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Burger King - Final Presentation

This document summarizes a case study discussion on Burger King. It provides background on Burger King including its size and ownership structure. It then performs a SWOT analysis and identifies Burger King's main strengths, weaknesses, opportunities, and threats. Alternative strategies are proposed and evaluated, with increasing average unit sales selected as the best strategy. Both short-term and long-term implementations are outlined focusing on menu, marketing, image, and operations to drive sales and growth.

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Coura Roger
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587 views19 pages

Burger King - Final Presentation

This document summarizes a case study discussion on Burger King. It provides background on Burger King including its size and ownership structure. It then performs a SWOT analysis and identifies Burger King's main strengths, weaknesses, opportunities, and threats. Alternative strategies are proposed and evaluated, with increasing average unit sales selected as the best strategy. Both short-term and long-term implementations are outlined focusing on menu, marketing, image, and operations to drive sales and growth.

Uploaded by

Coura Roger
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CASE STUDY DISCUSSION

Group member: 1. Neil Calvin 2. Doris Daud 3. Ibrahim Iskandar

CASE SUMMARY
1. Burger King is the world second largest fast food hamburger restaurant (FFHR) company. 2. The success and size of Burger King Corporation is the result of a tradition of leadership 3. At the end of its fiscal year 2007, Burger King reported that there are more than 11,300 outlets in 69 countries, 66% are in the United States and 90% are privately owned and operated. 4. In 2010, 3G Capital, purchased Burger King Corporation

SWOT ANALYSIS
Burger King Strengths

Weaknesses

Strong market position Greater franchise mix Robust financial performance

Market concentration Scattered Marketing Campaign

Opportunities

New products development New opportunities in growing economies Positive outlook for restaurant industry in the US
Note:

Threats

Intense competition Expiry of Franchise Agreements Acrylamide in French fries

The total of 3.10 shows that the strengths and weaknesses of Burger King are only at minor strength. The total of 3.55 shows that the opportunities and threats of Burger King are only at minor strength CPM 3.00 show they are competing in a competitive environment particularly with Wendy and McDonald

Balanced scorecard

PROBLEM STATEMENT
1. Heavily concentrated in the US 2. Confusing advertisement campaigns 3. Inconsistent management and strategy

ALTERNATIVE STRATEGIES
1. Increase average unit sales 2. Accelerate Net Restaurant Growth (NRG) & continued sales growth 3. Global Refranchising
MENU IMAGE MARKETING COMMUNICATION OPERATIONS

EVALUATION OF ALTERNATIVE STRATEGIES


1. Increase average unit sales
Positive Drive Store Sales Negative

Higher Profits Strong Return On Invested Capital Increase The Staff Productivity Lack of experience staff Reducing The Span Of Control

Low Market Acceptance

EVALUATION OF ALTERNATIVE STRATEGIES


2. Accelerate Net Restaurant Growth (NRG) & continued sales growth
Positive Negative Legal Problems Overly Long Contracts

Master Franchisor Indirect Management Position Benefit From Management Talent More Accessible Capital

EVALUATION OF ALTERNATIVE STRATEGIES


3. Global Refranchising
Positive Negative

Reposition Burger King Product-centric Focus

Franchisee Commitment

THE BEST STRATEGY AND JUSTIFICATION


Of all the three alternative strategies, we have concluded that increase average unit sales as the most appropriate strategy in handling Burger King competitive position

IMPLEMENTATION (Short Term)

Four Key Areas - Menu

Four Key Areas - Marketing


1. Focused marketing message with food-centric advertisements to appeal to all demographics using new tagline: TASTE IS KING 2. Balanced marketing approach with barbell strategy: Promotions support ongoing awareness of new menu platforms and drive traffic with target demographics Premium LTOs support the BURGER KING brand and customer check to increase franchise profitability

Four Key Areas - Image


Goal to have 40% of U.S. and Canada system units on a modern image by 2015

Re-imaged restaurants continue to experience an average sales uplift of 1015%

Four Key Areas - Operation


Successfully implemented Sales, Profit and Operations Coaches who work shoulder-toshoulder with restaurant tea Began ranking franchisees to increase transparency and promote healthy competition to improve operations systemwide

IMPLEMENTATION (Long Term)

Accelerate Net Restaurant Growth (NRG) & continued sales growth


Since 2011, we successfully entered into international development and joint venture agreements, laying the foundation for sustainable longterm unit development

Global Refranchising
1. Refranchised 181 restaurants in the fourth quarter and 871 during 2012, bringing the system to approximately 97% franchised as of December 31, 2012 BKW typically receives cash and re-imaging and development commitments in each refranchising transaction We believe our refranchising strategy will continue to enhance our cash flow, accelerate the re-imaging initiative and strengthen relationships with key franchisees

2. 3.

Conclusion
To Serve Best Burger In The Business Improve Their Service Level Agreement (SLA) Strengthen The Brand Image Of Burger King

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