...(BM7033) CASE STUDY 1: BURGER KING COURSE: MBA (2014/2015) FACULTY: BUSINESS, ECONOMICS & ACCOUNTANCY LECTURER: PROF. DR SYED AZIZI WAFA GROUP MEMBERS: BIL | NAME OF STUDENT | MATRIC NO. | 1 | Hasbiah Hasan | MB1412018T | 2 | Ho Tian Ai | MB1412077T | 3 | Fazha Binti Jazah | MB1412062T | 4 | Nurul Azreena M. Azlan Tsen | MB1412160T | 5 | Ahmad Zahrawi Ahmad Azahri | MB1312075T | 6 | Bryan Osital | MB1312082T | 1) CASE SUMMARY The well-known Burger King with the tag line of “Have It Your Way” has their signature burger of Whopper Burger. Burger King was previously known as Insta-Burger King which was founded firstly in Florida by Keith Kramar and Matthew Burns in 1953. 2 years later, it was purchased by James McLamore and David Edgerton and renamed in Burger King with introduced their first Whopper sandwich in 1957. It has grows over 250 locations in the United States and they sold to Pillsbury Corporation in 1967. Pillsbury was then purchased in 1989 by Grand Metropolitan which then merged with Guinness and forming Diageo, which the latest owner of Burger King. Burger King was the second largest fast food hamburger in the world with the measure of total number of restaurant and system wide sales. The revenue of Burger King is mainly from (1) retail sales that owned by company restaurants (2) royalty payments on sales and franchise fees (3) property income from restaurants leased to franchisees. Management of Burger King planned to boost the...
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...alternative. b. Conduct External and Internal Analysis • Market factors Internal Factors Our leadership style and the styles of other business management impact organizational culture. The positive or negative nature, level of family-friendliness, effectiveness of communication and value of our employees are cultural implications that result from our leadership approaches. Other business often provides formal structure or direction with mission and vision statements. These will be our forward-looking statements that provide our business for c decisions and activities. The strength of our employees is another crucial internal business factor. Motivated, hard-working and talented workers generally produce better results than unmotivated, less-talented employees. Our business processes and relationships within and between departments and employees also significantly impact business effectiveness and efficiency. External Factors This include socio-economic factors relate to the values, attitudes and concerns of our target customers and their economic abilities to afford our products. The legal, ethical and political environments generally relate to our need to abide by business laws and to meet the ethical or social responsibility standards of our customers and communities. In some industries, technological evolution drives the need for business to adapt and constantly research for improvements. •Consumer behavior These consumers are not necessarily lazy, but are not always...
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...Case Studies Taurus Parker December 18, 2012 Professor Mozinski Business412 Business Policy DeVry University Development and Analysis of Two Mini Case Studies This is a SWOT analysis of McDonald’s and Burger King, they will be followed by a cross-case analysis of the two mini case studies. The information in these cases will be based on the growth of the two companies and their sales. McDonald’s SWOT Analysis McDonald’s is the second largest food chain in the world falling short to Subway according to Forbes they are bringing in around 2.6 million in sales per store. (Forbes, 2013). Listed below is the mission statement and SWOT analysis for McDonald’s. Mission Statement - “McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.” (Strategic management insight, 2013). Strength: McDonald’s uses $2 billion in advertising, more than 75% of restaurants are owned by independent franchises, the franchises attract children and locally adapted food menus. McDonald’s offer free unlimited Wi-Fi throughout their franchises. McDonald’s have a wide fan base from children to the business class working man. Weakness: McDonald’s have an unhealthy food menu, the employees...
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...Scholarly Activity 2 "Burger King Beefs Up Global Operations" Henry E. Jerkins Columbia Southern University International Business Professor Yvonne Balbin February 23, 2013 1 1. What is Burger King’s core competency? How does it relate to its chosen strategy? Burger King's core competency is the fact that they are the world's largest flamed-broiled fast food restaurant hands down. Simply put, Burger King's core competency means that they are more competent than their competitors when it comes to producing that type of goods and services. In addition, Burger King stands firm on its core competency of being the best at what it does when it comes to producing hamburgers and flame-broiled fast food. As a result of this strategetic move, it has positioned itself in becoming one of the markets leaders in the fast food restaurant industry. Further, it core competency is based upon its desire to set itself apart their competitors by way of differentiating their products. The differentiation of Burger Kings products are accomplished in two ways as it relates their competitors. First thing to consider is the manner in which the hamburgers are prepared, which is the flamed-broiled method. Secondly, is the various options that is afforded to the customers on how they would like to have their hamburgers prepared. The process has been the means that has allowed Burger King to become one of the market leaders in the...
