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Comparison of Burger King and Mc Donald’s Based on Their Asset Utilization

Asset Utilization at Burger King’s and McDonald’s

The competitive forces within the two fast food giants, Mc Donald’s and Burger King’s can better be analyzed by the policies they adopt from time to time to meet the bargaining powers of suppliers as was customers, threats from new entrant and substitutes. Both the fast food giants are utilizing their maximum assets during the last two years on planning process, implementing and controlling the operations of the supply with the sole principle of getting the ultimate satisfaction from the customers. Both Mc Donald’s and Burger King’s are spending millions of dollars on the efficient movement and storage of raw material, inventory, and activities involving outsourcing, procurement, and logistics management activities. (Kaushik & Cooper, 2000)

At McDonald’s the central policy of customer service procedures is to focus on quality of the service than the speed of the delivery of the product. Then it comes to asset utilization, they have been putting more and more on to raise the standard of the product and on inventory. (Songini, 2002) McDonald’s prime focus is on of the differentiation of its products and services from that of the Burger King’s. They have been adopting new methods and techniques to

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make this difference felt by wholesome foods, and introducing new products.

On the other hand, Burger King’s goals have been adapting a different pattern of asset utilization. As in conformation to their policies they are adamant to deliver fast and keep on individualizing each customer’s order. Their strategy has been very much ever since its inception provide with customers with multi choices and do it quickly. (Songini, 2002), It is understandable because many of the customers prefer quick delivery than quality of the product.

References

Kaushik K.D., & Cooper, M. (2000). Industrial Marketing Management. Volume29, Issue 1 ,

January 2000, Pages 65-83

Rolf G. Poluha, (2006), Application of the SCOR Model in Supply Chain Management.

Youngstown, NY.

Songini, M. L. (2002), ‘Burger King Upgrades to mySAP.com’, Computerworld,

Retrieved: from www.computerworld.com

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