BurgerKing Report

BBA 4th
Report on Introduction and history of BurgerKing This Report
Including Mission & Vision statement of BurgerKing with
Management hierarchy , products, Products, Pestel Analysis ,
SWOT Analysis and Marketing Mix of Burger King

GCUF Sahiwal campus

B u s i n e s s A d m i n i s t r a ti o n

Miss Nida

From: BBA 4th Group

 Table of Content
Title Page No
Acknowledgement 2
Group Members 3
Executive Summary 4
Introduction 5
History 6
Mission & Vision 8
Management Hierarch 11
BurgerKing Product 13
Pestel Analysis 49
Swot Analysis 53
Organizational Cultural 56
Marketing mix 57

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 Acknowledgement

This report is given by Mam Nida in which we explain about the famous
food chain in the world “Burger King”.

I must like to recognize the help and support from my class fellows and
my group members who worked hard on this report

The sensitive information regarding the organization fashion, working

environment etc. it should be considered as my personal perception
rather than actual.

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 Group Members

Name

Adnan Rafeeq

Ali Shahid

Arslan Shahid

Amir Sohail

Ali Hammad

Shehroz Rasallat

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 Executive Summary
Every day, more than 11 million guests visit BURGER KING® restaurants around the world. And
they do so because our restaurants are known for serving high-quality, great-tasting, and
affordable food. Founded in 1954, BURGER KING® is the second largest fast food hamburger
chain in the world. The original HOME OF THE WHOPPER®, our commitment to premium
ingredients, signature recipes, and family-friendly dining experiences is what has defined our
brand for more than 50 successful years.

The first Burger King branch in Pakistan opened in Dolmen Mall, Karachi on 5 October 2013. This
was followed by an aggressive expansion strategy which resulted in opening of Burger King
Branches nationwide. Currently Burger King has more than twenty branches in Pakistan: various
in Karachi, various in Lahore, one in Islamabad, one in Faisalabad, one in Multan, one in Wah
Cantt, one in Hyderabad, one in Peshawar and one in Quetta.

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 Introduction

Burger King (BK) is an American global chain of hamburger fast food restaurants. Headquartered
in the unincorporated area of Miami-Dade County, Florida, the company was founded in 1953 as
instaBurger King, a Jacksonville, Florida-based restaurant chain. After Insta-Burger King ran into
financial difficulties in 1954, its two Miami-based franchisees David Edgerton and James
McLamore purchased the company and renamed it "Burger King". Over the next half-century, the
company would change hands four times, with its third set of owners, a partnership of TPG
Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late 2010,
3G Capital of Brazil acquired a majority stake in the company, in a deal valued at US$3.26 billion.
The new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G,
along with partner Berkshire Hathaway, eventually merged the company with the Canadian-based
doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company
named Restaurant Brands International.

Burger King's menu has expanded from a basic offering of burgers, French fries, sodas, and
milkshakes to a larger and more diverse set of products. In 1957, the "Whopper" became the first
major addition to the menu, and it has become Burger King's signature product since. Conversely,
BK has introduced many products, which failed to catch hold in the marketplace. Some of these
failures in the United States have seen success in foreign markets, where BK has also tailored its
menu for regional tastes. From 2002 to 2010, Burger King aggressively targeted the 18–34 male
demographic with larger products that often carried correspondingly large amounts of unhealthy
fats and trans-fats. This tactic would eventually damage the company's financial underpinnings,
and cast a negative pall on its earnings. Beginning in 2011, the company began to move away
from its previous male-oriented menu and introduce new menu items, product reformulations and
packaging, as part of its current owner 3G Capital's restructuring plans of the company.

As of December 31, 2016, Burger King reported it had 15,738 outlets in 100 countries. Of these,
47.5% are in the United States and 99.5% are privately owned and operated, with its new owners
moving to an almost entirely franchised model in 2013. BK has historically used several variations
of franchising to expand its operations. The manner in which the company licenses its franchisees
varies depending on the region, with some regional franchises, known as master franchises,

BURGERKING
responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship
with its franchises has not always been harmonious. Occasional spats between the two have
caused numerous issues, and in several instances, the company's and its licensees' relations
have degenerated into precedent-setting court cases.

History

The predecessor to Burger King was founded in 1953 in Jacksonville, Florida, as Insta-Burger
King. After visiting the McDonald brothers' original store location in San Bernardino, California, the
founders and owners (Keith J. Kramer and his wife's uncle Matthew Burns), who had purchased
the rights to two pieces of equipment called "Insta

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-machines", opened their first restaurants. Their production model was based on one of the
machines they had acquired, an oven called the "Insta-Broiler". This strategy proved to be so
successful that they later required all of their franchises to use the device. After the company
faltered in 1959, it was purchased by its Miami, Florida, franchisees, James McLamore and David
R. Edgerton. They initiated a corporate restructuring of the chain, first renaming the company
Burger King. They ran the company as an independent entity for eight years (eventually expanding
to over 250 locations in the United States), before selling it to the Pillsbury Company in 1967.:28

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1955–1968 Burger King logo

Pillsbury's management tried several times to restructure Burger King during the late 1970s and
the early 1980s. The most prominent change came in 1978 when Burger King hired McDonald's
executive Donald N. Smith to help revamp the company. In a plan called "Operation Phoenix"118
Smith restructured corporate business practices at all levels of the company. Changes included
updated franchise agreements, a broader menu:119:66 and new standardized restaurant designs.
Smith left Burger King for PepsiCo in 1980 shortly before a system-wide decline in sales.

