Business Analysis-Visio Assignment
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visio_assignment_example_1.docxProduct Development
McDonalds vs. Burger King: Product Development
The introduction of a new product in any industry is expensive, time consuming, and risky. If a new product fails in the market it is extremely costly for a company however if the product works then it is very profitable. McDonalds and Burger King are major rivals in the fast food industry. They compete with each other on a daily basis regarding food quality, taste, product offerings, customer service, price and much more. Each company has their own unique steps in the development of new products.
When a new product idea is introduced it is sent to the main headquarters via phone call, email, texting for approval by the chef. At that time the chef will create a recipe that is tasteful, quick to make, and inexpensive. At this point if those three criteria are not met the chef will trash this idea. If it is approved it goes through taste testing, then moves on to the innovation center. At this point McDonald’s employees actually try to make the product within 90 seconds which is a set standard for McDonalds (Berman & Marsh, 08). They even hire people to play customers for the day. The customer goes through the entire ordering process to verify times are on and to see if there could be any changes to make the procedure more efficient. Once the product finishes this stage and is approved it moves onto the marketing strategy. This includes finding a market for the product, a location, and advertisement. After the marketing is complete the product is finally introduced. The network diagram goes along with this process because all of these items are used in marketing and communication. The cash register is used during the product innovation stage.
Next is the flow chart depicting Burger Kings process in new product development.
A new idea at Burger King is sent to the Test Kitchen where the item is developed. Once it has been verified that the product can be made with current Burger King equipment, the recipe is created. This is completed by using all quality products and a reasonable cost then the product is tested again. If it is deemed as a profitable product members begin the marketing strategy. Once this is complete the new product is introduced to the selected market.
The biggest difference between McDonald’s product development and Burger King’s is that McDonalds has an Innovation Center that is immaculate. Burger King has test kitchens but they are not near as elaborate as McDonalds. This is probably why Burger King has had some major flops in the past few years. However, after researching these two companies Burger King is showing promise of catching up to McDonalds.
References
Berman, J., & Marsh, M. (08, 20110 20). Mcdonald's kitchen lab puts new products to test. Retrieved October 3, 2010, from http://abcnews.go.com/Nightline/mcdonalds-tests-recipes-taste-speed/story?id=11444997
Brush, M. (2012, 07 03). Why burger king is no big mac. Retrieved October 5, 2013 from http://money.msn.com/investing/why-burger-king-is-no-big-mac-brush.aspx
Fortune 500. (2013). Money.cnn.com. Retrieved September 17, 2013, from http://money.cnn.com/magazines/fortune/fortune500/
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Router Wifi Smart Phone Laptop Switch Tablet Cash Registers Switch Server PCs Printer Phone McDonalds Network Diagram
Burger King New Product Introduction Flow ChartNew Product IdeaTest KitchenApproveEndRecipe CreatedTaste TestingApproveEndMarketing StrategyProduct IntroductionNoYesNoYes
Burger King New Product Introduction Flow Chart New Product Idea Test Kitchen Approve End Recipe Created Taste Testing Approve End Marketing Strategy Product Introduction No Yes No Yes
RouterWifiSmart PhoneLaptopSwitchTabletCash RegistersSwitchServerPCsPrinterPhoneBurger King Network Diagram
Router Wifi Smart Phone Laptop Switch Tablet Cash Registers Switch Server PCs Printer Phone Burger King Network Diagram
McDonalds New Product Introduction Flow ChartNew Product IdeaMain Headquarters for testingApproveEndRecipe CreatedTaste TestingApproveEndInnovation CenterProduct TestingApproveSave for future creationMarketing StrategyProduct IntroductionNoYesNoYesNoYes
McDonalds New Product Introduction Flow Chart New Product Idea Main Headquarters for testing Approve End Recipe Created Taste Testing Approve End Innovation Center Product Testing Approve Save for future creation Marketing Strategy Product Introduction No Yes No Yes No Yes
RouterWifiSmart PhoneLaptopSwitchTabletCash RegistersSwitchServerPCsPrinterPhoneMcDonalds Network Diagram
