Burger King Factors Of Production Essay

CapitolCapital goods argon any tangible assets that an organisation uses to gain goods and services e.g. peeings, machinery and equipment. At a matter level, burger exponent develops and creates new-made capital goods (machinery). For example, with the aim to minimize ball up Burger nance actual the kitchen minder. The kitchen minder monitors the amount of gross revenue enhancement on anterior days and estimates how many an(prenominal) patties, fries and other ingredients burger poove leading invite to prep be. This minimises waste signifi puketly and consequently reduces be. with reduced cost the difference mingled with sale harm and costs pull up stakes increase meaning burger index has increased arrive ats. A nonher really important capital good is the shine broiler. The fervency broiler is a capital good because it is a piece of machinery employ to produce other goods. At a depicted object level, burger poove developed the new broiler to decreases ene rgy costs, labour costs and to enhance the flavour of patties.Because these broilers beart run all day and use slight sack the average restaurant stern save up to 40% on its monthly energy costs, Ma major power it worthwhile to install and invest the broilers into sassy Zea dry land burger powerfulness restaurants. At a local level the flame broiler is ever used and is managed c atomic number 18fully. Staff must put the required numbers of patties (as indicated by the kitchen minder) onto the broiler tray and turn on the broiler. The patties be then stored in heated containers and are ready to turn burgers. If the patties are not used up at bottom ten minutes then they must be thrown appear. Although the patties are physically thrown out at a local level, the judgment of conviction of when to throw them out (ten minutes) is stubborn at a national level.The consequences on smart set of burger world powers conclusiveness to use the new flame broiler is that burger ability customers (particularly preceding(a) customers) whitethorn not like the new flavour of the patties and could stop collect at burger male monarch. so far it is much(prenominal) probably that members of nine go out adore the new patties and thitherfore buy to a greater extent(prenominal) of burger pooves meals. burger kings end to throw out 10 minute old patties allow for in kick inition mean parliamentary law will eat more than burger king as the burgers are fresher. therefore burger king has a controvert assemble on the health of company. the new flame broiler also has a positive impact on the workers because it may be easier and less(prenominal)(prenominal) measure consuming to be eff the broiler, resulting in less work for employees.LandLand is a very important portion of harvestion as it is with land that burger king can runs its company. At a national level burger king must sop up important decisions virtually which piece of land will u ltimately give the most profit e.g. airports, universities and sites close to popular attractions, are all sites that usually provide many sales. The hillcrest burger king is strategically situated on an elevated piece of land on cambridge thoroughfare so that the large number of cars that pass by can easily sympathize the burger king restaurant. If people see the shop, it is apparent they will be tempted to purchase from burger king.Therefore the more people that see the shop, the more r scourue and profit that burger king will converge. the consequences on society of this strategic positioning is that the large number of cars that drive on cambridge road are liable(predicate) to eat burger king more often more and therefore suffer increased health problems. Another way that burger king manages its land at a national level is by choosing how much(prenominal) space the car park, eating lobby, storage etc. takes up. Nationally, burger king has sinkd to remove many of the res taurants play grounds. The benefits of this decision are that burger king can sell the playground to increase profits and can put the un call for land to good use e.g. use the extra land to build an outdoor(a) eating area. The veto effectsof removing the playgrounds is that burger king will not appeal to broken children, resulting in less families eating at burger king and therefore a decrease in sales, revenue and profit for burger king. the consequences on society of the decision to add an outdoor eating area is that consumers will be adapted to eat in fresh air so some consumers will father a greater eating experience.This outdoor eating feature could appeal to some members of society meaning that consumers will buy more burgers, resulting in an increase in health problems for society. by not having playgrounds less young children are going to eat at burger king which will result in an increase in the health of young children. At a local level, the management of the land c an be split into two parts management outside the restaurant and management inside the restaurant. Outside the restaurant, burger king will clean graffiti of their restaurant and off all their advertisements and also pick up trash off nearby footpaths.This will increase labour andcleaning costs for burger king. inside the restaurant, burger king locally must manage the cleanliness of the land. this means reservation sure the floor is always clean and dry, the toilets are clean and there is no chewing gum or other food stuck to tables. burger king takes cleanliness serious because if the environment in which customers eat is healthy and clean the customers are likely to continue to shop at burger king, resulting in an increase in profit. the consequences on society of burger kings local cleaning decisions is that consumers will not be put off by rubbish and graffiti that would have been associated with burger king and therefore be more inclined to eat at burger king. it also mean s that the environment around burger king will be immaculate and more respectable.LabourLabour resources are the workers/employees that are needed to operate a descent. at a national level burger king develops a training programmeto train and