Pillsbury's Executive Vice President of Restaurant Operations Norman E. Brinker was tasked with
turning the brand around, and strengthening its position against its main rival McDonald's. One of
his initiatives was a new advertising campaign featuring a series of attack ads against its major
competitors. This campaign started a competitive period between Burger King, McDonald's, and
top burger chains known as the Burger wars. Brinker left Burger King in 1984, to take over Dallas-
based gourmet burger chain Chili's.

Smith and Brinker's efforts were initially effective, but after their respective departures, Pillsbury
relaxed or discarded many of their changes, and scaled back on construction of new locations.

BURGERKING
These actions stalled corporate growth and sales declined again, eventually resulting in a
damaging fiscal slump for Burger King and Pillsbury. Poor operation and ineffectual leadership
continued to bog down the company for many years.

Pillsbury was eventually acquired by the British entertainment conglomerate Grand Metropolitan in
1989. Initially, Grand Met attempted to bring the chain top profitability under newly minted CEO
Barry Gibbons; the changes he initiated during his two-year tenure were hit or miss. Successful
new product introductions and tie-ins with The Walt Disney Company were offset by continuing
image problems and ineffectual advertising programs. Additionally, Gibbons sold off several of the
company's assets in attempt to profit from their sale and laid off many of its staff members.

After Gibbon's departure, a series of CEOs each tried to repair the company's brand by changing
the menu, bringing in new ad agencies and many other changes. The parental disregard of the
Burger King brand continued with Grand Metropolitan's merger with Guinness in 1997 when the
two organizations formed the holding company Diageo. Eventually, the ongoing systematic
institutional neglect of the brand through a string of owners damaged the company to the point
where major franchises were driven out of business, and its total value was significantly
decreased. Diageo eventually decided to divest itself of the money-losing chain and put the
company up for sale in 2000.

An example of the 20/20 concept interior at a Burger King in Cork, Ireland

The twenty-first century saw the company return to independence when it was purchased from
Diageo by a group of investment firms led by TPG Capital for US$1.5 billion in 2002. The new
owners rapidly moved to revitalize and reorganize the company, culminating with the company
being taken public in 2006 with a highly successful initial public offering. The firms' strategy for
turning the chain around included

a new advertising agency and new ad campaigns, a revamped menu strategy, a series of
programs designed to revamp individual stores, a new restaurant concept called the BK Whopper
Bar, and a new design format called 20/20. These changes successfully re-energized the
company, leading to a score of profitable quarters.Yet, despite the successes of the new owners,
the effects of the financial crisis of 2007–2010 weakened the company's financial outlooks while
those of its immediate competitor McDonald's grew. The falling value of Burger King eventually led
to TPG and its partners divesting their interest in the chain in a US$3.26 billion sale to 3G Capital

BURGERKING
of Brazil. Analysts from financial firms UBS and Stifel Nicolaus agreed that 3G would have to
invest heavily in the company to help reverse its fortunes. After the deal was completed, the
company's stock was removed from the New York Stock Exchange, ending a four-year period as a
public company. The delisting of its stock was designed to help the company repair its
fundamental business structures and continue working to close the gap with McDonald's without
having to worry about pleasing shareholders. In the United States domestic market, the chain has
fallen to third place in terms of same store sales behind Ohio-based Wendy's. The decline is the
result of 11 consecutive quarters of same store sales decline.

Mission & Vision Statement

Burger King’s vision statement is based on the original aims of the company’s founders. A firm’s
vision statement guides the organizational development of the business. Burger King’s corporate
vision statement emphasizes excellence and being the best in the industry. On the other hand,
Burger King’s corporate mission statement is directly linked to the company’s operations. A firm’s
mission statement specifies the activities needed to succeed in the business. In Burger King’s
case, the mission statement emphasizes pricing, service and ambiance to attract customers. In
this regard, the vision and mission statements of Burger King are bases for developing strategies
and policies to move the organization toward long-term leadership and success in the quick
service restaurant industry.

Burger King’s mission statement and vision statement contribute to effective strategic formulation.
Such contribution ensures Burger King’s market position as one of the biggest quick service
restaurant chains in the world.

Burger King’s Vision Statement:

Burger King’s vision statement is “to be the most profitable QSR business, through a strong
franchise system and great people, serving the best burgers in the world.” This vision statement
directs Burger King to achieve leadership in the global quick service restaurant (QSR) industry or
fast food industry.

