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7/30/2019 Burger King_final Presentation
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Group member:
1. Neil Calvin
2. Doris Daud
3. Ibrahim Iskandar
CASE STUDY DISCUSSION
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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
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SWOT ANALYSISBurger King
Strengths
Strong market position
Greater franchise mix
Robust financial performance
Weaknesses Market concentration
Scattered Marketing Campaign
Opportunities
New products development
New opportunities in growing
economies
Positive outlook for restaurantindustry in the US
Threats
Intense competition
Expiry of Franchise Agreements
Acrylamide in French fries
Note:
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 environmentparticularly with Wendy and McDonald
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Balanced scorecard
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PROBLEM STATEMENT
1. Heavily concentrated in the US
2. Confusing advertisement campaigns
3. Inconsistent management and strategy
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ALTERNATIVE STRATEGIES
1. Increase average unit sales
2. Accelerate Net Restaurant Growth (NRG) &
continued sales growth
3. Global Refranchising
MENU IMAGE MARKETING COMMUNICATION OPERATIONS
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EVALUATION OF ALTERNATIVE STRATEGIES
1. Increase average unit sales
Positive Negative
Drive Store SalesLow Market
AcceptanceHigher Profits
Strong Return On Invested Capital
Increase The Staff ProductivityLack of experience staff
Reducing The Span Of Control
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EVALUATION OF ALTERNATIVE STRATEGIES
2. Accelerate Net Restaurant Growth (NRG) &
continued sales growth
Positive Negative
Master Franchisor
Legal ProblemsIndirect Management Position
Benefit From Management Talent
More Accessible Capital Overly Long Contracts
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EVALUATION OF ALTERNATIVE STRATEGIES
3. Global Refranchising
Positive Negative
Reposition Burger King Franchisee
CommitmentProduct-centric Focus
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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
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IMPLEMENTATION
(Short Term)
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Four Key Areas - Menu
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Four Key Areas - Marketing
1. Focused marketing message with food-centric advertisements to appeal toall 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
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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 10-
15%
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Four Key Areas - Operation
Successfully implemented Sales, Profit and
Operations Coaches who work shoulder-to-
shoulder with restaurant tea
Began ranking franchisees to increase
transparency and promote healthy
competition to improve operations system-
wide
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IMPLEMENTATION
(Long Term)
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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 long-
term unit development
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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
2. BKW typically receives cash and re-imaging and development
commitments in each refranchising transaction
3. We believe our refranchising strategy will continue to enhance our cash
flow, accelerate the re-imaging initiative and strengthen relationships
with key franchisees
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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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