Operation Management - Study Material on KFC and Burger King in New Zealand

This study material explores the operation management of KFC and Burger King in New Zealand. It covers their location, customer purchasing process, non-value added activities, and recommendations for improvement. The article also identifies the operations management concept of both companies. Course code, course name, and college/university are not mentioned.

Running head: OPERATION MANAGEMENT
Operation Management
Name of Student
Name of University
Author Note

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OPERATION MANAGEMENT
Table of Contents
Location of the stores and the reason for its choice...................................................................2
Process of customer purchasing a meal.....................................................................................2
Sketching a layout of the customer travels................................................................................3
Flowchart of the customer movement........................................................................................4
Experiences of the non-value added activities...........................................................................4
Recommendation........................................................................................................................5
Identifying operations management concept.............................................................................5
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7

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Location of the stores and the reason for its choice
KFC in New Zealand was established in 1971, with the inaugural store opening in
Auckland. Currently the company has expanded to over 98 locations all across the country so
that people from all over the country can be served with the best quality food. A range of new
products as well as the original products is used to serve the people in the country. The reason
behind choosing Auckland as the initial location to launch the company is that business can
be conducted easily from Auckland, as it is one of the most developed cities in the country
(Kfc.co.nz, 2018).
Burger King opened its first restaurant in New Zealand in 1993 in Wellington. It is
known to deliver the best quality of burgers at a low cost for the satisfaction of the people.
The reason for setting up the company in the business in Wellington so that the political
support from the Government can be gained. Countrywide New Zealand has over 83 outlets
of Burger King with over 2,600 employees. The opening up of the store in Wellington can
help the company gain proper access to the people and ensure that satisfaction level is
maintained in the outlets (Burgerking.co.nz, 2018).
Process of customer purchasing a meal
The process that customers need to follow while purchasing a meal in KFC is based
on the discipline manner of the customers. It is essential that customers order for the food and
wait for their turn to be served. As observed by Haksever and Render (2018) providing a
proper service to the customers is essential for gaining the interest of the people. This can
help in ensuring that the customers to understand the process followed and ensure that every
meal is served properly. The customers are provided with the meal and self-service method is
undertaken for the consumption of the meal.

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In the case of Burger King, the company provides opportunity to the customers to
select the menu while remaining at the seats. The customers are provided with an easier
method of ordering food (Walker et al., 2015). The food ordered by the customers is served
to the people after having to wait for a minimum time required for the manufacturing of the
food. Therefore, it can be said that the customer service method of Burger King is more
subtle and discipline than KFC. The customer satisfaction method of Burger King is effective
in gaining the trust of the people.
Sketching a layout of the customer travels
Figure 1: Layout of customer travels in KFC
(Source: Created by author)
Figure 2: Layout of customer travels in Burger King
(Source: Created by author)
CustomerplacesorderOrdergetstakenforwardCustomerreceivestheorderbyself-serviceCustomerplacesorderOrdergetstakenforrwardviacomputerisedprocessOrdergetsconfirmedbytheorganisationCustomerisprovidedtheorder

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Flowchart of the customer movement
Figure 3: Customer movement
(Source: Created by author)
Experiences of the non-value added activities
According to Hitt, Xu and Carnes (2016), on-value added activities refer to the flaw
that exists in a particular service. In the case of KFC and Burger King, the non-value added
activity is mainly based on the customer satisfaction and the manner in which the food
ordered by the customers reaches the intended target. In this regard, it can be said that for a
company like KFC, the non-value added activity adds to the cost of conducting business.
Inspection of the conditions of the company is undertaken that helps in creating awareness
about the staffs about cleanliness. For customers the non-value added activity includes
ensuring healthy products.
The non-value added activity of Burger King, involves identifying the steps that help
in transforming an idea into competition. One of the reasons for Burger King to be at the top
of the fast food retail chain is that the company provides extensive competition to other
Conductaproperanalysisabouttheorganisations(Esttime:3months)SetleuponaneffectiveservicetrendAftervisitingthestoreplacetheorder(Esttime:3minutes)Waitfortheordertobesrved(Esttime:Variesdependingontheorder)Providenecessaryfeedbackabouttheexperience

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similar industries. This can be evidenced from the fact despite being established after 22
years since the introduction of KFC, Burger King have managed to outgrow the company in
New Zealand (Bromiley & Rau, 2016). The quality of the food served and the manner in
which customers are satisfied help in creating a positive notion for the value added of the
staffs.
Recommendation
Based on the research conducted certain recommendations can be made that can help
in improving the activities of KFC and Burger King. One such recommendation for KFC is to
be more competitive in the business. Innovation can lead to major success and KFC can
innovate the business process by introducing various other food products that may attract the
customers.
At the same time, Burger King needs to ensure that extra pressure does not hinder the
potential creativity of the people. This can help the company to remain competitive and at the
same time ensure that the non-value added activity of the organisation gain popularity within
the people in the organisation. Therefore, it can be said that undergoing these changes can
help Burger King as well as KFC to maintain their positions in the market.
Identifying operations management concept
As stated by Smith, Maull & Ng (2014) operations management consists of creating a
business practise that involve the highest level of efficiency. This helps in understanding the
materials and resources required for the completion of the highest order of service and ensure
that customer satisfaction takes place. In the case of KFC, the operations management of the
company is that it provides opportunities for the development of the employees as well as
provides customers with the best quality of the type of food that it serve.

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In the case of Burger King, the operations management is based on maximising the
profit of the organisation (Mahadevan, 2015). The operations undertaken such as identifying
the target market as well as identifying the strengths and weakness of the staffs help Burger
King to maintain its position in the competing business of New Zealand.
Conclusion
Therefore, it can be concluded that despite being reputed restaurants in its respective
supply of food, KFC and Burger King need to maintain and manage proper operation concept
for success. The fact that both the organisations aim at providing satisfaction to the customers
help in identifying the level of profit that can be gained. The simplicity, with which
customers are served the food, provides both organisations with an opportunity to remain
dominant in the restaurant industry of New Zealand.

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Reference
Bromiley, P., & Rau, D. (2016). Operations management and the resource based view:
Another view. Journal of Operations Management, 41, 95-106.
Burgerking.co.nz (2018). Retrieved from http://www.burgerking.co.nz/
Haksever, C., & Render, B. (2018). Service and Operations Management. World Scientific
Books.
Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations
management research. Journal of Operations Management, 41, 77-94.
Kfc.co.nz. (2018). Retrieved from https://www.kfc.co.nz/
Mahadevan, B. (2015). Operations management: Theory and practice. Pearson Education.
Smith, L., Maull, R., & Ng, I. (2014). Servitization and operations management: a service
dominant-logic approach. International Journal of Operations & Production
Management, 34(2), 242-269.
Walker, H., Chicksand, D., Radnor, Z., & Watson, G. (2015). Theoretical perspectives in
operations management: an analysis of the literature. International Journal of
Operations & Production Management, 35(8), 1182-1206.