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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