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Burger King and Mcdonald’s: a Report on The Two Biggest Burger Fast Food Chains in The World

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Introduction

McDonald’s

McDonald’s is American fast food company, supported in 1940 as a building operated by Richard and Maurice McDonald, in San Bernardino, California, us. They rechristened their business as a hamburger stand, and later turned the corporate into a franchise, with the Golden Arches brand being introduced in 1953 at a location in Phoenix, Arizona.

In 1955, Ray Kroc, a businessperson, joined the corporate as a franchise agent and proceeded to buy the chain from the McDonald brothers. McDonald’s had its original headquarters in Oak Brook, Illinois, however captive its international headquarters to Chicago in early 2018.

Burger King

Burger King (BK) is an American fast-food company international chain of hamburger nourishment restaurants. Headquartered within the unorganized space of Miami-Dade County, Florida, the corporate was based in 1953 as Insta-Burger King, a point of entry, Florida–based chain. When Insta-Burger King bumped into money difficulties in 1954, its 2 Miami-based franchisees David Edgerton and James Mc Lamore purchased the corporate and renamed it ‘Burger King’. Over the successive time period, the corporate would displace fourfold, with its third set of householders, a partnership of TPG Capital, Bain Capital, and syndicalist Sachs Capital Partners, taking it public in 2002.

In late 2010, 3G Capital of Brazil nonherita-ble a majority stake within the company, during a deal valued at US$3. 26 billion. The new homeowners promptly initiated a restructuring of the corporate to reverse its fortunes. 3G, together with partner county wife, eventually unified the corporate with the Canadian-based doughnut chain Tim Hortons, below the auspices of a replacement Canadian-based parent company named building Brands International.

Analysis of McDonalds and Burger King as Small-scale Corporations in the Beginning

McDonald’d as a Small-scale Corporation

The first McDonald’s eating place was started in 1948 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. They bought appliances for his or her little hamburger eating place from salesperson Ray Kroc, United Nations agency was intrigued by their want for eight malt and shake mixers. Once Kroc visited the brothers in 1954 to examine however little search may sell such a big amount of milk shakes, he discovered a straightforward, economical format that permissible the brothers to provide vast quantities of food at low costs. A basic hamburger price fifteen cents, regarding 0. 5 the worth charged by competitor restaurants. The self-service counter eliminated the necessity for waiters and waitresses; customers received their food quickly as a result of hamburgers was barbecued sooner than time, wrapped, and warm underneath heat lamps. McDonald’s, fully McDonald’s Corporation, American fast-food chain that’s one among the most important within the world, known for its hamburgers. Its headquarters are in Oak Brook, Illinois.

Seeing nice promise in their building thought, Kroc offered to start a franchise program for the McDonald brothers. Corporation, eventually shopping for out the McDonald brothers in 1961. The quantity of McDonald’s retailers would high 1, 000 before the tip of the last decade. Boosted by steady growth, the company’s stock began mercantilism in public in 1965. The chain continuing to expand domestically and internationally, extending to Canada in 1967, reaching a complete of 10, 000 restaurants by 1988, and in operation over thirty-five, 000 shops in additional than one hundred countries within the early twenty-first century.

Burger King as Small-scale Corporation

Burger King (BK) is an American international chain of hamburger nourishment restaurants. Headquartered within the unorganized space of Miami-Dade County, Florida, the corporate was supported in 1953 as Insta-Burger King, a port of entry, Florida–based chain. When Insta-Burger King bumped into monetary difficulties in 1954, its 2 Miami-based franchisees David Edgerton and James McLamore purchased the corporate and renamed it ‘Burger King’. Over the consecutive period, the corporate would move fourfold, with its third set of homeowners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late 2010, 3G Capital of Brazil non-heritable a majority stake within the company, in an exceedingly deal valued at US$3. 26 billion. The new homeowners promptly initiated a restructuring of the corporate to reverse its fortunes. 3G, together with partner county wife, eventually incorporated the corporate with the Canadian-based doughnut chain Tim Hortons, beneath the auspices of a brand new Canadian-based parent company named edifice Brands International.

McDonald’s and Burger King started within the franchise food business in 1955 and 1953, severally. McDonald’s has continually been the larger company; however, every firm has unquestionably influenced the opposite over the course of their six-decade-plus group action.

Analysis of Corporations at International Level

McDonald’s Corporation at International Level

McDonald’s has become emblematic of globalization, typically spoken because the ‘McDonaldization’ of society. The social scientist newspaper uses the ‘Big mackintosh Index’: the comparison of an enormous Mac’s price in numerous world currencies will be wont to informally decide these currencies’ getting power parity. Schweiz has the foremost costly huge mackintosh within the world as of July 2015, whereas the country with the smallest amount costly huge mackintosh in India (albeit for a maharajah mackintosh — the next least expensive huge Mac in Hong Kong).