educate new faculty nigh what isrequired and expected of them. new stave must overhaul 1 month practising at each station while under watch of the animal trainer e.g. practising at the cashier, cleaning equipment, making burgers etc. burger king invests a lot of time into the training of their new staff so that they do not need to be constantly supervised and that they are able to work debauched and at a high standard at each station. nationally, burger will also determine how many workers are needed per restaurant. for example, hillcrest burger king is relatively large compared to other burger king restaurants and therefore it is likely that will have need more staff (total of 39 staff on their roster). at a local level, the film dire ctor will make decisions and assign important tasks to workers (depending on how busy it is) so that each staff member is operative at a specific stage in the yield dish out.This is specialisation. as the worker does their specific task all over and over again they will become more experienced and more efficient, resulting in an increase in productivity and economies of scale (where a firms output increases, the average cost per unit produced falls). to keep up with orders, the private instructor may call in employees and have them work at an even more specific task in the production figure out e.g. 1 soulfulness cooking the patties, 1person putting the fillings in and other person wrapping, rather than having just one person doing everything. this increases specialisation. by having more workers, labour costs will increase, nevertheless burger king is able to produce food much quicker and keep with the orders. this will result in a reputation of quick service which means cu stomers are likely to return. at a national level burger king has decide to have on call staff. if task is slow, the local manager may decide to send some staff home (as they are not needed as much) thus, decreasing labour costs.If fear is fast, the local manager may decide to call in workers. this is conciliative labour. the consequences on society of burger kingsdecision for workers to only work on one part of the production process (specialization) has had a positive effect on some members of society but a negative effect on the employees. the positive effect on society is that consumers will receive a greater quality product and they are likely to get their burgers quicker. (due to workers gaining more experience). however the negative effect on the workers is that may become very bored while working (as they have little athletics in their task). burger kings decision to have flexible labour has also had a negative effect on the workers because it is harder for them to make a schedule and they may be interrupted when doing something importantEntrepreneurshipEntrepreneurship is the efficacy to take risks and organise all other resources and factors of production. at a national level, all the decisions that burger king makes are entrepreneurial decisions e.g the decisions regarding land, labour and capital. however, burger king will train the local managers to ensure their decisions involving the parentage are beneficial and ultimately profitable for burger king. this extra training for managers is an increased cost for burger king however, it is likely that the time invested into the mangers will support off because they will make wear out decisions about burger kings local operations. at a local level entrepreneurship is managed by the manager. the manager must make decisions about what will give burger the most profit. for example, if staff are making and serving burgers before the required time, the manager will callin staff meetings to discuss t he problem as to why production is slowing down.With the extra training that burger king provides the managers with, the manager should be able to solve the problem. the manager could make changes in the production process or staff roster or the manager may even decide to lay off workers. it is also the local managers decision and responsibility as to if some staff get a onward motion and/or pay rise. promotions act as an incentive to employees to work more productively and efficiently. the more efficient the staff are, the more profit that burger king will receive making it worthwhile to offer promotions and pay rises. the consequences on society of these entrepreneurial decisions is that customers are likely to get a make better quality meal and a quicker.Commercial GoalsAll producers have goals. Burger kings overall objective is to maximise profits. However, to maximise profits, burger king has more commercial goals much(prenominal) as -Sales maximation- when a firm wants to sell as much as possible without making a loss. -Increased market share- when a firm wants a greater share of the market e.g. dominating the fast food industry.-Cost reduction- when a firm wants to decrease the cost of their products without making a loss (increasing the margin between sale expenditure and cost per product). -Business expansion- when a firm wants to increase the number of stores that consumers can buy from.Burger kings goal of business expansion has had positive and negative consequences on members of society. Burger kings business expansion negatively affects other smaller fast food business e.g.Local fish and chip shops because some consumers will switch buy from small businesses and start buying at the new burger king. The lack of sales for these small businesses (caused by burger king) will result in less revenue and profit. This could even result in the closure of small businesses and therefore the giving medication may have to provide more benefits for th e inert. Although burger kings business expansion has had a huge negative effect on small local businesses, it has a positive effect on localunemployed citizens (particularly students). As new restaurants are launched, staff and managers are required for the running of the restaurant this creates new job opportunities and therefore income for some members of society. If burger king expands its business, more fatty food will be available for society. This is a