Name & Enrollment No.

:
Sahil Hiteshbhai Shah (22SOMBA21558)
Pavan Balrambhai Nakrani (22SOMBA21551)
Field
MBA Sem – 2nd
Subject
Production and Operation Management
Subject Code
MBC217
Submission for
CIE-1
Component
Mini Project Report and Presentation
Report Title
A Study on various components of Production of Burger King
Guided By
Prof. Rashmi Gotecha

A
 Preface
Production is the process of combining various inputs, both material (such as metal, wood,
glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output.
Ideally this output will be a good or service which has value and contributes to the utility
of individuals. The area of economics that focuses on production is called production
theory, and it is closely related to the consumption (or consumer) theory of economics.

Within production, efficiency plays a tremendous role in achieving and maintaining full
capacity, rather than producing an inefficient (not optimal) level. Changes in efficiency
relate to the positive shift in current inputs, such as technological advancements, relative
to the producer's position. Efficiency is calculated by the maximum potential output
divided by the actual input. An example of the efficiency calculation is that if the applied
inputs have the potential to produce 100 units but are producing 60 units, the efficiency of
the output is 0.6, or 60%. Furthermore, economies of scale identify the point at which
production efficiency (returns) can be increased, decrease or remain constant.

Burger King (BK) is an American-based multinational chain of hamburger fast food

restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in
1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-
Burger King ran into financial difficulties, its two Miami-based franchisees David
Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959
and renamed it "Burger King". Over the next half-century, the company changed hands
four times and its third set of owners, a partnership of TPG Capital, Bain Capital, and
Goldman Sachs Capital Partners took it public in 2002.

This basis for this research A study on various production components of Burger King
originally stemmed from my passion for developing better methods of production and
preservation. As the world moves further into the digital age, generating vast amounts of
data and born digital content, there will be a greater need to access legacy materials created
with outdated technology and techniques. How will we access this content? It is my passion
to not only find out, but to develop tools to break down barriers of accessibility for future
generations.

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 Acknowledgement
The completion of any task is the reward to not only persons actively involved in
accomplishing it, but also to the people involved in inspiring, guiding and helping those
people. We take the opportunity here to thank all those who are helping us in this project,
without which this indeed, would have been, a mammoth task. We would take the pleasure
of thanking all the people, without their support and help, it would not have been possible
to prepare this project. We take this opportunity to thank School of Management, R.K.
University by providing an opportunity to learn and understand a particular industry in a
foreign nation.

First and foremost, we would like to thank our Director Dr. Chintan Rajani who guided
us in doing these projects. He provided us with invaluable advice and helped us in difficult
periods. His motivation and help contributed tremendously to the successful completion of
the project. We would like to earnestly acknowledge the sincere efforts and valuable time
given by them. Their valuable guidance and feedback have helped me in completing this
project. We would like to thank my parents who helped me a lot in gathering different
information, collecting data and guiding me from time to time in making this project,
despite of their busy schedules, they gave me different ideas in making this project unique.

Yet, this project wouldn’t have been possible without the unrelenting care and support of
many people. A Project is never the sole product of a person whose name has appeared on
the cover. Even the best effort may not prove successful without guidance. We owe our
deepest gratitude to Prof. Rashmi Gotecha for giving us a sample opportunity to carry out
this Project. We would like to thank my project guide Prof. Rashmi Gotecha for giving
me this and guiding me throughout my work with patience.

THANKING YOU,

SAHIL SHAH,

PAVAN NAKRANI.

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 Declaration
We the undersigned solemnly declare that the research project report A study on various
components of production of Burger King is based on my own work carried out during
the course of our study under the supervision of Prof. Rashmi Gotecha.

We assert the statements made and conclusions drawn are an outcome of my research work.
We further certify that;

• The work contained in the report is original and has been done by me under the
general supervision of my supervisor.
• The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India or
abroad.
• We have followed the guidelines provided by the university in writing the report.
• Whenever We have used materials (data, theoretical analysis, and text) from other
sources, we have given due credit to them in the text of the report and giving their
details in the references.

Place: Rajkot Signature:

Date: 10/02/2023

(Sahil Hiteshbhai Shah)

(Pavan Balrambhai Nakrani)

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 List of Tables
Sr.No. List of Tables PG NO.

1 Brief Information about the Companies 03

2 Evaluation of Production Process of Burger King 10

3 Production Development Process of Burger King 11

Analysis of Location Layout of Burger King and

4 18
McDonald's
Analysis of Operations Management Trends of Burger
5 23
King
Evaluation of Operations Management Issues of
6 23
Burger King

7 Evaluation of Services of Burger King 29

Analysis of Facility Layout of Burger King and

8 37
McDonald's

9 Pros. Facility Layout of Burger King and McDonald's 38

10 Cons. Facility Layout of Burger King and McDonald's 38

Comparison of Value Chain Analysis of Burger King

11 43
and McDonald's

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 List of Figures and Charts
Sr.No. List of Figures and Charts PG NO.

1 Logo of Burger King 03

2 Logo of McDonald's 03

3 Production Design Process 05

4 Whooper Burger 12

5 Production Development Process 13-14

6 Glimpse of Burger King Services 27

7 Software and Application of Burger King 31

8 Analysis Software and Application of Burger King 32

9 Burger King Layout 36

10 McDonald's Layout 37

11 Glimpse of Value Chain Analysis 39

12 Supply Chain Management of Burger King 47

13 Core Suppliers of Raw Materials of Burger King 48

14 Supply Chain Management of Burger King in India 50

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 Table of Contents

Sr.No. PARTICULARS PG NO.

1 Introduction of the Company 01-03

2 Production Process Design 04-10

3 Product Process Development 11-15

4 Location Selection 16-19

5 Operations Management Trends and Issues 20-23

6 Services as a Part of Operations 24-29

7 Enterprise Resource Planning (ERP) 30-33

8 Facility Layout 34-38

9 Operations and Value Chain Analysis 39-44

10 Supply Chain Management 45-50

11 Conclusion 51

12 Contributions and Learnings 52

13 List of References 53

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 1. Introduction of the Company
A fast-food restaurant, also known as a quick-service restaurant (QSR) within the industry,
is a specific type of restaurant that serves fast-food cuisine and has minimal table service.
The food served in fast-food restaurants is typically part of a "meat-sweet diet", offered
from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to
order, and usually available for take away, though seating may be provided.

1.1 Introduction of Burger King

Burger King (BK) is an American-based multinational chain of hamburger fast food
restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in
1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-
Burger King ran into financial difficulties, its two Miami-based franchisees David
Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959
and renamed it "Burger King". Over the next half-century, the company changed hands
four times and its third set of owners, a partnership of TPG Capital, Bain Capital, and
Goldman Sachs Capital Partners took it public in 2002. In late 2010, 3G Capital of Brazil
acquired a majority stake in the company, in a deal valued at US$3.26 billion. 3G, along
with partner Berkshire Hathaway, eventually merged the company with the Canadian-
based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent
company named Restaurant Brands International.

The 1970s were the "Golden Age" of the company's advertising, but beginning in the early
1980s, Burger King advertising began losing focus. A series of less successful advertising
campaigns created by a procession of advertising agencies continued for the next two
decades. In 2003, Burger King hired the Miami-based advertising agency Crispin Porter +
Bogusky (CP+B), which completely reorganized its advertising with a series of new
campaigns centered on a redesigned Burger King character nicknamed "The King",
accompanied by a new online presence. Burger King's new owner, 3G Capital, later
terminated the relationship with CP+B in 2011 and moved its advertising to
McGarryBowen, to begin a new product-oriented campaign with expanded demographic
targeting.
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1.2 Introduction of McDonald’s
McDonald's Corporation is an American multinational fast food chain, founded in 1940 as
a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California,
United States. They rechristened their business as a hamburger stand, and later turned the
company into a franchise, with the Golden Arches logo being introduced in 1953 at a
location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the company as a
franchise agent and proceeded to purchase the chain from the McDonald brothers.
McDonald's had its previous headquarters in Oak Brook, Illinois, but moved its global
headquarters to Chicago in June 2018.

Siblings Richard and Maurice McDonald opened the first McDonald's at 1398 North E
Street at West 14th Street in San Bernardino, California on May 15, 1940. The brothers
introduced the "Speedee Service System" in 1948, putting into expanded use the principles
of the modern fast-food restaurant that their predecessor White Castle had put into practice
more than two decades earlier. The original mascot of McDonald's was a chef hat on top
of a hamburger who was referred to as "Speedee".[24] In 1962, the Golden Arches replaced
Speedee as the universal mascot. The mascot, clown Ronald McDonald, was introduced in
1965. He appeared in advertising to target their audience of children.

