This website uses cookies to ensure you have the best experience. Learn more

Management Pratices At Sonic Corp. Essay

1469 words - 6 pages

BACKGROUND INFORMATIONIn 1953 Sonic Corporation was founded by Tony Smith in Shawnee, Oklahoma under a different name of the Top Hat. Tony Smith started the company as a drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for assistance in establishing a similar restaurant in a rural town also located in Oklahoma. This was the beginning of a partnership between the two men .CURRENT INFORMATIONIn 1991 Sonic Corporation was the fifth largest chain in the fast-food industry, servicing in the hamburger segment, behind McDonald's, Burger King, Hardee's, and Wendy's. Sonic has and is still carrying the tradition of being a high-quality franchise-based organization in the Sunbelt states. The following case will be broke down into five different stages beginning with early strategies,problems, new strategies, a ratio analysis, and a recommendation.EARLY STRATEGIESUNDER TONY SMITHTony Smith introduced the Top Hat as a drive-in restaurant that reduced start up cost by not having eat-in space. This new restaurant featured drive-in stalls for automobiles, that were equipped with a two-way intercom enabling customers to order as soon as they drove in, opposed to conventional practices of waiting for a carhop to take an order. Delivery of the fresh fast-quality products was do to the unique design of the kitchen, and the use of carhops.Sonic Corporation preferred to do things as easy as possible and avoid sophistication. Another strategy Smith implemented was a collection of franchise royalties. This was done in a way such that Sonic franchise holders were required to purchase printed bags at an additional fee that Smith arranged through a paper-goods supplier.Pyramid-type selling arrangements were formed by franchisees in money making efforts by starting other franchises through friends. This lead to original store managers having a percentage of their own store earnings and a portion of the new operation of the recruited friend manager. This idea further developed to multi-ownership of almost all Sonic operations as store managers were also part owners. This concept of pyramid-type selling carried Sonic forward with rapid growth.PROBLEMSRAPID GROWTHIn the later-70's almost one new Sonic store opened per day. The rapid expansion of Sonic was growing at an uncontrollable rate. With such rapid growth some stores failed. In these cases Sonic assumed control over failed franchise units, driving the number of company owned restaurants from 3 in 1974 to 149 in 1979. This rapid expansion of Sonic was a short lived frenzy which resulted in numerous failures do to lack of planning, market analysis, and requirements for unit managers. The company was forced to operate the failed franchise as company units in most cases, to protect the franchise name and reputation. A loss was posted in 1980 as Sonic began closing some operations.POOR MANAGEMENTReason's for the closings were that the board...

Find Another Essay On Management Pratices at Sonic Corp.

HRM 533 Essay

2311 words - 10 pages Organization Overview This paper will discuss the total rewards program. This company is a beverage and bottling company that has been in business for over 100 years. Currently we operate in about 3 continents and in about 20 different countries all over the world. SZT Corp is the home to over 20,000 employees with about 2,000 management-level employees worldwide. Armstrong (2012) affirms that definitions of total rewards characteristically

Diversity and Inclusion at Dell, Inc

2065 words - 8 pages to the successful implementation of diversity related initiatives (Dotson, Nuru-Jeter, & Brooks-Williams, 2012). Without it, management and the workforce as a whole will likely lack in a support structure that considers or even promotes diversity. Appreciation for diversity is evident at the top levels of Dell. This is achieved through the Global Diversity Council, which is led by Mr. Dell and other executives from the company. Specifically, the

The Importance of Sound in Advertising

3604 words - 14 pages eerie, the audios spotlight has gained the attention of many pedestrians strolling by. Now while not the newest technology, still in effect is the radio and the positive results from its audio advertisements. A study was conducted in the International Journal of Retail & Distribution Management to truly discover how much influence radio advertisements had over urban commuters and their shopping behavior. By investigation they found that radio ads

Packaging and Quality Management

1226 words - 5 pages easily injure the customer, and or inconvenient to store could easily lose a client base despite its superiority. Safe for the shape and design, the packaging must also be stylish. The competitive nature of the marketing industry has seen people come up with sensational designs for products. In the recent history there have been pragmatic shifts in the traditional packaging styles that had dominated the market. A look at what the CP Corp

Sears Holding Corp

3371 words - 13 pages Sears Holding Corp.      Kmart and Sears have been part of the retail industry of America for the last two centuries, and as of November, 2004, they will be continuing due to their merger as Sears Holding Corp. This paper will first look at the history of the two companies to see how they started and what each company set out to achieve. This section will also include why the two companies failed. Secondly, a SWOT analysis will be performed

