Phase 4 Ip Mgm 340

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Phase 5 Individual Project
Colorado Technical University
Quatassa Trotter
MGM 340
March 26, 2013

PHASE 5 INDIVIDUAL PROJECT
Abstract
As a consultant for ABC consulting group, I have been assigned an assignment which includes the selection of 2 for-profit firms from the fast-food industry. My firm has been contracted by XYZ Venture Capital Group to give advice about where to make a significant investment. My consulting firm’s depth and analysis will be compared with other consulting outfits to finalize and prepare for the actual investigation. My analysis will be including the following information: * Introduction with the two chosen firms (description)

* Operational objectives (mission statements)
* The specific operational challenges of this industry
* 3 challenges
* Addressed industry challenges for each firm
* Metrics of the industry
* 5 operational metrics
* Conclusions
* Performance
* Applicability elsewhere
* Operations Management techniques

Introduction
My chosen industry is the fast-food industry. The high demand for fast food is connected to urban development. When areas became highly populated, more demands for eating places followed. The roots originated in the Popinas, bread, and wine stands in Ancient Rome. East Asian cities also provided ready-to-eat noodle stalls. The United States is known for being the most notorious for fast food. White Castle restaurant is the first fast food restaurant in the United States. The foundation for the restaurant was in Wichita in 1921. White Castle increased the production of hamburger meat and the demand for development of fast food. (Wilson) The McDonald brothers started their restaurant in 1948. They were the first to invent assembly-line systems. It created a speedee service system. This invention started what is now known as the world’s largest fast-food chain. There are many other fast food places that are in United States in this day in time. Some other places are the following: * KFC

* Wendy’s
* Burger King
* Dairy Queen
* Captain D’s
* Krystal’s
* Zaxby’s
* Hardees’s
* Pizza Hut
* Other local restaurants
Other restaurants that are revolving in today’s society are the type of places that is considered dine-in only. These are places like Ruby Tuesday, Olive Garden, Red Lobster, and etc. The total sales of fast food in America in 2005 were $163.5 billion, and 5.6% of these sales belonged to McDonald’s. For marketing, the fast-food industry spent $4.2 billion plus on TV advertising and other media in 2009. The results of the fast-food industry are not good at all. The world is starting to blame the industry for the exposure to high calories, unhealthy food, marketing aggressiveness to children, and obesity. McDonald’s

McDonald’s was founded in 1948 in San Bernardino, California. The restaurant was managed by Dick and Mac McDonald and under the guidance of Ray Kroc after the two purchased a huge order for 8 multi-mixers from him. In 1955, Kroc founded the McDonald’s Corporation after a long conversation with the two brothers about creating McDonald’s restaurants all over the United States. By the late 1960’s, the franchise grew swiftly with more than 30,000 locations in 122 countries today. In the U.S., there are about 14,000 or 45% of 33,000. McDonalds serve about 58 million customers on a daily bases. (James, 2009)

The market share is use to determine how well a company is doing. As of 2013, McDonald’s (MCD: NYSE) is maintaining their buy rating and $101 price target. They reported that their earnings per share are at $1.38 which is higher by a nickel above their estimate. Their revenue is $6.952 billion which is up 1.9% year-over-year. The same-store sales in the quarter rose by 0.1% on a global basis. Below is a diagram that shows how McDonald’s have progressed in a 5 year period (2006-2011). (Collier, 2013)

Taco Bell
In 1946, a...
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