McDonald's predominantly sells hamburgers, various types of chicken, chicken

sandwiches, French fries, soft drinks, breakfast items, and desserts. In most markets,
McDonald's offers salads and vegetarian items, wraps and other localized fare. On a
seasonal basis, McDonald's offers the McRib sandwich. Some speculate the seasonality of
the McRib adds to its appeal. During March of each year, McDonald's offers a Shamrock
Shake to honor Saint Patrick's Day.

In September 2018, McDonald's USA announced that they no longer use artificial
preservatives, flavors and colors entirely from seven classic burgers sold in the U.S.,
including the hamburger, cheeseburger, double cheeseburger, McDouble, Quarter Pounder
with Cheese, double Quarter Pounder with Cheese and the Big Mac. Nevertheless, the
pickles will still be made with an artificial preservative, although customers can choose to
opt out of getting pickles with their burgers.

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 1.3 Brief Information about the Companies

CATEGORIES Burger King McDonalds

Year of
1973 1940
Establishment

Richard McDonald, Maurice McDonald and

Founder David Edgerton and James McLamore
Ray Kroc

Head Quarters Florida, United States Chicago, United States

Head Office India Mumbai, Maharashtra Mumbai, Maharashtra

Area Serve Global Global

Number of
19,247 40,031
Locations

Revenue 1.81 Billion US Dollars 23.233 Billion US Dollars

Type of Industry Food Processing Industry Food Processing Industry

Key People of the

Tom Curtis (President) Chris Kempczinski (President & CEO)
Company

Logo

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 2. Production Process Design
Burger King’s operations management (OM) involves strategies to increase the company’s
status toward the top position in the global quick service restaurant industry.

2.1 Explanation
Burger king develops and creates new capital goods (machinery). For example,‚ with the
aim to minimize waste Burger king developed the kitchen minder. The kitchen minder
monitors the number of sales on previous days and estimates how many patties‚ fries and
other ingredients burger king will need to prepare. This minimizes waste significantly and
therefore reduces costs. with reduced costs the difference between sale price and costs will
increase meaning burger king has increased profits with their operations.

Since the 1970’s‚ Burger King has been offering its famous flame-broiled fast food burgers
throughout the United States and‚ eventually‚ the world. Burger King‚ also known by the
initials B.K.‚ has evolved from a small Florida-based hamburger chain to one of the most
well-known and recognizable fast-food franchises on earth. The first Burger King
restaurant opened in Jacksonville‚ Florida under the name Insta-Burger King in 1953.

Information provide aggregate level flows of the activities of the customers and servers
and manufacture of hamburgers for McDonald’s and Burger King. Of course, there are
other processing activities for other sandwiches, fries, and so forth, but we have
concentrated on the hamburger, since most orders involve them.

As far as the customer is concerned, there are two important differences. At McDonald’s,
paying occurs at the time the food is ordered and delivered, whereas at Burger King, the
order must be prepared before it can be delivered to the customer, with payment occurring
in between. Orders must be transmitted, instead of simply being filled, in order to
accommodate the special orders. The second difference is in the total of waiting plus
service time – 2 minutes, 3 seconds for McDonald’s versus 4 minutes, 5 seconds for Burger
King – a net effect of the impact of the small customization offered by Burger King on
customer service.

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• Production Design Process:

Land and Building

Management

Training

Machinaries for
Burgers Preparation

Labour and Process

Supplies

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A) Land and Building

Everything starts at the location. Without a proper location, Burger King wouldn't be able
to sell their products. Thus begins the production process, with a building and a plot of land
to have that building. Typically, Burger King's, like many fast food chains, are found on
busy streets or areas of high traffic, like a shopping mall or even an airport. This is done so
many people will pass the location. More exposure, more sales.

B) Management

Now that the equipment is out of the way, it's time to move on to the next step of the
production process, management. At every Burger King location, there are two types of
managers, the restaurant general manager, and the assistant manager. These two positions
take care of the actually business side of any Burger King location. They order the materials
necessary to the restaurant The person who is actually present at the location ensuring work
from all employees is the hourly shift coordinator. His responsibilities are much like a floor
manager, ensuring all employees do while work they are on shift. All in the hopes of
providing good service for the production.

C) Training

Now that we talked about management, the next step involves the training of the
employees. All Burger King employees involve a comprehensive in house training
program, involving health and safety, the preparation of food, and how to take orders.
Cashiers receive additional training, which involves practicing orders on a cash machine
and learning how to efficiently take orders. The average program lasts for around 1 week.

D) Machineries for Burgers Preparation

Burger King equipment includes deep fryers, broilers, (Apparently the act of broiling a
product is to cook or heat food over an element) ovens for baking, microwaves for the
cooking of deserts, coffee makers, heated cabinets to regulate the temperature of the food,
and things like pop machines. Second on the list of the production process, because you
can't cook the food without equipment.

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E) Labour and Process

Now it's time for the employees to actually process the ingredients, also known as the raw
materials, into material. Actual food products! For the fries, staff members deep fry them
until they are golden. They then place the fries into a container and send them down a small
chute towards the front of the restaurant. For burgers, workers broil the patty until it is
cooked. (See the example video below). After the patty is ready, they assemble the rest of
the ingredients, based on what the consumer ordered.

F) Supplies

As mentioned in the last part, the material (The actual food products) need a container to
be served. Also known as supplies. Supplies are things not apart of the final served product!
In the case of Burger King, these are things like napkins, containers, straws, and cutlery.
Employees place the finished materials into bags if the order was "to-go". Within these
bags are plastic cutlery, napkins, and straws. For in-house orders, the food is put into
containers and served on a tray.

2.2 Analyse

Mass Production

Mass production, also known as flow production or continuous production, is the

production of substantial amounts of standardized products in a constant flow, including
and especially on assembly lines. Together with job production and batch production, it is
one of the three main production methods.

U-Shape Production

As the Burger King falls under the restaurant generally follows the U-Shape layout for the
productions of Burgers in their kitchens. The U-line arranges machines around a U-shaped
line in the order in which production operations are performed. Operators work inside the
U-line. One operator supervises both the entrance and the exit of the line. Machine-work
is separated from operator-work so that machines work independently as much as possible.

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Burger King’s operations management measures productivity from different angles, such
as those of the franchisees, corporate headquarters, and regional facilities.

Design of Goods and Services

Burger King’s focus in this strategic decision area of operations management is to

differentiate its products from those of competitors. For example, the company offers
flame-grilled burgers, which are relatively unique in the market.

Quality Management

This strategic decision area involves satisfying the quality expectations of target customers.
To address this concern, Burger King’s operations management maintains product tests.
The company also collects customer feedback through the My BK Experience website.

Location Strategy

The primary operations management concern regarding location is to strategically optimize

market reach. Burger King’s strategy to address this decision area involves market
penetration, with focus on town centers and urban centers. Restaurant location is used as a
criterion for evaluating franchise proposals.

Layout Design and Strategy

Burger King’s operations management emphasizes efficiency. For example, the company’s
kitchen design is as compact as possible to save space while enabling worker productivity.
Thus, Burger King addresses this strategic decision area through efficient layouts and
workflows.

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2.3 Identification

There are certain areas in Burger King which requires the improvement requires for the
betterment process:

Job Design and Human Resources

Sufficient and effective human resources are the objective in this strategic decision area of
operations management. Burger King satisfies this concern through standardized training
programs. The firm has field teams and Restaurant Support Centers for this purpose.

Supply Chain Management

Burger King has a global supply chain. In this strategic decision area, the objective is to
ensure adequacy of supply at all times. Burger King’s operations management strategy
involves consolidating all supply chain activities under Restaurant Services, Inc. (RSI).
Burger King’s materials and ingredients are supplied through RSI.

Inventory Management

This strategic decision area highlights the need for operations management practices that
maximize capacity and satisfaction, and minimize inventory management costs. Burger
King addresses this need through localized inventory practices based on restaurant
performance, as well as global inventory management for moving products to various
restaurant locations.

Scheduling

Burger King’s approach for this strategic decision area is based on industry standards. For
example, the company’s operations management uses automated scheduling for human

9
resources. In addition, manual scheduling is used, especially at individual Burger King
restaurants.

Maintenance

Optimal operating conditions are the main concern in this strategic decision area of
operations management. For this purpose, Burger King also uses industry standards. The
company has dedicated maintenance teams for corporate operations, and Restaurant
Support Centers for franchisees, as well as third party service providers in various
localities.

