white castle factors of production essay



Capital items are any tangible property that an company uses to generate goods and services elizabeth. g. complexes, machinery and equipment. By a national level, burger king develops and creates fresh capital products (machinery). For instance , with the try to minimize spend Burger king produced the kitchen minder. The kitchen weniger bedeutend monitors how much sales upon previous days and nights and quotes how many patties, french fries and other ingredients burger king will need to prepare. This minimises squander significantly and so reduces costs.

with lowered costs the difference between sale price and costs will increase meaning white castle has increased revenue. Another very important capital great is the fire broiler. The flame broiler is a capital good because it is a piece of machinery used to produce other merchandise. At a national level, burger king developed the new broiler to decreases energy costs, labour costs and to boost the flavour of patties.

Since these broilers don’t operate all day and use fuel efficiency the average restaurant can save up to 40% in its month to month energy costs, Making it useful to install and invest the broilers into New Zealand burger king eating places.

For a local level the flame broiler is continually used which is managed properly. Staff must put the essential numbers of patties (as indicated by the kitchen minder) onto the broiler tray and be on the broiler. The patties are then stored in heated containers and are ready to help to make burgers. In case the patties are generally not used up within just ten mins then they has to be thrown out. Even though the patties will be physically thrown out at an area level, time of if you should throw all of them out (ten minutes) is decided at a national level.

The consequences in society of burger kings decision to work with the new fire broiler is the fact burger king consumers (particularly earlier customers) may not like the fresh flavour of the patties and may stop eating for burger king. nevertheless it is more likely that members of society will love the new patties and therefore purchase more of burger kings dishes. burger kings decision to throw out 15 minute older patties will likely mean culture will take in more burger king as the burgers will be fresher. consequently burger king has a negative impact on the health of world. the new fire broiler has a positive effect on the workers as it may be easier and less time-consuming to operate the broiler, leading to less help employees.


Land is definitely a important factor of production since it is with terrain that burger king can works its organization. At a national level burger king need to make important decisions about which will piece of land will ultimately give the most income e. g. airports, schools and sites close to well-liked attractions, are typical sites that usually provide various sales. The hillcrest burger king is strategically situated on an elevated parcel on cambridge road in order that the large number of cars that go by can easily see the burger king restaurant. If persons see the store, it is likely they are tempted to acquire from burger king.

Therefore the even more people that view the shop, the more revenue and profit that burger king will receive. the consequences about society of the strategic placement is that the numerous cars that drive in cambridge street are likely to eat burger king more frequently more and for that reason have elevated health problems. Yet another way that burger king manages their land at a national level through choosing just how much space the auto park, consuming lobby, storage etc . occupies. Nationally, burger king has made a decision to remove most of the restaurants perform grounds. The benefits of this decision are that burger king can sell the recreation space to increase earnings and can put the extra property to very good use elizabeth. g. make use of the extra area to build a backyard eating area. The bad effectsof taking away the playgrounds is that white castle will not appeal to young children, resulting in less families eating at burger king and therefore a decrease in sales, revenue and profit intended for burger king. the outcomes on culture of the decision to add an outside eating area is that consumers will be able to consume in fresh air so some consumers may have a greater consuming experience.

This outdoor eating feature may appeal for some members of society meaning that consumers is going to buy even more burgers, resulting in an increase in medical problems for culture. by not having playgrounds significantly less young children are going to eat for burger king that can result in a rise in the health of children. At a local level, the management of the land can be split into two parts: administration outside the cafe and supervision inside the restaurant. Outside the cafe, burger king is going to clean graffiti of their restaurant and away all their adverts and also get rubbish off nearby walkways.

This will maximize labour andcleaning costs pertaining to burger king. inside the restaurant, burger king locally need to manage the cleanliness with the land. therefore making sure the ground is always spending dry, the toilets will be clean and there is not any chewing gum or other food stuck to tables. burger king takes sanitation serious since if the environment in which consumers eat is definitely healthy and clean the clients are likely to still shop by burger king, resulting in an increase in earnings. the consequences in society of burger nobleman local cleaning decisions is the fact consumers will not be put off by rubbish and graffiti that will have been associated with burger king and therefore be more likely to eat in burger king. additionally, it means that the environment around burger king will be solution and more reputable.


