Yanbian University of Science & Technology
Operating management
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Final report
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Yanbian University of Science & Technology
Final Project Report
I.
Topic
Research the information of McDonald’s then compare it with Burger King.
II.
Introduction: thesis Statement
In order to know why McDonald’s can be one of only a handful of brands that command instant
recognition in virtually every country in the world. We search some basic information and
compare it with Burger King in the marketing and supply chain management. So we can know the
competition of McDonald’s.
III. Body
1. Basic data of McDonald’s.
History:
The business began in 1940, with a restaurant opened by siblings Dick and Mac
McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in
1948 established the principles of the modern fast-food restaurant. With the successful expansion
of McDonald's into many international markets, the company has become a symbol of
globalization and the spread of the American way of life.
Vision:
To be the world's best quick service restaurant experience. Being the best means
providing outstanding quality, service, cleanliness, and value, so that we make every customer in
every restaurant smile."
Facts:
McDonald's restaurants are found in 120 countries and territories around the world and serve
nearly 54 million customers each day.
Most standalone McDonald's restaurants offer both counter service and drive-through service,
with indoor and sometimes outdoor seating.
As of the end of 2003 there were over 600 McCafés worldwide.
Compare marketing strategy between McDonald’s and Burger King.
1. Supporting Evidence.
McDonald’s:
Focus on service and creating an image
1) QSC&V
a)
b)
c)
Quality-Using the high quality material
Service-Quickly, kind and correct service
Cleanliness-Always keep cleaning
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d)
Value-High quality product and satisfaction
1
2)—People
Best ambassadors are our people, who proudly serve customers and make the most of
our unique employment opportunities.
--Product: Greater variety and quality choices surprise and delight customers with the food
and beverage products they desire.
--Place: Convenient and modern, our places make life fun and easy for customers, crew
and managers.
--Price: offer a range of tastes, sizes and prices that deliver great value to customers.
--Promotion: Relevant marketing and promotions strengthen our connection with
customers, building our business and brand trust.2
3) Advertising.
appease the mothers who bring their children into the golden-arched restaurants
4) Sports marketing –support the Olympics Game and World Cup
5) market to kids -Kids get happy meals with toys!
Making happy meal and building McDonald’s land.
Burger King:
Focus on quality and the best tasting meal
1) It depends on the majority on the quality of operation, good site location and local
market conditions
Maintain fast, accurate service, positive guest relations, and ensuring products are
consistent with company quality standards.
2) --People-:selective about who they choose to join the BURGER KING® family.
Whether it's a franchisee or employee, thet select only the best of the best. Once
someone is part of the family, he'll receive world-class training that fully prepares he for
the road ahead
--Product: They know "One size fits all" does not fit with guests. Customization is king.
To appeal to a broader customer base, they also offer a variety of food options, such as a
full line of breakfast products, salads, BK VEGGIE® burgers, desserts and more. And
continue to develop new and exciting products like our premium steak, chicken and fish
sandwiches .
1
http://articles.e-works.net..cn /strategy//Article16226.htm
http://www.mcdonalds.com/corp/invest/pub/2007_annual_report.RowPar.0002.ContentPar.0001.Colum
nPar.0004.DownloadFiles.0001.File.tmp/Downloadable_AR_final_4_8_08.pdf
2
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--Location: Always looking for locations for new restaurants around the world. They
search for the best sites within each trade area of a market to provide the greatest
customer convenience. Their restaurant image has been researched and designed with
the consumer in mind.
--Targeting the younger heavy fast food user.
-.

--Serving up what their guests want, so they choose marketing partners who
hold special appeal for their SuperFans, like Microsoft, which introduced three XBOX®
games featuring racing, action and adventure with the King
3) Advertising.
--Developing a unique creative approach in fast food advertising.
5) market to Adult Swim teen audience, and has continued with the "Creepy King"
A. Second viewpoint
Comparing the supply management McDonald’s and Burger King
take.
1.
Supporting Evidence
McDonald’s
a)
b)
Using Simple (M/M/1) model.
Having a clear safety and quality policy in place and connecting all facets of our Supply
Chain partners regardless of: country, culture and language
c) Used to produce finished hamburgers "to forecast"
- they didn't know when patrons would come in for lunch, but they produced burgers in
anticipation.
- former strategy was called "Build to Stock" (BTS)
d) Supply Chain department manages and executes strong working relationships with suppliers
within assigned product categories, including efforts towards promotional activities and new
product introductions.3
Burger King
a) Multi-Server (M/M/S) model. Customers wait in one line such as that in airport. One employee
take chare of receiving order and another one employee take charge of delivering food. The
3
http://msn.careerbuilder.com/JobSeeker/Jobs/JobDetails.aspx?job_did=J8G31Q5ZNLVXN0VBHWM&c
bRecursionCnt=1&cbsid=c3407ffca9c343bc8630b8a630284171-268929570-TY-5
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average waiting time for each customer is 2 minutes 47 seconds.
b)Using SAS, the leader in business intelligence, they achieved visibility of product movement
through the supply chain
c)
Waited until patrons actually placed (customizable) orders before the burgers were produced this is more commonly known as the "Build-to-Order" (BTO) model4
Competitive Performance between these two company.
Company 1
Company 2
Inventory Turns
4.2days
7 day
Service Levels
2.51%(the rate of wait time)
69 (on an index of 1 to 100)
Quality:4.44%
5.26% (the rate of wait time)
COGS as % Sales
$1.83M per restaurant
$1.19M per restaurant
Revenue growth
7.6%
(% orders met on time),
Customer Rating
71 (on an index of 1 to 100)
Quality:2.81%
(Satisfaction, quality)
23,230.7$million
5
9.1%
2,234.0$million
Market Share
45%
14%
Other:
63,893.2$ million
3,710.8$ million
106
829
market value
Other:
Fortune 500
IV. Conclusion:
1. From my research, I can conclude there are many similar strategies between these two
companies. But we can see McDonald not only offers safe assured supply and high
quality, but also takes more strategies on how to attract the customer and focuses on
advertising to maintain their brand image.
2. From the competitive performance. We can see McDonald’s data is higher than Burger
King.
3. I can say McDonald’s do a better job than Burger King in these field.
4
5
http://www.supplychainonline.com/cgi-bin/preview/SCM101/3.html
http://www.wikinvest.com/stock/Burger_King_Holdings_(BKC)