Develop Good Business Sense

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Developing Good Business Sense
Brandon M. Tate
February 27, 2011
Gabriel Perkins

Developing Good Business Sense
I have chosen to compare three different fast-food restaurants for this project; Stogey’s, McDonald’s and Burger King. I will discuss the differences in the input, operations and output stages of these companies. I will explore the various components of the OMM costs these companies have and how they affect their OMM operations. I will also discuss how companies design their own operating systems to give them a competitive advantage. Finally, I will identify the sources of operating costs and how they can impact these companies profitability (Jones, 2007).

Burger King and McDonald’s are both global franchised chains, while Stogey’s remains a privately owned family business which currently operates in only one location in Joplin, Missouri. All three restaurants primarily sell hamburgers and french fries. Burger King and McDonald’s works with hamburger beef producers and bun manufacturers to ensure the fast food it produces is as fresh as possible; McDonald’s supplier’s conduct over 2000 quality checks of their beef patty’s daily (McDonald's Corporation 2008). Their use of suppliers rather than their own plants keeps the cost low, and they avoid plant and capital costs. Stogey’s uses 100% beef patties free of fillers and preservatives. Stogey’s own butchers remove the bones, grind the meat, and make it into hamburger patties.  Stogey’s also makes their own hamburger bun’s fresh every single day. This could potentially cost Stogey’s more due to additional overhead and capital costs. All three restaurants rely on delivering great tasting fast food quickly at a good price to their customers.

Stogey’s, McDonald’s and Burger King all use the just-in-time system to keep their food and produce fresh, this ensures it is delivered fresh to their restaurants on a consistent basis. This system lets the inputs and...
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