Burger King Corporation

BurgerKing Corporation

Nameof Institute

BurgerKing Corporation

Thecompany I signed up for this project is the .I will present an integrated SWOT analysis and a VRIO analysis oncore competency assessment based on both assignments 1 and 2.Furthermore, key industry pressures and success factors will bementioned either. Moreover, I will give a brief explanation about thegeneric strategy and strategic objectives.

SWOTAnalysis

STRENGTHS

WEAKNESSES

  1. Improved food menu, marketing communications, operations and corporate image which will generate more consumer and sales traffic in the United States and Canada.

  2. The introduction of new food items like crispy chicken strips and caramel frappes will attract more consumers who desire to eat such food substances.

  3. The provision of differentiated products. For instance, the sandwich ingredients are unique to Burger King only.

  1. The Burger King franchise is only limited to the US and Canada hence it’s not able to capitalize on the consumer demands from across the world.

  2. It has a narrow target audience whereby it has many branches in North America (Canada and the US) despite its global brand.

  3. It is limited to operate only in North America in order to maintain the company’s franchising management.

OPPORTUNITIES

THREATS

  1. Develop new strategies to target market segments that have increased their disposable income.

  2. Innovate their programs and policies in order to increase organizational efficiency and upgrade the company’s environmental record.

  3. Improve the company’s portfolio by providing better products that are health-oriented and attract consumers who appreciate healthy food substances.

  4. The technological shift from the IBM mainframe to client servers using HP/UNIX and Windows NT consumer services will improve drastically. This will allow global dial-up capability due to the worldwide Point of Sale networks under the Smart Suite and Pentium platforms (Melnick, 2012).

  1. New firms entering the market that focus on giving consumers healthy food substance stand a better chance of competing with big fast food franchises like Burger King

  2. New companies in the market that aim for excellence, sustainability and environmental record will woo more and more consumers. In other words poaching consumers from Burger King.

  3. Heightened levels of competition from high end companies that are enforcing competitive strategies that will enhance their performance and service delivery posing a threat to Burger King’s customer services.

  4. The company’s debt structure is weak meaning that the debt to equity ratio is high compared to the industry’s average ratio in 2013. Basically, this means that Burger King is more than likely at the brink of debt.

CoreCompetency Assessment (VRIO)

Brand Differentiation

Valuable

Rare

Costly to Imitate

Organized Property

Implications for Competitiveness

YES

NO

YES

YES

Sustainable competitive advantage

Itis worth noting that, coming up with unique products, such as theintroduction of sandwich ingredients by Burger King, is a key topenetrate the market deeper by maintaining and attracting newcustomers. This is a key indicator that the company is spearheadingits competitive advantage over its competitors.

Wide Range of Products

Valuable

Rare

Costly to Imitate

Organized Property

Implications for Competitiveness

YES

YES

YES

YES

Sustainable competitive advantage

Distinctcustomer requires different types of products to meet their taste andpreferences. As a result, BurgerKing decided to continually increase their food menu in order tocustomers’ demand. Overall, this is a merit over its competitors,since Burger King is likely to receive heavy traffic of customers dueto its products diversity as compared to an outline that only dealswith a singular or few products.

Customer services

Valuable

Rare

Costly to Imitate

Organized Property

Implications for Competitiveness

YES

YES

YES

YES

Sustainable competitive advantage

Customersare the ultimate success drivers for any given organization. BurgerKing always improves its corporate image by offering outstandingservices to its customers as well offering great discounts to itscustomer. This has enabled it to maintain as well as attract newcustomers.

3Key Industry Pressures (External)

Intensity of rivalry based on the number of competing firms in the market, the variety of firms and the differentiation in their services and products to woo their customers. Plus, the intense aggressiveness of fast food restaurants and franchises is a major external pressure facing Burger King.

The bargaining power of buyers will be fueled by the increased demand from buyers, the population and variety of buyers as well as the availability of substitute in the form of restaurants.

Threat of substitutes this is a key external pressure because of the likelihood of Burger King being replaced by the numerous availability of substitutes in the consumer market.

3Key Success Factors (Internal)

Human resources the vast number of employees in all Burger King branches especially in the Information Technology sector whereby the firm has employed 65 permanent computer professionals and additional 60 to 70 contractors. This allows the firm to employ professionals based on qualifications, professional experience and talent rather than racial ethnicity.

Innovation and creativity this is applies in the marketing and advertising frontier whereby the firm has incorporate modern day advertising techniques on broadcast media to showcase their new and trendy services and products. Therefore, the essence of being creative with promotions is of utmost importance (Melnick, 2012).

Reputation Branding is everything in business, hence, Burger King has been a dominant force in the market gaining global recognition for its differentiated products as well as defeating their competitors in meeting their consumers’ demands.