2.4 Evaluation

Mass production, also known as flow production or continuous production, is the

production of substantial amounts of standardized products in a constant flow, including
and especially on assembly lines. Together with job production and batch production, it is
one of the three main production methods.

The term mass production was popularized by a 1926 article in the Encyclopædia
Britannica supplement that was written based on correspondence with Ford Motor
Company. The New York Times used the term in the title of an article that appeared before
publication of the Britannica article.

Area Particulars

Production Process Mass Productiom

Maximum Quantity of Production As per Requirement

Best Part in Production Process Machinaries for Production Process

Needs to Improvement Timings and Maintainace

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 3. Product Development Process

Product development is the process of building a new product, from ideation all the way
through launch. Product development begins with those initial. The product development
process has evolved in recent years and is now commonly used by dividing each step into
six separate phases. brainstorming sessions, when you’re just discussing a budding idea.
From there, the process is creative but strategic, and you may have seen it done in a million
different ways. But without clear organization, it can be hard to mesh creativity and
strategy effectively. Which is where the product development process comes in—a six step
framework to help you standardize and define your work.

Product development is both an exciting and difficult endeavor. From initial ideation to
research and prototyping, no two product launches are the same. However, there’s a general
process that can help you get started with the product development process. The product
development process describes the six steps needed to take a product from initial concept
to final market launch. This includes identifying a market need, researching the
competition, ideating a solution, developing a product roadmap, and building a minimum
viable product (MVP). The product development process has evolved in recent years and
is now commonly used by dividing each step into six separate phases. This helps better
organize the process and break individual deliverables into smaller tasks.

Product Development Process of Burger King:

Area Particulars

Company Burger King

Product Impossible Whooper

Type of Production Mass or Flow Production

Applicability Status On

11
3.1 Explanation
Product: Impossible Whooper

Features

The Impossible Whopper is a veggie burger sold by Burger King. The Impossible Whopper
is a variant of the Whopper with a meat substitute burger patty provided by Impossible
Foods.

The Impossible Whopper is made with a meat alternative burger patty from Impossible
Foods, topped with tomatoes, lettuce, mayonnaise, ketchup, pickles, and onions. It can be
ordered with cheese. The Impossible Whopper is prepared with mayonnaise and on the
same grill as all other burgers. As such, the Impossible Whopper is not vegetarian or vegan
unless customers modify the toppings and ask for it to be prepared in an oven and not on
the grill.

3.2 Analyse
Product development is the process of building a new product, from ideation all the way
through launch. Product development begins with those initial. The product development
process has evolved in recent years and is now commonly used by dividing each step into
six separate phases. Not only does the product development process help simplify a launch,
but it also encourages cross-team collaboration with teamwork and communication at the
forefront of the process.

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Stage-1 Idea Generation
• As Burger King got the Idea after reasrching
that more people are fond of Veg. Whopper. But
in past whopper are limited to Non-Veg contains
meat,fish etc.

Stage-2 Product Definition

• After the idea of Veg. Whooper company have made
the plan for the product which considers the detail
about Process, Indegredients, Cost etc..

Stage-3 Prototype
• During the prototyping stage, Burger King team will intensively
research and document the product by creating a more detailed
business plan and constructing the product.
• These early-stage prototypes might be as simple as a drawing or a more
complex computer render of the initial design. These prototypes help
them identify areas of risk before you create the product.

Stage-4 Initial Design

• As per the protype they have created the Veg. Whooper
Burger with inclusion of all the Indegredients.

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 Stage-5 Validated and Testing
• The Burger King made the Whooper Burger tested to
the target audience and to the higher authorities for the
validation.

Stage-6 Commercialization
• After proper testing and validation they have launched the
product Veg. Whooper Burger for the Indian People.

3.3 Identification
In the simplest definition, a process bottleneck is a work stage that gets more work requests
than it can process at its maximum throughput capacity. That causes an interruption to the
flow of work and delays across the production process. In other words, even if this work
stage operates at its maximum capacity, it still can’t process all of the work items quick
enough to push them to the next stages without causing a delay.

The workflow bottleneck can be a computer, a person, a department, or a whole work stage.
Typical examples of bottlenecks in knowledge work are software testing and quality review
processes. Unfortunately, a bottleneck is often acknowledged only after it has caused a
blockage in the workflow. There are simple yet effective analysis tools in Lean
Management and Kanban that can help you both prevent work congestion and spot an
existing bottleneck.

The bottleneck stage of the product development is validation and testing because
Burger King has to develop the menus according to country and their people
preferences. To check whether the product is accepted by the consumer or not.

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3.4 Evaluation
At times, we can easily resolve the bottleneck by allocating more resources or people to
that work stage or process.

• Never leave it idle: Because of the ripple effect on the rest of the flow, the bottleneck
process should always be loaded at full capacity.

• Reduce the strain on the bottleneck: Make sure that work arrives at it in its very best
form. If your review process is a bottleneck, ensure that the quality is built in from the
start. The work to be reviewed has to be flawless. Each error that the reviewer finds is
going to cost you more time and money.

• Manage WIP limits: If the work in progress limits are quite liberal in the bottleneck
and there is a lot of context switching, consider lowering the WIP limit. If it doesn’t
have a WIP limit, consider setting one.

• Process work in Batches: Some of the operations would take less time if you
organized similar work items in batches. However, be cautious. The larger the batch
size is, the higher is the risk. The rule of thumb is that a smaller batch is always better,
but in the real world, we sometimes have to make compromises.

Burger King needs to analyses the past selling menus and the consumer preferences
because when the Burger King came at India it was having non-vegetarian menus
because of this it failed badly so they have to research on the consumer ethnicity.

To evaluate their taste and preference by various methods such as feedback form,
survey method or questionnaire method.

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 4. Location Selection
Any successful manufacturing company is always looking for new markets and new
growth opportunities. In today’s global economy, that can mean scouring the world for
locations for a new manufacturing or R&D facility. The process of site selection begins
when a company decides that an existing office or manufacturing location should be moved
or a new location should be added to the portfolio. Selecting a location for a manufacturing
plant is a complex and lengthy process, often taking many months or even years. For that
reason, many companies choose to engage outside consultants to advise them in selecting
manufacturing sites.

4.1 Explanation
Burger King Holdings is the parent company of Burger King, also known as Burger King
Corporation and abbreviated BKC, and is a Delaware corporation formed on July 23,
2002. A subsidiary, it derives its income from several sources, including property rental
and sales through company owned restaurants; however, a substantial portion of its revenue
is dependent on franchise fees. During the transitional period after the acquisition of the
company by 3G Capital, Burger King's board of directors was co-chaired by John W.
Chidsey, formerly CEO and chairman of the company, and Alex Behring, managing
partner of 3G Capital. By April 2011, the new ownership completed the restructuring of
Burger King's corporate management and Chidsey tendered his resignation, leaving
Behring as CEO and chair.

The company operates approximately 40 subsidiaries globally that oversee franchise

operations, acquisitions and financial obligations such as pensions. One example of a
subsidiary is Burger King Brands, Inc. which is responsible for the management of Burger
King's intellectual properties. A wholly owned subsidiary established in 1990, Burger King
Brands owns and manages all trademarks, copyrights and domain names used by the
restaurants in the United States and Canada.

In 2011, the majority of Burger King restaurants, approximately 90%, were privately held
franchises. In North America, Burger King Corporation is responsible for licensing

16
operators and administering of stores. Internationally, the company often pairs with other
parties to operate locations or it will outright sell the operational and administrative rights
to a franchisee which is given the designation of master franchise for the territory. The
master franchise will then be expected to sub-license new stores, provide training support,
and ensure operational standards are maintained. In exchange for the oversight
responsibilities, the master franchise will receive administrative and advertising support
from Burger King Corporation to ensure a common marketing scheme. The 3G
Capital ownership group announced in April 2011 that it would begin divesting itself of
many corporate owned locations with the intent to increase the number of privately held
restaurants to 95%. As of 2016, the percentage of privately owned Burger King
establishments grew to 99.5%. Keith J. Kramer and Mattew Burns opened “Insta-Burger
King” in San Bernardino, California in 1953, relying heavily on Insta-Broiler ovens to cook
the burgers. After the company expanded, Pillsbury bought the company in 1967,
shortening its name to Burger King. Pillsbury added to the menu, increased marketing
campaigns, and opened franchising opportunities to grow Burger King to the fast food
powerhouse it is today.

A) Burger King Franchise

Burger King is a privately held restaurant franchise. Burger King is found over 75 countries
with well over 12,000 locations worldwide. In addition to the fast food restaurant being
named one of the “100 Best Global Brands” Fortune magazine lists Burger King in the top
1,000 largest corporations in the United States.