Labour resources would be the workers/employees which might be needed to operate a business. in a countrywide level burger king develops a training programme‹to educate and teach new staff about what isrequired and anticipated of them. new staff must spend 30 days practising each and every station when under direction of the manager e. g. practising with the cashier, cleaning implement, making burgers etc . white castle invests lots of time into the schooling of their fresh staff so they do not need to become constantly closely watched and that they have the ability to work quickly and at an increased standard each and every station. country wide, burger will even determine how many workers are needed every restaurant. for example , hillcrest burger king is relatively significant compared to additional burger king restaurants and therefore it is likely that will have need to know more staff (total of 39 staff on their roster). by a local level, the supervisor will make decisions and designate important tasks to employees (depending about how busy it is) to ensure that each employee is doing work at a specific stage from the manufacturing process.

This is certainly specialisation. since the worker does their specific process over and over again they will become more experienced and more successful, resulting in a rise in productivity and economies of scale (where a firm’s output raises, the average price per unit produced falls). to keep up with purchases, the manager may get in touch with employees and also have them act on an even more specific task from the manufacturing process elizabeth. g. one particular person food preparation the patties, 1person putting the fillings in and another person wrapping, rather than having just one person doing almost everything. this improves specialisation. by having more personnel, labour costs will increase, although burger king will be able to produce foodstuff much quicker and keep while using orders. this will result in a reputation of quick support which means customers are likely to returning. at a national level burger king features decide to possess on call staff. if organization is slow, the local supervisor may decide to give some personnel home (as they are unnecessary as much) thus, reducing labour costs.

If organization is quickly, the local administrator may decide to call in workers. this can be flexible labour. the consequences on society of burger kingsdecision for workers to only focus on one area of the production method (specialization) has had a positive influence on some members of culture but an adverse effect on employees. the positive impact on society is that consumers will receive a greater quality product and perhaps they are likely to obtain their burgers faster. (due to workers attaining more experience). however the unfavorable effect on the workers is that could become very uninterested while functioning (as they may have little variance in their task). burger kings decision to obtain flexible work has also a new negative effect on the workers since it is harder for them to make a schedule and they may be interrupted when doing anything important


Entrepreneurship may be the ability to have risks and organise all the other resources and factors of production. by a national level, all the decisions that burger king makes are entrepreneurial decisions electronic. g the decisions with regards to land, labour and capital. however , white castle will teach the local managers to ensure their particular decisions involving the business happen to be beneficial and ultimately successful for burger king. this extra training for managers is an increased cost to get burger king yet , it is likely that time invested in to the mangers will probably pay off mainly because they will make smarter decisions about burger nobleman local operations. at a nearby level entrepreneurship is maintained by the manager. the manager must make decisions about what will give burger the most profit. for instance , if staff are making and serving burgers before the required time, the manager will certainly callin staff meetings to discuss the problem as to the reasons production is usually slowing down.

With all the extra training that white castle provides the managers with, the manager must be able to solve the condition. the manager could make changes in the production process or personnel roster or perhaps the manager could even decide to put off staff. it is also the area managers decision and responsibility as to if some personnel get a advertising and/or pay out rise. marketing promotions act as a motivation to employees to function more proficiently and effectively. the more effective the staff happen to be, the more earnings that white castle will receive so that it is worthwhile to offer promotions and pay rises. the results on culture of these entrepreneurial decisions is the fact customers will probably get a more expensive meal and a more rapidly.

Commercial Goals

All manufacturers have desired goals. Burger king’s overall goal is to increase profits. However , to maximise income, burger king recieve more commercial goals such as: -Sales maximisation- each time a firm would like to sell whenever possible without making a loss. -Increased marketplace share- every time a firm desires a greater reveal of the industry e. g. dominating the fast food sector.

-Cost reduction- when a company wants to cure the cost of many without producing a loss (increasing the margin among sale value and price per product). -Business expansion- when a firm wants to increase the number of shops that buyers can buy from.

Burger kings goal of business expansion has had positive and negative consequences upon members of society. Hamburger king’s organization expansion in a negative way affects additional smaller take out business elizabeth. g.

Local seafood and chip shops because some customers will swap buying by small businesses and begin buying on the new white castle. The lack of product sales for these smaller businesses (caused simply by burger king) will result in significantly less revenue and profit. This can even result in the closure of small businesses and then the government might have to provide more benefits to get the out of work. Although hamburger king’s organization expansion has had a huge adverse effect on small local businesses, it has a great effect on localunemployed citizens (particularly students). Because new eating places are launched, staff and managers are essential for the running of the restaurant; this kind of creates new job possibilities and therefore income for some people of society. If burger king expands it is business, even more fatty meals will be available for society. This can be a negative effect on society while more persons will become heavy and harmful.