The Use of Ultrasonic Testing in Condition Monitoring

1011 words - 5 pages The use of ultrasonic testing in condition monitoring is a relatively new method in the field of condition monitoring. It monitors the high frequencies sound that is generated by plant machines and systems. Ultrasonic sound is not audible by the human ear, and occurs at a frequency above 20 kHz. The different ultrasonic equipment records ultrasonic sound between 20 kHz and 100 kHz. There exist two types of ultrasonic monitoring, airborne and

Nintendo past and future

998 words - 4 pages and the handheld market with the Ps4 and the PsVita. Microsoft competes with Nintendo on only the consoles with its Xbox one competing with the Wii U. The global headquarters of Nintendo is located in minami-ku Kyoto, Japan. The American division headquarters is located in Redmond, Virginia. Nintendo’s history of CEO’s always has them running the company and being a very instrumental voice in their operations. At this current time the CEO and

The Video Gaming Culture in Japan

2309 words - 9 pages they become obsolete. (Nakamura) Even with the thought of arcades becoming obsolete, the industry believes they need to find the next new trend to lure people back to the arcades. (Gibbs) They are currently at a crossroad but are busy exploring their options. (Gibbs) The original arcade games were large machines that required coins to play. (Snow) Even today, arcades are a part of Japanese society. (Snow) Akihabara, Japan is known as the Electric

Costco A must buy in year 2014

1582 words - 7 pages Aim of this article is to make an estimate regarding the prospective movements in price of Costco's wholesale corp. stock news, cost stocks and its cost which would help investors in their assessments of the stock. An Introduction to Costco: Costco Wholesale Corp. (COST) is the one of the largest retailer in USA and the world, currently placed at 4th position, with a cost estimate $51 billion market capitalization. Averaging around 143,000

Norse Corp

1138 words - 5 pages ease at which hackers can find other computers connected to the internet, hack into those, and use their computing power for help in the attack. A company called Norse Corp. has developed ways to monitor this traffic. Norse corp was founded by Sam Glines who graduated from Saint Louis University. Prior to founding Norse Corp. he was a consultant for a cybersecurity firm called Anderson Consulting. Starting the company with Glines, was Norwegian

Merger and Acquisition: Proposed takeover by Primary Health Care of Symbion Health

3455 words - 14 pages market, competitors may also be encouraged to expand to overseas markets such as Europe and the United States (Reuters (2008)). As such, the takeover would change the current health care market environment.In 2003, Primary made a predatory move on medical centre group Independent Practitioner Network (IPN), buying a 9.2% stake. Sonic Healthcare owned 18.5% of IPN at that time, and had a strategic relationship with the company to access its

Similar Essays

Sonic Drive In Restaurant Essay

1197 words - 5 pages differentiate. Through its increased marketing efforts, Sonic will gain brand recognition and increase its customer base. Works Cited • Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005. • “Burger King.” Burger King Corporation. http://www.bk.com/ • “Answer.Com.” Burger King Corporation. http://www.answers .com/burger%20 • “McDonald’s.” McDonald’s Corporation. http

Analysis Of Sonic Corporation

1490 words - 6 pages with a counter offer, and Lynn accepted. With an option from the first LBO to purchase the shares of a joining party in the first LBO Sonic management decided to exercise that right. The total debt of the transaction was approximately $25 million, while the company was valued at a strong $35 million. However, do to deterioration between partnership and risk associated with the LBO, Sonic decided to go public on March 7, 1991, at an initial

Strategic Plan Analysis Paper

1067 words - 4 pages . According to David Kearns, CEO of XeroX Corp, the key to TQM is eliminating layers of management and givingworkers more control over how a product or service is made or delivered (Moreau & Johnston 1994).How Xerox TQM practices could be integrated into UMMSIf UMMS integrated some of Xerox TQM pratices into their every day operation, the hospital would get more favorable responses to their surveys andquestionairres. By peeling back the layers

Change Of Video Game Consoles Throughout The Years

1127 words - 5 pages than all other games at that time. The making of Sonic the Hedgehog helped out the Sega Company quite a bit, making the Sega Genesis game console a big hit. If you did not have a Sega Genesis in the early nineties, then you were definitely missing out. Only two years after Sega Genesis was released, a completely new video game console was released, the Super Nintendo SNES. The Super Nintendo was also known as the Super Famicorn to Japan. The