The vision statement has the following main points regarding Burger King’s business:

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  Most profitable QSR business
 Franchise system
 Great people
 Best burgers in the world

Burger King’s vision statement shows that the company aims to achieve the leading position in the
quick service (fast food) restaurant industry. At present, McDonald’s holds this top position. The
vision statement also indicates that Burger King uses a franchise system to grow. Great people
and the best burgers are offered to attract one of the biggest market shares in the industry. Thus,
Burger King’s vision statement establishes the nature of the business and its direction toward
global market leadership.

Burger King’s Mission Statement

Burger King’s mission statement is to “offer reasonably priced quality food, served quickly, in
attractive, clean surroundings.” This mission statement indicates the kind of outputs expectable
from the organization. With regard to Burger King’s business,

this mission statement has the following main points:

 Reasonable prices
 Quality food
 Quick service
 Attractive, clean surroundings

To achieve the top position stated in its vision statement, Burger King must follow the points in its
mission statement. The mission statement shows that the company uses market-based pricing to
entice customers. However, Burger King’s main selling point is the quality of its food and service.
The surroundings add to the ambiance that keeps customers coming back to Burger King
restaurants. These characteristics are mostly consistent in all of the company’s restaurants around
the world. Thus, Burger King’s mission statement establishes the basics for pricing, quality, and
facility design for the business.

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 Management Hierarchy

Organisational Structure of Burger King Holdings : Burger King, often abbreviated as BK, is
a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-
Dade County, Florida, United States. The company began as a Jacksonville, Florida-based
restaurant chain in 1953 originally called Insta-Burger King. After the company ran into
financial difficulties in 1955, its two Miami-based franchisees, David Edgerton and James
McLamore, purchased the company and rechristened it Burger King. Over the next half
century the company would trade hands four times, with its third set of owners, a
partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking the
company public in 2002. The current ownership group, 3G Capital of Brazil, acquired a
majority stake in the company in a deal valued at $3.26 billion (USD) in late 2010.

Top Management

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12

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13

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 Products of Burger King

When the predecessor of international fast food restaurant chain Burger King (BK) first opened in
1953, its menu predominantly consisted of hamburgers, French fries, soft drinks, milkshakes, and
desserts. After being acquired by its Miami, Florida franchisees and renamed in 1954, BK began
expanding its menu by adding the Whopper sandwich in 1957, and has since added non-beef
items such as chicken, fish, and vegetarian offerings, including salads and meatless sandwiches.
Other additions include a breakfast menu and beverages such as Icees, juices, and bottled
waters. As the company expanded both inside and outside the United States, it introduced
localized versions of its products that conform to regional tastes and cultural or religious beliefs. To
generate additional sales, BK occasionally introduces limited-time offers of special versions of its
products, or brings out completely new products intended for either long- or short-term sales. Not
all of these products and services have been successful; in 1992, Burger King introduced limited
table service featuring special dinner platters, but this concept failed to generate interest and was
discontinued.

The company introduced the first iteration of its breakfast menu, along with the company's
"Specialty Sandwich" product line, in a 1978 menu expansion. The products were some of the first
designed by a fast food restaurant chain that were intended to capture the adult market, members
of which would be willing to spend more on a higher-quality product. The expanded Burger King
menu was part of a plan by then-company president Donald N. Smith to reach the broadest
possible demographic market to better compete with McDonald's, and to fend off then newcomer
Wendy's, who had a growing market share. The plan was successful: the company's sales
increased by 15 percent. Despite another menu expansion in 1985, the company's market gains
diminished due to neglect of the brand at the hands of then-parent Pillsbury and its successors,
Grand Metropolitan and Diageo. When the company was sold to a group led by TPG Capital in
2004, the trend of targeting an expanded audience was renewed under a plan by its then-CEO
Brad Blum. During Blum's tenure, the company added several products that featured higher-
quality ingredients and other menu fare that again

attempted to appeal to the adult palate and demographic. As in the past, not all of these products
met corporate sales expectations, or in the case of several of its larger offerings, resulted in
negative publicity due to nutritional concerns. With the purchase of the company in 2010 by 3G

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Capital, the company again began another revamp of its product line by phasing out some
products, introducing new ones and redesigning others including its flagship Whopper sandwich.

Like its menu, the equipment the company cooks its hamburgers with has also evolved as the
company grew. The burgers have always been broiled mechanically; the original unit, called an
Insta-Broiler, was one of two pieces of equipment the founders of Insta-Burger King purchased
before opening their new restaurant. The Insta-Broiler worked by cooking 12 burger patties in a
wire basket, allowing the patties to be cooked from both sides simultaneously. With the acquisition
of the chain by its Miami franchisees came an improved unit dubbed a "Flame Broiler". Designed
by the new owners, it featured stationary burners that cooked the meat on a moving chain. The
unit broke down less often, while maintaining a similar cooking rate. The cooking format remained
for the next 40 years until Burger King developed a new, variable speed broiler that could handle
multiple items with different cooking rates and times. These new unit began testing in 1999 and
eventually evolved into the two models the company deployed system-wide in 2008–2009.
Accompanying these new broilers was new food-holding equipment and a computer-based
product monitoring system for its cooked products. The new system allows for more concise
tracking of product quality, while giving its users a method to streamline costs by more precisely
projecting sales and product usage

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 Burger King Pakistan

In Burger King products changes according to country in which they are dealing in.