Thomas Friedman once aforementioned that no country with a McDonald’s had gone to war with another. However, the ‘Golden Arches Theory of Conflict Prevention’ isn’t strictly true. Exceptions square measure the 1989 U. S. invasion of Panama, NATO’s bombing of Serbia in 1999, the 2006 Asian country War, and the 2008 South Ossetia war. McDonald’s suspended operations in its corporate-owned stores in peninsula once Russia annexed the region in 2014. On August twenty, 2014, as tensions between the u. s. and Russia strained over events in Ukraine, and the resultant U. S. sanctions, the Russian government briefly close up four McDonald’s shops in Moscow, citing hygienical considerations. The corporate has operated in Russia since 1990 and at August 2014 had 438 stores across the country. On August twenty three, 2014, Russian Deputy Prime Minister Arkady Dvorkovich dominated out any government move to ban McDonald’s and unemployed the notion that the temporary closures had something to try and do with the sanctions.

Burger King Corporation at International Level

While metallic element began its raid locations outside of the continental us in 1963 with a store in the city, Puerto Racketeer Influenced and Corrupt Organizations Act, it didn’t have a global presence till many years later. Shortly when the acquisition of the chain by Pillsbury, it opened its initial Canadian building in Windsor, Ontario in 1969. Alternative international locations followed before long when archipelago in 1971 and Europe in 1975 with a building in the national capital, Spain. Starting in 1982, metallic element and its franchisees began operational stores in many East Asian countries, together with Japan, Taiwan, Singapore, and the Republic of Korea.

Australia is that the solely country during which Burger King doesn’t operate underneath its own name. Once the corporate set concerning establishing operations down underneath in 1971, it found that it is business name was already proprietary by a takeaway shop in Adelaide. As a result, Burger King provided the Australian franchisee, Jack Cowin, with a listing of potential different names derived from pre-existing emblems already registered by Burger King and it’s the company parent Pillsbury that might be wont to name the Australian restaurants. Cowing elects the ‘Hungry Jack’ brand, one amongst Pillsbury’s United States battercake mixture product, associate degreed slightly modified the name to a possessive type by adding an apostrophe ‘s’ forming the new name Hungry Jack’s. When the expiration of the trademark within the late Nineteen Nineties, Burger King unsuccessfully tried to introduce the whole to the continent.

Analysis on Productivity And Quality

When endeavoring to pick the procedure system of an organization, the administrators need to concentrate on client prerequisites, cost, and proficiency. Burger King’s methodology has worked superbly in these angles. They’ve had the option to expand the nature of the items they offer, fitting them the inclinations of their clients, while additionally decreasing expense. Their cash isn’t tied up in new item advancement or in thing lines that aren’t appealing to the market. McDonalds has essentially done the inverse. By proceeding to create and present various new items, their expense has risen, and they haven’t had the option to concentrate on what their clients’ inclinations are. McDonalds is huge enough and has the cash to do this and not see any generous misfortune in piece of the overall industry, yet if they keep on doing it that probably won’t proceed. On the off chance that the patterns of this last year proceed, the hole among them and Burger King is just going to get littler.

Analysis of McDonald’s and Burger King Growth Strategies

Market Penetration It Uses penetration as its primary intensive strategy for growth. In applying this intensive strategy, McDonald’s grows by reaching a lot of customers in markets wherever it already has operations.

For instance, McDonald’s opens new restaurants in North America and Europe by franchising, joint ventures or company possession.

A strategic objective connected to the present intensive growth strategy is international enlargement through new locations. McDonald’s generic strategy supports this intensive growth strategy because of low prices and low costs empower the firm to simply penetrate markets.

Primary intensive growth strategy is penetration. The goal of this intensive strategy is to grow revenues from existing customers or markets wherever the firm already has operations.

For instance, Burger King implements this intensive growth strategy by gap new restaurants in its current markets to urge an even bigger market share.

A strategic objective connected to the present intensive growth strategy is to expand Burger King’s franchise network. In relation, Burger King’s generic strategy conjointly supports this intensive strategy by highlight distinctive product options to penetrate markets and grow the business.

Market Development McDonald’s used market development as its primary intensive strategy for growth. However, market development is currently a secondary intensive growth strategy because of McDonald’s already has restaurants in most regions round the world, except Mongolia, some components of the center East and west Asia, and the majority of African countries. McDonald’s supports intensive growth strategy by victimization low costs to vie in new markets.

Market development is Burger King’s secondary intensive growth strategy. To support business growth, this intensive strategy involves coming into new markets or targeting new market segments. For instance, Burger King implements this intensive growth strategy by gap new stores in overseas locations wherever it doesn’t have operations. However, this strategy is simply secondary or minor in Burger King’s business as a result of the corporate already has operations in most markets round the world.

Product Development McDonald’s uses development as its tertiary or supporting intensive strategy for growth. In applying this intensive growth strategy, McDonald’s develops new product over time, like new McCafé product. These new products could also be variations of existing products, or entirely new product. The strategic objective for this intensive growth strategy is to capture additional shoppers by attracting them to new product. This intensive growth strategy agrees with McDonald’s broad differentiation generic strategy in terms of recent product that build the corporate distinct.