Burger King franchise owners are required to have a net worth of $1,500,000, with
$500,000 available in liquid assets. Franchise contracts last for 20 years, and are renewable
after that period. Burger King offers meetings, evaluations, a grand opening event, and a
toll-free phone number to call for problems to its franchise owners. Burger King
consistently runs nation-wide, award-winning advertising campaigns (with slogans
including “Have it your way” and “It just tastes better) to maintain brand recognition. The
franchise fee is $50,000, and requires a total investment of anywhere between $316,100
and $2,660,600. Franchise agreements include an additional royalty fee of 4.5%. Franchise
incomes vary by location.

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B) Location Requirements
The location of each unit is a major element of its potential success. For that reason, the
company keeps a close watch on where its stores can be located. The ideal site for a stand-
alone restaurant will be 50,000 square feet, although units have been developed on both
smaller and larger sites. A corner location with the option to put up signs visible from two
major streets is considered optimal, as is a site near a major intersection with traffic signals.
Ample parking space is required and must meet all applicable local parking codes. Size
and space requirements are adapted for mall, airport and some downtown locations.

4.2 Analyse
To start a MC Donald’s franchise in India, you may require an investment of 1 to 2 crores
with a 1,000 –1,500 Square feet commercial space that meets their guidelines. And there
will be a 4-5% royal commission on the actual sales.

Points of Differnces Burger King McDonald's

Company Type Retail Food Retail Food

Franchise Yes Yes

1 or Depends on Density of
Number of Franchise per City More than 1
City

General Franchise Fees 4-5 Crores 5-6 Crores

Location Requiremets Prime Location Required Semi-Prime Required

Size of Place 800-900 Square Feet 1000-1500 Square Feet

Drive Through Option Not Required Fully Required

Commission 2%-3% Royality 5%-6% Royality

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4.3 Identification
The legal issues of Burger King include several legal disputes and lawsuits involving the
international fast food restaurant chain Burger King (BK) as both plaintiff and defendant
in the years since its founding in 1954. These have involved almost every aspect of the
company's operations. Depending on the ownership and executive staff at the time of these
incidents, the company's responses to these challenges have ranged from a conciliatory
dialog with its critics and litigants to a more aggressive opposition with questionable tactics
and negative consequences. The company's response to these various issues has drawn
praise, scorn, and accusations of political appeasement from different parties over the
years.

The opening of a Burger King location in the Israeli-occupied territories led to a breach of
contract dispute between Burger King and its Israeli franchise; the dispute eventually
erupted into a geopolitical conflagration involving Muslim and Jewish groups on multiple
continents over the application of and adherence to international law. The case eventually
elicited reactions from the members of the 22-nation Arab League; the Islamic countries
within the League made a joint threat to the company of legal sanctions including the
revocation of Burger King's business licenses within the member states' territories. A
second issue involving members of the Islamic faith over the interpretation of the Muslim
version of Canon Law, Shariah, regarding the promotional artwork on a dessert package in
the United Kingdom raised issues of cultural sensitivity, and, with the former example,
posed a larger question about the lengths to which companies must go to ensure the smooth
operation of their businesses in the communities they serve.

Nowadays the construction of bridge is near restaurant which are the constraint for it and
after the completion it bypass the most of the customer bypass the bridge which are
negative effect on the selling.

4.4 Evaluation
Restaurant size and the parking area are important because it decrease the traffic near
restaurant. New player also analyses the future project of government so firm utilize the
location effectively and doesn’t cause the negative effect.
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 5. Operations Management Trends and Issues
Operations management is the administration of all the activities and procedures to create
goods and services that involve planning, implementing, controlling, and monitoring
business practices.

5.1 Explanation
The 5 P's operations management model is determined as Product, Process, People, Plant,
and Program. It is important to look for different distribution channels to manage the
operations and effectively reach potential customers.

Product

In an organization, the production and marketing teams will work to produce products that
can satisfy customer demand. These must align with the following aspects: performance,
selling price, quantity and quality, reliability, and delivery.

Burger King divides its menu into different categories i.e. flame-grilled burgers, crispy and
tender chicken, fish and veggie, breakfast, sides, king savers, king deals, sweet treats,
drinks & coffee, and kids meals.

Process

This P is one of the key factors in deciding the success or failure of operations management.
The process is designed to achieve the business objectives through activities relating to
manufacturing safety, cost, capacity, etc.

As the competition is very high in the quick service restaurant industry, Burger King has
adopted a competitive pricing policy. This is clearly demonstrated when the prices of its
products are compared to the similar products of its competitors e.g. McDonald’s and KFC.
This type of pricing does not allow the company to set its prices too high or too low
compared to its competitors. Burger King even goes as far as offering its products at
different prices in different locations.

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Plant

Building an operational facility for producing goods and services is necessary to operate a
manufacturing unit smoothly and consistently. Thus, the plant requires an effective layout
to allow the availability of production capacity, materials, and labor force, along with
standard machinery to support the production process.

Place is a very important element in this marketing mix of Burger King (BK). Burger King
operates in around100 countries and US territories. It has around 20,000 locations. It has a
plan to have more than 40,000 restaurants in the next 8 to 10 years. This expansion strategy
will certainly be met by counter strategies taken by its competitors.

People

Without competent and skillful human resources or manpower, organizations face a lot of
challenges in the accomplishment of getting work done. Each person has a unique range of
skills and approaches to work; thus, he must be matched with the right profession for which
he is qualified to attain the best outcomes.

Burger King regards employees as one of its business cornerstones; hence its commitment
to investment in people. It focuses on the importance of teamwork and has partnered with
Beastly to support its staff training with video contents.

Program

A realistic timeframe for deploying and accomplishing different schemes should exist in a
manufacturing unit.

Burger King’s success as one of the biggest fast food restaurant chains in the world is
linked to its effectiveness in applying its generic strategy for competitive advantage. Burger
King’s intensive growth strategies are also major contributors to the firm’s global growth.
In this regard, the proper combination and implementation of generic and intensive
strategies can lead to significant competitive advantage and growth in global business.
Burger King’s generic strategy supports its competitive advantage based on cost, pricing,
and product features. On the other hand, increasing market share is the main thrust of
Burger King’s intensive growth strategies.
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Current Trends of Burger King:

• More Variety and Diversified Products.

• Easy Availability of Products.
• Required some attractives in the order.
• As customization requirement in the burger.
• As customer wants all needs to be on time.
• Required high level of services.
• Required hygiene products.
• Implementation of globalization in present country.
• Required best in cheaper rates.
• Requirement of technology friendly.

5.2 Analyse

• In the last decade, the fast-food giant has been passed by Taco Bell, Chick-fil-A, and
Wendy’s. Sales have barely grown since 2020 and the company leadership is under
pressure to improve the performance of the brand.

• On paper, the 68-year-old franchise should be very competitive. Its burgers are flame-
broiled, not fried, and its ordering system encourages personal choices like no onions
or ketchup. (An old jingle for the slogan ‘Have it your way’ goes, “Hold the pickle,
hold the lettuce, special orders don’t upset us . . .”) Yet, year after year, despite a
custom-order system and arguably better taste, the Home of the Whopper trails the
pack.

• Burger King sales are less than 25 percent of what McDonald’s rings up each year.

• Lack of Investors.

• Lack of proper training programs for employees.

• Lack of specific regional menus in some countries.

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 5.3 Identification

Problems Solutions

Lack of Sales Needs to develop various marketing campaign

High Cost Needs to develop cost strategy

High Level of Competition Try to cover more market and target audiences

Lack of Inventions Use of Diversification Strategy

Lack of Investors Try to get funds from Other Sources

5.4 Evaluation

Effects
Problems Solutions

Lack of Sales Needs to develop various marketing campaign Economically

High Cost Needs to develop cost strategy Economically

Economically and
High Level of Competition Try to cover more market and target audiences socially

Lack of Inventions Use of Diversification Strategy Technically

Lack of Investors Try to get funds from Other Sources Economically

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 6. Service as a Part of Operations
The retail sector of the food industry encompasses food sold to consumers for preparation
and consumption at home as well as the final preparation of food for consumption away
from home. Grocery stores and other food markets generally sell food that is not ready for
consumption but will require the consumer to complete the final preparation. Restaurants,
cafeterias, delis, and food carts are common examples of businesses that perform the final
preparation and sell the food ready for consumption. Both components of the retail food
sector are extensively regulated by state law. Federal law often defines a clear exception
that the retail food sector is not within the scope of the federal regulatory scheme.

