Burger King SWOT Analysis

Strength Burger powerfulness serves a lot of burgers that is typic each(prenominal)y non available in early(a) lush foodrestaurant. Some of the examples argon, BK Mushroom Swiss which serves beef patty and topped withmushroom sauted sauce, Grilled Chicken burger which is prepared by grilling the yellow patty andothers. Most of the burgers prepared in Burger male monarch are cooked by properly grilling them over fire. Burger big businessman also serve varieties of side dishes in their restaurants such as mozzarella sticks, apple pie,Hersheys pie and others.Weakness Burger world-beater does not raise their products like their competitors do. Muslims who arenot familiar with Burger index would hesitate to try out their burgers as they are not sure whether it ishalal or not. Burger power also could not produce more sales than McDonalds because of lack grocery storeing strategy which would place them in a dis benefit spot in areas dominated byMcDonalds. Opportunity Burger fair y could improve their sales by producing more advertisements on theirproducts. They could also open new branches in major city all around the worlds and some ruralareas.Some of the state in Malaysia doesnt have Burger nance in their city so, Burger King could tryand open new outlet which will greatly meliorate their sales. Threat Burger King faces little terror from other major burger immobile food restaurant such as McDonalds andWendys. McDonalds produced the superiorest shareage sales among the three which is a threat forBurger King. The cost to produce the burger during inflation and lack of sales puts Burger King in atough spot and other burger quick food restaurant could take advantage to advertise new product andhence raising their sales.Burger King Introduction Burger King is the worlds sizeablest 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 territori es worldwide (Burger King , 2011). Burger Kings core competency is its ludicrous 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 fantastic 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 bring out, Burger King needs to secernate countries that fit its ideal demographic profile.Ideally Burger King would expand in areas that fit its ideal demographic profile. They need to find countries with higher populations (preferably youth) and concentrations of urban activity. Local diets consisting of high consumption of beef would be encouraging as their signature products are made of beef. Additionally, areas which are safe, maintain politically stable pro-business environments and have available capital of the United States are ideal. Burger King employees a franchising model as a method of growth and expansion.Burger King has strengthened its franchise stipulation to ensure standards of product select control and brand image are adhered and maintained. While a ll of the aforementioned locations hold promise in most areas of the ideal demographic, subtle nuances present unique challenges. Competitive research would need to be done to explore the feasibility of each location. Or at least provide a complete image for expansion into the respective countries. Burger King could learn from their own past errors in the countries they had retreated from as well as the mistakes of competitors.Due to a long standing agreement with the United States military, Burger King has been able to enter into numerous international locations relatively risk free by their placement of restaurants on military installations. This enables Burger King to allow an inside look at foreign locations and test products with local anaesthetic anaesthetics. It quite a little also help create demand and recognition. Variations in Burger Kings practices and strategies result from differences in markets, institutions and culture. Successful globalization is often synonymo us with masteryful localization.France Burger King previously had locations in France but withdrew from the market in 1998. One of the unique challenges of France is the apparent vainglory for the Statesns and American products. Sensitivity to local sentiments and possibly embracing local alternatives might be necessary. Given the high degree of tourism in France and their relative success in the rest of Europe, Burger King would benefit from international recognition making reentry easier. India Beef consumption in India is very low and almost nonexistent. Burger Kings signature burgers may not be very undefeated in India.Burger King would probably have to alter their menu to more familiar vegetarian dishes. Nigeria Burger King opened a restaurant in Nigeria in 2011. Pakistan Political stability and safety in this role of the world is always a consideration. Adaptation to local culture would require modification of food offerings, in particular in regards to pork based offering s. South Africa Burger King entered South Africa in 2010. (Burger King , 2011) When go in another country, discuss the advantages and disadvantages that an international restaurant company, specifically Burger King, would have in comparison with a local company in that market.Burger King is a large company with vast resources. In comparison to a local company, Burger King could have inherent advantages when entering