Product development is that the least important of Burger King’s intensive growth methods. This intensive strategy allows the corporate to grow through the introduction of recent product. Burger King solely minimally implements this intensive strategy. for instance, the corporate introduces new product at a slow rate. Most of Burger King’s product stay on the menu for years. A strategic objective connected to the present intensive strategy is to grow Burger King’s business through product innovation. This intensive growth strategy supports Burger King’s generic strategy of broad differentiation by highlight new product that are distinctive compared to those of competitor corporations

Conclusion

McDonald’s: McDonald’s is the world’s largest fast food chain in terms of customer numbers and material returns. The number of franchise franchises is 35, 000 in about 120 countries. Burger King: In 2015, the number of franchises named Burger king brand was 14320 stores around the world.

McDonald’s: According to the reports reported in 2014, the cost of initial investment of Franchise McDonald’s range from 437 thousand to 2. 3 million dollars. Burger King: According to the 2014 reports, initial investment in the British Burger King is $ 316, 000 and $ 2. 7 million, with initial $ 50, 000 initial costs.

More than 1. 5 million people work at McDonald’s In 2011, the number of employees at Burger king Company was 34248.

According to IBIS World, McDonald’s market share was 18. 6 percent. In 2014. According to the same report, Burger King’s market share is only 4. 6 percent.

McDonald’s faces tough times, with growth rates slowing in 2014, which it saw as the worst since 2003. It also closed several restaurants in the United States. Unlike McDonald’s, Burger King has recorded positive growth in recent years, with the relatively small size of the company, which allowed it to grow and innovate in its products.

Recommendations

As McDonald’s is weak we would recommend that:

  1. Administration Differentiation: McDonald’s needs to concentrate on administration separation technique so as to position the restaurants as a predominant administration eatery in the psyches of the objective customers. The administration separation technique suggests that McDonald’s will offer prevalent administrations at each progression of the client contact focuses directly from the situation of request through the conveyance of the items.
  2. Workforce Differentiation: The accessibility of well-prepared staff is basic for the conveyance of brilliant support of the clients. McDonald’s should keep on putting resources into the preparation and advancement of its workers to guarantee high administration quality. Well-organized preparing projects will guarantee the long haul development of the association.
  3. Incorporated Promotional Mix: McDonald’s can actualize a coordinated advancement blend that has an equalization of both conventional and present-day computerized media for brand advancements. McDonald’s must perceive the significance of computerized media in the special blend for associations and should devise advanced promoting systems to draw in with the online client base.
  4. Item Augmentation: McDonald’s can offer extra item and administration highlights, for example, sustenance on interest and home conveyance to give comfort to clients. Item quality can be additionally upgraded with new fixings. McDonald’s should keep on putting resources into menu customization and menu institutionalization methodologies to pull in an interface with target clients in assorted land markets.

References

  1. https://www. investopedia. com/articles/markets/111015/mcdonalds-vs-burger-king-comparing-business-models. asp
  2. https://www. ukessays. com/essays/commerce/mcdonalds-competition-against-burger-kings-brand-commerce-essay. php
  3. https://www. bartleby. com/essay/Operational-Difference-Between-Mcdonalds-and-Burger-King-P3ATJYNMC
  4. http://panmore. com/mcdonalds-generic-strategy-intensive-growth-strategieshttps://en. wikipedia. org/wiki/McDonald%27s
  5. https://en. wikipedia. org/wiki/Burger_Kinghttps://opsmgt. edublogs. org/2014/11/05/burger-king-vs-mcdonalds/

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Burger King And McDonald’s: A Report On The Two Biggest Burger Fast Food Chains In The World. (2021, March 18). GradesFixer. Retrieved October 17, 2021, from https://gradesfixer.com/free-essay-examples/burger-king-and-mcdonalds-a-report-on-the-two-biggest-burger-fast-food-chains-in-the-world/
“Burger King And McDonald’s: A Report On The Two Biggest Burger Fast Food Chains In The World.” GradesFixer, 18 Mar. 2021, gradesfixer.com/free-essay-examples/burger-king-and-mcdonalds-a-report-on-the-two-biggest-burger-fast-food-chains-in-the-world/
Burger King And McDonald’s: A Report On The Two Biggest Burger Fast Food Chains In The World. [online]. Available at: <https://gradesfixer.com/free-essay-examples/burger-king-and-mcdonalds-a-report-on-the-two-biggest-burger-fast-food-chains-in-the-world/> [Accessed 17 Oct. 2021].
Burger King And McDonald’s: A Report On The Two Biggest Burger Fast Food Chains In The World [Internet]. GradesFixer. 2021 Mar 18 [cited 2021 Oct 17]. Available from: https://gradesfixer.com/free-essay-examples/burger-king-and-mcdonalds-a-report-on-the-two-biggest-burger-fast-food-chains-in-the-world/
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