6.1 Explanation
Burger King provides the services as a response to the dynamic and saturated condition of
the global quick service restaurant industry. The marketing mix is a combination of
strategies and tactics to effectively implement a marketing plan. In this case, Burger King’s
marketing mix aims to maximize competitiveness against a wide variety of players.
However, major firms like McDonald’s and Wendy’s are in the focus of Burger King’s
marketing mix efforts. These efforts support the company’s long-term goal of achieving
the top position in the fast food.

Burger King operates as a quick service restaurant business focusing on burgers as its main
product. This component of the marketing mix presents organizational outputs offered to
target customers. Burger King’s main product lines are as follows:

• Burgers
• Chicken and fish
• Sides
• Salads and veggies
• Beverages
• Sweets/Desserts
• Wedges
• Mocktails

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Burger King’s products are available at its restaurants worldwide. This component of the
marketing mix refers to the venue that firms use to transact with target customers. The
following are the places Burger King uses to distribute its products:
• Restaurants
• Mobile app
• Website for deliveries
Aside from restaurants, customers can use Burger King’s mobile app to access coupons for
special offers and freebies. Customers can also use the company’s website to place their
orders for home deliveries. In this component of the marketing mix, Burger King relies
mainly on the physical presence of its restaurants.
Burger King relies mainly on advertising to promote its products. The company advertises
online and on TV and print media. In addition, Burger King uses sales promotions in the
form of coupons and other offers through its website and mobile app. The firm’s restaurant
personnel also typically use personal selling to encourage customers to buy more products
from the menu, such as desserts in addition to what the customer already ordered. In
applying public relations, the Burger King McLamore Foundation gives scholarships and
financial assistance for educational programs, thereby also effectively promoting and
strengthening the Burger King brand. The company successfully combines various
promotion tactics to address this component of the marketing mix.Burger King’s pricing
strategy is based mainly on its generic strategy of cost leadership, which minimizes costs
and prices. In this component of the marketing mix, appropriate pricing of products is
considered. Burger King’s pricing strategies are as follows:
• Market-oriented pricing strategy
• Bundle pricing strategy

Burger King uses market-oriented pricing strategy as its primary approach to pricing. This
pricing strategy involves setting prices based on prevailing market conditions, including
supply and demand conditions as well as the pricing of competing firms. Burger King’s
secondary pricing approach is the bundle pricing strategy. For example, customers can buy
value meals and kids meals at bundle prices that are more affordable than buying food
items separately. This component of the marketing mix shows that Burger King mainly
considers market conditions to determine its prices.
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6.2 Analyse
Generally speaking, customer service employees interact with customers on behalf of an
organization. Some do it face-to-face, while others specialize in a particular service channel
such as phone, email, live chat, etc. More often, their duties imply communication with
customers through more than one channel. The job functions and activities of customer
service employees may significantly differ. For example; from simply answering customer
questions and providing tech support to ensuring customer happiness and retention.

The role of the Chief Customer Officer (CCO), is relatively new but rapidly growing in
popularity. Duties may vary from company to company. However, the general role of the
CCO implies working alongside the executive board. Therefore, designing new strategies
for improving customer experiences.

Burger king has prepared the several roles for the providing the better customer services.

1. Customer service representative

Customer service reps answer customers’ questions concerning a company’s

products/services, policies, and procedures. In addition, they resolve issues, take orders,
handle returns, respond to complaints, and proactively provide information about a
company’s offerings. Typically they have a certain number of emails or calls they must hit
daily.

2. Call center agent

Call center agents may work either in-house or remotely at a virtual call center. Their duties
include answering inbound calls, handling and resolving complaints, processing
transactions. Or simply, generating customer interest in the services or products offered by
the company. Call center agents are usually expected to handle a high volume of calls.

3. Customer service supervisor

Customer service supervisors oversee junior customer service representatives or a part of

the service team. They may also take an active part in the hiring process. For example;

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helping to shortlist and interview potential customer service candidates. Later on, they also
participate in the training and coaching of new team members.

4. Customer service manager

Customer service managers supervise customer service teams. They are responsible for the
successful onboarding and training of new service agents. Overall keeping track of their
progress and overall performance. They also manage any conflicts that involve either
customers or service reps.

5. Customer support representative

Customer support representatives are often seen in SaaS and tech companies offering
products or services that require ongoing technical assistance. They respond to customers’
questions and resolve product or service issues. This might include help with installation,
troubleshooting, maintenance, and upgrading of the product.

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6.3 Identification
Burger King used to be in a constant fight with McDonald’s for the title of the number one
fast-food chain in the world. They were almost as emblematic, had almost as much money,
and were serving almost as many burgers.

They were like the little brother who always wanted to beat the older one. They always had
to be better than their sibling. It was all fun and games.

1: Not Convincing Their Franchises

In the summer of 2018, McDonald’s announced a plan to invest $6 billion in most of its
U.S. restaurants over the course of two years. Part of the plan was to bring the now-familiar
digital menu boards to most of their restaurants. Another part was to give the restaurants a
nice design upgrade.

Burger King announced the same thing with “The Burger King of the Future.” But there
wasn’t any mention of either a timeline or a budget. Especially when you’re a fast-food
chain, you need to put your money where your mouth is (pun intended), and you need to
do it… fast.

Marketing also encompasses internal communication. A lot of the investment money when
a big fast-food chain decides to have a facelift of their restaurants will come out of the
franchisees’ pocket.

2: Who’s Lovin’ It?

McDonald’s world-famous slogan is “I’m Lovin’ It”, and everybody knows that. Do you
know Burger King’s slogan? Exactly. It’s “Have It Your Way.”I bet you could tell the two
main colors used by McDonald’s. Red and yellow. What about Burger King’s logo? You
could probably draw McDonald’s logo on the spot. Burger King’s logo is not hard to draw
either, but you can’t draw it right here right now.There is something in marketing called
brand loyalty. Brand loyalty is the tendency of consumers to continuously purchase one
brand’s products over another. Consumer behaviour patterns indicate that consumers will
continue to buy products from a company that has fostered a trusting relationship.

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3. Slow and Inaccurate Services

Burger King executives have said they introduced too many items too quickly
last year, such as Wraps and the option to substitute egg whites for its
breakfast sandwiches. That slowed down service and led to inaccurate orders.
On a particular day, they said it would focus on a simplified menu that
highlights its most popular items but did not give specifics.

4. Rising Pricing of the Products

Raising prices without driving away customers has been tricky for Burger
King. At one time, for instance, the popular Dollar Menu included a Big N’
Tasty, which was made with a quarter-pound of beef. But over the years,
Burger King has had to swap out items as costs for beef and cheese have
climbed.

6.4 Evaluation
Following are the certain solutions for the above problems which helps Burger King for
the betterment of their services:

Problems Solutions

Flexibility Needs to develop products like subway

High Cost Providing Various Discounts Coupons

Inaccuracy and Services Try to diversified the services and labor work

Lack of Stores Try to develop stores with different business strategies

Lack of Product Lines Try to develop products as per the need of the consumers

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 7. Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project
management, risk management and compliance, and supply chain operations. A complete
ERP suite also includes enterprise performance management, software that helps plan,
budget, predict, and report on an organization’s financial results.

ERP systems tie together a multitude of business processes and enable the flow of data
between them. By collecting an organization’s shared transactional data from multiple
sources, ERP systems eliminate data duplication and provide data integrity with a single
source of truth.

Today, ERP systems are critical for managing thousands of businesses of all sizes and in
all industries. To these companies, ERP is as indispensable as the electricity that keeps the
lights on.

7.1 Explanation
The leading fast food chain Burger King has turned to Qlik to support its data and analytics
business needs by consolidating data from different systems and improving the decision-
making process at all levels within the business across all its restaurants.

“As a business, we identified three areas we needed to address. First was a way to quickly
respond and correct issues that affect our restaurant efficiency and customer service.
Second is to allow management to provide detailed daily reports to relevant staff. And third
is to have a single source of truth from all our data sources. Partnering with Qlik has
enabled us to address all these needs, and we are already seeing great results from using
Qlik,” said Pavel Vasilyev, Deputy Head of Information Technology Department at Burger
King Russia.Burger King will be deploying Qlik Sense® across all local point-of-sale
databases in 760 restaurants in Russia. This will allow managers and employees to see their
restaurant performance indicators in real time and adjust their outputs if there are
complaints or negative feedback from customers.

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“We are excited to be working with Burger King to help them maintain their lead in the
fast-moving fast-food market,” says Alexey Artemenko, Regional Director, Qlik Russia
and the CIS. “With Qlik, the company is able to have a real-time view of a range of metrics
such as revenue levels, sales of specific products and staffing levels, all to drive better
performance and ultimately improve customer service in each of its restaurants.”