In Pakistan Burger King launches products totally different from other countries some of there
famous categories are.

1. Flame grilled Burger:

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  Original Wooper

Our WHOPPER® burger is a 1/4 lb* of savory flame-grilled beef topped with juicy tomatoes, fresh
cut lettuce, creamy mayonnaise, crunchy pickles, and sliced white onions on a soft sesame seed
bun. Served with a small side of piping hot, thick cut French Fries or golden Onion Rings and a
small fountain drink of your choice to make it a meal.

*Based on pre-cooked patty weight

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  DOUBLE WHOPPER® (Double the flavor)

Our DOUBLE WHOPPER® Burger is a pairing of two 1/4 lb* savory flame-grilled beef patties
topped with juicy tomatoes, fresh cut lettuce, creamy mayonnaise, crunchy pickles, and sliced
white onions on a soft sesame seed bun.

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  WHOPPER® JR. (Big in fire-grilled flavour.)

Our WHOPPER JR.® Burger features one savory flame-grilled beef patty topped with juicy
tomato, fresh cut lettuce, creamy mayonnaise, crunchy pickles, and sliced white onions on a soft

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sesame seed bun. Served with a small side of piping hot, thick cut French fries or golden onion
rings and a small fountain drink of your choice to make it a meal.

*Based on pre-cooked patty weight.

 DOUBLE DECKER CHICKEN TIKKA BURGER

(Classic ingredients flavored just right.)

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Double the excitement, double the spiciness with our chicken tikka burger with succulent chicken
tikka paty, topped with spicy sauce, fresh cut lettuce and tomatoes, all on a warm toasted sesame
seed bun. Served with a small side of piping hot, thick cut French Fries or golden Onion Rings and
a small fountain drink of your choice to make it a meal.

 HOT & SPICY STEAK BURGER (Mouth-filling flavor)

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A 100% flame-grilled beef patty topped with cheese, crispy onion, fiery sauce, lettuce and tomato
on a soft sesame seed bun. Served with a small side of piping hot, thick cut French Fries or
golden Onion Rings and a small fountain drink of your choice to make it a meal.

 ORIGINAL STEAK BURGER

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 (The Flame-Grilled Difference)

A 100% flame-grilled beef patty topped with cheese, crispy onion, lettuce and tomato on a soft
sesame seed bun. Served with a small side of piping hot, thick cut French Fries or golden Onion
Rings and a small fountain drink of your choice to make it a meal.

 BIG KING™

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(Try the fire-grilled difference)

Our BIG KING™ Burger features two savory flame-grilled beef patties, topped with melted
cheese, fresh cut iceberg lettuce, crisp onions, crunchy pickles, and featuring a sweet thousand
island style dressing, all on a warm, toasted, sesame seed bun.

2. Crispy & Tender.

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  CHICKEN WHOPPER®

(All chicken, all flavor)

Look who's here - THE burger to rule them all. A real grilled Whopper® chicken patty, topped
with tangy pickles, ketchup, fresh tomatoes, crisp lettuce and fresh onions, finished with
creamy mayo and served on a toasted 5" sesame seed bun. Served with a small side of piping
hot, thick cut French Fries or golden Onion Rings and a small fountain drink of your choice to
make it a meal.

 SPICY CHICKEN STEAK BURGER

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 (Rope in the flavor)

A 100% crispy chicken patty topped with cheese, crispy onion, fiery sauce, lettuce and tomato.
Served in a corn dusted bun.

 CHICKEN STEAK BURGER

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 (The Crispy Chicken Difference

A 100% crispy chicken patty topped with cheese, crispy onion, lettuce and tomato. Served in a
corn dusted bun.

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  TENDERGRILL™ CHICKEN

(Grilled and seasoned)

Treat yourself to something awesome. A deliciously juicy premium chicken thigh patty that's
grilled to perfection, topped with a tomato slice, freshly shredded lettuce and creamy mayo to
bring out all the flavors, then served on a soft sesame seed bun.

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  SPICY TENDERCRISP®

Crispy outside, tender inside, tasty everywhere

Like your chicken crispy, or tender? Why not both? The Tendercrisp patty - made from chicken
thigh to be crispy outside and tender inside - is topped with a tomato slice, freshly shredded
lettuce and creamy mayo, then served on a fragrant sesame seed bun. Perfect for those who
want the best of both worlds.

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  CHICKEN BIG KING™

Try the big crisp difference

Our BIG KING™ Burger features two savory crispy chicken patties, topped with melted
cheese, fresh cut iceberg lettuce, crisp onions, crunchy pickles, and featuring a sweet
thousand island style dressing, all on a warm, toasted, sesame seed bun.

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  LONG CHICKEN™

Long on Flavor

Delightfully tasty crispy chicken fillet topped with shredded lettuce and creamy mayo, and
served on a 7" corn dusted bun-made extra long because we know you don't want the
delicious bites to end so quickly.

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  BIG FISH

A delicious golden-crisp catch

Score a catch of marvelous flavors of your tastebuds with this delightful burger. A succulent fish
fillet is embraced by a whole slice of cheese, and then topped with sauce to accentuate the
fish's flavor and it's all served between a toasted corn dusted bun.

