessible to their customers as compare with the competitors like MacDonalds that why company is losing the business. Although it could, addresses in long term but very necessary because if you spend on product development, sourcing material and advertisement globally then you need to reach the customers accordingly. In this contest, you are not getting the right business due to fewer stores geographically.Conclusion Burger KingThis age is competition and innovation with better management of the resources. It is a very strong chain of fast food restaurants all over the world. Being in maturity stage it has high opportunities of introducing its new products and growth. In future, it will be expanding its chain by introducing more outlets in more countries. Although in McDonalds there may be more problems than Burger King but the fact is there cannot be a perfect one in the wor ld. Every ecesis has its internal problems but Burger King is what it should not be. Because people rely on it hugely. Burger King should serve people with true spirit of the company vision.Personal ReflectionPersonal Description and ExpectationI would like to describe myself as a very pleasant, diverse, energetic and committed person. I think one of my most distinguishing characteristic is my professional experiences and the business degree I am carrying under my belt. Along with my business education, my experience with the contact centre industry, peoples management that provides me sufficient exposure to manage a team, focuses on the performance and peoples management and delivering quality services.The visionaries place the customer at the core of their organizations business systems. In fact, it takes a visionary to see the mass market, assemble the financial and human resources and be the winner at the market place.My previous experience of management and leadership push me to get a line advance techniques of business from the best business school in London. I have known about the practical processes of the business but not have idea about the philosophies of the business and culture of the multinational organization around the world..Learning OutcomesWhen I have started this module in the college and start reading books and other readings found this a real practical course. The theory of quality services and operational strategies I have read were those we were practising in the office in routine. Then I start associating these theories and knowledge with my previous experience that helped me to learn and understand the practices in real world.Learning and DevelopmentWith the help of previous practical management experience and latest operational techniques up to date practices I feel very clear changes in my perception about operations. In the past, I was following the pattern, which was designed by the top management to implement the policies. I n ever challenged those policies and practices due to lack of knowledge and expertise. After completing these multinational corporations operational management approaches I feel very comfortable and confident to take new challenges and responsibilities in future. It gives me in-depth knowledge and practical exposure about the subjects, which help me to start analytical and critical thinking about the projects.