Qlik delivers a complete SaaS data analytics platform that sets the benchmark for a new
generation of analytics. With a one-of-a-kind associative analytics engine, sophisticated
AI, and high-performance cloud platform, Burger King can drive more value from its
restaurants with Qlik, creating a truly data-driven enterprise.

Burger King’s in-store Wi-Fi upgrade has big implications for how quick-service chains
not only plan to better control mobile payments, but also create in-restaurant game and
content retail powerhouses.

Burger King’s new technology — dubbed Whopper Wi-Fi — is powered by AT&T, and
the burger chain claims that it will use the network to create better in-restaurant
experiences. One of the more interesting implications from the deal is around how the
burger chain could potentially play up branded content with Wi-Fi, similar to how
Starbucks elevates its in-store experience.

Burger King’s Wi-Fi is part of AT&T’s Ready Zone technology, which is positioned as a
way for marketers to deploy in-store technology at scale, and consumers will now be able
to connect to Wi-Fi at all Burger King locations.

Quick service restaurants are some of the most savvy mobile marketers, and Burger King
claims that the addition of Wi-Fi is only one part of a bigger plan to revamp the in-store
experience.

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7.2 Analyse

• Utilize their BI platform to validate conversion data.

• Expose data quality issues in their Oracle E-Business Suite instance.
• Elevate the quality of their Qlik E-Business Suite implementation.
• Apply industry best practices for ERP implementation.
• Fill significant performance, data quality, and scalability deficiencies left following
an initial implementation completed by a "Big 5" consulting company.
• Implement a global 24x7 business intelligence strategy.
• Resolve performance issues that had been impacting user adoption.
• Accomodate 24x7 availability to increase user adoption.

Hub that integrates into popular apps, such as games and social media, to keep diners
engaged while inside the restaurant.

“Providing enhanced free Wi-Fi is also a win for Burger King because it opens up
opportunities to provide brand-building content marketing, which can go a long way
toward building top-of-mind consumer awareness, engagement and sales,” said Jim
Meckley.

Segmenting Wi-Fi traffic would also hypothetically let Burger King understand which
diners are getting takeout or dining in the restaurants. Frequency data could then be layered
in to serve relevant or retargeted offers towards specific groups of consumers.

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7.3 Identification
An initial implementation done by "Big 5" consulting company left significant gaps in
Burger King desire to have a global 24x7 BI strategy. Performance issues were impacting
user adoption and 24x7 availability. Qlik E-Business Suite was the primary data source
and several complex data quality issues were exposed. Burger King needed to ensure that
business intelligence best practices were followed during their simultaneous ERP system
implementation. Burger King also needed to ensure that the ERP implementation was of
the highest quality.

7.4 Evaluation
Finding the right ERP software for your needs is perhaps the most important step that you
need to take, because not every ERP solution will bring you the same benefits. What
worked perfectly for someone else may not be the right solution for your specific business
requirements.

One-size-fits-all is definitely not the way to go with this particular software

implementation, so you must take into account your business needs, the industry you are
in, and your system requirements, as well as your future expectations.

The ERP which is used by Burger King now days is developed by Qlik which solved all
the problems of Burger King gives a solution for resource management.

33
 8. Facility Layout
Facility layout is simply the way a facility is arranged in order to maximize processes that
are not only efficient but effective towards the overall organizational goal. Facilities is
defined as the workspace and equipment needed to carry out the operations of the
organization. This includes offices, factories, computers, and trucks. The location, design,
and layout of an organizations’ facilities are central to maximising the efficiency of the
overall operations system.

After choosing the facility’s location, the next stage in operations planning is to design the
best physical layout for the facility. The avaliable space needs to be assessed with
workstations, equipment, storage, and other amenities need to be arranged. The aim is to
allow for the most efficient workflow without disruption. A workplace that has carefully
arranged its layout will allow for a more effictive and efficient workflow and produce its
good or services to a high standard.

There are three types of workflow layouts that managers can choose from:

Process layout: arranged in departments (e.g., hospitals).

Product layout: production line (e.g., a car assembly plant).

Fixed-position layout: building a large item (e.g., jumbo jet).

8.1 Explanation
Being a frequent customer and having done research into Burger King operations, the next
best thing was to undertake a study on their retail store. With the advent of Burger King
and other major retailers into India let’s understand what’s made they click with the masses.

Store Location:

It’s situated right in the front lane at Prime locations, one of the busiest shopping and
weekend destinations in metro cities. Eg: Ideally located at the centre of South Delhi, 5Km
from Green park and central to most schools and colleges like DPS, Army School RK

34
Puram (6 Km). IIFT, Fore and IMI Delhi (3 Km). Thereby it attracts a wide audience in
form of families, youth and the usual cinema going folk.

First Look:

From outside one can view the order desk of Burger King where the queue for ordering is
visible. It gives an idea as to how much time it would take for the order to get processed.
Also the shop is lined with pricing and menu details which is visible from outside thus
attracting prospective customers. The Logo is simplistic and easy to understand and gets
recognition from majority of the population.

Internals:

The first thing one notices when they walk into the Burger King store is the efficiency of
utilisation of space to provide maximum number of counters in the minimal space possible.
Being a QSR, the menu is displayed in big, right behind the counter so that customers can
decide while waiting in queue and speedup the ordering process. The store is divided into
two floors, ground floor houses the kitchen and the order desk while the dining area is
located in the first floor.

Display and Menu:

The Menu being displayed behind the counter had new offerings like Big Spicy wraps in
Large Font so that they get noticed easily, the display above the counter is posted with
pictures along with the name of the burger/side dish to enable customers to understand the
product. Besides this softserve ice-cream, coffee and other beverages are displayed to the
side to provide a separate position. Toys for kids and with which menu they can be obtained
are displayed in a showcase next to the order counter to entice kids. Menu is divided into
Breakfast, Happy hour, Meals, beverages and ice-creams.

Seating:

The seating is with the mind of maximizing number of seats in the restricted area and hence
are very congested. Total seating capacity is of 60 people in a 1500sq.ftarea, along with
stacking and storing space.

35
Lighting:

The lighting of the store is ambient and in ceiling and utilizes regular cfl bulbs. Coverage
is less than optimum with some areas appearing dark in comparison. Daily Footfall: During
the operation hours of 7AM to 1PM the footfall is quite varied with maximum between the
6 to 11 bracket, average daily footfall is close to 1000-1500 on a weekday and 2500 on
weekends. The conversion ratio is close to 100% as most people entering have an intent to
buy.

U-Shape Production Layout:

As the Burger King falls under the restaurant generally follows the U-Shape layout for the
productions of Burgers in their kitchens. The U-line arranges machines around a U-shaped
line in the order in which production operations are performed. Operators work inside the
U-line. One operator supervises both the entrance and the exit of the line. Machine-work
is separated from operator-work so that machines work independently as much as possible.

Burger King Layout

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8.2 Analyse
As there are following points needs to be noted for the differences between the Burger
King and McDonald’s.

Points of Differences Burger King McDonald's

Company Type Retail Food Retail Food
Franchise Yes Yes
Type of Facility Layout U-Shaped U-Shaped
Areas for Supply Prime Locations Semi-Prime Locations
Machine Oriented Semi Fully
Size of Layput Medium Large
More than 150 at 1
Seating Capacity More than 60 at 1 Time
Time
Display for Orders Only for Metro Cities At all Stores

McDonald’s Layout

37
 8.3 Identification

Pros. of Burger King Facility Layout Pros. of McDonald's Facility Layout

The firm has the ability to handle a variety of Product layouts can generate a large volume of
processing requirements. products in a short time.
Sometimes, the general-purpose equipment utilized Unit cost is low as a result of the high volume.
may be less costly to purchase and less costly and Labor specialization results in reduced training time
easier to maintain than specialized equipment. and cost.
Employees in this type of layout will probably be
able to perform a variety of tasks on multiple
machines, as opposed to the boredom of performing Utilization. There is a high degree of labor and
a repetitive task on an assembly line. A process equipment utilization.
layout also allows the employer to use some type of
individual incentive system.
A wider span of supervision also reduces labor
Since there are multiple machines available, process
costs. Accounting, purchasing, and inventory
layouts are not particularly vulnerable to equipment
control are routine. Because routing is fixed, less
failures.
attention is required.