Non-Commercial Goals

Burger king also has many non-commercial goals that are extremely important. Some of these desired goals include:

-Minimising the impact that they have for the environment

-Purchasing via national and local suppliers (rather than getting from overseas)

-Supporting charitable organisations-such as canteen

-Supporting and getting local sport- such as theBasketball tournament

These kinds of noncommercial desired goals require burger king to possibly donate, finance or enhance unneeded costs. This contradicts burger nobleman overall target of income maximisation. However , by supporting and promoting New Zealand charities and the local community, various members of society may feel devoted to white castle for the great they do, and thus shop in burger king more often instead of buying at competitors.

Price tactics

Pricing is one of the most important elements for the success intended for burger king, since it is with value strategies that the goals of burger king could be achieved. One price strategy that burger king has in place is the ‘Burger king Modify Range’. White castle reduces the cost of singular things e. g. Medium frozen coke from $2. 00 to $1. 00 BBQ beef cheese burger from $3. 50 to $2. 00 so consumers come into the shop or perhaps drive thru for their low-cost item and after that are offered different regular (more expensive) items. Burger king is probably not making any profit for the change range items (as the value may not be higher than the costs to create it), however the other items which customers purchase will give burger king increased sales.

The negative effects of the price strategy are which it reduces the money made for the change range items and it could likewise result in a cost war if competitors slice their prices to remain competitive. However , the strategy can satisfy burger kings goals of salesmaximisation and increased market share. If customers acquire a significant quantity of regular costed items then this price approach may also satisfy burger king’s most important aim of earnings maximisation. the results on world of this price strategy is definitely the burgers are more affordable, so consumers is going to spend an increased proportion of their income about these cheapburgers as they are saving more of their income. This may result in medical problems and even weight problems for some people of contemporary society.

Non price strategies

No price approaches are methods other than selling price reduction which a firm uses to achieve their particular goals. This involves product variant and merchandise differentiation. Item variation is definitely the process that highlights and promotes genuine differences between products. White castle uses item variation together with the whopper burger range. The six hamburgers vary in size and substances e. g. double whopper with dairy products, whopper JR without mozzarella cheese etc . this kind of variation amidst burger kings signature meals, is set up to compete with competitors (e. g. McDonald’s big mac) and to appeal to different tastes and cash flow levels of customers. Therefore , consumers may see the whopper range as the better or the superior alternative, leading to even more sales pertaining to burger king. Yet another way burger king uses product variant is by fire grilling their very own patties. White castle has used this kind of non selling price strategy as its founding in 1954 which is still used today.

By flame barbecuing their patties, burger king provides a distinct flavor to their hamburgers and interests consumers who wish a more legitimate and usually cooked Pattie. This will can also increase sales. White castle uses item differentiation like a of their non-price approaches. Product differentiation is the method in which businesses make an item appear to be unlike that of competition. Burger king uses product difference with its personalisation, advertising, sponsorship, packaging and store locations. For example , burger king uses one of a kind packaging once wrapping all their burgers. Around the packaging they will add the constituents of the cheese burger, a description with the burger, the colours that represent burger king (red) and their motto (Taste is king). Without changing the actual merchandise, the packaging makes the burgers seem very different to similar competitor’s burgers.


With a couple of windows white castle on average provides 50 cars per hour. while using added windowpane burger king serves on average 85 cars each hour. when burger king just got two house windows customers might pay on the first and after that pick up on the second windowpane. however , while demand for hamburger kings dishes has increased and burger employees have to prepare more complex dishes, drive thru times have already been very slow which means customers have to wait quite a while for their meals and they are less likely to purchase by burger king again. to increase the drive thru speed period burger king provides decided to include an extra pick up window thus customers will not likely have to wait around as long. this kind of extra windows has had an optimistic effect on burger king as displayed by the 60% increase of cars throughout the drive through. although costs increase as a result of installation of the new window and one more person is operating at the fresh window, cheese burger kings output has increased.

Productivity can be calculated because outputs divided by inputs. with the added window, burger king has 60% more product sales and a bit of costs (inputs)-wages and assembly. making the margin among sales and costs much bigger than before the window was added. as a result of burger nobleman decision to incorporate the extra windowpane productivity offers vastly elevated. the result on world of burger kings decision to add the 3rd window is the fact consumers will certainly spend less time waiting for their burger and so get to where they want to become quicker. one other effect of the next window is that the queue inside the drive through will be smaller. if customers see this kind of small queue they are very likely to buy burger king than if the queue was large. causing less throw away income and in an increase in health problems. the consequences for the workers is they will have to operate faster and harder to perfectly keep up with the drive orders. these personnel may obtain a slightly bigger income for the more demanding work they do.