a new market. While people are familiar with fast food chains, Burger King differentiates itself not barely in the products they offer but in the way they market their products. As an international company, Burger King could benefit from this brand recognition. This recognition helps ease the transition into new markets and could help stimulate sales. They can bring the benefits of economies to scale to bear in dealing with local suppliers.Burger King is able to adapt and experiment in the local environment given their expansive resources. Burger King can enhance their product mix to supply to local culture as well as demographics. The reception and ease of operation in foreign countries is generally favorable as they are investing in the local economy and providing jobs and services. Conversely, they may be unfamiliar with or understand the customs and culture of the indigenous people. Burger King may not be truly aware of what it is required to be successful in a particular country. Local competition can be contentious.Local companies learn from foreign fast food companies. Burger King will have to compete against local enterprises that are being developed both locally and globally. Local companies are able to promptly alter their menus and flavorings to appeal to local tastes. Local companies tend to be more sensitive to local customs and exhibit genuine passion for local interests. Additionally, thither may not be enough suppliers to support both Burger King and local restaurants. About two thirds of Burger Kings restaurants are in its Ame ricas region (United States, and Canada) and one third elsewhere.Should this relationship change? If so, why and how? The burger market in North America is considered mature. Given the heavy competition and saturation of similar products, the opportunities in North America may be significantly less than in other parts of the world. Similar competitors, notably McDonalds, have experienced success in markets outside of the United States and Canada. Likewise, Burger King has experienced success in certain international markets as well. Outside of Burger Kings Americas sort out (United States and Canada), the majority of Burger King restaurants are in Latin American and the Caribbean.Despite the heavy concentration of restaurants in these areas, these countries accounted for only 13. 5 percent of the non-Americas conclave revenue in fiscal year 2009. This is attributable primarily to the relatively small populations of these countries. In order for Burger King to remain competitive an d strengthen their market share, taking advantage of opportunities in other markets may make sense. Expansion in other countries could increase revenue and improve visibility in the international market place.Expanded market share could help strengthen strategic alliances with suppliers and stimulate competition. Expansion could also help diversify Burger Kings holdings. Diversification would help Burger King become less pliable to local economic conditions. Burger King also needs to learn from past mistakes as they evolve their franchise system. Past failures have identified circumstances when Burger King has been forced to leave a market. Inadequate franchisee investment and performance as well as ill suited market demographics have led to the gag from certain markets.The case mentions that Burger King prefers to enter countries with large number of youth and obtain centers. Why do you think these conditions would be advantageous? Burger King prefers to enter markets in foreign countries with large populations of youths and shopping centers. This demographic profile represents the ideal target market for Burger King restaurants, both domestically and internationally. Fast food and shopping centers tend to be marketed more directly to the youth population. Youth are accustomed to and show a preference for fast food and constitute the largest consumer group of fast foods.Older consumers tend to shy away from fast food restaurants and prefer more traditional foods and eating at home. Youth are less in all probability to go home and cook and are more likely to pick up food on the go. Shopping centers are an ideal setting for a fast food restaurant as they attract younger people. Offering fast food makes it convenient for consumers to obtain food while shopping or to take on the go. How has Burger Kings headquarters location influenced its international expansion? Has this location strengthened or weakened its global position? The Burger King chain has always had roots in the Miami, Florida area.The original Burger King restaurant first opened in the Miami area and the company headquarters has always been fixed there. The global headquarters helps Burger King manage and control all its international locations from a central location. Miami is a large metropolitan area and frequent tourer destination for travelers from all over the world in particular from Latin America. Due to a heavy concentration of Latinos, Miami has been labeled the Capital of Latin America. Additionally, Miami is a frequent destination for snow bird travelers thus gaining additional exposure for the Burger King brand.Burger King has benefited from this exposure and gained recognition in