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 3. KING JR.™ MEALS

 CHICK 'N' CRISP®

Crispy on the outside, juicy on the inside.

Our Chick N Crispy Burger. Sandwich is loaded with chopped lettuce, a light layer of creamy
mayonnaise, and served to you freshly prepared on a perfectly toasted bun.

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  NUGGETS

Titanic in taste

Are all chicken nuggets the same? Only if they're made with the same love as BK Nuggets are.
They're crispier. They're juicier. They're tastier. They taste simply incredible with appetite-whetting
fiery sauce. Hungry yet?

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  SPICY BEEF

Mouth-watering flavor. A beef patty topped with cheese, crispy onion, fiery sauce, lettuce and
served in a soft sesame bun.

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 4. BEVERAGES

 CHOCOLATE SHAKE

Chocolate is the answer

Cool down with our Chocolate Shake. Velvety vanilla soft serve and chocolate sauce are
blended to perfection.

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  STRAWBERRY SHAKE

A smooth & refreshing treat

Our Strawberry shake is the perfect snack to keep you going all day.

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  SOFT DRINKS

Refresh the world

Perfect with any meal, enjoy the taste of genuine Pepsi.

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  COFFEE

Refuel & rebalance

It'll warm you up if you're cold. And cool your down if you're hot. Our offerings include
Cappuccino, Latte, Espresso, Long Black

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  CARDAMOM TEA

Kick back& lighten up.

Drink it as a healthy tea in the morning or brew it as an evening refreshment, to enjoy a strong
and hot beverage. Cardamom seeds can also be brewed into a strong, healthy tea as well. The
use of cardamom tea dates back many centuries ago and is recorded for its use in ancient folk
medicines

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 5. Budget Bites
 MED FRENCH FRIES

Hot, thick & crispy

More delicious than ever, our signature piping hot, thick cut Salted French Fries are golden on the
outside and fluffy on the inside.

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  REG ONION RINGS

Deliciousness comes in full circle

Served hot and crispy, our golden Onion Rings are the perfect treat for plunging into one of our
bold or classic sauces.

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  NUGGETS 6PCS

Titanic in taste

Are all chicken nuggets the same? Only if they're made with the same love as BK Nuggets are.
They're crispier. They're juicier. They're tastier. They taste simply incredible with appetite-whetting
fiery sauce. Hungry yet?

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 6. King Deals
 WHOPPER® JR.

Big in fire-grilled flavour.

Our WHOPPER JR.® Burger features one savory flame-grilled beef patty topped with juicy
tomato, fresh cut lettuce, creamy mayonnaise, crunchy pickles, and sliced white onions on a
soft sesame seed bun.

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  NUGGETS 5 PCS.

Titanic in taste

Are all chicken nuggets the same? Only if they're made with the same love as BK Nuggets are.
They're crispier. They're juicier. They're tastier. They taste simply incredible with appetite-
whetting fiery sauce. Hungry yet?

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  SPICY CRISPY CHICKEN

Kick up the flavor a notch

Our crispy chicken fillet topped with fiery sauce garden-fresh lettuce and creamy mayo, served
on a sesame seed bun. The fusion of textures, tastes and aromas is a winner -'N there's no
doubt about that.

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  CHICKEN TIKKA BURGER

For BBQ lovers

Our chicken tikka burger with succulent chicken tikka paty, topped with spicy sauce, fresh cut
lettuce and tomatoes, all on a warm toasted sesame seed bun.

Served with a small side of piping hot, thick cut French Fries or golden Onion Rings and a
small fountain drink of your choice to make it a meal.

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 7. Burger King Latest Offers
 King Box Slider

 King Jr Meal

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  King Deals (Value Menu)

 Chicken Fries

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  Double Decker Chicken Tikka Burger

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 Pestel Analysis of Burger King

Burger King strives to become the top player in the quick service/fast food restaurant industry. To
do so, the company must strategically address the main issues highlighted in this
PESTEL/PESTLE analysis. The PESTEL/PESTLE analysis framework identifies the most
significant factors in the firm’s remote or macro-environment. In Burger King’s case, these external
factors include the influences of governmental and nongovernmental organizations, as well as
trends or changes in technologies, among others. Effectiveness in addressing these issues raised
in the PESTEL/PESTLE analysis helps optimize Burger King’s global business performance in the
long-term.

Burger King’s long-term performance partly depends on the company’s success in strategically
addressing the issues identified in this PESTEL/PESTLE analysis. The external factors in the
remote or macro-environment of the fast-food restaurant industry are significant influences on
Burger King’s global business.

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  Political Factors Affecting Burger King’s Business

Political conditions are determinants of business performance. This part of the PESTEL/PESTLE
analysis identifies governmental influence on firms’ remote or macro-environment. In Burger King’s
case, the following are the main political external factors:

1. Governmental support for globalization (opportunity)

2. Political stability in major markets (opportunity)
3. Governmental support for e-commerce (opportunity)

Governments continually support globalization. Burger King can take advantage of this condition
through global expansion. Also, the external factor of political stability helps reduce challenges to
the company’s growth and expansion. In addition, Burger King can improve its e-commerce
capabilities. In this part of the PESTEL/PESTLE analysis, the external factors present significant
opportunities for Burger King to grow and expand internationally.

