James Lamore and David Edgerton in the year 1954, marked the beginning of Burger King restaurant in Miami, Florida which is widely known as Burger King Holdings, Inc. today (annualreports.com/company/2878). Over a period of time, Burger King became the household name in fast food industry and has bagged the second position in the fast food industry across the globe in the year 2010. Burger King expanded its operation to 12,300 locations in 76 countries catering to over 11 million customers globally on a day today basis. (bk.com). The year 1967 marked a new beginning for Burger King when James Lamore and David Edgerton sold the business to a large food establishment named Pillsbury. Burger King Restaurants are both company and franchisee owned. Burger King Offers a wide range of delicious food including flame boiled hamburgers, variety of sandwiches, french-fries, soft drinks and many more affordable food stuffs. (annualreports.com/company/2878). Burger King Chain was counted among the ‘Best Global Brands List’ by interbrand in the year 2009. Burger King Chain was further taken over by 3G capital, a multi billion dollar global investment establishment in October 2010 with the vision of maximising the potential of business on long term. (bk.com). According to the recent study conducted by NDP Group Inc. a body that prepares and evaluates data for the total Quick service Restaurant(QSR) sales, revealed that Burger King is the largest food chain in the QSR sector generating revenues of about $63.2 billion in the U.S. in December 2010. The NDP reports also revealed that there will be a significant increase in the sales in Fast Food Industry by 5% per year. According to the annual reports 2010, Burger king contributed to 13% sales in U.S. in fast food hamburger restaurant chain. A recent report also revealed that about 90% of the Burger King restaurants are franchisee owned. Burger King’s tag line ‘Have it your way’ proves that it has managed to develop a cost effective quick service restaurant model which specialises in offering its customers quality fast food at very reasonable prices.(annualreports.com/company/2878). This report will now evaluate the strategic plans of Burger King to understand its holdings as second position in fast food industry globally. In order to perform this evaluation, few key factors of Burger King will be discussed using SWOT, PESTLE. Task 1
Burger King’s Business Strategy
Burger King Holdings Inc. has developed and followed a clear strategy aiming to expand and attain leadership in the fast food industry. Burger King believes and focuses on the future opportunities in the lead for the business for further growth. Burger King has adopted strategy which led them to attain the second position in the market and to continuously compete with their competitors in the market. The key strategies developed and implemented by Burger King are as follows: 1. Outspread global augmentation
The strategic road map focuses on maximising the geographical expansion of restaurants chain and it also aims at expansion of new restaurants. The strategic plan looks at the expansion of business through the franchisee ownerships and to do so Burger King facilitates all the franchisees with all the resources and support needed to expand and succeed further. The strategy also aims at venturing into global market for expansion concentrating especially on the market where their business already exist and also target areas with highly expected scope for further development such as European market like United Kingdom, Brazil, Spain, Germany, etc. It also targets at the highly potential markets which could offer greater development route for the business to flourish e.g., China, Russia, Taiwan, Hong Kong, Italy. The strategic plan also eyes on the market with sound financial grounds such as Middle East, Asia. The strategic plan facilitates greater investment in potential markets to gain world recognition for...