King Burgers, a fast food chain has recently opened up new stores at several new locations and reapplied their business model in all the new stores. Unfortunately most of the new stores are barely breaking even. What do you think is the problem?
Location is the key to King Burgers' problem. Most of the new stores are in upscale malls where King Burgers is facing a lot of competition. Moreover, it is also suffering from its image as a low-price brand.
If the interviewee solves the case very quickly, you can ask the candidate to recommend what King Burgers should do in such a situation.
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The Value Chain - as e.g. by Porter - is a classic framework to structure the activities of a business and add value to products by transforming resources.
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