negative effect on society as more people will become overweight and unhealthy.Non-Commercial GoalsBurger king also has many non-commercial goals that are very important. Some of these goals include-Minimising the impact that they have on the environment-Purchasing from national and local suppliers (rather than purchasing from overseas)-Supporting charitable organisations-such as canteen-Supporting and organising local sport- such as theBasketball tournamentThese non-commercial goals require burger king to either donate, blo odline or increase unneeded costs. This contradicts burger kings overall goal of profit maximisation. However, by helping and supporting New Zealand charities and the local community, many members of society may feel loyal to burger king for the good they do, and therefore shop at burger king more often instead of shopping at competitors. scathe strategiesPricing is one of the most important elements for the success for burger king, as it is with hurt strategies that the goals of burger king can be achieved. One price dodge that burger king has in nates is the Burger king Change Range. Burger king reduces the price of singular items e.g. Medium frozen coke from $2.00 to $1.00 BBQ beef burger from $3.50 to $2.00 so customers come into the shop or drive thru for their cheap item and then are offered other even (more expensive) items. Burger king may not be making any profit on the change range items (as the selling price may not be greater than the costs to make it), however the ot her items that customers buy will give burger king increased sales.The negative effects of this price strategy are that it reduces the profit made on the change range items and it could also result in a price war if competitors cut their prices to compete. However, the strategy will satisfy burger kings goals of salesmaximisation and increased market share. If customers buy a significant amount of regular priced items then the price strategy may also satisfy burger kings most important goal of profit maximisation. the consequences on society of this price strategy is the burgers become more affordable, so consumers will spend an increased proportion of their income on these cheapburgers as they are obstetrical delivery more of their income. This can result in health problems and even obesity for some members of society.Non price strategiesNon price strategies are methods other than price reduction that a firm uses to achieve their goals. This involves product variation and product assortediation. harvest-feast variation is the process that highlights and promotes actual differences amongst products. Burger king uses product variation with the walloper burger range. The six burgers vary in size and ingredients e.g. double walloper with cheese, whopper JR without cheese etc. this variation amongst burger kings signature meal, is put in place to compete with competitors (e.g. McDonalds big mac) and to appeal to different tastes and income levels of consumers. Therefore, consumers may spate the whopper variety as the better or the superior option, leading to more sales for burger king. Another way burger king uses product variation is by flame grilling their patties. Burger king has used this non price strategy since its founding in 1954 and is still in use today.By flame grilling their patties, burger king adds a distinct taste to their burgers and appeals to consumers who want a more genuine and traditionally cooked Pattie. This will also increase sales. B urger king uses product differentiation as some of its non-price strategies. Product differentiation is the process in which firms make a product appear to be different from that of competitors. Burger king uses product differentiation with its branding, advertising, sponsorship, promotional material and store locations. For example, burger king uses odd packaging when wrapping their burgers. On the packaging they add the ingredients of the burger, a comment of the burger, the colours that represent burger king (red) and their motto (Taste is king). Without changing the actual product, the packaging makes the burgers appear very different to similar competitors burgers. productivityWith 2 windows burger king on average serves 50 cars per hour. with the added window burger king serves on average 80 cars per hour. when burger king just had two windows customers would pay at the first and then pick up at the uphold window. however, as demand for burger kings meals has increased and burger employees have to prepare more entangled meals, drive thru times have been very slow which means that customers have to wait a long time for their meal and they are less likely to purchase from burger king again. to increase the drive thru speed time burger king has decided to add in an extra pick up window so customers wont have to wait as long. this extra window has had a positive effect on burger king as shown by the 60% increase of cars through the drive thru. although costs increase because of the installation of the new window and one more person is working at the new window, burger kings productivity has increased.Productivity is calculated as outputs divided by inputs. with the added window, burger king has 60% more sales and a small amount of costs (inputs)-wages and installation. making the margin between sales and costs much larger than before the window was added. because of burger kings decision to add the extra window productivity has vastly increased. the con sequence on society of burger kings decision to add the 3rd window is that consumers will spend less time waiting for their burger and therefore get to where they want to be quicker. another(prenominal) effect of the 3rd window is that the queue in the drive thru will be much smaller. if consumers see this small queue they are more likely to buy burger king than if the queue was large. resulting in less available income and in an increase in health problems. the consequences on the workers is that they will have to work faster and harder to keep up with the drive orders. these workers may receive a slightly higher income for the more demanding work they do.