Burger King Factors Of Production
Capitol
Capital goods are any tangible assets that an organisation uses to produce goods and services e.g. buildings, machinery and equipment. At a national level, burger king develops and creates new capital goods (machinery). For example, with the aim to minimize waste Burger king developed the kitchen minder. The kitchen minder monitors the amount of sales on previous days and estimates how many patties, fries and other ingredients burger king will need to prepare. This minimises waste significantly and therefore reduces costs. with reduced costs the difference between sale price and costs will increase meaning burger king has increased profits. Another very important capital good is the flame broiler. The flame broiler is a capital good because it is a piece of machinery used to produce other goods. At a national level, burger king developed the new broiler to decreases energy costs, labour costs and to enhance the flavour of patties. Because these broilers don’t run all day and use less fuel the average restaurant can save up to 40% on its monthly energy costs, Making it worthwhile to install and invest the broilers into New Zealand burger king restaurants. At a local level the flame broiler is constantly used and is managed carefully. Staff must put the required numbers of patties (as indicated by the kitchen minder) onto the broiler tray and turn on the broiler. The patties are then stored in heated containers and are ready to make burgers. If the patties are not used up within ten minutes then they must be thrown out. Although the patties are physically thrown out at a local level, the time of when to throw them out (ten minutes) is decided at a national level. the consequences on society of burger kings decision to use the new flame broiler is that burger king customers (particularly past customers) may not like the new flavour of the patties and could stop eating at burger king. however it is more likely that members of society will enjoy the new patties
Capital goods are any tangible assets that an organisation uses to produce goods and services e.g. buildings, machinery and equipment. At a national level, burger king develops and creates new capital goods (machinery). For example, with the aim to minimize waste Burger king developed the kitchen minder. The kitchen minder monitors the amount of sales on previous days and estimates how many patties, fries and other ingredients burger king will need to prepare. This minimises waste significantly and therefore reduces costs. with reduced costs the difference between sale price and costs will increase meaning burger king has increased profits. Another very important capital good is the flame broiler. The flame broiler is a capital good because it is a piece of machinery used to produce other goods. At a national level, burger king developed the new broiler to decreases energy costs, labour costs and to enhance the flavour of patties. Because these broilers don’t run all day and use less fuel the average restaurant can save up to 40% on its monthly energy costs, Making it worthwhile to install and invest the broilers into New Zealand burger king restaurants. At a local level the flame broiler is constantly used and is managed carefully. Staff must put the required numbers of patties (as indicated by the kitchen minder) onto the broiler tray and turn on the broiler. The patties are then stored in heated containers and are ready to make burgers. If the patties are not used up within ten minutes then they must be thrown out. Although the patties are physically thrown out at a local level, the time of when to throw them out (ten minutes) is decided at a national level. the consequences on society of burger kings decision to use the new flame broiler is that burger king customers (particularly past customers) may not like the new flavour of the patties and could stop eating at burger king. however it is more likely that members of society will enjoy the new patties