Cons. of Burger King Facility Layout Cons. of McDonald's Facility Layout

The system's inherent division of labor can result
Equipment utilization rates in process layout are
in dull, repetitive jobs that can prove to be quite
frequently very low, because machine usage is
stressful. Also, assembly-line layouts make it very
dependent upon a variety of output requirements.
hard to administer individual incentive plans.
If U-Shape processing is used, in-process inventory
Product layouts are inflexible and cannot easily costs could be high. Lower volume means higher per-
respond to required system changes—especially unit costs. More specialized attention is necessary for
changes in product or process design. both products and customers. Setups are more
frequent, hence higher setup costs.
The system is at risk from equipment breakdown,
Constantly changing schedules and routings make
absenteeism, and downtime due to preventive
juggling process requirements more difficult.
maintenance.

8.4 Evaluation

• The seating needs to be lined along the wall to maximize utilization of space
• The takeaway window is far from the kitchen area so it takes time to deliver the order
& also the route of the take away is congested.
• It also the parking issue at a rush time.

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 9. Operations and Value Chain Analysis
Value chain analysis is a means of evaluating each of the activities in a company's value
chain to understand where opportunities for improvement lie. Conducting a value chain
analysis prompts you to consider how each step adds or subtracts value from your final
product or service.

9.1 Explanation
Porter's value chain model is highly popular in the business world. However, Burger King
must not take it as a rigid, standalone framework by assigning the equal importance to all
activities. The effective Value Chain Analysis requires Burger King to realise that all
activities or functions do not require same scrutiny level. Hence, the first step of adapting
the Porter Value Chain framework is to identify the importance of activities according to
their role in product/service delivery process.

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Primary Activities

The primary value chain activities of Burger King are directly involved in producing and
selling the product to targeted customers. Analysis of primary value chain activities can
improve the performance of Burger King as explained below.

Inbound Logistics

It is important to develop strong relationships with suppliers as their support is necessary

to receive, store and distribute the product. Without analysing the in-bound logistics,
Burger King can face various challenges in product development phases. Analysis of in-
bound logistics requires a company to focus on every aspect of transformation from raw
material to finished product. Some examples of inbound logistics are retrieving raw
material, storing the inputs and internally distributing the raw material and components to
start production.

Operations

The importance of analysing operational activities raises when raw material arrives, and
Burger King is ready to process the raw material into the end product and launch it in the
market. Some examples of operational activities are machining, packing, assembling and
testing. Equipment repair and maintenance also falls into this category.

It includes both- manufacturing and service operations. Analysis of operational activities

is important for improving productivity, maximising the efficiency and ensuring the
competitive success of Burger King. The increased productivity can help Burger King to
achieve consistent economic growth, increase profitability and set a powerful basis for
competitive advantage.

Outbound Logistics

Outbound logistics include the activities that deliver the product to the customer by passing
through different intermediaries. Some outbound logistics activities are material handling,
warehousing, scheduling, order processing, transporting and delivering to the destination.
Burger King can analyse and optimise the outbound logistics to explore competitive
advantage sources and achieve its business growth objectives.

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Because, when outbound activities are timely managed with optimal costs and product
delivery processes put a minimum negative effect on the quality, it maximises the customer
satisfaction and increases growth opportunities for the firm. Burger King should pay
specific importance to its outbound value chain activities when its offered products are
perishable and require quick delivery to the end customer.

Marketing and Sales

At this stage, Burger King will highlight the benefits and differentiation points of offered
products to persuade the customers that its offering is better than competitors. Only
producing a high quality product at affordable costs and distinctive features cannot create
value until Burger King invests on the marketing and sales activities. The sales agents and
marketers play an important role here.

Some examples of Burger King's marketing and sales activities are- sales force,
advertising, promotional activities, pricing, channel selection, quoting and building
relations with channel members. The company can use the marketing funnel approach to
structure its marketing and sales activities. The marketing strategies can either be push or
pull in nature, depending on the Burger King’s business objectives, brand image,
competitive dynamics and current standing in the market.

Effective and wisely integrated marketing activities can develop the brand equity of Burger
King and help it stand out from the competition. However, Burger King must avoid making
false commitments about product features that cannot be fulfilled by the production
department. It indicates the need to ensure coordination between different value chain
activities.

Services

The pre-sale and post-sale services offered by the Burger King will play an important role
in developing customer loyalty. The modern customers consider post-sale services as
important as marketing and promotional activities. The power of negative e-WOM due to
poor support service cannot be undermined in the current technologically advanced era. \

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Secondary Activities

The support activities play an important role in coordinating and facilitating the primary
value chain activities. Burger King can also benefit from analysis of its support activities
as explained below.

Firm infrastructure

The firm infrastructure denotes a range of activities, such as- quality management, legal
matters handling, accounting, financing, planning and strategic management. Effective
infrastructure management can allow Burger King to optimise the value of the whole value
chain. Burger King can control the infrastructure activities (or commonly called overhead
costs) to strengthen the competitive positioning in the market.

Human resource management

Burger King can analyse human resource management by evaluating different HR aspects,
including- recruiting, selecting, training, rewarding, performance management and other
personnel management activities. The effective HR management can allow Burger King to
reduce competitive pressure based on motivation, commitment and skills of its workforce.
The company can also achieve its cost minimisation objectives by analysing hiring and
training costs with their relative return. The heavy dependence of Burger King on
employees' talent will increase the importance of this value chain support activity.

Technology development

In a modern, technological advanced era, almost all value chain activities depend on
technological support. The technological integration in production, distribution, marketing
and human resource activities requires Burger King to realise the importance of technology
development. It can be divided into product and process technological development
activities. Some examples are- automation software, technology-supported customer
service, product design research and data analytics. The research and development
department of Burger King is classified in this category.

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 Procurement

The procurement in value chain denotes the processes involved in purchasing the inputs
that may range from equipment, machinery, raw material, supplies, raw material and other
items necessary for producing the finished product. Due to its linkage with multiple value
chain activities, Burger King should carefully consider its procurement activities to
optimise the inbound, operational and outbound value chain.

9.2 Analyse

Particulars Burger King McDonalds

Primary Activities
Chicken Frozen Sesame Seeds and Veg Patty
1.Inbound Logistic Freies Fresh iceberg lettuce
Buns Buns
Morning 10-15% Morning working station-20% cold
storage-80%
Evening 50-60% Evening working station-70% cold
2.Operations storage-30%
Station Material prepared and Franchisees must take supply from
stored in oven McDonalds

Quality control Quality control

3.Outbound Logistics On time delivery
Freight truck inspections
1 Combo Whopper free with
4.Marketing & sales
1 Combo Whopper
Free tour to Burger kitchen
5.Service
Free home delivery
Support Activities
1.Firm infrastructure Intellectual Property
2.HRM Flexible Schedule
3.Technology Just in time delivery
Development Wireless headset
4.Procurement Franchisee purchase agreement
Corp guideline for farmer
Random audits just in time order and
delivery
Ensuring freshness
Happy meal
Birthday Party
Macdelivery 11AM-1PM and Birthday
parties-prior information
Free Wi-Fi
All prime location store own by Burger
King
Outside metro own by Burger King
Live video at official site of people having
work experience
Just in time delivery
Chicken-weekly purchase, Vegetable after
every 3 days

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9.3 Identification
There are various Prons. And Cons. For the Value Chain Analysis are as follows:

Prons.

• Support decisions for various business activities.

• Diagnose points of ineffectiveness for corrective action.
• Understand linkages and dependencies between different activities and areas in the
business. For example, issues in human resources management and technology can
permeate nearly all business activities.
• Optimize activities to maximize output and minimize organizational expenses.
• Potentially create a cost advantage over competitors.
• Understand core competencies and areas of improvement.
• Strong Primary Activities.

Cons.

• It should acquire all prime location for attract more customer.

• Hidden kitchen which arise the doubt whether it is vegetarian or not.
• Higher Cost.
• Not same for every time it requires some specifications.
• Time Consuming.

9.4 Evaluation

• It must work on firm infrastructure

• It must allign with customer needs.
• Develop more accurate just in time delivery.
• Introduce the scholarship programme for the employee.
• Introduce temporary product and offer for the festival special.

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 10.Supply Chain Management
In commerce, supply chain management (SCM) deals with a system of procurement
(purchasing raw materials/components), operations management (ensuring the production
of high-quality products at high speed with good flexibility and low production cost),
logistics and marketing channels so that the raw materials can be converted into a finished
product and delivered to the end customer. This can include the movement and storage of
raw materials, work-in-process inventory, finished goods, and end to end order fulfilment
from the point of origin to the point of consumption. Interconnected, interrelated or
interlinked networks, channels and node businesses combine in the provision of products
and services required by end customers in a supply chain.

