Burger King International expansion

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

Question #1 If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?

An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014).

Burger King and Wendy’s are among the top fast food chains in America, but this fact doesn’t elude either chain from having their negative and positive features. Burger King is cheaper, and has a wider assortment of food than Wendy’s, which makes Burger King more desirable to many Americans. What Wendy’s lacks in diversity, and lower priced food when compared to Burger King becomes irrelevant due to the higher speed and superior quality food they offer. Both qualities of Wendy’s help to maintain equal competition between the two in the fast food market of America.

1b) What advantages are there to not franchise the restaurants? Do you think they ought to franchise restaurants down the road? What advantage would that be for the company?

Uniting with an accomplice like Burger King is liable to make an ease structure as it ventures into the U.s., conveying a finer come back to franchisees and making it a more appealing alternative.

BK, on the other hand, uses the continuous chain broiler, with a capacity of 8 burgers per chain, where no human intervention is necessary because the patties enter the broiler on one end and come out on other end after 80 seconds. Furthermore, sandwich dressing is standardized at McD’s with lever based dispensers and portion controlled condiments. At BK, sandwich dressing is handled by employees using plastic squeeze bottles without pre-measured quantities. The lack of portion-controlled condiments at BK can result in different taste and quality of products in addition to wastage. Exhibit 5 and 6 reveal the operating results for McD’s and BK, respectively. McD’s is ahead of the game in the sandwich dressing department, Exhibit 6 shows that BK spends 1.1% of their sales in condiments wastage. BK also uses microwave ovens to maintain the “Made to Order” warm and fresh burgers. The use of microwave ovens result in a 2.1% increase in utility cost compared to McD’s. On the other hand, the cost of food at McD’s is 1.9% higher compared to BK because McD’s keeps finished goods inventory in a bin for 10 minutes before they are discarded. In addition, the paper used to wrap the burger contributes to higher food cost of 0.9% at McD’s.

"Wendy's Burger Restaurant" classified from the biggest Self made American Burger restaurant . Wendy's burger was founded by " Dave Thomas " On November 15 -1969 At ; Coulombs - Ohio and Headquarters was moved to Dublin - Ohio in 2006 . Wendy have 6650 location All over the world Approximately 85% of Wendy's restaurants are franchised, and 77% of them are located in North America. Wendy's and its affiliates employ more than 47,000 people in its global operations (1) . " Wendy's Burger Restaurant " Is local corporation that have Strengths and Weakness and Opportunities and Threats That will be shown and described in this Essay .

1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?

McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply

This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.

By producing a regular number of identical sandwiches, this batch system helps ensure standard and predictable cycle times, consistent quality, greater predictability (less loss to error) and limits the amount of overlap activity; all of which align with McDonald’s objectives. To make a custom burger, the McDonald’s process ensures a level of freshness (relative to industry standards), but creates a delay for the customer. A “grill” sandwich is not processed until the next batch of that particular meat is cooked, and delivered to the customer as quickly as possible, with no opportunity to wait in a warming box. While this leads to fresher sandwiches, it also presents several logistical setbacks. Lead times for grill sandwiches are longer, which means that customers must wait longer, inconsistent with McDonald’s process objectives. This is particularly problematic with drive through customers, who must pull up to a parking space to wait, and may cause bottlenecks. Customers inside are asked to step aside and wait, which can be unnerving for a customer on a short lunch break. Notably, though, the cycle time during rush periods is increased, so the customer will not have to wait as long as during slow times. The grill sandwiches also present problems for the cashiers/servers who must deviate from their standard operation to accommodate

Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace

     Other issues regarding international expansion into other countries also need to be considered including, access to supportive infrastructure, adapting to local culture and trade laws. Competitors within each of these regions will also pose a threat; a deeper analysis of competition within the food service industry utilizing Porter’s Five Forces model is located on the next page.

Burger King, however, has tried to keep up with changes in consumer demands for new and healthier products, as this organization has added salads and wraps to its menu offerings. McDonald’s added the McCafe and updated all of its restaurants recently, including adding free Wi-Fi at all of its U.S. locations to make its restaurants seem more like an upscale coffee shop than simply a fast food restaurant. Changes such as these have likely taken sales from organizations such as Burger King. To combat this, Burger King has fought back by increasing the size of its portions and sandwiches and has used couponing very aggressively. Burger King is also adding free Wi-Fi at all of its U.S. locations.