Burger King
Suma
Simon
Tarikul
Jinnat
Mashuk
I. Current Situation
Current performance
1958:The First TV Advertisement for BURGER KING is
Broadcasted.
1959:The company begins to expand through franchising.
1963:First BURGER KING restaurant opens outside of the
United States.
2006:Burger King Corporation goes public
2010:Launches a new breakfast Menu
Mission
Vision
We proudly serve
the best burgers in
the business, plus a
variety of real,
authentic foodsall
freshly prepared
just the way you
want it.
"We will prepare and
sell quick service
food to fulfill our
guest's needs more
accurately, quickly,
courteously, and in a
cleaner environment
than our
competitors.
II. Corporate Governance
Board of Directors
Alexandre Behring
Bernard Hees
Chairman of board of directors
Chief Executive Officer
III. External Environment
Political
Tax Facilities
Economical
Population size, income and
countrys total economic
policies
Cont
Social
Peoples values, norms or
other cultural factors
Technological
Social media outlets for
consumer .
Increasing comfort levels
with technology.
Cont
Industrial Environment:
Potential New Entrants: (Moderate)
New entrants can disrupt the performance of Burger King.
Low switching costs indicate that it is easy for consumers to
transfer from Burger King to new firms
Cont
Competitive Rivalry or existing: (high)
Burger King competes with major firms like McDonalds and
Wendys. The quick service restaurant market is saturated with
firms of different sizes.
Cont
Bargaining Power of Customers/Buyers: (high)
Consumers significantly affect Burger Kings performance and
the quick service restaurant industry environment. The low
switching costs correspond to the ease of transferring from
Burger King to other companies.
Cont
Bargaining Power of Suppliers: (low)
Suppliers affect the quick service restaurant industry
environment through variables like pricing and supply control.
There are many suppliers that compete to provide their
products to firms like Burger King.
Cont
Threat of Substitutes: (high)
Substitutes technically compete against Burger Kings
products. Customers can easily transfer from Burger King to
substitutes (low switching costs).
IV. Internal Environment
Corporate Culture
Bold
Empowered
Accountable
Fun
Organizational Activities Analysis
Marketing:
Strategic and tactical changes
Focused consumer segmentation
Electronic marketplaces unbound by time or space.
Cont
Finance:
By 2006, had fallen to 60 from 2,700 a 99 percent
reduction
60 improved order accuracy to serve more diners at peak
times2002 to 2006
Cont
Financial Information
Mar 2009
Mar 2010
Mar 2011
Revenues
$2537.4m
$2502.2m
$2335.7m
Net Income
$200.1m
$186.8m
$107m
Assets
$2707.1m
$2747.2m
$5583.5m
Liabilities
$1732.3m
$1618.8m
$4134.3m
Shareholder's Equity
$974.8m
$1128.4m
$1449.2m
Cont
Human Resources Management (HRM)
Quality workforce
Excellent human resource planning
Due to the attraction of great people to do great work
Core Competency
Flame- broiled
method
Innovative
advertising
campaigns
Internal Factor Analysis Summary of
Burger King
INTERNAL FACTORS
WEIGHT
0.0 - 1.00
RATING
1-5
WEIGHTE
D SCORE
COMMENTS
S1.
Wide selection of
menu items.
.20
4.00
0.80
High and customer
satisfaction lavel
Fast and efficient
service.
.20
4.10
0.82
Good R&D efforts
.20
3.90
0.78
More focus on
development
.10
3.05
0.31
Not focusing on a
specific strategy.
Strengths:
S2.
Weaknesses:
Weak marketing
campaigns.
W1.
W2.
Inconsistent Quality
Total
1.00
3.96
STRATEGIC FACTORS
SFAS Table
WEIGHT
0.0 -1.0
RATING
1-5
WEIGHTE
D SCORE
.20
4.20
0.84
S2. Fast and efficient service.
.20
4.00
0.80
W1. Weak marketing
.20
3.90
0.78
.10
3.05
0.31
.25
3.90
0.98
.20
3.7
0.74
.20
4.10
.82
.10
3.95
0.40
S1. Wide selection of menu
items.
campaigns.
W2. Inconsistent Quality
O1.
Expansion of business.
New products
development
O2.
T1.
Intense competition
Consumer health
expectation
T2.
Total
1.00
SHOR
T
TERM
INTERM
IDIATE
TERM
LONG
TERM
Identification of strategic Issues
(Tows Matrix)
Strength
IFAS Wide selection of
menu items.
EFAS
Opportunity
Expansion of
business.
New products
development.
Threats
Intense competition.
Consumer health
expectation.
Fast and efficient
service.
SO Strategies
Weakness
Weak marketing
campaigns.
Inconsistent Quality.
WO Strategies
Expanding
the
business
in
international market
its
possible
to
increase
efficient
service.
ST Strategies
Coming up with
health conscious
product its possible
to increase the
quality.
Due
to
having
variation
in
menu
items its possible to
do more competition.
Due to developing
marketing campaign
theres huge chance
to compete in the
market.
WT Strategies
Strategic Alternatives & Recommendation
Alt-1: Expanding the business in international market its
possible to increase efficient service.
Pros: Able to acquire more goodwill.
Cons : Needed to hire expertise manager.
Alt-2: Due to developing marketing campaign theres huge
chance to compete in the market.
Pros: Revenue growth will increase.
Cons : Always need to observe the market situation.
Evaluation and Control
Burger King currently has the lowest operating cost of any
competing company, but they are constantly facing
competition from other Company. The competition is
threatening their market share. Burger King must implement
an aggressive expansion plan.