international communities. Familiarity with the Burger King brand helps ease the expansion in certain international markets and has strengthened its global competitive position. The close proximity to Latin America demonstrates their global consignment and helps ensure their cont inued presence in the Latin American community. It has facilitated the ease of oversight and allows Burger Kings management to easily visit these countries and for franchisees to visit Burger King headquarters.Additionally, Burger King is able to locally test products on the indigenous Latin community. The location in Miami has simplified their entry into the Latin countries. Burger King can use the experiences in South American countries as a basis for consideration for expansion in other countries. Evaluate Burger Kings strategy of using the brazil-nut treeian experience to guide its entries into Russia. Burger Kings basic strategy is to offer the lowest prices possible for its products and to continuously improve its menu to fit the needs of the customer.This can be seen in through its experiences in brazil nut which serve as a model for entry into Russia (Daniels, Radebaugh & Sullivan, 2011). Burger King observed the mistakes that have been made by other companies and used thei r mistakes as a learning experience and as a growth mechanism. The failure of many prior fast food entrants in the Brazil market made potential suppliers apprehensive. By observing the mistakes of other fast food chains, Burger King forged a strategy that has proved successful. Brazil has been one of Burger Kings fastest growing markets.This strategy can be summarized in five parts ( 1) develop an infrastructure before lay in restaurants, ( 2) develop a local management team, ( 3) focus development on major cities and adjacent geographies with established shopping mall location, prevalent in Brazils largest cities, instead of the whole country, ( 4) establish a local ability, and ( 5) support continuous development and the use of local suppliers that meet Burger Kings global specifications(Daniels, Radebaugh & Sullivan, 2011).Typically Burger King does not set regional restaurant support center for smaller markets or those where all the restaurants are franchised. Management deeme d a Brazilian office necessary because of Brazils size (in both area and population), its language barrier (Portuguese), and the magnitude of investment that suppliers and franchisees would eventually need to make. From the beginning the office served to demonstrate the companys market trueness and to handle early supply- chain procurement and management (Daniels, Radebaugh & Sullivan, 2011).Burger Kings success in Brazil based on this model has encouraged management to use the same strategy for expansion into Russia. It has offices in Moscow, where initial penetration is planned. In fact, duplication of the successful Brazilian strategy may be even more important for Russia because Burger King lacks the same pre- entry brand recognition that it had in Brazil (Daniels, Radebaugh & Sullivan, 2011). proof Burger King has many opportunities for expansion, in particular opportunities in foreign countries.Despite its more recent international growth, Burger King still operates in less than 40 percent of the worlds countries. Burger King faces the challenge of indentifying and deciding which locations are best suited for expansion. However, growth for growths sake is the mentality of a cancer cell. Burger King needs to engage in strategic expansion and only expand when the circumstances are favorable and demographical requirements have been met. Sources Burger King . (2011, November 10).Retrieved November 10, 2011, from Burger King http//www. bk. com/en/us/international/index. html Daniels, J. , Radebaugh, L. , & Sullivan, D. (2011). International Business. In J. Daniels, L. Radebaugh, & D. Sullivan, International Business. Upper Saddle River Pearson. Our Commitment to Corporate Governance Our codes and company policies encompass not only our core ethical principles, but specific issues that our employees and business partners face on a day-to-day basis.Our goal is to continuously reinforce our policies and procedures to ensure compliance with the righteousness as well as openness and accountability. 1. The core ethical and governance principles of BKC begin at the top. The board sets the tone at the top by promoting an ethical culture that respects and values all employees and stakeholders and encourages compliance with all laws and company policies. 2. As a condition of doing business within the BURGER KING system, every canonical vendor must comply with the Code of Business Ethics and Conduct for Vendors. 3.Weve partnered with, and received recognition from, a variety of organizations that share our dedication to being a good corporate citizen and improving our communities around the world. Download this Section of the Corporate Responsibility Report * Did you know? BKCs code of business ethics and conduct guides our commitment to good corporate citizenship everywhere we operate 74 countries and U. S. territories around the world. * Did you know? Our A+ rating by The Better Business Bureau is Based on our performance related to ethic al business practices.