MCDONALDS CORP. & BURGER KING CORP.
WRITTEN ASSIGNMENT
MAX LIMIT:
10 Pages + Exhibits
PART A – analysis of the McDonalds/BURGER KING cases (See questions below):
1. Analyze/Map the major process sequence/ design, operational, and cost, differences between
McDonalds and Burger King Outlets in Hillybourne; as described in the cases.
2. How do these differences relate to each company’s method of competing in the marketplace?
3. How well positioned are the operating systems for changes in product design or market
demand?
4. What implications do the different operating systems and technologies have for the
management of these operations and their future strategies?
5. Pay specific attention to the “man-machine” interfaces, the production rates, the Human
Resource Policies and capacity vs. demand.
6. What is the role/location of Inventory at each?
7. How does the inventory location affect to producer – customer relationship?
8. Calculate the costs and profits as a function of variation in demand level over the course (by the
hour) of a typical day. What happens? Why? What are the implications for the business
strategy? (Hint: Map the processes at each. Work the numbers-capacity, WIP, cycle time, cost
and profits).
9. How do costs and profits vary at each with the hourly variation in demand?
10. Discuss the implications of grill vs. broiler technology and ‘make-to-stock’ Vs ‘make-to-order’
operations strategy decisions.
11. How does the location of inventories affect the productivity and flexibility of each process?
PART B – McDonalds-Part II: THE FIELD TRIP:
In 2001 McDonalds made a major change in their operations process and layout. Use the McDonalds
Supplemental ‘Handouts’ plus search the Internet for up-to-date information to understand and analyze
the ‘NEW” system. Visit one or more McDonalds that are using the “New Process & Technology”.
Interview the manager if you can and observe the operation. Take photos or a video if allowed.
1. How does it differ from the “old” system described in the case? (Batch vs. Continuous Flow; Job
Shop vs. Production Line; Make-to-Order vs. Make-to-Stock; Fixed vs. Variable Costs, Human
resource Management; Technology & Process Design; Etc.?)
2. Is it better? How? Why?
3. Diagram (map) the process and the layout
4. Can you evaluate the economics of the system?
5. Compare & contrast the old and new processes.
6. What is the impact of the new process on marketing and business strategy? Advantages?
Disadvantages? Profitability?
7. Is this is a made to order or a made to stock system? Push or Pull? JIT?
8. What are the competitive advantages of the new system vs. the old system?
9. Was the change a good idea? Why?
10. What happens next?
NOTE: You may break up into sub-teams to do this assignment BUT work together and discuss your
findings before you write your paper. Use the case analysis to guide your interview/objectives.
MCDONALDS CORP. & BURGER KING CORP.
TEAM CLASS PRESENTATIONS
LIMIT: 15 Minutes (Maximum). Practice and Edit your Presentation
Your analysis of the “New” McDonald’s process and layout and technology:
1. Will it give McDonalds a sustainable competitive advantage over its competitor? How/why?
2. Show photos or videos if available.
3. Compare/contrast to the “old” McDonalds system and Burger King’s system.
4. Why/How is the new system “better”?
Professor’s notes from email:
Pay particular attention to the interactions and relationships among:
 Process Design
 Physical layout
 Information flows
 'Make to stock' vs. 'make to order'
 CT/Capacity and LeadTime/scheduling
 Fixed vs. variable costs
 Menu variety and rate of new product introduction
 Customization
 Profitability as a function of demand over time
 'Fit' between process design, product design and business strategy