The Founder Assignment PDF

Preview

Summary

Questions about the movie the founder...

Description

The Founder -Movie- Assignment Paola Orozco – A01227733 According to the first 30 minutes of the movie “The founder” watched in class, if you did not watch it in class you can always watch it on your own, as it is available in Netflix and so many other streaming movies channels, answer the following questions: 1. Identify the competitive advantages mentioned by Ray Kroc on the multi milkshake blender machine he was trying to sell at the very beginning of the story.  In general, he said that if you increase the offer, the demand would follow. He illustrated this idea by using the theory of the chicken and the egg. According to Ray, the restaurants weren’t selling a lot of milkshakes because the costumer already knew that it would take a lot of time to make them and they believed it wasn’t worth the wait. However, he believed that if the milkshakes were prepared faster (increase the offer) the restaurant would sell more milkshakes (the demand would increase). 2. Identify the strategy the McDonald’s brothers had to take in terms of the product mix they offered in the original menu, what was the percentage in sales made by how many products? What was the product assortment they kept in the fast food style of their restaurant?  As the restaurant was up and running, out of their whole menu, they discovered that approximately 87% of their sales came from hamburgers, French fries, and soda. With that said, they believed it would be a better strategy to focus on what sells and concentrate in only selling those three products and make them the best they can be. So now, instead of having a wide variety of 27 products, they now sold only their cash cows (best sellers) and few additional items such as milkshakes and coffee. 3. How many challenges, and briefly explain what does where, that they had to face in developing their “new product”, meaning, the new McDonald’s Restaurant in San Bernardino.  At first, they faced many challenges starting with the start up costs. They couldn’t afford to buy a new restaurant, so they decided to move the whole thing to San Bernardino (cutting it in half so it could fit under the bridge). After their first concept, they decided many things were extra and causing huge expenses. The McDonald brothers noticed that a lot of their staff where not necessary, paper plates and wrappers were much better and the concept of taking your order at your car resulted in long waiting time and wrong orders. Also, they said that most of their sales were based on three items: hamburgers, French fries, and sodas. Consequently, they implemented new changes that

The Founder -Movie- Assignment Paola Orozco – A01227733 came with many challenges because they underestimated the learning curve. However, the changes came with internal and external problems. Internally, it was a huge disaster at first trying to coordinate all the staff within the kitchen. They had to rehearse in a tennis court to make sure it worked perfectly. Externally, a lot of their customers didn’t understand that they had to get out of their car to place their order by themselves. A lot of confusion was caused. However, after their big re-inauguration (which was a fail too due to the flies), a lot of people started coming to the restaurant and it became a huge success. 4. Why they decided not to go for the “drive-in/take to your car” business model?  As I mentioned before, they notices that the drive-in/take to your car” business model consisted in many flaws. The first one was the long waiting time. Waitresses took time to walk (or skate) all the way to your car and back at the kitchen to place your order. Additionally, most of the time, the waitress made mistakes in your order and the customer ended with other products. 5. In your own words, and based on the competitive advantages identified on this New Business Model of McDonald’s, write down a Positioning Statement based (as always) on the Golden Circle.  They decided to focus first on the why, then the how and finally the what. The why is the motivation or reason they were doing it. The value added in this business model is time, effectiveness, consistency, and high quality. The customer now had a family experience where everyone could enjoy a delicious meal together without order mistakes or long waiting time. The how, or the process to achieve such experience was through their new “fast-speed” system they implemented in the McDonalds restaurants. Finally, the what, or the product, came at the end. They saw how their 87 percent of their sales were based on three items and decided to focus on what sold more. Personally, I think is an excellent business model, really innovative and consistent....