 Economic Factors Important to Burger King

Economic conditions directly affect Burger King’s remote or macro-environment. This part of the
PESTEL/PESTLE analysis outlines the economic changes and trends that influence business
performance. The following are the main economic external factors that affect Burger King:

1. Expanding international trade agreements (opportunity)

2. Economic stability of the U.S. (opportunity)
3. High economic growth in developing markets (opportunity)

As countries implement more and expanded international trade agreements, Burger King can grow
through global supply chain enhancements. Also, U.S. economic stability enables the company to
gradually grow in the country. In relation, Burger King has the opportunity to rapidly expand in
developing economies. These conditions show that, in the political dimension of the
PESTEL/PESTLE analysis model, Burger King must focus on external factors that present
opportunities for growth and expansion, especially in developing economies.

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  Social/Sociocultural Factors Influencing Burger King’s Business
Environment

Burger King must always account for sociocultural influences in its remote/macro-environment.
The social trends and changes and their effects on consumers and employees are considered in
this part of the PESTEL/PESTLE analysis. The main sociocultural external factors affecting Burger
King are as follows:

1. Increasing consumer diversity (opportunity)

2. Higher health consciousness (threat & opportunity)
3. Increasing support for animal rights (threat & opportunity)

The increasing population diversity presents the opportunity for Burger King to innovate its
products to attract consumers of various backgrounds. Higher health consciousness threatens
demand for Burger King’s products, which are sometimes criticized as unhealthful. However, the
company has the opportunity to improve the healthfulness of its products. Animal rights advocacy
continues to attract attention, threatening the main products of Burger King. Still, the firm can
implement new supply chain policies to address concerns on animal rights and welfare. This part
of the PESTEL/PESTLE analysis points to Burger King’s opportunities to improve despite the
threats linked to sociocultural external factors.

 Technological Factors in Burger King’s Business

Burger King’s business partly relies on technologies. In this dimension of the PESTEL/PESTLE
analysis, technologies and related trends are considered in terms of their influence on the remote
or macro-environment of the firm. The following are the major technological factors affecting
Burger King:

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 1. Higher availability of automation technologies (opportunity)
2. Higher popularity of mobile technologies (opportunity)
3. Low R&D activity in the quick service restaurant industry (opportunity)

More automation technologies are now available for businesses. Burger King can apply these
technologies to improve operational efficiency. Also, the company can tap mobile users to gain a
bigger market share. Relative to the low R&D activity in the fast food restaurant industry, Burger
King has the opportunity to boost its R&D investments to improve performance. In this part of the
PESTEL/PESTLE analysis, Burger King has major opportunities for performance improvements
based on technological external factors.

 Ecological/Environmental Factors

The environment can impose limits to Burger King’s business. This dimension of the
PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote or macro-
environment. In the case of Burger King, the following are the most notable ecological external
factors:

1. Climate change (threat)

2. Emphasis on business sustainability (opportunity)
3. Increasing popularity of low-carbon lifestyles (opportunity)

Climate change threatens to reduce the stability of Burger King’s supply chain. However, the
company has the opportunity to improve its sustainability status. Also, Burger King has the
opportunity to improve efficiency to attract consumers who advocate low-carbon lifestyles. The
ecological external factors in this dimension of the PESTEL/PESTLE analysis indicate that Burger
King can realistically work on sustainability and efficiency.

 Legal Factors

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Burger King must comply with legal requirements. The effects of legal systems on firms and their
remote or macro-environment are considered in this part of the PESTEL/PESTLE analysis. The
major legal external factors influencing Burger King are as follows:

1. Import and export regulation (opportunity)

2. Environmental protection laws (opportunity)
3. GMO regulation (threat)

Burger King has the opportunity to grow based on import and export regulations that support new
international trade agreements. Also, the company can enhance its sustainability performance to
exceed expectations and requirements based on environmental protection laws. However, GMO
regulations, especially in Europe, limit the performance of Burger King, considering the
widespread availability of GMO ingredients used in the industry. This dimension of the
PESTEL/PESTLE analysis emphasizes growth and sustainability based on legal external factors.

 Burger King’s PESTEL/PESTLE Analysis – Recommendations

Burger King’s PESTEL/PESTLE analysis raises various issues, not all of which can be realistically
addressed. With regard to the remote or macro-environment of the fast food restaurant industry,
Burger King must prioritize the following concerns:

1. Growth and expansion, especially in developing markets

2. E-commerce and mobile transactions
3. Product improvement for health-conscious consumers
4. Business sustainability

S.W.O.T Analysis of Burger King

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When you think of Burger king, there is no way that McDonalds does not crop in your mind.
Known to have a similar marketing strategy, Burger king is slowly but surely increasing its market
presence and is now establishing itself in developing countries as well. Here is the SWOT analysis
of Burger king.

