Develop Good Business Sense

981 Words4 Pages
Developing Good Business Sense
Brandon M. Tate
February 27, 2011
Gabriel Perkins

Developing Good Business Sense I have chosen to compare three different fast-food restaurants for this project; Stogey’s, McDonald’s and Burger King. I will discuss the differences in the input, operations and output stages of these companies. I will explore the various components of the OMM costs these companies have and how they affect their OMM operations. I will also discuss how companies design their own operating systems to give them a competitive advantage. Finally, I will identify the sources of operating costs and how they can impact these companies profitability (Jones, 2007).

Burger King and McDonald’s are both
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Interestingly, I noticed that the employee’s at Stogey’s seemed to enjoy their job’s more then those at both McDonald’s and Burger King. While researching these three fast food chains I found out that Stogey’s associates are treated like part of the family; many have been employed for many years. Stogey’s starting wages are $8.00 per hour for frontline employees; store manager’s make nearly $40,000 annually and most have been promoted from within. McDonald’s and Burger King’s starting wages for frontline employees are minimum wage and their manager’s wages were not posted. Stogey’s clearly pays more giving them a competitive edge against other fast-food restaurants because it enables them to recruit and hire better associates. These three restaurants are leaders in the fast-food industry. Whether globally franchised or privately owned, each has established an operating system that makes them competitive in the marketplace. Some use suppliers to perform quality checks while others do it themselves. They are all faced with the same sources of operating costs: raw materials, plants, labor, inventory and distribution (Jones, 2007). They create ways to improve productivity and innovation while controlling expenses which in turn creates more revenue. All of them use their revenues to reinvest in additional resources to satisfy customers and increase profitability. And they all continuously look for ways to improve the quality of their
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