Question: Based on the case study Burger King Dollar Double Cheeseburgers. Please point out what you would liked about this analysis and do you agree or disagree with it? In paragraph form. Below is the case study link.

The $1 double cheeseburger is a marketing strategy played by the Burger King Corporation to generate more customer traffic. Initially, it may look like they are losing some revenue. However, it can be considered as an opportunity cost. The chances are when the customers come in to buy the burger, they won't limit themselves by just ordering the $1 burger. They can order sodas, sides or other items on the menu which will help increase the revenue and profit. Hence, I do not support the idea that Burger King franchisees are losing money.

As per the relevant cost, the $1 double cheeseburger typically costs franchisees at least $1.10. It includes about 55 cents for the cost of the meat, bun, cheese and toppings and the remainder covers expenses such as rent, royalties and worker wages.

Some of the factors that needs to be considered are the economic downturn (people have less spending power) and the competitive market. There are thousands other fast-food outlet who have been slashing menu prices because of the poor economy. Executives hope the deeply discounted deals will bring in diners who are spending less when they eat out or opting to stay home altogether. Hence, the $1 cheeseburger can be the opportunity cost in bringing more customers and revenue which is the ultimate goal of the Burger King Corporation.

However, the Burger King Franchise are not seeing eye to eye with the corporation. Instead, they see the $1 cheeseburger as a loss. Therefore, the goal of the Burger King Franchise is to get rid of the $1 cheeseburger and to not be forced to sell a product below its cost. It seems like the incentives are misaligned between the corporation and the franchisees. It can be resolved by having both the parties come together and straightening up the goal.

https://www.coursehero.com/file/74009847/BurgerKingdocx/