 Strengths in the SWOT analysis of Burger king

1. Global Operations: It is 2nd largest fast food hamburger restaurant. Burger King was
founded in Miami, Florida in 1953 by Jim McLamore and David Edgerton. The company
operates approximately 40 subsidiaries globally that oversee franchise operations,
acquisitions and financial obligations.
2. Strong Franchise network: Burger king is known to be present in 79 countries. It has
13000 franchises & company owned outlets. Out of 13k outlets only 10% are company
owned outlets rest are owned by franchise.
3. Strong Product line: Apart from offering hamburgers in different sizes, it also serves grilled
burgers, breakfast meals, beverages, desserts, sandwiches, Chicken items. It is the 2nd
largest fast food restaurant chain in the world in terms of number of restaurants & sale.
4. New Broiler for their outlets: Company has completed the rollout of new flexible broilers.
Fire-grilled bone-in ribs, extra-thick burgers and shrimp kebabs are just a few of the new
offerings Burger King has added to their menus after this. The new broilers feature flexible
cooking methods that enable Burger King to prepare virtually any type of product in order to
have competitive edge over other players.
5. Strong branding – Burger king is equally strong in its branding efforts like McDonalds.
Because it is yet in the expansion stage, there are many places where it does not have a
presence. But places where it is present, it is known to capture the local audience smartly
with its marketing activities.
6. Less capital intensive – 90% of Burger king outlets are owned by franchisee, a strategy
which helped them in being focused towards innovating their menus rather than worrying
about finances.

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  Weakness in the SWOT analysis of Burger king

1. Decreasing sales in mature markets: Due to rise in health conscious population there is
decrease in revenue affecting the business as a whole. According to the 2014’s financial
results announced by the parent company Restaurants Brands International Inc. Only
APAC region registered positive sales growth rate 8.7%.
2. Large franchisees: Large number of franchised outlets results in difficulty in handling the
operations whereas ensuring conformance of quality is also challenging & conflict aroused
due to that can hamper BK’s brand image.
3. Unstable ownership – Going from one hand to another, Since its inception in 1953 as
Insta-Burger King, aJacksonville, Florida-based restaurant chain company have changed
hands 6 times. The current parent company is the result of restructuring where it got
merged with Canadian-based doughnut chain Tim Hortons under the auspices of a new
Canadian-based parent company, Restaurant Brands International.

 Opportunities in the SWOT analysis of Burger king

1. Market Expansion: Expanding to the developing markets will be beneficial as developed

markets are maturing & people becoming more health conscious. Targeting the developing
economies will be the future strategy of the industry.
2. Market Penetration: Strengthening its outlet network by further penetrating the current
market will help Burger King to increase its revenues & become no.1 player in fast food
chain market.

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 3. Health conscious eatables: Although burger king had made its restaurants Trans-fats free
but still due to increasing awareness, healthy menus with new flavor additives which is low
in fat will result in increase in revenues in future & will revamp the industry.

 Threats in the SWOT analysis of Burger king

1. Competition: Intensive competition from the local eating joints & international players
McDonalds, Dominos, KFC, Subway & many more.
2. Changing Consumer Eating habits: With government & NGO’s health awareness
campaigns people are becoming more aware of what to consume & what to not which is
affecting the business of fast food Industry as a whole.
3. Raw Material prices: Rise in the raw material prices may affect the industry as a whole,
affecting BK’s business is no exception to this.

Organizational Culture of Burger King

Burger King maintains an organizational culture that supports high performance among
employees. A firm’s organizational culture is the set of values, traditions and habits that influence
the behaviors of workers. Burger King’s market position as one of the biggest quick service/fast
food restaurant chains in the world is partly based on its culture of performance. The company
keeps employees aligned to this organizational culture to ensure a unified approach in developing
human resources. Such an approach ensures that Burger King leverages the synergy achievable
through unified efforts to push global business performance further.

Burger King’s organizational culture puts emphasis on attitude and performance, while ensuring
an enjoyable workplace and compliance to rules.

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Features of Burger King’s Organizational Culture

Burger King’s organizational culture is based on the company’s goal of continued global growth,
especially following the completion of its merger with Tim Hortons in 2014. The following are the
main characteristics of Burger King’s organizational culture:

 Bold and empowered

 Accountable
 Fun
 Meritocratic and performance-driven

 Bold and Empowered. Burger King’s organizational culture empowers employees to

achieve high performance. This feature of the corporate culture allows a certain degree of
flexibility and autonomy among employees. Different levels of Burger King’s organizational
structure have their corresponding levels of autonomy. As such, the organizational culture
allows Burger King to maintain the resilience needed for continued global growth.

 Accountable. Burger King’s employees are accountable for their actions. This
characteristic of the company’s organizational culture ensures that, with autonomy,
employees follow the rules and face the consequences of their decisions. Thus, Burger
King’s organizational culture contributes to product/service consistency, while also
minimizing errors or deviations in employees’ actions.

