BURGER KING GLOBAL OPERATIONS.
Q1. What is Burger Kings core competency? How does it relate to its chosen strategy?
Burger is the World Largest flame – broiled fast foods restaurant chain. It currently operates in about 12,00 restaurants in all 50 states and in 74 countries.
The core competency of Burger King is:
1. Distinct and Strong Brand.
2. Customer Focus through Franchising.
3. Target Growth.
Distinct and Strong Brand.
There are two major ways in which Burger King differentiate itself from its competitors. These are the way in which hamburgers are cooked (Flamed broiled method) and option it offers its customers as to how they want their hamburger.
The way in which Burger King advertise its process of preparing Hamburgers “Flame Broiled’ instead of grill that fry, gives the buyer the satisfaction of buying a healthy steak (Hamburger). This not only ensure patronage but make the targeted market group feels good about the product.
This later way of operation has been popularized with the term “have it your way “theme. It makes those who patronize this hamburger feels they are eating exactly the type of hamburgers they preferred. This not only work in terms of its strategy to gain market share but it also make younger generation identify with the product as young adolescence wants to have a feel they are making their own decision on what to eat instead of Mummy have them it her choice of food.
All this is achieved through strong advertising as seen on major advertising channels.
Customer Focus through Franchising
Burgers King currently operates in more than 74 countries world wide, its success has mainly been going into franchise with local companies and their ability to customise to suit the local market demand. This not only has ensured success, but has also rooted the company in the country of choice as runs its operation. This is emphasis by their second strategy which is to develop a loca management...
References: International Business, Chapter 12, Page 465 - 470. By Daniels Radebaugh Sullivan
Q2. How would you explain how Burger King has decided to configure and coordinate its value chain? Which of Burger King’s value chain activities creates the most value?
The option to go anywhere in the world to do any activity gives companies tremendous choice in where to locate value activities. Effectively Burger King is using this process to run their world wide business. Currently Burger King runs its value chain by identify its prime source of obtaining and processing its raw material beef in that country of operation. It uses the dispersed configuration to coordinate its activities. Every country identifies it sources of main raw materials, process them and sells them out as Hamburgers or any other product. They then pay royalty and return on any investment to the parent company.
The value chain activity which creates value is the turning the process meat and floor doe and finally to the finish product which brings in cash. If the final product is not sold off, capital will be locked up. This activity is where value is mostly created for the company.
Q3. Burger King globally expanded later than its main fast food competitor. What advantages and disadvantages has this created?
then dynamism of prevailing economic, legal, political, and cultural conditions spurs management to consider the cost implication of broader features of the environment. In effect, configurations are organised
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