GenericStrategy

BurgerKing employs a multi-faceted strategy whereby it hopes to primarilycontrol the sales and consumer traffic in the US and Canada in therestaurant business. For this to be realized, the firm has noted fourmajor priorities namely improved food menu, marketingcommunications, operations and corporate image. The realization ofthe improved menu has been made possible through the introduction offood substances like crispy chicken strips and caramel frappes. Thecreation of this new menu has made it impossible for customers tokeep off from any Burger King restaurant (Melnick, 2012). The newmenu has an offer that allows consumers to use less money as low as adollar when buying burger hence making it affordable for allconsumers irrespective of the buyers’ financial status.Furthermore, the restaurant has introduced new food accompanimentsthat serve the purpose of enticing customers. They include salads,smoothies and special coffee. Moreover, this strategy helps BurgerKing set its top priorities in check within a defined time frame. Forinstance, the firm wants to improve its sales margin within a timespan of 3 to 5 years. It is important to note that Burger King wantsto facilitate its international growth by creating joint ventureswith increased developmental targets whereby it will still maintain asizeable minority equity interest. Additionally, in order to remaincompetitive in the global market, Burger King hopes to join themaster franchise and legalized agreements with experienced localoperators (Melnick, 2012).

Theoperations within Burger King are usually production orientedprocesses that involves consumer products and services. Hence, theseoperations can be divided into larger sections since firms andorganizations differ. In the case of Burger King, waiters andwaitresses undergo rigorous training in handling customersprofessionally. This ensures that customers are happy and satisfiedwith the service they receive in any Burger King restaurant. On thefinancial frontier, Burger King hopes to manager all it corporatelevel G&ampA through the Zero Based Budgeting program in order toestablish a strong ownership culture by expecting all departmentalbudgets to originate from the ‘zero base’ rather than last year’sfinancial statistics (Melnick, 2012). For the Zero Based BudgetingProgram to function, the strategy should have a time frame throughwhich financial goals are achieved. For example, it is estimated thatwithin the next 3 years, Burger King should have improved budgetingand organizational efficiency of 5% after the implementation of theZero Based Budgeting. The organizational structure of the company isstructured systematically to ensure that all employees are technologysavvy. In other words, they are conversant with technical equipmentused in operating and running the machines used to make what BurgerKing calls, “Thebest burgers in the world.” Last year, Burger King merged with Tim Hortons which covered a totalof 18,000 restaurants across 100 nations with an income exceeding $22billion in annual sales (Melnick, 2012). Plus, this merger saw BurgerKing Pay taxes in Canada rather than in the US. It is evident thatBurger King wants to remain a dominant force in the fast foodindustry through enforcing strategies that are aligned with itsorganizational structure and capabilities. Throughout the years, thecompany has been operational it has effectively implemented all itsinternal and external strategies with precision and accuracy.

Compareand Contrast

Despitethe tremendous success, BurgerKing faces a serious threat, as it only relies on a particularmarket. The current strategy only targets the U.S. and Canada market,while its competitor are going for global market. As a result, itscompetitors are likely to have a high yield due to wider market.Additionally, although Burger King has a wide range of products, lotsof its branches are located in North America, thus limitingcustomers’ access. This means that, Burger King is likely to losecustomer across other region in the U.S. as well as Canada due tolack of accessibility. This signifies that its wide range of productscan be a waste, since only few customers can access it.

ToMove Forward

Itis perceptibly thatBurgerKing needs to open its market beyond the U.S. and Canada in order toremain in a competitive merit as its competitors. In addition, BurgerKing ought to open more branches on the other region across the U.S.and Canada, and not only focusing on North America.

Discussion&amp Recommendations

BurgerKing should continue with the same current strategy and strategicobjectives because they are in line with company’s vision andmission statement of providing customers with sumptuous meals thatwill satisfy their food related needs. The consumer oriented approachof improving the food menu is an excellent strategy because there isa growing concern within the social-cultural environment wherebycustomers are demanding for healthy food items at Burger King. Plus,this approach will brew a sense of product innovation and creativityon the part of Burger King because it would not want to lose theircustomers to their major competitors. Therefore, the introduction ofhealthy food substances as optional food items served at Burger Kingwill help the firm retain their healthy consumers while stillmaintaining its food quality. This strategy allows the company tobecome more flexible and quickly adjust to the demands of consumerswithout lowering the quality standards of their services andproducts. It is the reason why this franchise remains a dominatingfactor in the fast food chain for all the years it has beenoperational (Melnick, 2012). The increased rate of disposable incomeamong consumers in North America has forced Burger King to beinnovative and intuitive in terms of selling their products andservices. Due to the nature of the capitalist economies in Canada andin the US, most professionals opt to eat at a fast food restaurant atthe expense of preparing food at home. This is due to the fact thatcareer holders are usually limited on time due to their busy workschedule which forces most of them to either eat or order food fromthe restaurant. Hence, the presence of disposable income among suchpeople has forced fast food restaurants like Burger King to offerdiverse food substances that resonate with their needs (Melnick,2012). This economic trend has helped Burger King invest inpromotional advertisements on food items for lunch and dinner times.The technological aspect in today’s society has compelled mostcompanies to integrate technological systems in their operation andproduction systems to avoid the human-error factor. Embracingtechnological development has catapulted the scales at which BurgerKing has operated and conducted its business deals, negotiations andtransactions. In addition, it has also led to the infrastructuralgrowth of Burger King Restaurants with the installation of planningand control systems which are aligned with the financial, accountingand corporate strategies of the company.

Ingeneral, based on the financial strength of the firm, I wouldrecommend that Burger King needs to expand its branches all acrossthe world establishing regional headquarters and employ the localswithin that particular area to promote the local talent.

References

Melnick,J. (2012). LongLive the King.Retrieved August4,2015 from http://www.qsrmagazine.com/reports/long-live-king