Burger King Factors Of Production Essay Example
Burger King Factors Of Production Essay Example

Burger King Factors Of Production Essay Example

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  • Pages: 12 (3183 words)
  • Published: October 5, 2017
  • Type: Essay
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Capital goods are any touchable assets that an administration uses to bring forth goods and services e. g. edifices. machinery and equipment. At a national degree. Burger king develops and creates new capital goods ( machinery ) . For illustration. with the purpose to minimise waste Burger male monarch developed the kitchen minder. The kitchen minder proctors the sum of gross revenues on old yearss and estimates how many cakes. french friess and other ingredients burger king will necessitate to fix. This minimises waste significantly and hence reduces costs. with decreased costs the difference between sale monetary value and costs will increase significance Burger male monarch has increased net incomes. Another really of import capital good is the fire broiler. The fire broiler is a capital


good because it is a piece of machinery used to bring forth other goods. At a national degree. Burger king developed the new broiler to diminish energy costs. labor costs and to heighten the spirit of cakes.

Because these broilers don’t run all twenty-four hours and usage less fuel the mean eating house can salvage up to 40 % on its monthly energy costs. Making it worthwhile to put in and put the broilers into New Zealand Burger king eating houses. At a local degree the fire broiler is invariably used and is managed carefully. Staff must set the needed Numberss of cakes ( as indicated by the kitchen minder ) onto the broiler tray and bend on the broiler. The cakes are so stored in het containers and are ready to do Burgers. If the cakes are non used up within 10s proceedingss so they must be thrown out.

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Although the cakes are physically thrown out at a local degree. the clip of when to throw them out ( ten proceedingss ) is decided at a national degree.

The effects on society of Burger male monarchs determination to utilize the new fire broiler is that Burger king clients ( peculiarly past clients ) may non wish the new spirit of the cakes and could halt eating at Burger male monarch. nevertheless it is more likely that members of society will bask the new cakes and hence purchase more of Burger male monarchs repasts. Burger male monarchs determination to throw out 10 infinitesimal old cakes will besides intend society will eat more Burger male monarch as the Burgers are fresher. hence Burger male monarch has a negative consequence on the wellness of society. the new fire broiler besides has a positive impact on the workers because it may be easier and less clip devouring to run the broiler. ensuing in less work for employees.


Land is a really of import factor of production as it is with land that burger king can runs its company. At a national degree Burger king must do of import determinations about which piece of land will finally give the most net income e. g. airdromes. universities and sites near to popular attractive forces. are all sites that normally provide many gross revenues. The hillcrest Burger male monarch is strategically situated on an elevated piece of land on Cambridge University route so that the big figure of autos that pass by can easy see the Burger king eating house. If people see the store. it is likely they will be tempted to

buy from Burger male monarch.

Therefore the more people that see the store. the more gross and net income that Burger male monarch will have. the effects on society of this strategic placement is that the big figure of autos that drive on Cambridge University route are likely to eat burger king more frequently more and hence have increased wellness jobs. Another manner that Burger male monarch manages its land at a national degree is by taking how much infinite the auto park. eating anteroom. storage etc. takes up. Nationally. Burger male monarch has decided to take many of the eating houses play evidences. The benefits of this determination are that burger male monarch can sell the resort area to increase net incomes and can set the excess land to good usage e. g. use the excess land to construct an out-of-door eating country. The negative effects of taking the resort areas is that Burger male monarch will non appeal to little kids. ensuing in less households eating at Burger male monarch and therefore a lessening in gross revenues. gross and net income for Burger male monarch. the effects on society of the determination to add an out-of-door eating country is that consumers will be able to eat in fresh air so some consumers will hold a greater eating experience.

This out-of-door eating characteristic could appeal to some members of society significance that consumers will purchase more Burgers. ensuing in an addition in wellness jobs for society. by non holding resort areas less immature kids are traveling to eat at Burger king which will ensue in an addition in the wellness of immature kids. At a local

degree. the direction of the land can be split into two parts: direction outside the eating house and direction inside the eating house. Outside the eating house. Burger male monarch will clean graffitos of their eating house and off all their advertizements and besides pick up rubbish off nearby pathwaies.

This will increase labor and cleansing costs for Burger male monarch. inside the eating house. Burger king locally must pull off the cleanliness of the land. this means doing certain the floor is ever clean and dry. the lavatories are clean and there is no masticating gum or other nutrient stuck to tabular arraies. Burger king takes cleanliness serious because if the environment in which clients eat is healthy and clean the clients are likely to go on to shop at Burger king. ensuing in an addition in net income. the effects on society of Burger male monarchs local cleansing determinations is that consumers will non be put off by rubbish and graffito that would hold been associated with Burger male monarch and hence be more inclined to eat at Burger male monarch. it besides means that the environment around burger male monarch will be cleaner and more respectable.


