McDonald & Burger King Case Study

 

McDonald has sustained prosperity for so long because of their business strategy especially of paying attention to every product and activity they are involved into and ensuring uniformity and consistency in all their outlets. The McDonald stores are located in densely populated and commercialized streets where there are potential customers. McDonald also provides a good mix of business which enables her to get customers throughout the day right from the morning to the evening. The employees of McDonaldwork as a team and are very hospitable when it comes to dealing with customers.The company has also ensured less waiting time by customers. The company has targeted a specific market which is the family through different family based strategies such as pricing, products and advertising.

2

Some of the threats that McDonald may face in future are competition from other large stores such as Burger King Corporation. McDonald may face very stiff competition from Burger King after losing one of their major employees who is likely to borrow ideas from McDonald and use them in strengthening Burger King. Another threat is lack of growth opportunities in the domestic market because the market may have been saturated and the great concern of healthy eating. There may also be several substitutes such as small cafes and eating at home which may prompt them to lower their prices.

3

Uniformity and consistency strategy is a very vital strategy that the company needs to support in all her outlets as it may contribute to a wide variety of products to her customers in different locations. The company should ensure that they meet both changing and divergent customer needs. McDonald greatly responds to technology by introducing new machines that may help them in their operations. The company needs to ensure quick response to changing client desires as well as increasing competition by offering exactly what the customer desires.

4

There are several differences in operations between these two companies such as manufacturing strategy where McDonald uses make to Stock strategy. In this case, foodstuff is made and put into stock even before an order is received from the clients and the sales are made from finish goods stock ‘The Bin”. on the other hand, Burger King use “Have it your way” strategy where there are numerous product options as they produce and stock standard components and finally assemble their burger as per the customer order. Lead time on a make to Stock environment is equivalent to the time taken in delivering orders and there is minimal customer contribution in the assembly while Assemble to order lead time equals both assemble time and delivery time as well as customer involvement. Burger King stores food in a semi-finished state on the steam table which is not that costly when discarded because the food does not include total value of the product whereas McDonald stores food in a finished state which is inclusive of the total value.

5

McDonald’s willingness to innovate as well as consistency and uniformity in her operations has enabled it to gain loyal customers and appeal to wider range of customers. The company also serves her customers very fast and strategically locates her restaurants thus attracting more customers. Burger King has penetrated the market through the way they treat their customers by offering them products as per their orders.

6

McDonald’s strategy of ensuring uniformity and consistency as well as innovativeness would mean that the management should strive to ensure that these policies are strictly followed. They should employ highly motivated workforce and train them on the policies of the company.Innovativeness, uniformity and consistency would lead to loyal customers in future who will be certain about their purchases. On the other hand, the management for the Burger King must ensure that customer order is done as per the customer requirement. The management has to ensure that their customers are fully satisfied by offering them what they wanted. There is no much employee follow up and the management may not have an idea of what customers want in advance. The company is likely to attract customers who want their products to be done in their own ways.

 


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