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...Burger King’s History – Burger King was founded in 1954 in Miami, Florida. The corporation was initiated by James McLamore and David Edgerton. Prior to starting Burger King James and David had been deeply involved in the restaurant business. Their main idea for the restaurant was center around a place that people would come to and get the best quality food. They also wanted the experience to be in a pleasant atmosphere. Burger King operates more than 12,000 restaurants in all 50 states and in 76 countries worldwide. About 10,800 of those restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Below is their mission statement. Burger King’s Mission Statement – “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. We will conduct all our business affairs ethically, and with the best employees in the mid-south. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization." GAP Analysis: Where is your company now? Burger King Holdings, inc. was been founded in 1953. Burger King is the world'snumber 2 hamburger chains after McDonalds. By the early 2000s Burger King is a littleleft behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of...
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...III. Executive Summary This paper aims to explore the marketing mix of Burger King and create some recommendations in order for the company to make use of its marketing mix to its advantage. The marketing mix of the company is traced through research with the mostly secondary data, and some primary data in order to gather facts and provide for the analysis. However, due to limitations such as access to hard market data through formal quantitative and qualitative researches, the analysis may not be the most accurate representation of the market. This limits the analysis to most market data available from secondary sources. After the marketing mix has been determined, the applicability of the marketing planning process to the company’s operation is described. This will benefit the company in the strategic sense in order for it to either secure or push to a higher position. Finally, recommendations have been made in order to provide the company some options in order to facilitate growth by changing the combination of the elements in the marketing mix, and create a competitive advantage tailored to its chosen target market. IV. Body A. Methodology The scope of this business report is to describe the marketing mix of the company Burger King from primary and secondary resources in order to make an accurate analysis for their marketing planning process. By knowing the current marketing mix of the company, recommendations can be provided in order to boost growth for...
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...Ronnie Garland International Business Instructor: Milton Burger King Background: Burger King, a fast food restaurant business, grew from only 5 restaurants in Miami, Florida to 12,000 restaurants worldwide currently. Their outlets are located in 73 countries around the globe where 66% of them are in the US alone. Their flagship product, Whopper - a big sized burger, went into the market 3 years after the company was founded. The rapid growth in the number of BK restaurants was due to the implementation of the following expansion strategies: 1. Franchise Business and 2. Selling of territorial rights to investors at the same time during the years, BK also experienced several ownership changes resulting from selling and merger of companies. However, 48 years after that, in 2002, they found themselves burdened with financial problems which were caused by those strategies and ownership changes. Issue: Although Burger King became successful out side of the country, why wasn’t they’re successful in other places outside the country? There can be many reasons in why Burger King wasn’t successful I other places outside of the country. One reason can because the market turned out to be too small to support the necessary infrastructure such as being too small to develop slaughterhouses and beefing grinding facilities. Analysis: Although Burger King did not become successful in countries such as Columbia, France, Japan, and Oman...
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...Introduction Burger King is the world’s largest flame broiled fast food restaurant chain. As of 2011, Burger King operates restaurants in 12,300 locations serving over 11 million guests daily in 76 countries and territories worldwide (Burger King , 2011). Burger King’s core competency is its unique flame-broiled burgers. This process is difficult to imitate and helps differentiates Burger King from other fast food chains that fry their burgers instead. So much so in fact, no other fast food provider flame broils their burgers. In addition, Burger King allows and encourages consumers to customize the unique flame-broiled burgers with options to their liking. This creates a win-win situation for both Burger King and the consumer. Burger King has the benefit of offering a different product and the consumer benefits by having numerous burger options. Although Burger King has expanded its menu selections, they have remained true to their original flame-broiled burgers. This product gives them an advantage over other fast food chains. Facing intense competition and limited growth opportunities domestically, Burger King hopes strengthen their competitive stance through international expansion. By mid 2009, Burger King was not in any of the following countries: France, India, Nigeria, Pakistan and South Africa. Compare these countries as possible future locations for Burger King. In looking for new countries to enter, Burger King needs to identify countries that fit its ideal demographic...
