Burger King, on the other hand, has been lagging in menu innovations according to Morrison Because of this, standing out in the marketplace and offering a good Customer Value Proposition CVPsomething that is seen as unique and valuable among consumers, is crucial for Burger King.
According to HorovitzMcDonalds has been aggressively introducing new menu items while Wendys has been attempting to reinvent themselves as a higher-end hamburger chain.
It appears then that the strategy is working, but time will tell if this increase is due to a truly successful turnaround strategy or just a temporary fix due to customer curiosity. In order to determine what customer value, Burger King conducted extensive survey research.
In terms of U. Unfortunately, the lackluster financial performance of Burger King in recent years can be tied to their lack of an effective CVP. Customer Value Proposition The fast food industry is extremely competitive and has low barriers to entry. Learning and growth measures were also implemented to further empower franchisees to improve their internal operations and serve the customer better.
However, this CVP has faltered in recent years as the nations dismal economic performance has affected the incomes of this target group. A big part of this store renovation was a focus on store cleanliness, as there had been extensive customer complaints. Burger King is also in the preliminary stages of developing a secondary CVP of convenience with the rollout of the BK Delivers delivery service earlier this year.
Some of the new products, such as the snack wraps, were made to give customers snacking options at non-meal times. In addition, upgrades to improve the dining experience itself, such as softer tables and chairs that can move instead of being cemented to the ground, were implemented.
According to HorovitzSteve Wiborg, the executive vice president and president of North America operations, stated that consumers said they wanted more choices at Burger King, but that they wanted them to be best in class. Overall Critical Strategic Analysis of Burger King We found that the turnaround strategy focused on improving shareholder value by creating a new Customer Value Proposition CVP supported by a new menu and marketing communications campaign, as well as overhauling their internal operations to successfully fulfill this new CVP.
In addition, Burger King completed several international development agreements that are an important part of their financial growth strategy. Though these things are secondary to the food, the in-store experience is something that many consumers take into consideration when choosing a fast food restaurant, and should be considered as an improvement in customer value.
Over the course of a year, the company tested out many potential new products, ultimately settling on 10 new items to introduce. Like many fast food chains, Burger King had long targeted young men with their hamburgers, most notably the Whopper Morrison, In their 3rdquarter report, Burger King stated that for the 3 months ending on September 30,system wide sales growth was 1.
In addition, Burger King has attempted to enhance the in-store customer experience through a complete renovation of their stores, including enhancements like digital menu boards, new uniforms and new packaging. The company sought to create a CVP focusing on a diverse and healthy product selection with the introduction of many new menu items including smoothies, frappes, and salads.
The new product introductions were supported with new marketing communications, primarily commercials featuring celebrities such as Steven Tyler, Mary J Blige, and Sofia Vergara.
Initially offered in Houston, Miami, and Washington D. The companys financial statement quotes The strength of our menu has been built on the brand equities of allowing consumers to customize their hamburgers their way and using our distinct flame-grilled cooking platform to make better tasting hamburgers Form K Annual Report, After reviewing Wendy’s business practices and associated strengths and weaknesses, the strategic objectives among the four perspectives of the balanced scorecard and strategy map inclusive of financial, customer, internal (operations), and learning and growth that Wendy’s needs to focus on to achieve its vision of growing stakeholder value.
Balanced Scorecard Wendy’s International, Inc. was inducted into the Balanced Scorecard Hall of Fame in The Company was selected by Dr. Robert Kaplan (Harvard) and Dr. David Norton, creators of the Balanced Scorecard concept and directors of the Balanced Scorecard.
Wendy’s AnalysisKhalid Al-Ajmi Neil Commerce Terrell Matthews Anil K Cheerla MBAD Strategic Management Professor Gary Bojes 1. At Wendys International one of the worlds largest restaurant operating and Balanced Scorecard does not exclude other methods of business reporting or RMIT International University Vietnam, Hanoi ACCT - Summer ABO-Topic 4 Interteaching -w 81 pages.
Deviations from expected or planned results causes the business units. What is the Balanced Scorecard Kaplan of Harvard University and Dr.
David Norton as a framework for measuring organizational performance using a more BALANCED set of performance measures. Traditionally companies used only short-term financial performance as measure of success.
The “balanced scorecard” added additional non-financial. Burger King Strategic Analysis with Balanced Scorecard. Essay Info: words. the chain has been struggling financially; it recently ceded the title of second largest fast food chain to Wendys (Patton, ).
This can be attributed to several things, including changing consumer preferences, a non-competitive customer value proposition.Download