Urger King Seeking Consistency
aRunning head: BURGER KING SEEKING CONSISTENCY
Burger King: Seeking Consistency in Leadership and Image Michael Petitti Marist College
BURGER KING SEEKING CONSISTENCY Abstract This paper will examine the image changes Burger King has undertaken in an attempt to reverse recent profit losses. Reasons for Burger King’s struggles will be discussed, namely its lack of vision and frequent leadership changes. Finally, solutions to Burger King’s fundamental flaws will be offered based upon research on change management, decision-making, and leadership methods.
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BURGER KING SEEKING CONSISTENCY Burger King: Seeking Consistency in Leadership and Image For nearly 60 years, Burger King has served flame-broiled hamburgers at an affordable price. In this sense, the fast-food chain best known for its over-sized sandwich has been nothing
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but consistent. Beyond the broiler, however, Burger King’s most notable trait is its inconsistency (Horovitz, 2007). The corporation’s longest CEO tenure was four years (Gross, 2004). When Brad Blum took over the position in 2004, he was the ninth to lead in 15 years. Since then, five others have held the job – the most recent being a former railroad executive with no fast-food experience (Horovitz, 2012). Some say the overriding motivation of several owners was to deprive Burger King of capital in order to pay parent shareholders quickly (Penney & Green, 2012). Others trace the chain’s decline to the mid-90s, when then-owner Diageo PLC neglected the company and its tanking sales (Horovitz, 2007). Regardless of one’s perspective, such a degree of ownership turnover leaves no time to develop a coherent strategy, let alone implement one. This paper will examine how inconsistency of leadership and its byproduct, a lack of a company vision, have overwhelmingly contributed to Burger King’s repeated financial struggles. Now more than ever, as the chain launches its broadest menu expansion in its 58-years (Choi, 2012) and makes its
Burger King: Seeking Consistency in Leadership and Image Michael Petitti Marist College
BURGER KING SEEKING CONSISTENCY Abstract This paper will examine the image changes Burger King has undertaken in an attempt to reverse recent profit losses. Reasons for Burger King’s struggles will be discussed, namely its lack of vision and frequent leadership changes. Finally, solutions to Burger King’s fundamental flaws will be offered based upon research on change management, decision-making, and leadership methods.
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BURGER KING SEEKING CONSISTENCY Burger King: Seeking Consistency in Leadership and Image For nearly 60 years, Burger King has served flame-broiled hamburgers at an affordable price. In this sense, the fast-food chain best known for its over-sized sandwich has been nothing
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but consistent. Beyond the broiler, however, Burger King’s most notable trait is its inconsistency (Horovitz, 2007). The corporation’s longest CEO tenure was four years (Gross, 2004). When Brad Blum took over the position in 2004, he was the ninth to lead in 15 years. Since then, five others have held the job – the most recent being a former railroad executive with no fast-food experience (Horovitz, 2012). Some say the overriding motivation of several owners was to deprive Burger King of capital in order to pay parent shareholders quickly (Penney & Green, 2012). Others trace the chain’s decline to the mid-90s, when then-owner Diageo PLC neglected the company and its tanking sales (Horovitz, 2007). Regardless of one’s perspective, such a degree of ownership turnover leaves no time to develop a coherent strategy, let alone implement one. This paper will examine how inconsistency of leadership and its byproduct, a lack of a company vision, have overwhelmingly contributed to Burger King’s repeated financial struggles. Now more than ever, as the chain launches its broadest menu expansion in its 58-years (Choi, 2012) and makes its