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...already gained experience in the restaurant business in the past. In 1954 the first Burger King was open to the public in Miami, Florida (www.burgerking.ca/en/1122/index.php). By developing the first Burger King, James McLamore and David Edgerton had given the community a comfortable environment to eat inside of the restaurant, because the restaurant was the first fast food business to offer people the option of dining in the restaurant or going to the drive thru(www.burgerking.ca). With McDonalds being the largest fast food chain in the world, Burger King rates as the second largest hamburger fast food restaurant in the world, with Wendy’s following right behind it (Armstrong/Kotler, 450). Burger King came to be the second largest hamburger fast food chain in the world with a total amount of sales at $7.9 billion in the year of 2003, falling behind McDonalds with their sales being $22.1 billion (Armstrong/Kotler, 450). Burger King’s most popular product, the Original Whopper Sandwich was introduced to the world in 1957. The Whopper became a huge success and is still a world known sandwich that has a perfect fire-grilled taste (www.burgerking.ca/en/1121/index.php). This tasty hamburger was created to satisfy their customer so that any one as customer can have their food their own way which relates to their slogan "Have it your way", created in 1974. They state that their vision is to "proudly serve the best burgers in the business, plus a variety of real authentic foods...
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...Operational Differences Between McDonald’s & Burger King McDonalds (McD’s) and Burger King (BK) are key players in the fast food industry and have been competing for many years. They both provide similar food that is prepared quickly for a low price. So what sets them apart? The difference between McD’s and BK is their corporate culture – operational management. The manufacturing method at McD’s follows the “Doing It All For You” versus “Having It Your Way” at BK. The “Made to Stock” strategy at McDonald’s depends on an inventory of products, with great emphasis on the standard sized patties, which are made prior to processing a customer order. This means that when a sale is made and food delivered to the customer, the products in the order come from “the bin” – finished goods inventory. Please refer to Exhibit 1 for the process flow diagram of McD’s. The Burger King “Made to Order” strategy entails an assembly to order method with multiple product options tailored to the customer preference. At BK the “steam table” is used to assemble each order at the time the order has been placed. The “Made to Order” method relies on semi-finished inventory this is due to the fact that the whoppers and burgers are different sizes and therefore require pre-assembly of buns and patties. Once assembled, the burgers and sandwiches sit in the steam table for up to 10 minutes which are discarded if not sold within that time. While this step in the BK process can lead to waste of goods...
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...Dawn Bunting Increasing Burger King's Sales Through the Use of More Effective Marketing Strategies Marketing 201W Feedback To: Burger King's Marketing Department From: Dawn Bunting As marketers we know that wherever there is a Burger King restaurant, down the block we see a Mcdonald's restaurant—Burger King's biggest competitor. With the economy in a slump and “eating healthy” as the new trend, Mcdonald's isn't the only competitor. Subways, the “brown paper bag” lunch, 7-Elevens, and even vending machines have taken a large portion of Burger King's potential customers. Therefore, the challenge that Burger King faces is retaining its target market group and luring in other types of consumers, in order to hold its ground, while its competition tries to do the same (DataMonitor, 2010). The most notable problem, among the many that are to be mentioned here, is the current trends with its target market—18 to 34 year-old males. According to Mintel Reports, as of 2007, men, ages 18 to 24, spend 7.3% of their income on “food away from home” and men, ages 25 to 34, spend 6.0%—percentages that seem relatively high when compared to older males (Mintel Reports, 2007). Although the numbers seem pretty favorable, Burger King fails to cater to, and focus, on women. Studies have shown that fast food is one of the four most frequently purchased items by women, ages 18 to 34 (Mintel Reports, 2008). Furthermore, studies have shown that 70% of all women made...