Labour resources are the workers/employees that are needed to run a concern. at a national degree Burger king develops a preparation programme? to develop and educate new staff about what is required and expected of them. new staff must pass 1 month practising at each station while under supervising of the director e. g. practising at the teller. cleansing equipment. doing Burgers etc. Burger king invests a batch of clip into the preparation of their new staff so

that they do non necessitate to be invariably supervised and that they are able to work fast and at a high criterion at each station. nationally. Burger will besides find how many workers are needed per eating house. for illustration. hillcrest Burger male monarch is comparatively big compared to other Burger king eating houses and therefore it is likely that will hold need more staff ( sum of 39 staff on their roll ) . at a local degree. the director will do determinations and assign of import undertakings to workers ( depending on how busy it is ) so that each staff member is working at a specific phase in the production procedure.

This is specialization. as the worker does their specific undertaking over and over once more they will go more experient and more efficient. ensuing in an addition in productiveness and economic systems of graduated table ( where a firm’s end product additions. the mean cost per unit produced falls ) . to maintain up with orders. the director may name in employees and have them work at an even more specific undertaking in the production procedure e. g. 1 individual cooking the cakes. 1 individual seting the fillings in and another individual wrapping. instead than holding merely one individual making everything. this increases specialization. by holding more workers. labor costs will increase. but burger male monarch is able to bring forth nutrient much quicker and maintain with the orders. this will ensue in a repute of speedy service which means clients are likely to return. at a national degree Burger male monarch has decide to hold on call staff. if concern is

slow. the local director may make up one's mind to direct some staff place ( as they are non needed every bit much ) therefore. diminishing labour costs.

If concern is fast. the local director may make up one's mind to name in workers. this is flexible labor. the effects on society of Burger male monarchs determination for workers to merely work on one portion of the production procedure ( specialisation ) has had a positive consequence on some members of society but a negative consequence on the employees. the positive consequence on society is that consumers will have a greater choice merchandise and they are likely to acquire their Burgers quicker. ( due to workers deriving more experience ) . nevertheless the negative consequence on the workers is that may go really world-weary while working ( as they have small fluctuation in their undertaking ) . burger male monarchs determination to hold flexible labor has besides had a negative consequence on the workers because it is harder for them to do a agenda and they may be interrupted when making something of import


Entrepreneurship is the ability to take hazards and organise all other resources and factors of production. at a national degree. all the determinations that burger king makes are entrepreneurial determinations e. g the determinations sing land. labor and capital. nevertheless. Burger male monarch will develop the local directors to guarantee their determinations affecting the concern are good and finally profitable for Burger male monarch. this excess preparation for directors is an increased cost for Burger male monarch nevertheless. it is likely that the clip invested into the troughs will pay off because they

will do better determinations about Burger male monarchs local operations. at a local degree entrepreneurship is managed by the director. the director must do determinations about what will give burger the most net income. for illustration. if staff are doing and functioning Burgers before the needed clip. the director will name in staff meetings to discourse the job as to why production is decelerating down.

With the excess preparation that burger king provides the directors with. the director should be able to work out the job. the director could do alterations in the production procedure or staff roll or the director may even make up one's mind to put off workers. it is besides the local directors determination and duty as to if some staff acquire a publicity and/or wage rise. publicities act as an inducement to employees to work more fruitfully and expeditiously. the more efficient the staff are. the more net income that Burger male monarch will have doing it worthwhile to offer publicities and wage rises. the effects on society of these entrepreneurial determinations is that clients are likely to acquire a better quality repast and a quicker.

Commercial Goals

All manufacturers have ends. Burger king’s overall aim is to maximize net incomes. However. to maximize net incomes. Burger male monarch has more commercial ends such as: -Sales maximisation- when a house wants to sell every bit much as possible without doing a loss. -Increased market share- when a house wants a greater portion of the market e. g. ruling the fast nutrient industry.

-Cost reduction- when a house wants to diminish the cost of their merchandises without doing a loss ( increasing the border between

sale monetary value and cost per merchandise ) . -Business expansion- when a house wants to increase the figure of shops that consumers can purchase from.

Burger male monarchs end of concern enlargement has had positive and negative effects on members of society. Burger king’s concern enlargement negatively affects other smaller fast nutrient concern e. g.

Local fish and bit stores because some consumers will exchange purchasing from little concerns and get down purchasing at the new Burger male monarch. The deficiency of gross revenues for these little concerns ( caused by Burger king ) will ensue in less gross and net income. This could even ensue in the closing of little concerns and hence the authorities may hold to supply more benefits for the unemployed. Although Burger king’s concern enlargement has had a immense negative consequence on little local concerns. it has a positive consequence on local unemployed citizens ( peculiarly pupils ) . As new eating houses are launched. staff and directors are required for the running of the eating house ; this creates new occupation chances and hence income for some members of society. If burger king expands its concern. more fatty nutrient will be available for society. This is a negative consequence on society as more people will go fleshy and unhealthy.

