The Evolution of Franchising: McDonalds vs Burger King and the

Team Members: Karan Arvind Gori (Student ID: ) Nandan Chetanbhai Patel (Student ID: 156137218) Pia Ivory Alkuino (Student ID: ) Nithya Kalyani Parameswaran (Student ID: 148473226) Professor Name: Stephen Perelgut Course Name: Analytics Case Studies Course Code: BAN120NAA Date: April 12th, 2023 McDonalds and Burger King: The Evolution of Franchising and Benefits of the Burger Wars
Contents ............................................................................................................................................................... 0 Executive Summary ............................................................................................................................... 2 Issue Statement ..................................................................................................................................... 2 Decision Criteria .................................................................................................................................... 3 ANALYSIS ................................................................................................................................................ 3 FINDINGS: .............................................................................................................................................. 4 Recommendations ................................................................................................................................. 5 Implementation ..................................................................................................................................... 5 Question - 1 ........................................................................................................................................... 7 Question - 2 ........................................................................................................................................... 7 Question - 3 ........................................................................................................................................... 7 Question - 4 ........................................................................................................................................... 8 Question - 5 ........................................................................................................................................... 9 Question 6 ........................................................................................................................................... 10 References ........................................................................................................................................... 11 Page 1 of 12
Executive Summary This case report elaborates the various issues that were faced by major players in fast food market - MacDonalds and Burger King, the reason why the burger wars started, a brief analysis as well as the consequences, and benefits of the burger wars. There was increased competition in market leading to market saturation. These were the root cause for the burger wars. Currently the challenge faced by fast-food businesses is to provide consumers with healthier choices as customers are becoming aware of the consequences of consuming junk food and food containing preservatives. Further, McDonalds and Burger King rely heavily on franchising to expand their businesses, which also has challenges. Because of the burger wars, both the companies have expanded exponentially over the years to new locations internationally, invested largely on advertising campaigns, engaged in aggressive marketing (especially Burger King who began the attack ads on their rival Mc Donald's). However, the burger wars have been beneficial to customers as players are improving their products, services, and operations by applying innovations and continuously evolving themselves to adapt to the consumer demand and trends. Issue Statement McDonalds and Burger king utilised franchising model to grow rapidly since 1970s, and became the top players in the fast-food industry. With increased competition in the market , the companies needed more room to grow and increase their revenues. This led to market saturation ; hence the companies entered in a war in order to gain more market share in the burger & fast-food market. Burger king resorted to aggressive marketing by attacking its competitor with ads about poor quality. Page 2 of 12
Uploaded by KidScienceNightingale23 on coursehero.com