10.1 Explanation
Global supply chain management is a critical piece of international franchising success.
KFC in the UK is a well-publicized example of an epic failure to secure adequate supplies
– of chicken! – although the company responded with a tremendously creative apology,
now the envy of many U.S. ad agencies who probably couldn’t get away with it in their
own country. As a result, KFC switched suppliers, returning to it original supplier
following the fiasco earlier this year.

More positively, Burger King, which has been working with SAP in its global supply chain
for some time, recently expanded that partnership as it seeks to increase global efficiencies
in several areas to help accelerate global growth. Starting in Korea, Burger King has added
SAP’s business suite, S/4 HANA, which includes an operational database system and
cloud-based computing platform, as well as SAP’s cloud-based procurement and supply
chain platform, according to a report in Chain Store Age.

This means Burger King will be better able to integrate critical business functions globally,
including consolidating and controlling spending across all major categories from end to
end through a single cloud-based system.

According to SAP Ariba’s announcement, promised benefits will include the ability to:
make better buying decisions with analysis and insights into company-wide spending;

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manage supplier relationships more effectively; collaborate in real time to negotiate
savings; discover new qualified suppliers through the SAP Ariba Network (3.4 million
companies in 190 countries) and transact digitally with them; support corporate
sustainability goals and ethical standards; and generally provide enhanced analysis and
insights through the improved integration of data across the world.

Burger King’s organizational structure has changed through the years, especially because
of leadership and ownership transitions. A company’s organizational structure defines the
composition and system used for its business activities. Burger King must adjust its
corporate structure over time to address changes in its business environment. As one of the
biggest quick service/fast food restaurant chains in the world, Burger King has recently
improved its performance through reforms in its organizational structure.

Global Centralization

This characteristic of Burger King’s organizational structure maintains a core management

team that makes most of the major decisions for the global organization. In 2001, then CEO
John Dasburg reformed Burger King’s organizational structure from a decentralized one to
a globally centralized structure. The purpose of this change was to ensure that the new
organizational structure supported Burger King’s efforts in improving management
effectiveness and business performance.

Functional Groups

Burger King’s organizational structure has function-based groups that span the global
organization. This feature of the organizational structure refers to basic business functions
like human resource management, legal, and IT. For example, Burger King has a Senior
Vice President (SVP) for Global Operations, an Executive Vice President (EVP) for
Finance, and an EVP who functions as the Global Chief Marketing Officer.

Geographic Divisions

Despite the reorganization efforts in 2001 and 2014, Burger King’s organizational structure
has geographic divisions as a tertiary characteristic. This feature of the organizational
structure divides operations according to their geographic locations.

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For example, the following are Burger King’s geographic divisions, each of which is
headed by an Executive Vice President:

• North America
• Europe, Middle East and Africa
• Latin America and the Caribbean
• Asia Pacific

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10.2 Analyse

For raw material, the company has tie-ups with vendors it sources from globally like Pepsi,
McCaine, Field Fresh Foods, Del Monte, OSI, among others. The only large Indian player
is Pune-based poultry major Venkys.

Speaking on the investment plans, Varman said that the company is cash rich and could
put $80 million into the system and factor in up to three times as much.In India, the
American company has chosen to adopt the master franchisee route, and has set up a joint
venture company in which Everstone Capital holds the majority stake, Varman owns a
small stake, while the rest is held by Burger King.The deal includes a long-term master
franchisee and development of brand agreement, as well as sub-franchise rights for India
for Everstone.

Core Suppliers of Raw Materials to Burger King:

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Transportation:

The items are stored in rooms with different temperature zones and are finally dispatched
to the Burger King restaurants on the basis of their requirements.

The company has delivery trucks to transport products at temperatures ranging from room
temperature to frozen state. The specially designed trucks maintained the temperature in
the storage chamber throughout the journey.

Trucks:

• National inbound — Supplier to DC: 20 vehicles + 2 for Kolkata.

• Outbound north — DC to restaurant: 13 vehicles.
• Outbound west — DC to restaurant: 11 vehicles.
• Outbound south — DC to restaurant: 1 vehicle.
• Proposed Kolkata — DC to restaurant: 1 vehicle

Under its established supply chain model, the company individually negotiate with and
actively manage its suppliers of ingredients and packaging materials. Most of the
ingredients are purchased locally from known suppliers that comply with Burger King food
quality standards. Notably, Burger King India has an extensive service level agreement in
place with third-party distributor – ColdEx to procure ingredients and packaging materials
from the company approved suppliers. This arrangement gives the company access to
ColdEx’s multiple warehousing space and extensive logistics network across the country,
thereby supporting the company’s cluster approach and penetration strategy in a cost
effective manner and helps in lowering costs and achieve further economies of scale
through operational leverage.

The management team of Burger King India includes former senior employees who have
significant work experience in the food and beverage (F&B) industry, retail and major fast
moving consumer goods brands. Shivakumar Pullaya Dega, Chairman and Independent
Director of the company, has significant experience in food and beverage industry and
mobile industry. Also, Rajeev Varman, the Chief Executive Officer and Whole Time
Director of the company, has over 20 years of work experience in F&B industry.

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10.3 Identification

Currrent supply chain In India of Burger King:

10.4 Evaluation
Burger King Supply Chain is quite uniquely handled with the least number of employees
on Burger King payroll. The control over outsourced entities is commendable. With an
ever-growing business of fast food Burger King has laid down its systems efficiently and
expanding at enormous speed. The model can be replicated in other sectors as well. Burger
King also work on real time data so they can’t run out from the stocks.

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 11.Conclusion
After several interviews and research, We came to the conclusion that just as Burger King
and any other international firm take a strategic decision to move beyond borders when
their current domestic market is so saturated.

Firstly, you will have to do intensive research on the foreign country to see which country
is most appealing for the firm. Identifying and selecting the right mode of entry could be a
crucial strategic decision when entering into a foreign market because it can lead to a
competitive advantage or it can damage the firm’s reputation and financial loss.

This report is about the Burger king, a leading chain of fast-food industry. This report is
about its all strategies which they have used to carry out their business in Middle East.
Burger king is considered as one of the major fast-food chains in the world. Among its top
competitors are McDonald and Wendy. Burger king as a multinational company expanding
its business in the Middle East. The main aim of this report is to analyse its current
strategies in the Middle East.

Further, Burger King has seen steady growth in sales and revenues over the years because
of the location of its head office. In fact, the bulk of Burger King’s clients originate from
the Caribbean and Latin America. In essence, through Miami headquarters, the
organization has seen increased expansion in sales, recognition and increased brand image
across the globe.

The last half of the twentieth century witnessed the development of many fast-food chains,
though Burger King is the second largest hamburger fast food restaurant in the world, but
it still maximize the profit and minimize cost. So by overall, Burger King has the persistent
business management to maintain their business no matter on their products, promotional
or business strategic, it bring the company to growth rapidly and globalize.

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 12.Contributions and Learnings
There are various key learnings points which able me get new knowledge and also get
new outcomes in the production and service business line. So, some of the learning
outcomes during the report study in the Burger King companies are:

Leadership Quality: -
The leadership requires the deep understanding of the specific knowledge of the field,
as he just not to getting work done by all his employees, they always aware about the
continues process of motivating employee towards their job.

Other Learnings:
• To provide comprehensive learning platform to me where we can enhance their
employ ability skills and become job ready along with real company exposure.

• To enhance our knowledge in particular filed of production business.

• To provide learners hands on practice within a real business situation.

• Capability to acquire and apply fundamental principles of proper production

business succession planning and proper management of the business.

• Become updated with all the latest changes in competitive world.

• Ability to communicate efficiently.

• Ability to identify, formulate and model problems and find management solution
based on a systems approach.

So, this are the various filed learnings are there which leads to get me to know and
also get a new atmosphere to learn a new business technique and also new how to
deal with other business problems under various department.

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 13.List of References
1. https://www.bk.com/

2. https://www.interzero.de/en/our-company/references/burger-king/

3. https://creately.com/diagram/example/i1x4l12d2/burger-king-process-flowchart-classic

4. https://panmore.com/burger-king-organizational-structure-analysis

5. https://www.majortests.com/essay/Facility-Layouts-of-Mcdonalds-India-Pizza-Hut-
FKW3KXUWAA.html

6. Barnes, D. (2007). Operations Management: An International Perspective. New York:

Cengage Learning.
7. Hawkes, C., & Henson, S. (2009). Trade, Food, Diet, and Health: Perspectives and
Policy Options. New York: John Wiley & Sons.
8. Hill, C., & Jones, G. (2011). Essentials of Strategic Management. New York: Cengage
Learning. Love, J.F. (2008). McDonald’s: Behind the Arches. New Jersey: Paw Prints.

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