Burger King Case Study Mcdonald's
first day Ray Kroc noticed that he had made a substantial amount of $366.12 , which is the equivalent of $3824.46 in today’s dollar worth or R45471.79 in South African Rands. By the 1960’s it was thought that there were over several hundred Mcdonald’s stores spread out across the United States of America alone. This is a testimont to the sheer dedication and determination Mr Ray Kroc had with his expansion plans for Mcdonald’s.
Today there are more than 32000 Mcdonald’s stores globally which are spread out across one hundred and seventeen(117) countries world wide. These 117 stores globally employ more than 1.7 million staff members which range from cleaners to cashiers to cooks. Recently Mcdonalds has been reducing the number of human staff
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During the year of 1967 the famous Pillsbury Company bought out the two classmates equity in the business for 18 million dollars. Now with the baking super-giant supporting the business and contributing capital “Burger King” was able to rise to the top and rank second just below “Mcdonalds”.
The rivalry between “Mcdonalds” and “Burger King” came as no surprise during the 1960s as this was the era of giant vs giant battles to win over the support and loyalty of consumers. Among the famous competitors who fought during this era are “Coca Cola” vs “Pepsi”; “Hertz” vs “Avis” and “ABC” vs “NBC” vs “CBS” and so much more.
In 1978 “Burger King” took a big step in in franchising, the company poached Donald N Smith who was a high ranking Mcdonalds official at the time and tasked him with shuffle the business. He got to work changing and editing the franchise agreement of “Burger King” and one of his most notable edits to the agreements was putting in a clause which made it unethical and not possible legally for franchisee’s to own another franchise in an opposition fast food chain, this thus encourage brand loyalty and maintained the businesses ethos. Another amendment made to the franchise agreement was that Franchisee’s were not allowed to stay more than 1 hours drive from their franchise store, this thus reduced the cases of absent
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