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...Case Study Burger King Beefs Up Global Operations Rosalind Fields Columbia Southern University Burger King Beefs Up Global Operations by Rosalind Fields February 2012 Burger King leads the world in flamebroiled fast food restaurant chains and operates in all 50 states and 74 countries and territories of the United States. Daniels, Radebaugh, & Sullivan (2011) Burger King’s official websites states that it was founded in 1954 and currently serves over 11 million guests. Known as the Home of the Whopper, the same source explains that approximately 90 percent of Burger King restaurants are owned and operated by independent franchisees. Further explanation is given to the October 2010 purchase of the company by 3G Capital. 3G Capital is described as a firm that focuses on long term value creation. (www.bk.com ) Burger King’s is known for letting customers “have it their way; its core competencies are its flamebroiled burgers and the choices that it gives to customers for their burgers. This differentiates Burger King from the competition. (Daniels, J., Radebugh, L., & Sullivan, D. 2011 p.463) The company seems to have maintained its initial chosen strategy. Daniels, Radebaugh, & Sullivan (2011) supports this by explaining that although their menu has expanded over time, Burger King has been consistent with offering its flamebroiled burger and its signature product: ...
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...By mid-2009, Burger King was not in any of the following five countries: France, India, Nigeria, Pakistan and South Africa. And comparing these countries as possible future locations for Burger King will be as according to me the first preference will go to the countries that have good amount of Non-Veg consumption in it. As Burger King is known for its Non-Veg products e.g. Beef and Hamburger and other beef products. Which can be famous in all the countries whose people consumes the beef and Non-Veg products most. And where there is a good amount of youth too. Cause. France, Pakistan and South Africa will be the good and vast market for any country to Penetrate into it and get their business going well and expand their business as well as Get the best returns on it. As these are the countries with the large population and with big population of youth to who consumes Junk Food the most. In India they will have lesser chance to grow their business although there is a vast market for any company can’t resist to get in to it. But Burger King is Knows for the Non-Veg product and India’s most of the population consumes Veg products more. So in India there will be a large market but lesser chances to expand their business and getting successful they cannot get the success in India without changing their uniqueness. Nigeria is not a Large and vast market to get into as there are not more population and lesser ratio of youth people So, According to me Burger king should go ahead...
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...already gained experience in the restaurant business in the past. In 1954 the first Burger King was open to the public in Miami, Florida (www.burgerking.ca/en/1122/index.php). By developing the first Burger King, James McLamore and David Edgerton had given the community a comfortable environment to eat inside of the restaurant, because the restaurant was the first fast food business to offer people the option of dining in the restaurant or going to the drive thru(www.burgerking.ca). With McDonalds being the largest fast food chain in the world, Burger King rates as the second largest hamburger fast food restaurant in the world, with Wendy’s following right behind it (Armstrong/Kotler, 450). Burger King came to be the second largest hamburger fast food chain in the world with a total amount of sales at $7.9 billion in the year of 2003, falling behind McDonalds with their sales being $22.1 billion (Armstrong/Kotler, 450). Burger King’s most popular product, the Original Whopper Sandwich was introduced to the world in 1957. The Whopper became a huge success and is still a world known sandwich that has a perfect fire-grilled taste (www.burgerking.ca/en/1121/index.php). This tasty hamburger was created to satisfy their customer so that any one as customer can have their food their own way which relates to their slogan "Have it your way", created in 1974. They state that their vision is to "proudly serve the best burgers in the business, plus a variety of real authentic foods......
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...Burger king is the second largest fast food hamburger chain in the world with more than 12,174 restaurants across 76 countries 60% of which are located in the US & 90% of its restaurants are franchised. By looking at the industry, we can see that Burger king is operating within the fast food hamburger (FFHR) category of the quick service restaurant in the restaurant industry. Sales for the FFHR has been growing rapidly (with a total of 30% over the last 10 yrs) (inspite the of the economy crisis of 2008) & anticipated to sustain this annual growth of 3% till 2015. Although being in a promising industry, it’s obvious that burger king is facing a problem as we take into consideration that it accounts for ONLY14% of total FFHR in the US. The most important issues facing Burger king are the following: 1. Failure to scan its external environment & subsequently lagging behind competition : Burger king`s 12,174 restaurants doesn`t seem to compare to the 32,466 Mcdonald`s restaurants worldwide both in number & sales volume (Mcd. Sells twice as Burger king in US & is twice as profitable. 2. Decline in value of the company share price by half, in addition to a decrease in net profit (although the total revenue only decreased slightly) 3. Failure to recognize its potential opportunities by targeting a limited segment in the market.: ( young adults who were the most affected by the 2008 economy crisis) while ignoring a broader segment like kids & families. 4.Failure in adopting...
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