 Fun. This feature of Burger King’s organizational culture focuses on employee morale. An
enjoyable and fun workplace also reduces employee turnover, which has significant effects
on the company’s financial performance. Through this organizational cultu88re, Burger King
manages to attract and keep qualified workers. The company applies the fun factor through
management approaches as well as benefits and incentives in the compensation system.

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  Meritocratic and Performance-Driven. Burger King’s organizational culture encourages
employees to maintain high performance. This characteristic of the organizational culture is
aligned with the company’s policy of using performance-based appraisals. In this way,
Burger King’s employees know and rightly expect that having better performance could
improve their career options in the company.

Marketing Mix of Burger King

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 Segmentation ,Target And Position of Burger King

Background

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Corporation is founded by James McLamore and David Edgerton, beginning the legacy of flame
broiled beef and commitment to quality ingredients and friendly service. BURGER KING is the
second largest fast food hamburger chain in the world. Nowadays, more than 11 million guests
visit BURGER KING Restaurants around the world. When back to early 2004, their sales profit
starting to slump.Burger King’s CEO had change their advertising agency CPB and amend their
marking strategy to gain their revenue.

Market Segmentation

Markets consist of buyers, and buyers differ in one or more respects. They can be divided by
demographic factors, geographic factors, and behavioral factors or by psychographic factors. Any
of these variables can be used to segment a market. Seller can design a separate product or
marketing program potential customer. Burger King have dividing their market into demographic
factors, geographic factors, psychographic factors and behavioral factors. As geographic factors,
Burger King are dividing the customer by region , they located in USA since 1954.On June 30,
2004, Burger King had 7,976 store all around in USA, the local people can just came by their
neighborhood to enjoy their meal. As demographic factors, they dividing the customer by young
male, kids and family. Burger King Start to use a logo which is a man sitting on a hamburger and
holding a soft drink to represent their company in 1955.In 1960, Burger King transformed their logo
from a man into an animated cartoon character that a kid wearing a crown in their television
advertisements, introducing children to

BURGER KING with the famous slogan, “BURGER KING®, Where Kids Are King!”

In order to take the kids as potential customer, Burger King had to including the parents which pay
for the children‘s meal at the same time. Burger King started The HAVE IT YOUR WAY®
marketing campaign revolutionizes the fast food industry by encouraging customers to customize
the ingredients of all BK® sandwiches to fits the whole family member need. As behavioral factors,
Burger King dividing the customer by benefits by speed and economy, regular occasion and
regular user, a fast food restaurants which affordable food products that can be prepared and
served within a short stipulated amount of time. As y psychographic factors, Burger King dividing
the customer by lowers social class and working class, which they will buy their meal in a fast food
restaurants quickly and take away their food then they can able to back to work.

Market Targeting

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Market segmentation reveals the marketsegment opportunities facing the firm. The firm now has to
evaluate the various segments and decide how many and which ones to targets. A development of
a marketing max which can then be directed at a particular unique segment. Burger King are using
concentrated targeting in the case, it means concentrates on serving many needs of a particular
customer group. Burger King‘s advertising agency CPB advice to using The HAVE IT YOUR
WAY® as the theme and begins to experiment with humorous web marketing campaigns, such as
the Subservient Chicken. CPB designing a web site which allowed visitors to type in commands
that a man dressed like a chicken executed. This is targeting the demographic group with young
adult market, notably among young males which they do not watch television commercial and
surfing on internet all the time, they are willing to try new things. The most important thing is they
will share the fun news with their friend and family, it can let the campaign became word of mouth
and spread it all over the world. In 2005, CPB created a faux heavy metal band called Coq Roq to
launch the new product chicken fries by Web site, music videos, tshirts, CDs, and ring tones, this
is also targeting the same demographic group. It shows that Burger King are just target on
segment within the total market.

Market Positioning

Market positioning is the process of communication the brand to the target customers in such a
way that can easily recognize where it fits with competing products. Burger King had targeting
young adult market, notably among young males market. They position their market as serving
highquality, great tasting, and affordable food. Compare with their mainly competitor McDonald are
targeting kids and families, they had a different targeting audience. McDonald also serving
affordable food, but them serving the customer differently, Burger King promise their customer can
HAVE IT YOUR WAY®, customer can customize the ingredients of all BK® sandwiches, with the
similar pricing of food, Burger King having better service quality. When their competitor McDonald
only provide snacks like French fries and chicken nuggets, Burger King had both products and
they provide onion rings, Burger King had provide more variety choice for their customer.

Conclusion:

In conclusion, Burger King had using the marketing strategy to maintain the second largest fast
food hamburger chain in the world. Burger King using concentrated targeting with the young adult
market, notably among young males, Burger King does not require the use of mass production,
mass distribution, and mass advertising. Burger King had gain the big success. There is still a
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disadvantages, they have abandon the female market and the other potential customer. The whole
world trend has encourage people to eat healthy food, the entire fast food hamburger chain had
facing the challenge. The time had change, female are the next global emerging market, their
economic power is truly revolutionary, representing the largest market opportunity in the world.
Probably Burger King should targeting the female market, create a new brand with brand new
healthy food menu, they even to serve coffee and desserts, and held up the charity function or
donation to develop a positive image.

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