Burger king case analysis

592 Case Studies was open air. The entire space on the fourth and fifth floors was devoted to individual rooms with a communal shower- toilet area in each wing. Altogether, the building contained 244 individual units for residents: 32 on the third floor, 93 on the fourth, and 119 on the fifth. These were approximately 8 by 10 feet in dimension (or 75 square feet) and did not offer air conditioning, running water, or toilet facilities. During the summer months, the top floors were rather uncomfortable. Rental rates were $48 a week or $204 per month. Approximately 99 percent of all persons utilizing the Physical Fitness Center, including the swimming pool and gym, were civilians. Only 30 percent of the YMCA residents were members of the military. The remaining resident mix consisted of a variety of transients, including young, low-budget backpacker tourists; older seasonal tourists whose primary source of income was social security; single men who were seeking employment in Hawaii; and others who exhibited drug- or alcohol-related problems. A few residents remained for months at a time , but most remained for less than two weeks. The mix of tenants and residents in the building necessitated the employment of a full-time security officer and the use of surveillance TV cameras at critical spots within the building, such as doors leading to the female quarters. Unfortunately, the problems faced by many of the residents had led to several suicides or attempted suicides in the past years, including cases where residents leaped from their rooms. Description of the Armed Services YMCA Organization The Armed Services YMCA , a nonprofit organization, served as a department of the National Board of YMCAs throughout the United States. Its central mission was viewed as providing temporary lodging, recreation, and education for members of the U.S. military and their dependents. Special attention was directed to the military of junior ranks; nevertheless, all ranks were welcome. In total there were twenty-three branches of the Armed Services YMCA throughout the United States, with headquarters in New York City. There were also two branches in the Canal Zone and one branch located in Scotland. The Honolulu Armed Services YMCA was the only branch established in Hawaii. There were three other YMCAs in Honolulu, but none of these belonged to the Armed Services Department nor did they share the same stated objectives. Although the primary mission of the Armed Services "Y" was to meet the needs of the military, in recent years it had taken on a broader responsibility of serving the community at large, as long as those activities did not interfere with the central mission of serving the military. ••• DISCUSSION QUESTIONS 1. 2. What do you think of the concept of converting the top two floors of the YMCA to a budget hotel and then gradually converting the rest? Discuss the client mix that evolved in the YMCA and what effect this will have on any plans for hotel conversion. 3. 4. Discuss possible strategic options for the YMCA. Will conversion of the current building assist the Honolulu Armed Services YMCA to meet its mission? • • • Case 6 Burger King: Selling Whoppers in Japan "International is where it's at," said Ron Paul, a Technomic consultant. "The fast-food burger category is going to find its better growth opportunity overseas. We're close to saturation in the United States. That's why McDonald's has been so aggressive in overseas markets. " That's also why Burger King has to be so aggressive in Japan. McDonald's entered the Japanese market twenty-five years ago and now has 2,000 outlets there generating Case Studies 593 $2.5 billion in sales-that's half of the entire fast-food burger market in Japan. In addition, McDonald's generates 47 percent ofits corporate profits from its 7,000 units overseas; whereas Burger King generates only 19 percent of company sales from its 1,600 units overseas. Worldwide, Burger King ranks fourth behind McDonald's, KFC, and Pizza Hut. With U.S. markets saturated, and the mad cow disease scare slowing sales in Europe, Burger King must find new areas to expand. In Japan, Burger King will face stiff competition. Not only is McDonald's well entrenched there, KFC also has 1,040 stores in Japan, making it number two in the Japanese fast-food market. Between them, Big Mac and KFC create a formidable barrier to the entry of other firms.