Burger Wars
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The 1980s were dominated by the “cola wars.” While Coca-Cola and Pepsi duked it out for market share in the 1980s, with many casualties on both sides of the corporate battle-front, it is time for the “cola wars” to step aside. The “title” corporate bout of the 1990s seems to have moved from colas to burgers. The “burger wars” of the 1990s have heated up recently, as McDonalds has stalled in domestic sales massive expansions and promotional campaigns, while Burger King has gained market share and increased overall corporate profitability during the same time, “McDonald's stock fell 50 cents to $48.125 in composite trading after the Oak Brook, Ill.-based company said late on Tuesday it was scrapping the promotion for lunch and dinner. It is returning to Extra Value Meal pricing, offering meal combinations starting at $2.99. By comparison, Burger King, a unit of Grand Metropolitan Place has about a 19 percent market share and Wendy’s International Inc. about 11 to 12 percent, he said,” (Commins 1). This analysis and discussion will include a short history on each company, and a comparison and contrast of the following corporate aspects: management strategy; marketing; financial performance. A conclusion will address the likely long-term winner in the burger wars.Since 1937 McDonalds has been the undisputed darling of the fast food industry. In fact with their creative advertising, quality food, finely-tooled operations and
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ar from 18.2 percent a year earlier, while McDonald’s slipped 0.2 percentage point to 42.1 percent,” (Zengerle 1).
When we look at McDonalds’ corporate and culture, their vision statement has produced an enormous amount of success. The components of division statement dictate all management decisions. Even in the midst of their recent woes, McDonalds still posted an increase in overall sales to $10.7 billion in 1996 (Branch 1). The problem is that profitability is down and US sales have come to a virtual standstill. This is because the same management strategy and corporate philosophy that worked for the past three decades is not working currently, especially in light of the companies inability to create any new successful product launches. Thus, the very management strategies that created McDonalds as the industry model of leadership, are the very ones proving unsuccessful in today’s era, “McDonalds’ success is the result of a very strong culture-almost a mystique-that bonds its far-flung franchisees together…McDonalds’ vision statement is Quality, Service, Convenience and Value. These beliefs are McDonalds’ shared value system. They form the basis upon which the company makes all of its business decisions,” (Salva-Rami
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Some common words found in the essay are:
Burger King, Burger Kings, International Inc, Wall Street, Convenience Value, Chicken McNuggets, Deluxe Shares, Coca-Cola Pepsi, King Lear-a, burger king, Jack Greenberg, market share, successful product, burger wars, burger kings, management strategy, corporate culture, product launches, real estate, successful product launches, uniformity standards, leader market share, burger kings share, quality simple pricing, market share profitability,
Approximate Word count = 1850
Approximate Pages = 7 (250 words per page)
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