Non-Commercial Goals
Burger male monarch besides has many non-commercial ends that are really of import. Some of these ends include:
-Minimising the impact that they have on the environment
-Purchasing from national and local providers ( instead than buying from abroad )
-Supporting charitable organisations-such as canteen
-Supporting and organizing local sport- such as the Basketball tourney

These non-commercial ends require Burger male monarch to either donate. fund

or increase unnecessary costs. This contradicts burger male monarchs overall end of net income maximization. However. by assisting and back uping New Zealand charities and the local community. many members of society may experience loyal to burger king for the good they do. and hence store at Burger king more frequently alternatively of shopping at rivals.

Monetary value schemes

Pricing is one of the most of import elements for the success for Burger male monarch. as it is with monetary value schemes that the ends of Burger male monarch can be achieved. One monetary value scheme that Burger male monarch has in topographic point is the ‘Burger king Change Range’ . Burger king reduces the monetary value of remarkable points e. g. Medium frozen coke from $ 2. 00 to $ 1. 00 BBQ beef Burger from $ 3. 50 to $ 2. 00 so clients come into the store or thrust thru for their inexpensive point and so are offered other regular ( more expensive ) points. Burger king may non be doing any net income on the alteration scope points ( as the merchandising monetary value may non be greater than the costs to do it ) . nevertheless the other points that clients buy will give Burger king increased gross revenues.

The negative effects of this monetary value scheme are that it reduces the net income made on the alteration scope points and it could besides ensue in a monetary value war if rivals cut their monetary values to vie. However. the scheme will fulfill Burger male monarchs ends of gross revenues maximization and increased market portion. If clients buy a important sum of regular

priced points so the monetary value scheme may besides fulfill burger king’s most of import end of net income maximization. the effects on society of this monetary value scheme is the Burgers become more low-cost. so consumers will pass an increased proportion of their income on these inexpensive Burgers as they are salvaging more of their income. This can ensue in wellness jobs and even fleshiness for some members of society.

Non monetary value schemes

Non monetary value schemes are methods other than monetary value decrease that a steadfast uses to accomplish their ends. This involves merchandise fluctuation and merchandise distinction. Product fluctuation is the procedure that high spots and promotes existent differences amongst merchandises. Burger king utilizations merchandise fluctuation with the walloper Burger scope. The six Burgers vary in size and ingredients e. g. dual walloper with cheese. whopper JR without cheese etc. this fluctuation amongst burger male monarchs signature repast. is put in topographic point to vie with rivals ( e. g. McDonald’s large mac ) and to appeal to different gustatory sensations and income degrees of consumers. Therefore. consumers may see the whopper assortment as the better or the superior option. taking to more gross revenues for Burger male monarch. Another manner Burger king utilizations merchandise fluctuation is by fire grilling their cakes. Burger male monarch has used this non monetary value scheme since its initiation in 1954 and is still in usage today.

By fire grilling their cakes. Burger king adds a distinguishable gustatory sensation to their Burgers and entreaties to consumers who want a more echt and traditionally cooked Pattie. This will besides increase gross revenues. Burger king utilizations merchandise distinction as some

of its non-price schemes. Product distinction is the procedure in which houses make a merchandise appear to be different from that of rivals. Burger king utilizations merchandise distinction with its stigmatization. advertisement. sponsorship. packaging and shop locations. For illustration. Burger king utilizations alone packaging when wrapping their Burgers. On the packaging they add the ingredients of the Burger. a description of the Burger. the colors that represent burger male monarch ( ruddy ) and their slogan ( Taste is king ) . Without altering the existent merchandise. the packaging makes the Burgers appear really different to similar competitor’s Burgers.


With 2 Windowss Burger king on mean serves 50 autos per hr. with the added window Burger king serves on mean 80 autos per hr. when Burger male monarch merely had two Windowss clients would pay at the first and so pick up at the 2nd window. nevertheless. as demand for burger male monarchs repasts has increased and burger employees have to fix more complex repasts. thrust thru times have been really slow which means that clients have to wait a long clip for their repast and they are less likely to buy from Burger king once more. to increase the thrust thru velocity clip Burger male monarch has decided to add in an excess choice up window so clients won’t have to wait as long. this excess window has had a positive consequence on Burger male monarch as shown by the 60 % addition of autos through the thrust thru. although costs increase because of the installing of the new window and one more individual is working at the new window. burger male monarchs productiveness has


Productivity is calculated as end products divided by inputs. with the added window. Burger male monarch has 60 % more gross revenues and a little sum of costs ( inputs ) -wages and installing. doing the border between gross revenues and costs much larger than before the window was added. because of Burger male monarchs determination to add the excess window productiveness has immensely increased. the effect on society of Burger male monarchs determination to add the 3rd window is that consumers will pass less clip waiting for their Burger and hence acquire to where they want to be quicker. another consequence of the 3rd window is that the waiting line in the thrust thru will be much smaller. if consumers see this little waiting line they are more likely to purchase burger male monarch than if the waiting line was big. ensuing in less disposable income and in an addition in wellness jobs. the effects on the workers is that they will hold to work faster and harder to maintain up with the thrust orders. these workers may have a somewhat higher income for the more demanding work they do.

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